Borrowers Land Multifamily Loans of Nearly $28M

[IMGCAP(1)]COSTA MESA, CA-Two Freddie Mac loans, including a $4.6 million refinancing here and a $23.28 million deal in Rancho Cucamonga, show that apartment loans are closing these days despite the overall sluggish capital markets. The $4.6 million deal in Costa Mesa refinanced a 50-unit complex, while the $23.28 million refinancing follows a similar $22.1 million loan via Freddie Mac that the same borrower closed recently.

Shaun Moothart of the Costa Mesa-based Alison Co. tells GlobeSt.com that the $4.6 million refinanced a maturing loan for the Orange County-based owner of South Coast Fountains Apartments, a complex that was built in 1989 and is less than a mile away from the South Coast Plaza regional shopping mall. Moothart and Carl Fuller and of the Alison Co. arranged the loan despite “negative changes in market fundamentals throughout the closing process,” he notes.

[IMGCAP(2)]The loan closed at what the Alison Co. describes as “a very competitive rate priced over LIBOR,” with a life-time cap of 25 basis points lower than that of the fixed interest rate for the maturing loan. The new loan amortizes over 30 years. The South Coast Fountains Apartments consists of six two-story buildings with a mixture of units from one to three bedrooms featuring a community pool and covered parking garages. The units range from 673 square feet to 1,566 square feet.

In the Rancho Cucamonga transaction, senior managing director Whit Wilcox of the New York City office of Holliday Fenoglio Fowler reports that the institutional owner of the 260-unit Ironwood Apartments closed a seven-year, adjustable-rate loan that refinances a maturing loan that the borrower had with a portfolio lender. Wilcox placed the Freddie Mac loan, working on behalf of institutional investors advised by J.P. Morgan Asset Management-Global Real Assets.

Located at 11100 Fourth St., Ironwood Apartments is less than a mile from the Interstate 10 and 15 freeways and was 94% leased at the time of the loan closing. Its 260 units range from one to three bedrooms and average 920 square feet each.

Residents of Ironwood and the adjacent 236-unit Fairway Palms, which is owned by the same borrower, have access to amenities at both properties including swimming pools, fitness centers and clubhouses.Wilcox also placed the recent $22.1 million Freddie Mac that paid off a maturing loan for the Fairway Palms, which was also a seven-year, adjustable-rate mortgage.