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Capital One Provides $26.1MM to Refi Florida Apartment Community

July 19, 2019, 08:50 AM
Filed Under: Real Estate
Related: Capital One

Capital One announced that it has provided a $26.1 million Fannie Mae fixed-rate loan to refinance Crystal Palms Apartments, a 175-unit apartment community in Boca Raton, Florida. Brian Sykes, Senior Vice President in Capital One Multifamily Finance’s Boston office, originated the transaction. The sponsor, Scully Company, is a repeat Capital One customer. The 10-year loan has a five-year interest-only provision, amortizing on a 30-year schedule thereafter. Capital One closed the loan within 35 days.

The property qualified for Fannie Mae’s Choice Refinancing program, which offers a streamlined refinance execution for Fannie Mae portfolio mortgage loans in good standing, and Capital One was able to deliver better terms than originally expected. Because Scully Company opted for Streamlined Rate Lock at application, proceeds were in part based on estimated insurance costs. When actual insurance costs proved to be higher, Capital One’s insurance specialists discovered that coverage could be safely reduced, which not only lowered the company’s premiums but also increased its proceeds.

“Capital One really looked out for our interests,” said Michael Scully, co-chair of the company. “In addition to turning the insurance issue into a net positive, Brian’s team delivered attractive pricing and waived the collection of escrows without reducing our leverage.”

Scully Company controls a portfolio of several thousand units, with concentrations in Florida, Pennsylvania, and New Jersey. It purchased Crystal Palms in 1997. Over the last three years, it has substantially renovated the property, replacing appliances, carpets, and flooring in select units while making exterior improvements. The community has a heated swimming pool, fitness center, tennis and basketball courts and 24-hour emergency maintenance. Units feature gourmet kitchens with stainless steel appliances, washers and dryers, and screen patios and balconies.

“This transaction highlights our commitment to going the extra mile for our customers,” Sykes said. “In this case, we were able to provide Scully Company with a very attractive loan structure that maximizes their discretionary cash flow.”

Capital One Bank’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. Additional information can be found at

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