NORTH HOLLYWOOD, CA-A joint venture of Beverly Hills-basedKennedy Wilson Multifamily has acquired the REO 180-unit NoHo 14Tower at 5445 Lankershim Blvd., financing it via a $40 millionmortgage with terms that would not have been possible six monthsago, according to the CBRE Capital Markets team that arranged thefinancing, the mortgage broker says. Senior vice president BrianEisendrath of the Beverly Hills office of CBRE Capital Marketstells GlobeSt.com that the break-even debt coverage ratio would nothave been possible just six months ago.

"The debt-coverage ratio was really the key," Eisendrath says."The standard has been more like 1.25. In addition, he says,lenders probably would not have agreed to the two-yearinterest-free period of the five-year, 5% loan or the 68%leverage.

"We achieved much higher proceeds than we as the mortgage brokeror our client anticipated," Eisendrath says. Eisendrath describesthe mortgage as bridge loan financing with stabilized loan terms."We essentially got stabilized loan terms for a bridge loan," hesays. The loan includes prepayment flexibility in the later years,with some penalties.