We focus 10 percent of our time on a problem and 90 percent of our time on solutions. It’s our culture. The record-setting $184 million refinance that closed Thursday at West Village in Raleigh-Durham is a classic example of that culture and how our people are solutions-oriented.
After listing West Village in the Fall of 2020, we didn’t receive any offers we were willing to accept. The property is also an incredible asset we are happy to own long-term.
VP Brock Wright and the analytics team immediately started working on alternative plans. After crunching the numbers, Brock’s team recommended a refinance that would break all previous company records.
“This refinance allows us to return 100 percent of the remaining capital to our investors,” Brock said. “It also puts us in a great position to sell later this year. It’s pretty incredible to put a $184 million loan on the property when you realize we purchased it for $187 million in 2016.”
How did it happen? Our outstanding reputation and our successful 29-year company history put us in phenomenal position to partner with new lenders who were looking for business during COVID.
“We began interviewing new lenders to see who would show up,” Brock said. “Two different lenders began competing for our business. West Village is an incredible asset. That coupled with our reputation was a winning combination.”
Keeping this 609 unit property operating is no simple task. The West Village team was responsible for keeping all three phases running smoothly while also working with 16 retail tenants to successfully close the $184 million transaction.
“More than half of the associates in the leasing office at West Village have been with us less than six months,” partner and COO Bob Lloyd said. “Executing our systems at West Village is key to success, and this new team has the right mindset. Their efforts absolutely were critical in closing this monumental refinance.”
On the maintenance side, partners Pedro Ducos and Brittney Merritt have done phenomenal work leading our service associates. West Village was $8,100 under budget on repair and maintenance 2020 YTD, while techs Andy Szosz, Brad Wells and Earl Hunt averaged a $35.60 cost per turn.
Closing the $184 million transaction in Raleigh-Durham is about as complicated as they get. Transaction lead Emily Lazar is coordinating the efforts at the central office. It requires coordinating documents across 10 different parcels, 16 different retail tenants, parking agreements…the list goes on.
With the refinance, the property is now in even better position to sell later in 2021.
“We now have an appraisal that proves the value of the property is a minimum of $275 million. This will provide some of the bigger buyers in the market the confidence they need to strike a deal,” Brock said.
Our team at West Village is now committed to hitting a $1.4 million revenue target by August to successfully sell the property later this year.
“I love this. This is what I thrive on,” partner and senior director Erica McLoughlin said. “I’m ready for the challenge.”