SUNNYVALE, CA-The owner of Fair Oaks West Apartments here has taken on a $61-million loan for his 776-unit development. FOW Ltd. utilized Freddie Mac’s embedded cap program to obtain an interest-only, variable rate loan to which a ground lease is subordinated. Berkshire Mortgage Finance of Boston provided the funding. Originator Cathy Voreyer in in the company’s Irvine, CA office says the 10-year loan floats over Freddie Mac’s 30-day Reference Bill, but declined to be more specific.FOW Ltd is a conglomeration of companies that has owned the asset for a long time, according to Voreyer. The secretary of state’s office lists the address of the company as that of Belmont, CA-based Woodmont Real Estate Services, which has an institutional asset management division called Woodmont Realty Advisors Inc.The ownership did not previously have a loan on the apartment complex, which was built in 1972. The owner’s motivation to take money out of the property for was the low interest rate environment, says Voreyer. Fair Oaks West offers large units in several different floor plans. Amenities include tennis courts, swimming pools, saunas and a fitness center. The property, which doubles as a dormitory for nearby Cogswell College, also offers scuba lessons, billiards, ping-pong, sand volleyball, a children’s activity center and a movie theater.

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