LOS ANGELES—Marina del Rey-based investor 575 Hampshire Road Properties Inc. has secured a $12 million permanent loan for the refinance of a 142-unit garden apartment complex in Westlake Village. A life insurance company funded the cash-out refinance loan.
Although the team settled on a life insurance company, they received strong interest from a variety of lenders. “The sponsorship combined with the great location and quality of the asset made the property extremely attractive to many different lenders including life companies, CMBS, local and regional lenders, Fannie Mae, and Freddie Mac,” Mike Yim, managing director at Quantum Capital Partners, tells GlobeSt.com. Yim arranged the loan on behalf of the borrower.
Yim secured a 15-year fixed-rate loan with 4.16% interest only for the first 10 years of the term, which Yim explains immediately improved the borrower’s cash flow. The financing has a 30-year amortization over the remaining term. “The above terms met all of the borrower’s financing objectives,” says Yim. “Additionally, the carve out guarantees were restricted to a capitalized entity. A warm body guarantor for the bad-boy carve outs was not required.” Proceeds from the loan will be used to settle an existing Fannie Mae loan that the borrower secured in 2004.
Located in Westlake Village, CA, the 142-unit property has a mix of studio, one- and two-bedroom apartments. The current owner developed the property in 1971 and has been the sole owner since. In 2010, it renovated the property amenities to include a clubhouse, fitness center, heated pool and tennis courts.
In addition to multifamily activity in Westlake Village, the submarket has also seen much retail activity thanks to the Westlake Village Plaza renovation. Recently the shopping center, which is in the midst of a $25 million renovation, signed leases with six tenants, a total of 13,000-square feet. Tenants included Pitfire Pizza, Mendocino Farms, Le Pain Quotidien, Pressed Juicery, the Ice Cream Lab and Firefly.