Bank Sells Notes on Multifamily, Mixed

LOS ANGELES-A note secured by an apartment complex in Santa Monica has sold for 80 cents on the dollar, and a note on a mixed-use project in San Pedro has sold for 32 cents on the dollar, according to principal Matt Ayer of Agoura Hills-based RcmaGroup. Ayer tells GlobeSt.com that in both cases the buyer of the note intends to gain control of the underlying collateral.

The property in Santa Monica is a 20-unit complex, and the note sold for what equated to a 5.5 gross rent multiplier on current rents, according to Ayer. He says that the buyer’s plan is to foreclose on the property, which was built in the 1970s and is 90% occupied. The property owner acquired the complex about four years ago, and the reason the note was on the market was that the Southern California-based bank has already said that it won’t refinance when the loan comes due next year, Ayer explains..