David Lacki of Capri's Walnut Creek office was the originator of each Fannie Mae MBS/DUS second mortgage. "I see this as a good deal for partnership as it allowed them to use the funds they receive though the second to purchase other properties in the bay area," Lacki tells GlobeSt. "Each one is a fixed 18-year loan in the low 8% range and so they can easily take the proceeds and purchase other properties in the area and increase their overall yield which really makes good business sense."

Lacki adds that "all three loans are Fannie Mae loans, which are unique in that Fannie Mae allows borrowers after a period to add a supplemental or second, which when you look at it as a straight second actually offers a lower rate than the first which ultimately offers them instant equity to go ahead and buy other properties."

The financed apartment projects include:

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