[IMGCAP(1)]

|

ORANGE COUNTY, CA—Michael T. Elmore,EVP/managing director NorthMarq Capital's LosAngeles-based regional office, has arranged therefinancing of three multifamilyproperties in Orange County for a combined total of $58.1 million.The borrower on all three transactions was Advanced RealEstate Services.

|

The three properties involved are Serena Vista,a 172-unit asset at 10300 Hacienda Ave. inFountain Valley, which was refinanced at $27.3 million;Villa del Sur, a 112-unit property at 2701W. McFadden Ave. in Santa Ana, which was refinanced at$12.6 million; and Cantabria Apartments, a 97-unitproperty located at 7835 Oleander Circle in BuenaPark, which was refinanced at $13.8 million.

|

Serena Vista's transaction was structured with a 10-year termand 30-year amortization schedule. Financing was provided byFannie Mae on a cash-out 1.25 debt-coverage ratio.The loan paid off the existing loan and returned all of the equityfrom a 2009 purchase.

|

[IMGCAP(2)]

|

The Vista del Sur transaction was a Fannie Mae loan that had thesame terms as Serena Vista. This was NorthMarq's second financingof the asset, and it provided the borrower with nearly $5 millionin excess cash-out for future multifamilyacquisitions. “These were the fourth and fifthFannie Mae loans in the past eight months for theborrower—excellent terms and flawless execution yet again,” saysEllmore regarding the Serena Vista and Villa del Surtransactions.

|

The Cantabria Apartments transaction was structured with a30-year term with five years fixed followed by a 25-yearfloating-rate period. NorthMarq arranged financing for the borrowerthrough its relationship with a national bank that was willing toimplement an aggressive 1.15 debt-coverage ratio to accommodate arefinance of a 2007 vintage CDO loan that had been extended and wasunder forbearance. Elmore says, “The economics were outstandingwith a 3.38% fixed five-year rate, the loan payoff and partialreturn of capital.”

|

[IMGCAP(3)]

|

The multifamily market in Orange County continues to be stable.As GlobeSt.com reported earlier this week, TrentBrooks, EVP of Bellwether Enterprise Real EstateCapital LLC told GlobeSt.com that the market has strongfundamentals. “Occupancy is strong, and rent growth—althoughsomewhat modest—is evident. Not unlike other markets, rent growthhere is tied to wages, which we know are pretty static. There's theage-old law in Southern California of supply anddemand. There's never enough supply relative to the demandof quality rental housing.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.