Loan Refinances Centrepointe Complex

Richard Olrich in the San Francisco office of PW Funding, which is a subsidiary of CharterMac, says proceeds of the loan will go towards the financing of another property that is being added to the borrower's portfolio. The loan has a 5.29% interest rate, a debt service coverage of 1.39, and a loan-to-value of 65%. PW funded the loan under Fannie Mae's DUS Early Rate Lock program to accommodate the borrower's wish to lock in at a low interest rate. The The deal was originated by Richard Olrich, Krage Olrich, and Matthew Olrich, all of the San Francisco office. David Young of Partners Realty Capital's Newport Beach office directed the transaction to PW Funding.

Richard Olrich notes that the loan was financed in accordance with Fannie Mae's Extended Maturity Option, which gives borrowers the flexibility to extend their loan for an additional one-year period in order to arrange supplemental financing. The loan is subject to full yield-maintenance for the entire initial term of the loan; there is no 1% or open prepayment period. If the loan extends, it converts to an adjustable-rate based on the one-month LIBOR, plus a margin that is fixed up-front. The loan can pay off at par without prepayment premiums at any time during the extension period.

Centrepointe, which was completed in 1991, consists of studio, one-, and two-bedroom flat-style, loft, and townhouse units in nine three- and four-story, elevator-serviced buildings. Unit amenities include fireplaces, patios or balconies, security intercoms, and full appliance packages including dishwashers, garbage disposals, and microwaves. Half of the units also include washers and dryers. The complex features a gated entrance, entry lobby, leasing office, fitness center, swimming pool and spa, storage areas, and laundry facilities.

PW Funding is a mortgage banking subsidiary of CharterMac, which is headquartered in New York City. CharterMac is a multifamily finance specialist that offers financing for every facet of multifamily housing through the company and its subsidiaries.