S
impson Property Group secured a $260 million loan to refinance six apartment complexes, including two in Austin. BWE, a multifamily mortgage company, originated the loan through Northwestern Mutual for Simpson Property Group. The portfolio comprises over 1,500 units and includes properties in Austin, Charlotte, Denver, Beaverton (Oregon), and North Austin.

    The five-year loan carries an interest rate of 5.07 percent and has a 55 percent loan-to-value ratio, indicating the properties are worth approximately $473 million. Simpson Property Group will direct some financing to SkyHouse Austin and The Addison Apartments in Austin, as well as Victory Flats in Beaverton, The Encore Southpark in Charlotte, and Hartley Flats and Studio LoHi in Denver.

    The portfolio's vacancy rate is 5 percent, and all properties are less than 10 years old. BWE's Stephen Perricone noted that the company began underwriting the deal early to address potential market changes. Austin's multifamily market faces challenges due to a historic supply of new units and falling rent rates, which have dropped by as much as 12.8 percent in Southeast Austin over the past year.