Borrowers Land Multifamily Loans of Nearly $28M

[IMGCAP(1)]COSTA MESA, CA-Two Freddie Mac loans, including a $4.6 million refinancing here and a $23.28 million deal in Rancho Cucamonga, show that apartment loans are closing these days despite the overall sluggish capital markets. The $4.6 million deal in Costa Mesa refinanced a 50-unit complex, while the $23.28 million refinancing follows a similar $22.1 million loan via Freddie Mac that the same borrower closed recently.

Shaun Moothart of the Costa Mesa-based Alison Co. tells GlobeSt.com that the $4.6 million refinanced a maturing loan for the Orange County-based owner of South Coast Fountains Apartments, a complex that was built in 1989 and is less than a mile away from the South Coast Plaza regional shopping mall. Moothart and Carl Fuller and of the Alison Co. arranged the loan despite “negative changes in market fundamentals throughout the closing process,” he notes.

[IMGCAP(2)]The loan closed at what the Alison Co. describes as “a very competitive rate priced over LIBOR,” with a life-time cap of 25 basis points lower than that of the fixed interest rate for the maturing loan. The new loan amortizes over 30 years. The South Coast Fountains Apartments consists of six two-story buildings with a mixture of units from one to three bedrooms featuring a community pool and covered parking garages. The units range from 673 square feet to 1,566 square feet.