$150M Refinances Luxury Apartments

LOS ANGELES-The Denver-based Aimco REIT has secured $150 million in refinancing from MetLife Real Estate Investments for its 611-unit Palazzo East apartments at Park La Brea. Aimco sought the loan to refinance bridge funding placed on the property approximately one year ago with Merrill Lynch.The new loan from MetLife locks in a fixed rate for five years and is for interest-only. Aimco bought the luxury apartment property in early-2005 when it was 60% leased and has since increased the occupancy to almost 90%.The deal was brokered by Darren Fisk of Johnson Capital. Matt Mabray of MetLife's Los Angeles office led the transaction team for the lender.The Palazzo East at Park La Brea, at 348 S. Hauser Blvd., consists of five buildings of five stories each, housing 611 units that were completed in 2004. The complex features high-end amenities, including an on-site day spa, a fitness center and a business center.The individual units, which include penthouses as part of the mix, feature high-end amenities that developers are offering more and more for the luxury end of the market: French doors leading to private terraces, gas fireplaces, in-unit dishwashers, washers and dryers; pre-wiring for Internet access and other high-tech services, walk-in closets, granite countertops and stainless steel kitchen appliances.A web site for the apartment complex lists floor plans ranging from 712 sf to 2,012 sf and units from one to three bedrooms, with rents ranging from $2,175 to $5,575. Average rents for apartment properties of 100 units or more in Los Angeles County were $1,527 in the first quarter, according to the latest data from Novato-based RealFacts. Within the City of Los Angeles, the average was $1,733.