SoCal Property Secures $168M Refi
The financing replaces a $100 million-plus CMBS loan.
G.H. Palmer Associates has refinanced Park Sierra, a 776-unit, Class B garden-style apartment community in Santa Clarita, Calif., with a $168 million Freddie Mac loan arranged by Walker & Dunlop.
The refinancing featured a five-year, fixed-rate loan with a three-years interest only period and sizing based on a 35-year amortization schedule. The spread was 1.03 percent for a gross rate of 5.27 percent, said Trevor Fase, senior managing director of multifamily finance at Walker & Dunlop.
“The client had an impending loan maturity toward year end and decided to take advantage of the drop in rates and refinance now,” Fase told Multi-Housing News.
The refinancing replaces a $117 million Citibank CMBS loan that was originated in October 2018 by KeyBank with a four percent, fixed-rate interest rate that was set to mature on Nov. 1, according to Yardi Matrix data.
Fase said G.H. Palmer Associates, a Beverly Hills, Calif.,-based real estate company, is a repeat client of Walker & Dunlop’s and has had a longstanding relationship with the firm.
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G.H. Palmer Associates currently owns a portfolio of 15,039 Southern California apartment units, valued at more than $6 billion. In October 2022, the firm secured $120.1 million in permanent financing for Da Vinci Apartments, a 526-unit apartment community in downtown Los Angeles it built in 2016. The community is part of the developer’s Renaissance Collection that was built in phases and includes Ferrante, a 1,150-unit property that is currently under lease up.
Park Sierra Highlights
G.H. Palmer Associates completed Park Sierra, located at 18414 West Jakes Way, in 1987. The 30.8-acre property has 92 one- and two-story buildings with a total of 97 one-bedroom and 679 two-bedroom apartments. Floorplans range from 628 to 1,033 square feet with an average of 858 square feet. Rents average $2,382, according to Yardi Matrix data.
Approximately 97 percent of the apartments qualify as affordable housing units. The same source reports that occupancy is currently 95.6 percent.
G.H. Palmer Associates has rehabilitated about 40 percent of the units with significant additional capital investments planned at the complex. The units have vaulted ceilings, washers and dryers, private balconies or patios and outdoor storage.
Amenities at Park Sierra include five pools and spas, a fitness center, picnic and play areas. The complex has at least 776 parking spaces. There are also direct-access garages available in select units.
