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TUCSON-Alliant Capital LLC, which provides debt and equity financing for the multifamily industry, announced a $7.9-million loan refinance of La Jolla de Tucson on behalf of Holualoa Arizona Inc., a Tucson-based international real estate investment firm. La Jolla de Tucson, a 12-building, 223-unit affordable community at 444 W Orange Grove Rd., was the final property to close as part of a three-property Tucson purchase transaction.

“With the purchase of these two properties complete, offering an extended rate lock on La Jolla de Tucson enabled Holualoa to take this property off the street and also placate a very touchy seller,” says Alliant Capital senior vice president Jay Blasberg.

Holualoa bought all three properties from Denver-based Apartment Investment & Management Co. In addition to La Jolla, they include the 411-unit Stonybrook Apartments and 253-unit Quail Ridge Apartments. The $32.7 million sale of Stonybrook and Quail Ridge closed in July. The buyer contracted the La Jolla property in September for $9.5 million. The sale marked the seller’s exit from the market.

According to Blasberg, the transaction took 229 days to close, during which Alliant locked in the interest rate. The closing was complicated by the project’s reliance on a $6 million construction bond issued by surrounding Pima County as part of an affordable housing program. About $4.3 million remained to be paid on the bond at the time of sale. The new loan, which has a nine-year term and a 30-year amortization, includes funds to close out the bond.

“Finalizing this three-property package financing for Holualoa posed many challenges,” says Blasberg. “Our extended rate lock program allowed us to meet the restriction for paying off the underlying bonds on La Jolla de Tucson, thus completing the last piece of the puzzle.”

According to Holualoa president Mike Kasser, the company bought the three properties based on the market’s long-term outlook rather than a quick return. In regard to the the success in landing financing, he says, “Our interactions with Alliant Capital on this transaction – and many others – have been excellent.”Their willingness to work diligently with us and meet our time lines has allowed this and other transactions to come to a successful conclusion.”

Built in 1978 and located in Tucson’s northwest business district, the 132,948-square-foot La Jolla features one and two-bedroom units from 414 square feet to 868 square feet that rent from $524 to $754 a month. Share amenities include swimming pool, spa, clubhouse, fitness center, lighted tennis, basketball and volleyballs courts, putting green and laundry center.

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