LOS ANGELES—A group of local investors has secured $25.3 million in Fannie Mae loans through the refinance of a six-property multifamily portfolio in Los Angeles. The borrower plans to use the proceeds from the loan to fun future investments in the L.A. area.
The six properties are located at 8916 and 8926 Burnet Avenue, 9237 Van Nuys Blvd., 11120-22 Arminta Street, 1215-25 N. Cherokee Ave., and 6729 Cleon Ave. The loan sizes for each of these properties ranged from $2.4 million to $5.5 million. The Burnet Avenue properties have amenities like a swimming pool, onsite laundry facilities and parking for residents. The remaining properties, which range in size from 27 to 52 units, offer only onsite parking.
Centerline Capital Group secured the loan on behalf of the borrower. The loan has a 10-year term with a 30-year amortization and a five-year interest-only payment. According to Rick Warren, a managing director at Centerline, these loans were challenging because it required all six properties to close at once. In addition to Warren, Centerline’s Ana Ramos, Irma Olguin, Janine Soto, Kim Caldwell and April Swan-Rosney also worked on the deal. The team was able to close the loan for all six properties in a mere six days after locking the rate.
There has been a burst of multifamily refinances recently with property owners looking to refinance before interest rates rise. GlobeSt.com recently reported that Index investors secured a $7 million refinancing loan with a low 4% interest rate for a property in Northridge. Similarly, another Northridge property refinanced to the tune of $32 million for Parthenia Apartments, a 447-unit apartment complex. A private investor secured the loan through a life insurance company.