(Read more on the multifamily market.)
SAN JOSE, CA-The developer of the 231-unit Bella Villagio Apartments here recently took out the floating rate loan on the property with a new $35.6-million mortgage. The 10-year, 5.95% loan has a 30-year amortization and requires only interest payments for the first five years.
The loan was originated by David Levine of the San Francisco office of ARCS Commercial Mortgage, which is a PNC Real Estate Finance company. Levine tells GlobeSt.com that the borrower had taken out the construction loan with a floating rate loan and now is taking out the floating rate debt with fix-rate debt.
“The cost of floating rate money is LIBOR plus 150 basis points; this is 100 points less,” Levine says, adding that the refinance also allowed the owner to recoup some equity and increase cash flow. The debt coverage ratio was “less than 1.15x,” he says.
Developed in 2004 with an Italian Village theme, Bella Villagio is a garden-style complex on approximately six acres. Common amenities include a swimming pool, two spas, a fitness center, pool, clubhouse and playground.
The name of the private owner of Bella Villagio was not released by ARCS. According to the Secretary of State's office, the owner of Bella Villagio Apartment Homes Inc. is Alan Pinn of Saratoga, CA-based Pinn Bros. Construction.
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