By Joshua Ayers, Senior Editor
Bethesda, Md.—Berkeley Point Capital has announced that, along with Fannie Mae, it has closed on a $36 million loan that will allow Horizon Realty Partners (HRA) to purchase Woodlake Village Apartments. The 646-unit community is located near Sacramento State University in Sacramento, Calif. The duo closed on a 10-year loan that carries a fixed rate of 4.92 percent. Berkeley Point’s Mitch Clarfield, senior managing director in the firm’s Santa Monica office, originated the loan.
The Sacramento community was constructed on 30.4 acres in 1979. Berkeley Point, which was already familiar with the property and market, was contacted by the seller to evaluate the property and facilitate the transactions. The deal was closed within 45 days.
“This was our first loan execution with Berkeley Point and we are pleased the company met or exceeded on all aspects of the transaction,” says Tim Smith, principal at HRA.
While Berkeley Point offered several different financing options from both Fannie Mae and Freddie Mac, the buyer decided on the 10-year Fannie Mae route that would fulfill its goal of a 75 percent loan-to-value ratio with five years of interest-only payments, after which the loan would amortize over a 30 year schedule.
Woodlake Village is composed of 85 buildings and is located next to U.S. Route 50, about six miles west of downtown Sacramento and a mile south of Sacramento State Campus, which encouraged the previous owner to expand its student occupancy to about 30 percent.
The community’s amenities package includes a clubhouse, fitness center, four pools, a Jacuzzi, a volleyball court, a basketball court, tennis courts, barbecue areas, carports and laundry rooms. Select apartments have in-unit washers and dryers, as well as fireplaces and balconies/patios.
HRA has budgeted $6 million for capital improvements that will help make the property more desirable to students in the area. Sacramento State, a member of the 23-campus California State University system, has a student enrollment total of 28,500.