Affordable San Diego Asset Lands $52M Refi
- Sep 28, 2018
Berkeley Point Capital has arranged a $52.4 million refinancing deal for Lantana Hills Apartment Homes, an affordable housing community in San Diego. Fannie Mae’s Affordable Housing Group provided the loan, which features a 12-year term, eight years of interest-only payments and 10 years of yield maintenance at a coupon of 4.5 percent. The borrower used the financing to retire tax-exempt variable rate bonds totaling $37.5 million, issued by the City of San Diego in 2004.
Located at 5802 University Ave., the property is 15 minutes from downtown San Diego and close to interstates 805, 15 and 8. Built in two phases, Lantana Hills encompasses 300 units constructed in 1955 and 80 units added in 1986. The property comprises one and two-bedroom apartments, with an average size of 746 square feet. According to Yardi Matrix data, amenities include:
- fitness center
- business center
- two swimming pools
- 700 parking spaces
- 23 acres of lush landscape and small parks
The 51-building asset underwent renovations totaling $5.9 million between 2014 and 2017, which included new wood flooring, quartz kitchen countertops, new kitchen appliances and accessories. The borrower intends to invest another $1.4 million into the property in 2018.
Mitch Clarfield of Berkeley Point’s Santa Monica office arranged the loan for an affiliate of the Convermat Corp. Earlier this year, Clarfield was also involved in the $59.4 million refinancing of the 598-unit Autumn Park Apartments in Charlotte, N.C.
Image courtesy of Berkeley Point Capital