$8.85M Finances Apartment, Renovations

FULLERTON, CA-A private real estate company has secured $8.85 million in financing to fund the purchase and rehabilitation of the 88-unit Citrus Pointe Apartments at 2444 Orangethorpe Ave., according to Johnson Capital, which arranged the funding.

S. Amos Smith of Johnson Capital tells GlobeSt.com that the $8.85 million includes a $6.9 million loan and $1.95 million in equity financing.The loan floats over the 30-day LIBOR and provided in excess of 80% of the total cost of the purchase and the renovations combined, Smith says. An institutional joint venture equity partner provided the $1.95 million in equity, which represented the majority of the remaining funds needed to capitalize the transaction, Smith says.

Citrus Pointe includes 44 one-bedroom apartments, 40 two-bedroom units and four three-bedroom units. The two-story, wood frame and stucco complex was built in 1962 and has been renovated several times, Smith tells GlobeSt.com. Most recently, the property was renovated about three years ago, but the new owner will rehabilitate it further to maximize rents. Rents now are about $800 for the one-bedrooms, $1,000 for the two-bedrooms and $1,200 for the three-bedroom units. Anticipated rents after the remodeling are $950, $1,200 and $1,400.