Terrace Capital - Spearheads $7.2 MM Refinance for Multifamily Property in Atlanta, GA
Terrace Capital represented an established, local multifamily real estate developer (MSC Investment & Management) in the refinance of Sierra Forest Apartments, a 272-unit class B, apartment complex located at 6660 Mableton Parkway in the city of Mableton, Cobb County, Georgia.
Published on: Mar 4, 2016
Transcripts - Terrace Capital - Spearheads $7.2 MM Refinance for Multifamily Property in Atlanta, GA
Terrace | Capital, Inc
Rea l Es ta te In ves tm en t Ba n k in g
FOR IMMEDIATE RELEASE
For Transaction Inquiries Contact:
Terrace Capital, Inc.
65 Broadway- 7th Floor
New York, New York 10006
Direct Dial: (212) 671-1031
Terrace Capital Spearheads $7.2MM Refinance for Multifamily Property in the Atlanta,
New York, New York – July 18, 2011 - Terrace Capital, Inc., represented an established, local
multifamily real estate developer (MSC Investment & Management) in the refinance of Sierra
Forest Apartments, a 272-unit class B, apartment complex located at 6660 Mableton Parkway in
the city of Mableton, Cobb County, Georgia. The city of Mableton is located in the Atlanta
Metropolitan Statistical Area and has a population of approximately 26,000.
The proceeds of this $7.2 million loan were used by the borrower for the repayment of a private
bridge loan, originally utilized for the purchase and renovation of the complex.
According to Mr. Dragone, the senior banker and team leader on this deal at Terrace Capital,
“MSC Investment is a seasoned development company with access to a wide range of financial
institutions throughout the country. When their local banker’s stopped funding permanent loans
on properties with limited operating history, due to the stagnant economic climate and substantial
vacancy rates in the Atlanta MSA, MSC turned to Terrace because of its ability to navigate the
non-recourse, credit markets and provide innovative solutions for low cost, permanent financing
during the worst credit crunch since the Great Depression”
The 5-year non-recourse loan, with a 5.21% interest rate fixed for 5 years and amortized over 30
years, closed within 7 days of investment committee approval. Multiple challenges existed in
structuring the deal, which included a limited, stabilized occupancy history of 3 months, a
market vacancy rate of approximately 17% and a limited equity position of 10% in the project.
Terrace is now currently exploring providing equity for MSC to acquire additional multifamily
complexes between 100 & 400 units in the Atlanta MSA, via the Landmark Opportunity Fund,
real estate hedge fund managed by Terrace Capital.
Terrace Capital is a direct lender and asset manager of private funds which provide debt or
equity capital for commercial real estate transactions. The Firm is a leader in providing
conventional mortgages and bridge loans solutions for wide range of real estate transactions.
For more information about Terrace Capital and the services it provides, go to