NEW YORK, NY--(Marketwire - February 4, 2013) - Apollo Commercial Real Estate Finance, Inc. (the "Company" or "ARI") ( NYSE : ARI ) currently voiced the shutting of two passageway financing exchange totaling $43 million. The initial investment was an $18 million passageway loan feel safe by a declaration of the equity interests in the owners of two buildings in midtown Manhattan that will be converted in to 215 multifamily let units and the second investment was a $25 million passageway loan feel safe by a declaration of the equity interests in the owners of a portfolio of 4 hotels totaling 1,231 keys located in Rochester, Minnesota. Since the commencement of 2013, ARI has voiced the shutting of $183 million of new investments that have been underwritten to produce a weighted median IRR of 13%(1).
In addition, currently ARI moreover voiced a two year prolongation to the Company's chief repurchase trickery with JPMorgan Chase Bank, N.A. (the "JPMorgan Facility") together with the settlement of two passageway loans feel safe by the equity interests in the owners of a portfolio of sell selling centers totaling $50 million.
Mezzanine Loan for New York City Multifamily Conversion
The Company supposing an $18 million passageway loan feel safe by a declaration of the equity interests in the owners of two buildings in midtown Manhattan. The buildings enclose a complete of 181,637 rentable block feet that is being converted in to 215 multifamily let units. The passageway loan is segment of a $90 million, three-year (two-year initial tenure with a one-year prolongation option) interest-only, buoyant rate financing comprised of the passageway loan and a $72 million initial housing loan loan. At the time of ARI's investment, the fascination rate on the passageway loan was LIBOR+10.0% and will enlarge to LIBOR+11.0% as particular housing loan appropriation hurdles are met. ARI received a 1.0% contract price at closing. When the initial housing loan loan is entirely funded, the passageway loan will have an appraised loan-to-value of roughly 60% and has been underwritten to produce an IRR of roughly 13%(1).
Mezzanine Loan for Rochester, Minnesota Hotel Portfolio
The Company supposing a $25 million passageway loan feel safe by a declaration of the equity interests in the owners of a portfolio of 4 hotels totaling 1,231 keys located in Rochester, Minnesota. The hotels are inside of on foot stretch of the Mayo Clinic, an internationally eminent illness caring trickery that treats over a million patients annually from around the world. The passageway loan is segment of a $145 million five-year, prearranged rate loan, comprised of a $120 million initial housing loan loan and the passageway loan, that was supposing in connection with the merger of the portfolio. The fascination rate on the passageway loan is 11.0%. The passageway loan has an appraised loan-to-value of roughly 69% and has been underwritten to produce an IRR of roughly 12%(1).
Amendment to JPMorgan Facility
The Company nice its JPMorgan Facility to expand the tenure for two years (one year initial tenure with a a year prolongation option). Pricing on the JPMorgan Facility will sojourn at LIBOR+2.5% and ARI will pay a 0.5% price is to initial year and a 0.25% prolongation price is to second year. The Company essentially uses the JPMorgan Facility to financial ARI's initial housing loan loan investments.
Repayment of Mezzanine Loans
The Company received leading settlement on two passageway loans totaling $50 million feel safe by the equity interests in the owners of a portfolio of sell selling centers located via the United States. In connection with the repayment, the Company received a concede continuance remuneration totaling $2.5 million. With the concede continuance payment, the Company satisfied a 15% IRR(1) on its passageway loan investment.
(1) The IRRs is to investments minute in this press let go simulate the earnings underwritten by ACREFI Management, LLC, the Company's outmost manager. The IRRs are distributed on a weighted median basement presumption no dispositions, early prepayments or defaults but pretence extensions together with the cost of borrowings and derivative instruments beneath the Company's chief repurchase consent with Wells Fargo Bank, N.A. With apply oneself to the passageway loan is to New York City Multifamily Conversion, the IRR computation assumes particular projections with apply oneself to the timing of the appropriation of the comparison loan. There may be no self-confidence the real IRRs will next to the underwritten IRRs shown in this press release. See "Risk Factors" in the reports filed by the Company with the Securities and Exchange Commission for a deliberation of a few of the factors that could adversely repercussions the earnings received by the Company from its investments over time.
About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. ( NYSE : ARI ) is a blurb housing loan real estate investment certitude that essentially originates, invests in, acquires and manages comparison conducting blurb real estate housing loan loans, blurb mortgage-backed bonds and other blurb real estate-related debt investments via the U.S. The Company is outwardly managed and suggested by ACREFI Management, LLC, a Delaware paltry guilt firm and an surreptitious auxiliary of Apollo Global Management, LLC, a leading universal substitute investment executive with $110 billion of properties beneath administration at September 30, 2012.
Additional data may be found on the Company's website at www.apolloreit.com .
Forward-Looking Statements
Certain statements contained in this press let go consecrate forward-looking statements as such tenure is tangible in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are expected to be covered by the safe port supposing by the same. Forward-looking statements are theme to significant risks and uncertainties, many of that are tough to envision and are normally over the Company's control. These forward-looking statements add data about probable or insincere future results of the Company's business, financial condition, liquidity, results of operations, skeleton and objectives. When used in this release, the difference "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or identical expressions, are expected to pick out forward-looking statements. Statements concerning the subsequent to subjects, amid others, may be forward-looking: the lapse on equity; the concede on investments; the capability to steal to financial assets; and risks related with investing in real estate assets, inclusive changes in business conditions and the broad economy. For a serve list and outline of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are formed on the Company's beliefs, assumptions and expectations of its future performance, receiving in to account all data currently existing to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any goal or responsibility to refurbish or correct any forward-looking statements, either as a outcome of new information, future events or otherwise, solely as compulsory by law.