Industrial, Retail, Apartment Loans Total $10M

[IMGCAP(2)]The Los Angeles County industrial portfolio consists of two park-style properties in Pomona and one single-tenant building in Baldwin Park, all of them built in the 1980s, according to Shaun Moothart of Alison, who arranged the $1.55 million in financing. Moothart tells GlobeSt.com that the borrower, a private investor based in Southern California, was refinancing a maturing bank loan. The bank was only interested in getting the loans paid off and was not willing to refinance, so Moothart needed to find a new lender.

The loans are all fixed-rate and all for 20 years with a 20-year amortization schedule. "Twenty-year money is hard to find," Moothart observes. "No banks are willing to put their money out for such a long time," he says, so borrowers who are seeking long-term fixed rate debt and wan to avoid interest-rate risks are turning to life company relationships for long-term debt.

[IMGCAP(3)]The 16,730-square-foot retail-office building in Aliso Viejo and was a refinancing of a maturing CMBS loan that was previously procured by the Alison Co. from Wells Fargo for the acquisition of the property in 2002, according to James Deal of Alison. Deal arranged the new $2.3 million financing, which is at 6.3% at 55% LTV and amortizes over 25 years. The loan was structured at a nine-year term with three-year rate resets, each three years fixed at market.

[IMGCAP(4)]The borrower was a family trust from Northern California that acquired the property via a 1033 exchange in 2002, the same year the property was built. The property was 82% occupied at the time the loan closed, but the lender was not concerned about the above-market vacancy because of the strong market fundamentals in the Aliso Viejo submarket, Deal points out. The borrower did not request any cash-out except to cover the costs of refinancing.

The life insurance company noted the strong submarket fundamentals for the property combined with low LTV,significant cash equity and in-place debt service coverage from national retail tenants. "The yield on the mortgage offers a decent premium over other fixed income investments for the lender, with minimal exposure," Deal notes. The lender is aggressively seeking similar quality opportunities in 2010, he says; the Alison Co. has recently closed similar transactions, has applications issued and quotes outstanding for the lender.

The financing for the 73,280-square-foot single-story industrial property in Orange was a $1.5 million loan for an owner-user building that was completed in 1980 and is 100% occupied. The 10-year fixed-rate loan, at a 50% LTV, amortizes over 25 years. Carl Fuller of Alison, who arranged the financing, also arranged $4.1 million in financing for the 228,860-square-foot industrial property in Mira Loma, which was built in 1999 and is 100% occupied on a short-term lease. The new 10-year fixed-rate loan, at 65% loan-to-value, amortizes over 20 years.

Fuller also arranged the new loan for the apartment building in Newport Beach, which was a cash-out refinancing with a Fannie Mae lender for $2.15 million. The 26-unit complex consists of several buildings totaling 23,750 rentable square feet in units of one to three bedrooms.