Cigna Investments has provided a $43 million acquisition loan to Pure Multi-Family REIT (Pure Multi) on the 368-unit Alexan Fairmount mid-rise apartment community in Dallas, Texas.
The loan holds a fixed interest rate of 3.4 percent over a 12-year term and is interest-only for the first two years. Pure Multi purchased the property for $71 million, bringing the financing’s loan-to-value to 60.5 percent. HFF arranged the deal.
The Alexan Fairmount is located at 4210 Fairmount Street in the Oak Lawn neighborhood near Uptown, the Medical District, Old Parkland Campus and the central business districts in Dallas. The property includes one- and two-bedroom units and was completed in 2015.
Cigna held a total of $19 million in commercial real estate loans backed by apartment buildings in Texas as of June 30, 2016, according to its latest quarterly report (Q2). That compared to the firm’s total of $378 million in loans backed by apartments nationally, which constituted 21 percent of its $1.8 billion commercial mortgage loan portfolio.
Pure Multi, a Canadian real estate investment trust focused on multifamily properties, has 17 multifamily properties, including the Alexan Fairmount, in its portfolio, comprising 5,565 apartment units.
The Dallas/Fort Worth market had over 30,000 multifamily units under construction at the beginning of Q2 of this year, the same amount as Houston, according to a report from JLL.