CARLSBAD, CA—Capital One Multifamily Finance has closed a $25.6 million Fannie Mae fixed loan to refinance the Bluffs at Carlsbad, a 163-unit complex in Carlsbad, California and part of the San Diego MSA.
Doug Taylor, senior vice president of originations in Capital One Multifamily’s Newport Beach office, originated the transaction. The borrower and new client was Triumph Properties Group, a diversified real estate investment and development company.
The Bluffs at Carlsbad, a fourteen building two-story complex was built in 1978 and fully renovated in 2013. The building amenities include a clubhouse with a fitness center, pool, spa, tennis court, dog-park, barbecue/picnic areas, and laundry facilities. The property is situated on 10.15 acres of land and offers 308 parking spaces including 208 carports.
“Triumph’s goal was to obtain a full loan which required close coordination between the lease up of the property and the timing of the funding of the loan” Taylor said. “After purchasing The Bluffs in 2012, Triumph conducted a complete renovation in 2013 that made the property extremely competitive in the local market, but at the time of the initiation of the financing, the property was still in the process of realizing its full potential income and value.”
The Capital One Multifamily team worked with the borrower, appraiser, and Fannie Mae to explain and maximize the potential going forward value, highlighting the superior quality of the renovation, the experience of the borrower as an owner and manager, and the strength of the submarket. As a result, Capital One Multifamily was able to deliver a 10-year fixed rate loan, with two years of interest only; 9.5 years of yield maintenance, thirty-year amortization and payable on an actual/360 basis.
Steven Feder, a managing partner of Triumph states “Doug and the entire Capital One Multifamily team took the time to understand our property renovation plan, lease up plan as well as our vision for the property. Their belief in its potential and their expertise in building a case to support that potential resulted in delivery of superior financing.”
Feder also praised Capital One Multifamily’s efficient execution including Triumph’s desired loan document changes. Capital One Multifamily understood the reason for the changes and was able to explain them to Fannie to get their expedited consent.
“We’re here to make the deal happen,” Taylor says. “If that means swinging into action at the last minute, that’s just part of what we do to serve our customers.”