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SANTA CLARITA, CA-The 100-unit River Canyon Apartments complex has joined the list of Los Angeles area condo conversions after the owners secured nearly $21.7 million in senior and mezzanine loans, according to Holliday Fenoglio Fowler. Mark Wintner of the Los Angeles office of HFF, who represented River Canyon Condominiums LLC in arranging the financings, says that the $21.7 million includes an $18.4 million adjustable-rate senior loan and a $3.3 million mezzanine loan.The senior loan is through Keybank National Association at an 80% loan-to-cost ratio. Wintner placed the mezzanine loan with US Bancorp Asset Management Inc.He notes that the combination of financings provides 94% loan-to-cost funding “without giving the lenders an equity position in the deal.” This was the second deal that the borrower did with Key Bank and US Bancorp this year, Wintner points out.River Canyon Apartments is situated on 4.4 acres at 18760 Mandan St. in the Canyon Country area of Santa Clarita. It is a seven-building complex with 48 two-bedroom, two-bath and 52 three-bedroom, two-bath units that average 863 sf and 1,050 sf respectively.Wintner says the borrower’s conversion project will invest approximately $10,000 per unit for conversion and rehab on the property, which was originally built as condominiums in 1984 and has been operated as an apartment building. At the closing of the loans, River Canyon was 98% occupied.The River Canyon conversion financing package was one of two that Wintner closed recently in the Los Angeles area. The other was $4.1 million in financing for a 20-unit complex at 4128 Whitsett Ave. in Studio City.Wintner arranged the financing on behalf of Whitsett Greens LLC, closing the transaction in two weeks, “in part because the lender did not require any third party reports,” he says. The one-year, adjustable-rate loan is with Winco Capital and was priced at prime plus 6.25 with no origination fee, a 1% exit fee and yield maintenance for six months.The Whitsett Greens property is adjacent to the Studio City Golf Course between Valley Spring Lane and Valleyheart Drive, about a mile from the 101 Freeway. Situated on an 18.3-acre site, the property includes six two-bedroom, two-bath flats, eight two-bedroom, two-bath town homes and six two-bedroom, two-bath lofts ranging in size from 990 sf to 1,325 sf. The property features a swimming pool and parking for 40 cars.

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