New Urban Residential is pleased to announce the successful refinancing of Willow Bend Apartments, a 44-unit garden-style multifamily community located in Durham, North Carolina, further strengthening the firm’s portfolio positioning and long-term investment strategy.
The refinancing, secured through Freddie Mac’s Targeted Affordable Housing program, totaled over $6 million and reflects both the stability of the asset and the continued confidence of institutional lending partners in New Urban Residential’s operational performance and asset management approach.
Strategic Financing Structure
The transaction was structured with a focus on both near-term cash flow optimization and long-term value preservation, featuring:
- 7-Year Loan Term
- 5 Years Interest-Only (IO)
- 2% Rate Buydown
- Safe Harbor Tax Abatement
This capital structure provides enhanced flexibility during the early years of the loan while positioning the asset for continued performance in a dynamic interest rate environment. The interest-only period, in particular, supports improved cash flow, allowing for reinvestment into operations and strategic capital initiatives.
Asset Overview & Performance
Willow Bend is a 1993-vintage garden-style community consisting of 44 units with an average unit size of approximately 888 square feet.
At the time of refinancing, the property was operating at 95% occupancy, demonstrating strong demand fundamentals and effective on-site management.
Key highlights include:
- Stabilized occupancy levels
- Consistent leasing performance
- Durable asset fundamentals within a high-growth submarket
Durham continues to benefit from strong population growth, employment expansion, and proximity to the Research Triangle, reinforcing long-term rental demand.
Execution & Market Positioning
This refinance underscores New Urban Residential’s ability to:
- Execute favorable financing in evolving capital markets
- Maintain high-performing stabilized assets
- Leverage agency lending programs to optimize returns
- Preserve affordability while enhancing operational efficiency
By securing financing through Freddie Mac’s targeted affordable housing platform, the transaction aligns with both financial objectives and broader housing accessibility initiatives, reinforcing the firm’s commitment to responsible and sustainable multifamily operations.
Partnership & Closing
The financing was arranged by CBRE’s Multifamily Debt & Structured Finance team, whose execution and market expertise were instrumental in delivering a competitive structure tailored to the asset’s performance profile.
Looking Ahead
The successful refinance of Willow Bend represents another milestone in New Urban Residential’s continued growth across the Carolinas. With a disciplined focus on operational excellence, strategic capital deployment, and market-driven decision-making, the firm remains well-positioned to navigate market cycles and deliver consistent value to investors and stakeholders.
