GSP Arranges $17M Loan for Sacramento Community

Montecito Villas

Montecito Villas, a 120-unit community in Sacramento, Calif., has received $17 million in refinancing. The non-recourse package features a $10 million cash-out component. Principal Antonio Hachem, along with Vice Presidents Wendy Wang and Bart Zucker of George Smith Partners (GSP) arranged the loan on behalf of the private owner.

Montecito Villas is located at 2400 Sierra Blvd. The property comprises 64 one-bedroom and 56 two-bedroom units, averaging 813 square feet. Common-area amenities include a fitness center, swimming pool, spa, two laundry facilities and 120 parking spaces. As of August, the property is 95 percent occupied, according to data provided by Yardi Matrix. Montecito Villas is near the busy Fair Oaks Boulevard, where dozens of restaurants, retail and entertainment destinations can be found. California State University is 2 miles away, while downtown Sacramento just over 7 miles.

Healthier market

The current financing package replaces an existing agency securitization. In 2011, Montecito Villas benefitted from a $6.9 million CMBS loan, provided by Fannie Mae, according to Yardi Matrix. GSP secured the current loan at a fixed 4.24 percent rate for 10 years, with a 30-year amortization period. The loan represents a 65 percent LTV ratio and is structured to offer assumption rights if the asset is traded, as well as potential for future loan advances.

“As the state’s capital with a growing and diverse economy, Sacramento increasingly offers an enticing alternative to the Bay Area and Central Valley, both for multifamily investors and lenders. The city has seen an influx of 14,900 jobs in the past year, reducing unemployment rates to historical lows and increasing housing demand in the region,” said Hachem in a prepared statement.

Image courtesy of George Smith Partners