The Bond Apartments

The Bond Apartments

$42,854,000 Perm Loan

139-Unit Multi-Family

Redmond, WA

Highland successfully arranged permanent financing for the acquisition of The Bond Apartments in Redmond, WA. The sponsorship sought maximum loan proceeds while simultaneously acquiring a brand-new asset at an attractive basis during its lease-up. COVID-19 slowed the leasing velocity and suppressed rental collections prior to closing which negatively impacted the loan sizing of conventional permanent lenders.

Highland identified a lender that provided a split tranche, A/B note funding structure, locking in the interest rate spread day one, and which will fund a B-note within 6-months after the close-of-escrow based on T-1 rent collections at that time.  This allows the sponsorship to get the property operating in-line with pro forma expectations compared to temporary COVID-related declines during lease-up. The non-recourse permanent loan will be fixed for 10 years priced in the low 3%’s featuring 4-years of interest only followed by a 30-year amortization.

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