IRVINE, CA—GlobeSt.com has learned exclusively that locally based Western National Group has obtained a $175-million Fannie Mae credit facility from Centerline Capital Group to refinance a five-property California multifamily portfolio in Lake Forest, Upland and Ontario. The properties are all described as in excellent condition and well located within their respective submarkets.

GlobeSt.com has learned that the refinance is being used to pay off existing bonds and refinance costs directly. Also, the borrower is "extremely diligent on updating its properties and has a very extensive update/improve program across all its properties," according to the firm.

The properties include:

• Emerald Court Apartments in Lake Forest, a community of 32 two-story buildings with 288 units plus a single-story leasing office/clubhouse built in 1986 over 22.9 acres.
• Westridge Apartments, also in Lake Forest, a community of 39 two-story buildings with 390 units plus a single-story leasing office/clubhouse built in 1988 over 25.5 acres.
• Spring Lake Apartment Homes, also in Lake Forest, composed of 19 two-story buildings with 180 units plus a single-story leasing office/clubhouse, built in 1986 over 15.9 acres.
• Mountain Spring Apartments in Upland, which consists of one parcel with 13.78 acres on the southwest corner of Foothill Blvd. and Grove, built in 1986. The property contains 31 two-story residential buildings and a single-story leasing office/clubhouse.
• Park Centre Apartments, a mixed-use neighborhood composed of 36 two-story buildings with 404 units plus a single-story leasing office/clubhouse, built in 1987 over 18.54 acres.

According to Suzanne Cope, SVP in the affordable-housing debt division at Centerline Capital Group, “This structured-credit facility with Fannie Mae was heavily negotiated and very complex due to the nature of the product. It provides for future advances, property releases, substitutions, etc.”

Cope adds that the closing was smooth and quick, even with the payoff and defeasance of several existing bond deals. She also says that the local market is stable, with a steady demand for rental housing. Centerline has worked with WNG on more than 16 properties in and around Orange County.

As GlobeSt.com reported in January, Michael Hayde, principal of WNG, was on a panel during the IMN Winter Forum on Opportunity and Private Investing in Laguna Beach that said it's more difficult to find gems in the multifamily arena since all the players are much savvier than in the past and competition is fierce. “Plan your work, and then work your plan,” said Hayde.