X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PITTSBURG, CA-A local apartment investor has acquired a 148-unit class C apartment complex here for $14.6 million. Oakmont Properties VI LLC financed the acquisition of Loveridge Terrace Apartments with an $11.5-million Fannie Mae DUS Loan that carries an interest rate of just over 5%.

The loan was brokered by Dick Olrich, Bay Area Regional SVP for PW Funding Inc., a direct multifamily mortgage lender based in Mineola, NY. Olrich tells GlobeSt.com the loan was used to pay off the city-backed bonds that financed construction of the garden-style apartment complex built in 1987. Now that the bonds are paid off, the project no longer has any affordable requirements, says Olrich, and the owner is expected to roll rents as the market allows.

Loveridge consists of one-, two-, and three-bedroom units in eleven two-story buildings. The property features an outdoor swimming pool and a separate office/recreation building. Unit amenities include microwaves, dishwashers, garbage disposals, ceiling fans, wall-to-wall carpet, washer/dryer hookups, and patios or balconies.

Olrich describes the property as a class C+ property in a B location. The project was 96% leased at the time of sale. Oakmont Properties now owns three properties within a few blocks of each other, says Olrich.

The loan has a 5.02% interest rate, a debt service coverage of 1.46x, and a loan to value of 79%. Olrich was assisted in the transaction by Robert Walsh in PWF’s New York office, and Krage Olrich and Matthew Olrich in PWF’s San Francisco office.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.