The Deal: Crystal Palms L.P., the owner of the Crystal Palms Apartments in Boca Raton, obtained a $16.47 million refinancing from Fannie Mae. The loan closed Oct. 31 and replaced a maturing $11.8 million mortgage from Freddie Mac.
The owner is managed by Jenkintown, Pennsylvania-based Scully Co.
Details: The property built in 1980 at 6874 Palmetto Circle South has 175 units, according to CoStar Group Inc.
Fuerst would not disclose the loan’s interest rate or other terms.
He has nicknamed the refinancing “the Sandy deal,” as the late-October superstorm threatened to scuttle the transaction altogether.
The attorney mapped out the deal to close Oct. 30, leaving an extra day in case anything unforeseen occurred. The existing Freddie Mac loan accrued interest through the end of October regardless of what day it was paid off. Fuerst’s client would have had to pay interest on two loans if the transaction stretched into November.
Superstorm Sandy struck the Northeast on Oct. 29, putting the deal in peril. The borrower is based in Pennsylvania, the loan servicers were based in Boston and Philadelphia, and Fannie and Freddie’s attorney was based in Washington. All were affected by the storm.
“Fortunately that morning the principal of my client got into the office to get the documents signed,” Fuerst said. “Astonishingly, FedEx picked them up that day and got some of the documents out to where they needed to be. Then we had the amount of the loan change the day before closing because of some market movement.”
Fuerst credited the attorneys, Fannie and Freddie with allowing his client to close on the refinancing with scanned documents as opposed to originals.
“I was very surprised,” he said. “They were trusting and cooperative.”
Background:Fuerst is a Fort Lauderdale-based shareholder at law firm Greenspoon Marder. He represented Crystal Palms L.P. in the transaction.
Fannie Mae was represented by Washington attorney Jeremy McLean, a Troutman Sanders associate.