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BAKERSFIELD, CA-Monterey Bakersfield LP of Monterey has refinanced its 240-unit Whispering Meadows Apartments with a $7.5-million loan that the borrower sought to lock in a long-term fixed rate, according to Ory Schwartz of NorthMarq Capital Inc.’s Newport Beach office.

Schwartz, who arranged the financing, says the 15-year term loan through Nationwide Life Insurance Co. will amortize over 20 years. The rate was fixed at 4.9% for the term of the loan, Schwartz notes, pointing out that the borrower was able to lock the rate at the execution of the loan application in mid-March. The timing of the rate lock proved to be ideal for two reasons, Schwartz says. First, the borrower secured the rate at a time of historic lows in interest rates. Second, the run-up in rates that occurred after the rate had been locked, and up until the time of the loan funding, enabled the borrower to save more than 30% of the anticipated prepayment penalty. The Whispering Meadows complex was built in 1986 and consists of 30 buildings comprising 41 one-bedroom, one-bath apartments and 199 two-bedroom, two-bath units. The one-bedroom units measure 750 sf and the two-bedrooms 1,000 sf. The complex was 96% occupied at the time of the loan, with rents ranging from $645 to $1,330.

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