SOURCE: HomeStreet Capital

March 24, 2008 16:49 ET

HomeStreet Capital Arranges $40 Million in Apartment Financing

DUS Activity on the Rise

SEATTLE, WA--(Marketwire - March 24, 2008) - HomeStreet Capital, one of the Northwest's oldest multifamily and commercial real estate lenders, has provided $41.3 million in permanent financing for two apartment projects in Puyallup, Washington. The loans were coordinated through Schiro Financial, Inc. of Fircrest, Washington. Financing was arranged by Gregg Weed, HomeStreet Capital, through the Fannie Mae Delegated Underwriting and Servicing (DUS) program.

"We are seeing a significant resurgence in DUS loans in the first quarter of 2008," said Kevin Kleen, vice president and income property production manager for HomeStreet Capital. "This is in part due to the decline of the conduit market, and also to a more streamlined, aggressively-priced and flexible DUS product line."

Meridian Firs Apartments and Willow Hill Apartments were built in the 1970s, with additional structures added in the late 1980s. The owner purchased both properties in January 2006, renovating them over the next two years to bring the aging units up to modern, condominium-quality standards. Meridian Firs has 186 units; Willow Hill has 265. Both properties will be managed by Dobler Management Company.

The project is located in the city of Puyallup, in the heart of retail services and office buildings. The neighborhood has experienced a decrease in the multifamily vacancy rate since 2006 and a steady increase in rent per unit for the last five years. The area is characterized by increasing population, low unemployment rates, growth in industry and easy access to major employers, including the largest local employer, Fort Lewis Army Base. Nearby employers include McChord Air Force Base, Tacoma Public Schools and Madigan Army Medical Center. Additionally, Boeing opened a new aircraft assembly facility two years ago on the south side of Puyallup, and Intel recently completed development of a new facility 20 miles away in Dupont.

"The combination of a growing employment base combined with a low rate of new multifamily construction in the Puyallup market made these deals very attractive," said Kleen.

HomeStreet Capital has been providing loans for multifamily and commercial real estate projects since 1921. HomeStreet Capital offers competitive services and loans for permanent, construction, bridge, forward, renovation and refinancing of income property through a wide range of loan programs, including Fannie Mae DUS™ and HomeStreet Bank portfolio funds. HomeStreet Capital is headquartered in Seattle, Washington with offices in Washington, Oregon and Hawaii. For more information, call 888-999-7909 or visit www.homestreetcapital.com.

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