BWE, a national commercial and multifamily mortgage banking company, announced today that it has secured $75,400,000 in financing for seven multifamily housing properties, totaling 582 units, across Contra Costa, Santa Clara, and Los Angeles counties in California.
Max Sauerman, Senior Vice President in BWE’s Los Angeles office, originated the financing from life company lenders on behalf of the borrower, a multi-generational family office based in Los Angeles, California. The permanent, fixed-rate loans, which vary in term from five years to ten years, are all non-recourse and in some instances limit carve-out obligations to the borrowing entity, have varying levels of prepayment flexibility, and are full-term interest-only.
“When securing financing for these high-performing properties, which average 95% occupancy across the board, we leveraged our capital platform of both agencies and BWE’s roster of correspondent life companies to find two different lenders that could provide a winning combination of full-term interest only, competitive interest rates, and prepayment flexibility. Currently, we see a wide range in the cost of prepayment flexibility which is something that has become invaluable as many investors expect all-in rates to come down in the near-term,” said Sauerman. “We look forward to partnering with other multifamily owners and investors around the country to help them secure financing options most suitable to their business plan for their properties.”
The properties included in the portfolio are mostly stable, core assets with an average occupancy of 95%. The properties are:
- Low-Rise Apartments in Martinez, CA: A $9,150,000 loan with a five-year term to finance the 98-unit multifamily property built in 1984. The property is restricted to senior (55+) housing.
- Garden-style apartments in Pleasant Hills, CA: A $13,300,000 loan with a ten-year term to finance the 101-unit multifamily property built in 1979.
- Garden-style apartments in Canoga Park, CA: A $6,750,000 loan with a five-year term to finance the 48-unit multifamily property built in 1980. Amenities include covered parking, basketball courts, BBQ and picnic areas and a playground.
- Low-rise apartments in Reseda, CA: An $11,200,000 loan with a five-year term to finance the 100-unit multifamily property built in 1969. Amenities include a pool and clubhouse.
- Five-story apartments in Hollywood (Los Angeles), CA: A $13,500,000 loan with a five-year term to finance the 76-unit multifamily property built in 2016. The property includes two ground-level retail units and a wide range of amenities.
- Low-rise apartments in Santa Clara, CA: A $15,000,000 loan with a ten-year term to finance the 111-unit multifamily property built in 1978. The property is restricted to senior (55+) housing.
- Garden-style apartments in Covina, CA: A $6,500,000 loan with a five-year term to finance the 48-unit multifamily property built in 1981. Amenities include covered parking, two playgrounds, basketball courts, BBQ areas and a recreation room.