JLL Arranges $173M in Multifamily Financing

The 14 Fannie Mae loans will be used for acquisitions and refinancings for properties in Idaho, Georgia, Oregon and California.
Image courtesy of JLL

JLL has arranged a flurry of multifamily loans totaling $172.9 million for 14 properties located across the U.S. According to JLL, the 14 uncrossed 10- and 12-year fixed-rate Fannie Mae loans were provided to multiple Southern California-based borrowers. JLL’s Keith Rosso and Marc Schillinger led a team that represented the borrowers who received loans that ranged from $6.1 million to $40.1 million.

Five of the 14 loans were used to finance the acquisitions of properties in Boise, Idaho; Pooler, Ga.; as well as in West Los Angeles, San Marcos and Escondido, Calif. The other nine loans were cash out refinances for properties located in Bakersfield, Escondido and Sacramento, Calif., and Portland, Ore. The loans covered a total of 1,334 units between the 14 properties.

According to JLL, all the loans were part of Fannie Mae’s Green Financing Program that allows borrowers to receive preferential pricing and additional loan proceeds if they invest in energy and water efficient retrofits. The program has grown significantly in the last few years, hitting $27 billion in 2018.

PANDEMIC-FUELED URBAN FLIGHT

Schillinger said in prepared remarks that JLL has seen a trend of its clients selling its urban infill assets and purchasing multifamily properties in suburban California submarkets that are more affordable. He added in his prepared statement that the trend is likely due to many residents adopting a remote work lifestyle and looking for lower cost alternatives than the traditional gateway market.

With the pandemic changing how the work environment looks, major California cities like San Francisco are forced to adapt. Many tech employees are leaving San Francisco for less expensive cities like Sacramento and Lake Tahoe, according to a January report from Graceada Partners.