BWE, a national commercial and multifamily mortgage banking company, today announced that it has secured an $82,885,000 loan to provide permanent financing for River Ranch Apartments, a 398-unit, garden-style apartment community in Simi Valley, California.
Jake Roberts and Mike Guterman, both senior vice presidents in BWE’s Los Angeles office, originated the financing from Fannie Mae on behalf of Decron Properties, a diversified real estate company that specializes in the acquisition and management of multifamily apartment communities and commercial real estate in the western US. The five-year, fixed-rate loan, which has the lowest rate BWE has secured on agency financing in more than three years, will allow Decron to pay off existing bank debt while getting cash out that will allow the owners to continue to operate River Ranch at a high level.
“Real estate is an industry built on relationships, and thanks to the strong connections that BWE has forged with both Fannie Mae and the bank holder of Decron’s previous debt, we were able to negotiate a waiving of the exit fees while obtaining very low-interest financing that will help Decron execute on their long-term plan for River Ranch Apartments,” said Roberts. “BWE is proud to leverage our deep lending relationships to help property owners and developers to secure the capital they need to build and maintain our country’s housing stock.”
“This is the lowest fixed-rate financing we’ve achieved in our Portfolio in the last four years, and it’s a testament to our conservative approach to capital structuring in an environment where rates remain significantly elevated,” said Daniel Nagel and David Nagel, leaders of Decron Properties. “We’ve been deliberate and disciplined in how we approach our capital stack. By combining good timing with a thoughtful investment thesis around debt and capital structure, we’ve been able to execute an incredible outcome in a tough capital market. This refinancing puts our investors in the strongest possible position and enables us to continue investing in this property and our broader portfolio. We are grateful for our partnership with BWE and Fannie Mae.”
Initially built in 1985 and recently renovated in 2016, River Ranch contains 398 apartments in a mix of one-, two-, and three-bedroom arrangements. Unit amenities include stainless steel appliances, energy efficient kitchens with granite countertops, and private patios and balconies. The River Ranch community also includes numerous amenities such as a pool, dog park, state-of-the-art fitness center, and a resident clubhouse. Located just minutes from the Ronald Reagan Freeway, residents at River Ranch Apartments can easily access shopping, restaurants, and entertainment in Simi Valley.