Transamerica Life Insurance Company has provided an affiliate of North Dakota-based Sterling Real Estate Trust with $62.6m in financing for the acquisition of a 1,422-unit apartment portfolio in the Minneapolis-St. Paul metropolitan area of Minnesota — aka the Twin Cities.
The loans back five of seven garden-level apartment buildings that the REIT bought for a reported $103.5m.
Two cross-collateralized loans were used to spread the timing of future refinancings and carry an aggregate 65% loan-to-value, according to a statement from CBRE’s capital markets group, which arranged the financing.
A 10-year, 16.7m loan carries a 3.72% fixed interest rate; and a 15-year, $45.9m loan has a 4% fixed rate.
“This transaction provided Sterling with the opportunity to acquire a large portfolio of well occupied, well maintained and well located multifamily assets,” said Brad Swenson, president of Sterling Real Estate Trust, in a statement.
The deal finances the acquisition of the 462-unit Georgetown on the River in Fidley (see image); 360-unit Rosedale Estates in Roseville; 240-unit Brighton Village apartments in New Brighton; 240-unit Maplewood Apartments in Maplewood; and 120-unit Robinwood apartments in Coon Rapids.
Transamerica is part of the Aegon Group, a global pension, insurance and asset management firm.