Bellwether Enterprise Real Estate Capital LLC (BWE), a national commercial and multifamily mortgage banking company, announced today the closing of a $58,000,000 loan to finance a luxury apartment community in Santa Barbara County, CA.
Tom Turnage, Senior Vice President, and Joe Galosic, Jr., Assistant Vice President, both from BWE’s Irvine, CA, office, originated the loan through a correspondent life insurance company on behalf of the borrower.
“Given the volatility of interest rates, the borrower was thrilled that they were able to lock in their rate upfront prior to signing and negotiating the loan application,” said Turnage. “In addition, the lender’s competitive pricing and ability to meet the timing for payoff of a maturing construction loan, while overcoming hurdles such as a material student concentration and a small market, were key drivers in selecting this life insurance company. The process was seamless, and a second loan between this borrower and lender is already underway.”
The property is a best-in-class, garden-style apartment community located in a supply-constrained coastal community in Santa Barbara County, CA. It offers top-of-the-line amenities, including a heated pool and spa, high-end fitness center, two-story clubhouse with a game room, TV lounge, full gourmet demo kitchen, electric vehicle charging stations, dog park, pet spa and playground. Unit amenities include air conditioning, full-size washer and dryer, high-speed fiber internet, smart home technology, quartz counters, luxury vinyl plank flooring, stainless steel Samsung appliances and storage closets. Delivered in 2022, the project had stabilized occupancy prior to loan funding.
The loan includes a 10-year term and 30-year amortization schedule. The interest rate is fixed for the term and was locked at loan application. The loan is non-recourse and includes a step-down prepayment schedule in the second half of the term with the last two years open at 0%.
BWE provides flexible financing solutions for clients covering the entire spectrum of commercial and multifamily real estate. For more information on BWE’s services, visit us at: https://www.bwe.com/.