Multifamily Complex Secures Low-Rate Financing

NORTHRIDGE, CA—Index Investors have secured a refinancing loan for a rare townhome-style apartment complex. The loan, arranged by Johnson’s Capital, has a low interest rate around 4%.

Sean Barry and Josh Kashani of Johnson’s Capital’s Los Angeles office arranged the financing on behalf of Index Investors, which borrowed $7 million or $175,000 per units. According to Barry, the price per unit for the market is very high and presented a challenge in securing the funding, which was exacerbated by limited market comparables due to the rarity of the asset—a 40-unit apartment complex comprised of mainly three- and four-bedroom units.