Refi in 4% Range Cuts Interest Costs

GARDEN GROVE, CA-The owner of a 239-unit apartment complex in this Orange County city has supplanted higher-rate bond financing with a new $20 million, 10-year loan in the 4% interest range, according to Holliday Fenoglio Fowler, which arranged the refinancing. HFF managing director David Bleiweiss reports that Bertram Partners Inc.’s new 10-year loan is a fixed-rate Fannie Mae DUS financing. The new loan replaced higher-rate bond financing that was previously encumbering the property.

“This allowed the borrower to significantly reduce his interest costs to today’s rates in the four-percent range,” Bleiweiss said. The property that was refinanced is Rose Garden Apartments, located at 9645 Westminster Ave. and 11632 Stuart Dr., close to the Garden Grove Freeway, Interstate 5, Huntington Beach and Santa Ana. The property is an affordable housing complex and maintains, on average, 97% occupancy.