X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-Astani Enterprises has refinanced two apartment complexes via two loans totaling $17 million and a San Fernando Valley investment group has refinanced one property in a $5.3 million deal. Holliday Fenoglio Fowler and George Smith Partners, respectively, arranged the loans.

The two properties refinanced by Beverly Hills-based Astani are the Fairmont Apartments in Canoga Park and the Westbury Apartments in Los Angeles, according to Mitch Paskover of HFF, who worked on behalf of Astani to secure the two 10-year, 4.84% fixed-ratesecuritized loans. The loans for The Fairmont Apartments and Westbury Apartments are $10 million and $7 million respectively.

Both of Astani’s financings are interest-only loans for the first three years, Paskover notes. Fairmont Apartments is a 151-unit, 117,000-sf complex that is 98% occupied. Westbury Apartments, also 98% occupied, is situated in what Paskover calls a prime Hollywood location, near Hollywood Boulevard and La Brea Avenue in the heart of the Hollywood Redevelopment Area.

Astani Enterprises owns and operates approximately 5,000apartment units throughout Southern California and is in the process of developing approximately 1,500 units of apartments, condominiums and mixed-use projects in downtown Los Angeles, Encino and Koreatown.

In the Encino financing, engineered to take cash out, the borrower was looking at defeasance and wanted to lock in the interest rate at the time of the application signing, according to Thomas Falbo of George Smith Partners, who arranged the financing. The property is a 76-unit complex that was built in 1968 and was acquired by the borrower in 1998 in a TIC ownership structure. The borrower and its affiliates have more than 30 years of experience managing and owning properties in the San Fernando Valley.

GSP arranged for the defeasance of the existing debt, which was performed by Neuman and Associates. The borrower got the locked-in rate at application and now has customized terms including an interest rate at 10-year Treasury plus .95%, a 10-year term and amortization over 30 years.

Falbo notes that in lieu of requiring an immediate repair reserve for deteriorating, 30-year-old shingles, the borrower was required to replace the shingles within the first two years of the loan. Closing costs were capped at $20,000 and the lender accepted a seven-year-old survey.

The deal includes an allowance for subordinate debt in the future subject to combined 75% loan-to-value and a cumulative debt coverage ratio of 1.2. The loan requires no reserves for insurance or capital expenditures.

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. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

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.