SANTA CLARITA, CA-The owner of a 752-unit apartment complex here has refinanced a maturing CMBS loan at a 3.75% fixed interest rate and an 82% loan-to-value ratio for 35 years in what is believed to be the largest financing yet in the HUD 223(f) program, according to Century City-based George Smith Partners, which arranged the refinancing. The 223(f) program insures mortgage loans to facilitate the purchase or refinance of existing multifamily rental housing, according to Gary M. Tenzer, principal and managing director of George Smith Partners. Tenzer and George Smith Partners vice president Nick Silbergeld, handled the financing.

The loan is non-recourse and fully amortizing. The property is the Colony Townhomes, at 17621 Pauline Court.

According to Tenzer, the HUD program “offers the highest leverage and lowest rates for conventional financing in today’s market.” GSP secured the financing by providing the lender with quantitative and qualitative analysis that established market demand as well as occupancy trends. “We also guided our client through a new loan qualification procedure imposed during the application process,” Tenzer noted.

“By constantly communicating with specialized data providers and the client, we were able to relay the most current and accurate information to the lender,” Tenzer added. “This information demonstrates the property’s stability within its market, in turn solidifying the lender’s confidence in the loan, and allowing GSP to achieve what is reportedly, one of the largest loans ever completed under HUD’s 223(f) conventional loan program.”

The Colony Townhomes consists of two- and three-bedroom, two-story units. Each unit contains granite counter tops, washer and dryers, fireplace, and two car direct-access garages, along with community amenities including five pools, a fitness center and five spas. The property is owned by Los Angeles-based G. H. Palmer Associates.