Featherstone Partners, a Virginia Beach, Va.-based real estate investment firm, has refinanced two Greensboro, N.C., multifamily properties with a total of $27.3 million in Fannie Mae loans. The company also sold a third asset it had acquired alongside the two communities nearly three years ago.
Greystone originated the Fannie Mae refinancing of 120-unit Terrace Oaks and 156-unit Terrace at Olde Battleground on behalf of Featherstone, a repeat client. Hunter Bowling of Cushman & Wakefield, meanwhile, represented Featherstone in the sale of 180-unit Madison Woods to an undisclosed buyer. The identity of the buyer and the purchase price could not immediately be learned.
The three Greensboro properties were acquired by Featherstone from TerraCap Management for approximately $49.3 million in November 2020. Terrace at Olde Battleground was bought for $19.9 million, while Terrace Oaks was purchased for approximately $10.9 million, according to Yardi Matrix data. Madison Woods’ 2020 sale price was not available but is estimated to have been approximately $18.4 million based on the Yardi Matrix information. TerraCap acquired the three-property portfolio in a joint venture with Willow Creek Partners for $36.2 million in June 2017.
Justin Hechler, director at Greystone, originated the $27.3 million in total Fannie Mae Delegated Underwriting & Servicing financing for Terrace Oaks and Terrace at Olde Battleground. Both properties received 10-year, fixed-rate loans with 35-year amortizations and six years of interest-only payments. According to Yardi Matrix, the loan for Terrace at Olde Battleground was approximately $16.8 million and the loan for Terrace Oaks was $10.5 million.
Chuck Patty, managing partner at Featherstone Partners, said in a prepared statement that the three-part refinancing was tricky due to the economic environment and high cost of capital, but having a thorough understanding of the mechanics that went into each step and working with Greystone made a difference. The deal was able to close in 28 days.
Property details
Terrace at Olde Battleground is the newer of the two properties that were refinanced. Located at 3800 Cotswold Ave., on approximately 13 acres, the community was completed in 1990 and is 94.4 percent occupied. The property has one-, two- and three-bedroom layouts ranging in size from 777 to 1,705 square feet, with an average of 1,175 square feet. Rents range from $1,061 to $1,879, with an average of $1,530, according to Yardi Matrix data. The apartments have vaulted ceilings and washer and dryer hookups in all units. The residences have private entries and private balconies or patios.
Community amenities include a fitness center, business center, clubhouse, playground, pool, laundry facilities, a picnic area with fire pit, a dog park and wash station and a car wash station. The property has a total of 319 spaces, including detached garages, which are available for an additional fee.
Located at 3803 Cotswold Ave., on approximately 15 acres, Terrace Oaks was completed in 1986 and is approximately 93.3 percent occupied. The property has one- and two-bedroom floorplans ranging in size from 756 to 1,060 square feet, with an average of 952 square feet. Rents range from $953 to $1,313, with an average of $1,188, according to Yardi Matrix data. The apartments have washer and dryer hookups and fireplaces in all of the units, as well as private balconies or patios. Community amenities include a fitness center, business center, clubhouse, pool, tennis and pickleball court and laundry facilities. The property has 205 parking spaces and outside storage.
