Rising Interest Rates Didn’t Stop $61M Refi

Fairfield Properties borrowed $61 million to refinance Fairfield Broadway Knolls at Holbrook, a 284-unit Class A apartment complex in Holbrook, NY, a community in Eastern Long Island.

The borrower and its lender was able to come up with a plan that could handle both rising interest rates earlier this year, and take advantage as interest rates fell back once the year got underway.

“During the course of underwriting, rates started to rise, which eroded the proceeds,” said Robert Akalski, senior vice president with lender Capital One. “At that point, we circled a fixed-rate for them. As rates declined, we were able to return to the original swap format that the company preferred.”

The 10-year fixed-rate loan has 23 months of interest-only payments, followed by amortization on a 30-year schedule. The new loan replaces a bridge loan that was used to purchase the property at 2200 Dolphin Lane.

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