Los Angeles Community Gets $121M Financing
- May 31, 2019
A downtown Los Angeles multifamily community has secured $128.1 million in financing. Orsini II, a 566-unit property owned and managed by GHP Management, obtained the financing through George Smith Partners.
The 10-year, fixed-rate, interest-only and non-recourse loan was obtained at a 4.24 percent rate with a 55 percent loan-to-value by Gary M. Tenzer, principal & co-founder at George Smith Partners. The new loan replaces a $115.2 million floating rate loan the advisory firm arranged for the property in 2016. That loan had a remaining term or more than 8 years, with pre-payment penalties in place.
Orsini II is a five-story community located at 550 N Figueroa St., at the nexus of Highway 101 and Interstate 110. The property is the second of three phases of the Orsini development, which totals 1,072 units built between 2003 and 2010, according to Yardi Matrix data. The three properties offer a mix of studio, one- and two-bedroom units averaging 833 square feet in size.
The Orsini properties feature resident amenities including a fitness center, business center, clubhouse, volleyball court, basketball court, playground, two swimming pools and spas, covered parking and a media room.
The downtown Los Angeles area has been a popular draw for developers over the last year, leading to a stall in rent growth as a slew of new supply hit the market, according to a recent Yardi Matrix report. In January, ASB Real Estate Investments secured $95 million in financing for WaterMarke Tower, a 35-story residential high-rise in the Financial District.