FOUNTAIN VALLEY, CA—Seth Grossman, managingdirector of Meridian Capital Group LLC, andCapital One Multifamily Finance's SVPsGreg Reed and Kristen Croxtonhave arranged a $64-million refinancing ofPalm Island, an age-restricted apartment communityat 11300 Warner Ave. here, on behalf of an OrangeCounty-based sponsor. The 10-year loan, provided by aCMBS lender, features a competitive fixed rate of4.47% and interest-only payments for the full term.

The 456-unit Palm Island property is leased to seniors 55 yearsof age and over and has amenities catering to an active lifestyle,including a 24-hour surveillance system, community center, library,card room, billiard room, fitness center, computer room and heatedpool and spa as well as numerous planned social activities.

The transaction was a cash-out refinance of a first and secondmortgage by a new first mortgage with a lower rate. The refinancingwas originally structured in 2013 as a 10-year mortgage with fiveyears of interest-only payments. Due to volatility ininterest rates during the summer of 2013, theborrower decided to put the transaction on hold until the bondmarkets stabilized. All sides waited on standby for more than ayear as the market rebounded and the loan terms became even moreattractive. The transaction closed very quickly with significantlybetter terms then the original structure—namely, additionalinterest-only and a lower interest rate.