NorthMarq Arranges Refi for OC Community
The Sares-Regis-owned Aliso Creek Apartments in Aliso Viejo includes 535 units, three spas, 866 parking spaces and a cyber cafe.
Shortly after arranging a $20.5 million refinancing loan for Lenox Pointe Apartments in Warner Robbins, Ga., NorthMarq Capital has arranged $141.5 million to refinance Aliso Creek Apartments in Aliso Viejo, Calif. The financing for the owner, Sares-Regis, was secured through a serviced CMBS lender.
Located at 24152 Hollyoak, the pet friendly community comprises 535 one- and two-bedroom layouts ranging from 795 to 1,275 square feet. Comprising 52 two- and three-story buildings, the property was constructed in 1984 and currently has an occupancy rate of 93.1 percent, according to Yardi Matrix. Interior features include stainless steel appliances, granite countertops, garden-style windows, pantries, white or oak cabinets, washer/dryer hookups, walk-in closets, fireplaces, vaulted ceilings, skylights, ceiling fans, central air and heat, linen closets and private balcony/patios. Common area amenities include:
- fitness center
- wading pool
- barbecue areas
- outdoor fireplace
- cyber cafe with TV and lounge
- business center
- two tennis courts
- two swimming pools
- three spas
- laundry facilities
- 866 parking spaces
- outside storage
The financial plan
The financing closed at 5.2 percent, 1.2 IO DCR and 78.5 percent LTV on a 4.5 percent California cap rate. The transaction was structured as a full term interest only loan, providing a long-term capital solution to the borrower and took out the senior bridge and mezzanine deal placed by NorthMarq Capital in 2014. According to Yardi Matrix, the 2014 deal was for a $140 million loan held by Prudential Financial.
The company will securitize the pure investment Grade A note in June 2018. Two Korean institutions will split the B note. The mezzanine loan was placed with Goldman Sachs, according to Yardi Matrix. The bank took down all of the secured debt at closing and will cut the B notes prior to securitization of the senior portion. NorthMarq will service the A and B notes totaling $121.5 million. The mezzanine provider will receive direct payments on the $20 million mezzanine loan.
“We closed a highly structured transaction with a major New York investment bank. The execution was excellent and they held the ‘all-in’ spread despite market widening without re-trades,” said Executive Vice President & Managing Director Michael Elmore, who negotiated the financing for this deal. “While this was a complicated financing package, all parties worked great together including the mezzanine provider.”
Image courtesy of NorthMarq Capital