$29M Refinances 412 Units

Melody, which is the real estate banking arm of CB Richard Ellis, says the deal involved an assumption of an existing Freddie Mac Bond Credit Enhancement of $13.4 million by MG Country Hills Apartments LP, along with a conventional mortgage of $16 million. The credit enhancement carries a 21-year term, with a sinking fund schedule applicable to the 21 years left on the bonds, which were issued by the City of Corona. The conventional mortgage also carries a 21-year term with a 21-year amortization period.

L.J. Melody & Co. provided the funding on behalf of MG Country Hills Apartments LP, with the loan subsequently purchased by Freddie Mac. Sharon Kline and Troy Tegeler, both of L.J. Melody's Newport Beach office, arranged the financing.

Country Hills Apartments is a 412-unit garden style apartment complex that was built in 1987. The property is subject to requirements that at least 20% of the units must be rented to tenants of low or moderate incomes, but in actuality about 70% of the units at Country Hills are leased to low- or moderate-income tenants.

The administrative general partner of MG Country Hills Apartments is Mark Gleiberman, president and founder of Gleiberman Investments Inc. MG Properties has specialized in the acquisition, development, rehabilitation and management of apartments since 1989. It manages more than 4,788 apartments in San Diego County and the Inland Empire, with a total market value of more than $500 million. Of the units it manages, 3,700 were acquired by MG Properties or partnerships established by MG Properties.