Since last fall, when mortgage rates dropped to a 30-year low, many property owners have used refinancing as an important tool in saving money on interest and property payments. Property owners in the Sacramento area have done four times as many mortgage refinances so far this year as they did two years ago.
A husband and wife investment team has signed a $4.95 million refinance agreement on Brush Creek, an 80-unit garden-style apartment complex located in Davis, which is primarily occupied by University of California, Davis students.
The acquisition financing was provided through a portfolio lender at a 75 percent loan-to-value ratio, with a rate of 5.53%. According to Marcus & Millichap Capital Corp., which arranged the deal, this rate is 255 basis points over 11th District Cost of Funds Index. The term and amortization both cover 30 years.
Marcus & Millichap also arranged $5.2 million of financing for an independent investor on Almondwood, a 95-unit Davis apartment complex, also in Davis. According to the company, the refinance was provided through a Fannie Mae lender at a 65% LTV. The fixed-rate, 10-year mortgage has a 30-year amortization.
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