X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market and the debt and equity markets, click here.)

MORENO VALLEY, CA-Griffin Partners of Beverly Hills plans to reposition a 330-unit apartment complex that the company has acquired with $42.4 million in financing arranged by investment banking firm George Smith Partners Inc. of Century City. Steve Bram, a principal of George Smith Partners who arranged the financing, calls it a “highly structured financing package” for the acquisition of the El Dorado Pointe Apartments at 12159 Calle Sombra.

Bram says that the “aggressive repositioning strategy” is designed to increase net operating income and capture the continued market growth in the Inland Empire region. While such a strategy and the anticipated three-year holding period would have typically utilized a Libor-based bridge loan, George Smith Partners secured fixed-rate conduit financing, substantially lowering rates with a five-year fixed-rate interest only loan which also has a flexible payment option, Bram explains.

The five-year non-recourse loan includes permanent and mezzanine portions, taking the loan to 80% loan-to-cost, and is priced at of five-year T bills plus 150 basis points. The loan, which is open to prepayment without fee during years four and five, was underwritten at a debt coverage ratio of 1.05 on an interest-only basis. GSP arranged an equity investor to take the financing package to 96% of total cost.

Griffin Partners acquired the El Dorado Pointe, which was built in 1986, from Desert Pointe Properties Redwood City. The complex, which is composed of three two-story buildings plus a clubhouse and a leasing office, features two swimming pools, two spas, a fitness center, four laundry facilities and two lighted tennis courts.

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

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
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.