By Laura Calugar
Capital One provided a $9.5 million Freddie Mac fixed-rate loan to refinance Midway Meadows, a 92-unit affordable apartment community in Midway City, Calif. SC Development, the sponsor, is a repeat customer of both Freddie Mac and Capital One. Kristen Croxton and Greg Reed, senior vice presidents in Capital One’s Multifamily Finance office in Newport Beach, Calif., facilitated the transaction.
Located at 14852 Park Lane, the property is close to Interstate 405 and roughly 35 miles from Los Angeles. The 13-building, one-bedroom community includes six laundry facilities and 115 parking spaces. According to Yardi Matrix data, Advanced Property Services currently manages the asset.
Fast action enabled SC Development to take advantage of Freddie Mac’s Index Lock program during a period of treasury rate volatility reducing its cost of funds over the 15-year loan. “Capital One and SC Development have all worked together in the past. As a result, we were able to quickly structure a loan with moving parts,” said Croxton, in a prepared statement.
SC Development built Midway Meadows in 1987 under a 30-year ground lease from Orange County. The lease agreement called for an age-restricted affordable housing property for the term of the ground lease, which recently expired. SC Development purchased the land, establishing fee-simple ownership of the property. Although SC Development is no longer under any obligation to observe age or rent restrictions, the company intends to continue operating Midway Meadows under the current tenant base.
Image courtesy of Capital One
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