(Mark Your Calendars: RealShare Apartments East, February 15th in Washington, DC).
LOS ANGELES-Beech Street Capital LLC has provided $61-million in Fannie Mae loans to refinance a four-property apartment portfolio totaling 493 units in the Los Angeles metropolitan area. The fixed-rate loans have a 10-year term with a two-year interest-only period.
The borrower, California investor Marianne Moy, says that “Beech Street’s terms were attractive and the quality of their execution was exceptional.” Beech Street says that is detailed understanding of the North L.A./Tri-Cities submarkets “was crucial in maximizing pay out for the borrower.” The firm also says that its strong relationship with Fannie Mae helps meet the client’s goals.
The apartment properties securing the loans are located in Thousand Oaks, Glendale, and Pasadena. Greg Reed and Kristen Croxton, both SVPs of origination at Beech Street, took the portfolio from application to rate-lock within 30 days. The loans closed 15 days later, as soon as payoff restrictions on the borrower’s existing debt were met.
“We were able to actively demonstrate the positive outlook for rent and revenue growth in the submarkets,” Reed says. “This provided the support needed to underwrite a recent increase in rental income equivalent to 8% over the trailing 12-month average, in one case.”
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