(To read more on the multifamily market, click here.)
POWAY, CA-WN, an affiliate of Western National, has purchased Silver Oaks Apartments, a 193-unit complex here, for $23.7 million. The property, built in 1977, sits on eight acres and is made up of 10 two-story buildings.
Silver Oaks's one- to three-bedroom units range in size from 728 sf to 1,040 sf with rents of $995 to $1,600 per month. Amenities include a pool, spa, exercise room, two tennis courts, a basketball court and a barbeque area.
CharterMac Mortgage Capital provided $18 million in mortgage financing for the purchase. The financing combined both fixed and floating rate loans into a single loan.
Daryl Carter, chief executive officer of CharterMac Mortgage Capital, says that the inflated housing market bodes well for apartment properties. "A dilemma for apartment owners, however, is how to finance properties as higher interest rates loom on the horizon," he says.
The $18-million financing was completed in 21 days and was split into two portions. The first was a $12-million debt carrying a 10-year fixed-rate term. The second portion was a $6-million floating-rate debt with a three-year adjustable rate mortgage. Both loans were funded through Freddie Mac Program Plus, with the financing originated by CharterMac's Irvine-based Andrew Mackay.
Western National and its affiliates own, develop and manage multifamily units in Southern California. The firm, founded in 1981, has been involved in over $500 million of property purchases, sales and refinancing since 1994. The management affiliate oversees more than 24,000 apartment units, mostly in Orange County.
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