- What Western Wealth has lined up $298m of Freddie Mac debt
- Why The funds will go toward refinancing nine properties
- What next Each property now backs a separate five-year mortgage
Western Wealth Capital has lined up US$216.1m ($298m) of Freddie Mac debt to refinance nine of its properties, Green Street News can reveal.
The North Vancouver-based multifamily syndicator injected an undisclosed amount of equity in the deal to pay off floating-rate debt and to lower their financing costs with fixed-rate debt. Each property now backs a separate five-year mortgage originated by JLL. The loans, which are not cross-collateralized, closed on Sept. 27.
The properties, built from 1979 to 1989, encompass 2,262 units in the Atlanta, Dallas, Las Vegas and Phoenix metropolitan areas. Western Wealth acquired them from 2020 to 2022.
The largest property is the 372-unit Somerset, at 256 East Corporate Drive in Lewisville, Texas, 19 miles northwest of Dallas. It backs a US$27.5m loan in the refinancing deal.
Western Wealth acquired the garden-style complex in 2021 for US$53.4 million, financing the purchase with a US$36.7m floating-rate Freddie loan originated by Berkadia and securitized later that year (FREMF 2021-KF113).
Somerset has one- and two-bedroom apartments, along with two pools with cabanas, a fitness center and a dog park.
The largest loan in the package, totaling US$38.4m, is collateralized by Mod, a 316-unit complex at 2222 West Beardsley Road in Phoenix. Western Wealth paid US$54m to purchase that property from Tides Equities in December 2020, using a US$39.9m Freddie loan originated by Berkadia and securitized the following year (FREMF 2021-KF100).
The property has studio to three-bedroom units. Amenities include two pools with cabanas, a basketball court and a dog park. The property is near the intersection of State Route 101 and Interstate 17, 15 miles north of downtown Phoenix.
On the other properties, Western Wealth paid off debt from Bridge Investment Group, Greystone, PGIM Real Estate and Voya Financial.
Western Wealth has invested in more than 29,000 apartments across 129 properties. The company acquired roughly 60 apartment complexes from 2020 to 2022, and it is one of the largest apartment owners in the Phoenix area.
