Collateral Mortgage Capital LLC recently announced the loan was funded with Fannie Mae in partnership with Collateral's correspondent, Pacific Southwest Realty Services, who is affiliated with the Strategic Alliance Mortgage Group.
"This transaction was complicated because we had a number of moving pieces," says Dan Phelan, president of Pacific Southwest. "For example, bonds being paid off on a certain date, increases in rent, a changing ownership structure, and fluctuating treasuries at rate lock were all obstacles to overcome.
Collateral was able to better the borrower's anticipated spread by 10 basis points because of the efficiency of their rate lock process, he says.
Vista Hacienda Apartments is a 460-unit multifamily community consisting of 20, two-story buildings and a clubhouse/leasing office. The total net rentable square footage is 389,986 sf for an average unit size of 848 sf.
The loan carries a fixed interest rate of 7.095%, has a 10-year term and amortizes on a 30-year schedule. Loan proceeds were used to retire the existing debt, pay all closing costs related to the transaction and return a portion of the borrower's equity.
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