California Landmark Group has secured $85 million to recapitalize a two-property apartment portfolio in Los Angeles. Mesa West Capital originated the funding.

The two properties include HW by CLG, a 79-unit low-rise boutique apartment building in Hollywood, and the BW by CLG, a 78-unit mid-rise apartment community in the Brentwood. Both properties are located in strong neighborhoods with higher quality finishes than the majority of the existing apartment stock in the market.

Experts from Trepp predicted healthy apartment recapitalizations this year. Buoyed by positive headwinds in the market, multifamily loans are well positioned for refinance and sale transactions this year, an earlier report explained. Predictions of either distress or disruption to the sector have failed to materialize this year, despite eviction bans and foreclosure moratoriums. Now that those have expired, multifamily owners are able to easily secure capital. According to the research, an estimated $113 billion in multifamily loans should mature over the next three calendar years. And currently, overall delinquency is less than 2%.  Loans in special servicing stand at 0.66%. And in the last month, just 8 multifamily loans have failed to pay off at maturity, a number that's dramatically low when compared to 44 retail loans. Those loans are also likely experiencing strong NOI growth.