Lakeshore II Apartments – Hampton, VA

July 20, 2007 - Union Capital Investments, LLC provided permanent financing for the refinance of Lakeshore II Apartments in the amount of $4,850,000. The 6.20% fixed rate loan is for a ten year term with interest only payments for the first five years of the loan, and is based on a 75% loan-to-value, with debt service coverage of 1.15. The loan is structured with prepayment at 1% for the first half of the final year of the loan term, and prepayment at par for the last six months. Replacement Reserves are capped at two years’ worth. The Borrower elected to personally guarantee the top $1,000,000 of the Loan to provide a 1.45x DSCR. Union Capital has financed 34 deals totaling $565,000,000 for the Borrower.

Lakeshore II Apartments is the second phase of a 377-unit, three-phase apartment complex in Hampton, Virginia, just one-quarter of a mile from the interstate. Lakeshore II was developed in 1964, and improvements include four two-story Class B buildings containing 88 units located on 2.81 acres. Amenities include a fitness center, swimming pool, volleyball court, a large playground, laundry facilities, and an adjacent lake. Just south of Lakeshore II is a newly constructed BJ’s Club, Outdoor World and numerous local shops and restaurants, and the Coliseum Mall is one-quarter of a mile from the property. The mall is anchored by Hecht’s, JC Penney, Burlington Coat Factory, Barnes and Noble and Steve and Barry’s, and has 87 specialty retail stores, and is in the process of being redeveloped. Hampton City Transit stops directly in front of the property. Lakeshore II is 95.5% occupied.