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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.

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