Pacific Southwest Arranges $32M for Calif. Apartments
- Apr 16, 2014
Northridge, Calif.—Pacific Southwest Realty Services has arranged a $32 million loan secured by Park Parthenia Apartments, a 447-unit community located in Northridge, Calif. A private investor owns the asset and was looking to refinance a maturing CMBS loan, preferably with a non-recourse life company loan. Scott Clark and Ted Willis of Pacific Southwest’s Los Angeles office worked to arrange the financing.
The new fixed-rate loan has a 10-year term with a 25-amortization schedule, as well as an interest rate in the low 4 percent range. Financing was provided by a correspondent life insurance lender.
“This property was little unique for most of our life company lenders,” says Willis. “However, the property consistently outperforms the market, the borrower is very strong, and the lender saw real value in the proposed financing.”
The transaction closed in 46 days. Park Parthenia is within a gated community and features a swimming pool, a community center, laundry and carports.
NorthMarq negotiates $26.3M student housing buy
Morgantown, W. Va.—Lee Weaver, senior vice president of NorthMarq Capital’s Tampa based regional office, secured the $26.3 million acquisition of West Run Apartments, a student housing property at 500 Koehler Drive, Morgantown, W.Va. The transaction was structured with a 10-year term and 30-year amortization schedule and was arranged for the borrower by NorthMarq through its relationship with a CMBS lender. The 343028-square-foot property is positioned to capitalize on the favorable market dynamics that have been created by West Virginia University’s robust enrollment growth.
“Our lender maintained course through unforeseen challenges in the closing process and the deal closed as originally quoted,” says Weaver.
Centerline provides $4.8M FHA 223(f) loan to refinance affordable property
New York—Centerline Capital Group announced it has provided a $4.8 million FHA HUD 223(f) to refinance Foxwood Apartments, an affordable multifamily facility located in Panama City, Fla.
Constructed in 1980, Foxwood Apartments was acquired in 2011 and renovated using proceeds from the sale of 9 percent Low Income Housing Tax Credits and conventional financing. The renovation—totaling in excess of $35,000 per unit—was completed in June 2013.
“Centerline completed the most recent refinance using the FHA 223(f) program under the Three Year Waiver Rule to provide permanent financing at an attractive fixed rate,” explained Jim Gillespie, managing director at Centerline Capital Group. “The proceeds from the FHA loan were used to retire the existing indebtedness and cover related transaction costs.”
Foxwood Apartments is a 100-unit affordable multifamily housing property that benefits from a long-term Section 8 HAP contract covering 100 percent of the units. The property is comprised of 13, two-story apartment buildings that house a total of 100 units, and a single-story community center.
“Having recently completed an extensive rehabilitation, the property is in very good condition,” Cindy Hannon, senior vice President at Centerline, says. “The new loan structure will help preserve much needed affordable housing in the local community.”
Foxwood Apartments is located about 2 miles northeast of Panama City, and the economic outlook for the area is positive.
“The borrower is a repeat Centerline customer with extensive experience in affordable housing throughout the state of Florida, and the affiliated property management company has solid local market knowledge and expertise as well. The successful refinance of Foxwood Apartments as a quality affordable housing complex will serve its residents well into the future,” concluded Gillespie.