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Modesto Self-Storage

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NEWPORT BEACH, CA-Owners of two properties in California and onein Idaho have refinanced them with more than $14 million in loansarranged by the Newport Beach-based Alison Co. in three separatetransactions. The loans included $3.2 million for a 649-unitPremier Self Storage Facility at the intersection of Sylvan Avenueand Oakdale Boulevard in Modesto, CA; $7 million for a62,963-square-foot grocery-anchored retail building at theintersection of Waterman Road and Elk Grove Boulevard in Elk Grove,CA and $3.85 million for two apartment complexes totaling 130 unitsat East Warm Springs Avenue and South Broadway Avenue in Boise,ID.

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The self-storage facility loan in Modesto paid off a maturingconduit loan and covered closing costs for the borrower, a privateinvestor based in Northern California, according to Shaun Moothartof the Alison Co., who arranged the financing with one of Alison’slife company correspondents. Moothart tells GlobeSt.com that thefixed interest rate was locked at application.

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“This ability to lock the interest rate for up to 75 days can bea major advantage in a very volatile market in comparison to manybanks and other lenders who do not offer the ability to lock therate until the loan has been approved, often taking 30 to 45 daysbefore the borrower knows for certain what the interest rate isgoing to be for the term of the loan,” Moothart says.

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The new financing is a 20-year loan with a 20-year amortization.Moothart says that the Alison Co. worked alongside both borrowerand lender to agree upon a structure that satisfied both sides ofthe transaction, which he describes as “a working capital solutionfor a unique property type located in a secondary market.”

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Elk Grove Retail

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The grocery-anchored center in Elk Grove, CA is 100% occupied byBel Air Market, a subsidiary of Raleys Corp, and is part of alarger neighborhood center with various retail tenants, banks andrestaurants. The loan was funded to acquire the property as part ofa 1031 exchange for the borrower, a San Francisco-based privateinvestor, according to Jim Deal of the Alison Co., who arranged thefinancing with one of Alison’s life company correspondents. It is afixed, 25-year loan with a 25-year amortization.

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Boise Apartments

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The two apartment complexes in Boise, ID are across the streetfrom each other, one with 78 units and one of 52 units, and are 91%occupied. The refinancing paid off existing debt and providedapproximately $1.5 million of cash out to the borrower, anIdaho-based private investor, according to Carl Fuller of theAlison Co., who arranged the 10-year, 30-year amortizing, mid-5%Freddie Mac loan.

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Moothart tells GlobeSt.com that the loans illustrate how Alisonis pursuing and closing deals nationwide in all markets and allproperty types with its correspondent lenders. The company, foundedin 1934, operates as a servicing correspondent representing morethan a dozen life insurance companies and also maintains in-houseclosing and servicing departments. It operates from offices inNewport Beach, Los Angeles, Phoenix and Las Vegas.

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