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LOS ANGELES-Apartment owners here have landed $85 million in financing in four separate deals including $42-million and $27.34-million portfolio loans, plus loans for $10.28 million and $5 million covering three other properties. The portfolio deals were arranged by Marcus & Millichap Capital Corp. and Venture West Funding, with Meridian Capital Group arranging the $10.28-million and $5-million deals.

The $42-million financing consisted of three separate 10-year fixed-rate loans at 80% loan-to-value ratios to refinance a three-property, 396-unit apartment portfolio in West Covina and Covina. According to Jake Roberts and Anita Paryani of the West Los Angeles office of Irvine-based Marcus & Millichap Capital Corp., the Los Altos-based borrower sought the loans for properties that were not fully stabilized or renovated at the time of closing.

“We were still able to achieve a full-leverage, stabilized loan” for the borrower, Roberts says. He explains that the lender underwrote the financing at “very low pro forma expenses” that made the deal work. The three loans call for interest only for the first five years, with no holdback for reserves.

The $27.34-million lending package refinanced a 16-property portfolio of 570 apartment units ranging in building size from eight to 81 units, according to El Segundo-based Venture West Funding Inc. Brian Horner of Venture West, who arranged the financing for the private investor, says the loan package refinanced a number of variable rate or short-term fixed rate loans on the buildings in Hollywood, Santa Ana and the South Bay.

“The borrower was concerned about future interest rate increases,” says Horner, who says the new financing consists of 10-year fixed rate loans for the package at an interest rate of 6.02%, with the borrower paying no points or closing costs. Additionally, the borrower “avoided the typical Fannie Mae impound and reserve requirements,” Horner notes. The financing was arranged through Greystone Servicing Corp., a major Fannie Mae delegated underwriting service and FHA lender based in Memphis.

In the $10.28-million financing, Decron Properties of Los Angeles secured the financing through Meridian Capital Group for two apartment buildings called Media Towers I and II that total 116 units. Seth Grossman and Jonathan Wintner of Meridian’s New York office arranged the financing at a rate of 5.74% over a 10-year, interest-only term.

The properties, at 1600 Taft Ave. and 1660 Wilton Ave., are part of a portfolio of more than five million sf and approximately 3,000 apartment units in Southern California that Decron Properties owns. Decron is headed by David and Jack Nagel.

The $5-million loan that Meridian arranged financed the Sailhouse Lofts at 212 Marine St. in Santa Monica. Grossman negotiated the 10-year, 5.975% interest-only financing for the 10,400-sf building, which is about a block from the ocean and features an attached parking garage. The property includes class A ground-floor retail and office space with 19 residential condos above.

The locally based borrower recently constructed the entire project from the ground up. The borrower sold all of the upper floor condo units and held on to the ground floor as a location for commercial space.

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