Elmore tells GlobeSt.com that the new mortgage is an interest-only, seven-year fixed term plus one-year floating and was arranged for the borrower by NorthMarq through its seller/servicer relationship with Freddie Mac. According to Elmore, in addition to paying off the bond financing, the new mortgage provided a substantial tax-free distribution and paid off two other trust deeds.
Elmore explains that the combination of retiring the bonds and ending the requirement for affordable housing is unusual in these times. Most newer bond financings require the affordable housing requirements to remain in place for some time after the bonds are paid off, but the bonds for Pointe Niguel were issued at a time when the rent restrictions typically were lifted at the time the bonds were paid off.
The Pointe Niguel property, built in 1984, consists of 40 two-story buildings on 24 acres. The apartments include one-bedroom units and two-bedroom townhouse-style units ranging from 800 sf to 1,200 sf at rents of $1,400 to $1,700, according to the Sares-Regis web site for the property.
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