Keller Investment Properties is refinancing a 13-asset rental housing portfolio in the Western U.S. with a $718.5 million CMBS loan. The portfolio spans three states, with six properties in Utah, four in Nevada and three in Arizona.
According to reporting from Multihousing News, the financing will be provided by an affiliate of Nomura. The two-year loan is structured on a floating-rate, interest-only basis, aligning short-term, flexible debt with the current capital plan for the assets. The execution consolidates and refinances existing obligations across a diversified multifamily and student housing portfolio.
Of the total proceeds, approximately $696.3 million will be used to refinance existing debt on the properties. The remaining $22.2 million is allocated to closing costs and reserves, providing dedicated capital to support transaction expenses and future property-level needs. The structure indicates a focus on preserving liquidity at the asset and portfolio levels while maintaining access to institutional credit.
The collateral for the loan consists of 12 multifamily communities and one student housing property, totaling 3,321 units. The assets were delivered over a long development window, from 1987 through 2022, with a weighted-average construction year of 2004. This mix of vintage and newer product is supported by a portfolio-wide weighted-average rent of $1,632 per unit, as reported in the source coverage.
Several third-party firms are assigned to roles within the CMBS structure. Midland Loan Services, a division of PNC Bank, will act as the master servicer on the transaction, responsible for primary servicing functions. Argentic Services Co. has been named special servicer, taking on responsibilities tied to workout or special situations should they arise over the life of the loan.
Computershare Trust Co. has been designated as trustee and certificate administrator for the securitization, overseeing trust-level administration and investor reporting. BellOak LLC will serve as the operating advisor, a role that typically provides oversight and recommendations around special servicing and other servicing activities, as set forth in the transaction documents.
The refinancing aggregates debt across a sizable portfolio of rental housing in Utah, Nevada and Arizona, combining conventional multifamily and student housing units under a single CMBS execution. While specific property locations and individual asset business plans are not disclosed, the transaction size and structure underscore the ongoing use of securitized lending channels for large-scale multifamily portfolios in the Southwest and Mountain West regions.
