Essex Takes Cash Out in $50M Financing

Elmore and Daniel McCarthy, SVP and seniior director with NorthMarq, arranged the financing through NorthMarq's seller/servicer relationship with Freddie Mac. Elmore tells GlobeSt.com that Freddie Mac was "very aggressive and held all deal terms in a very volatile market" beating Fannie Mae in the competition for the loan. He explains that, "Spreads in the market probably increased by 30 basis points from the time of the application to the closing, but Fredie Mac honored the application and did an outstanding job of delivering the original deal even as the market unwound."

The Mirabella Apartments are designed with nine floor plans, ranging from 630 sf to 1,685 sf and from one to three bedrooms with one and two baths. Rents at the complex range from $1,930 to $3,875, according to the Essex web site. Amenities include a spa, a sauna, gated facilities, a fitness center, high-speed Internet, a clubhouse, a business center and a picnic area--all of it close to public transit, shopping and dining.

The Mirabella complex, which was listed as 98% occupied as of the date of the most recent Essex public filings, is part of a Southern California apartment portfolio that accounts for approximately 50% of the more than 25,000 units that Essex owns. The remaining units are in the REIT's other core markets of Northern California and Seattle, with other units in Portland, OR and Houston, Texas.