Cornerstone Realty Arranges $9.5M Hub Refi

BOSTON — A $9.5 million refinancing of two Fenway apartment buildings is the latest such loan delivered through Cornerstone Realty Consultants, a Stoneham-based mortgage brokerage firm focused on the multifamily arena. The loan from Blue Hills Bank covers 165 and 171 Hemenway St., abutting structures that have been consistent performers in a neighborhood where the vacancy rate for multifamily is virtually zero percent. The tenant base comes from nearby college students attending Northeastern University and young professionals working in the city. As a result of the asset’s pedigree, “there was a lot of interest” among lenders to refinance borrower Nora LLC on properties the group has owned since June 2004, relays Cornerstone principal Paul Natalizio, who arranged the loan with colleague Brett Pagani. “Urban multifamily is incredibly hot,” Natalizio says, as insufficient construction and demand from a growing pool of renters has bolstered Boston fundamentals. Coupled with low interest rates and Natalizio says owners are becoming receptive to testing refinancing of debt. Given the investment sales sphere is also booming, Cornerstone is heading towards the spring season stocked with assignments, Natalizio relays. “We’ve got a lot in the pipeline and a bunch of new (listings),” he says. “It has been a great year so far.” Just prior to the Hemenway Street closing, Cornerstone assisted the owner of a Winchester apartment community in the $7.5 million refinancing of six attached buildings housing 37 apartments. South Shore Savings Bank stepped forward to fund the loan that is backed by the threestory structures assembled at Church and Lewis Streets and branded Winchester Chambers. The borrower is Albiani Management Company Trust. “The location of the property itself made this a strong deal, but when combined with the strength of the borrower— who has owned and operated this property since 1977—it brought significant interest from potential lenders,” says Natalizio. Winchester Chambers also has generous unit sizes that average out to 1,350 sf. The mix features mostly two-bedroom apartments but there are also a few three-bedroom units with 1.5 baths. Those positives “allowed Cornerstone to obtain its client a loan with the aggressive interest rate structure they were looking for,” adds Natalizio, who declined to discuss specifics or identify the client.