Elmore points out that two of the loans, on properties called Sundial in Anaheim and California Palms in Santa Ana, “hit almost within six basis points of the all-time low on the 10-year Treasury.” Timing was extremely fortuitous on all of the rate locks, according to Elmore, who says that 10-year Treasuries have gone up 40 basis points since the rates were locked. The rates vary on the eight loans because they all locked at different dates.

Elmore notes that all of the loans provided cash out that will be used to upgrade the properties and provide capital for future acquisitions. The new loans replaced a variety of types of financing, including maturing Fannie Mae debt, maturing CMBS, maturing bridge debt and bank loans.

Most of the complexes were built in the 1960s and 1970s, but all have been renovated recently to modern standards, according to Elmore. The occupancy across the portfolio was above 95% at the closing of the loans.

All of the ARES loans were for 10-year terms on 30-year amortization schedules except for Somerset Apartments and Lakewood Manor, which were both seven-year loans amortizing over 30 years. The properties, along with their loan amounts and interest rates were: Countrywood Apartments, 1255 E. Citrus Ave., Redlands, $10.915 million, 161 units, 4.35%; Crestwood Apartments, 21011 Osterman Rd., Lake Forest, $12 million, 76 units, 4.21%; Summerwood Apartments, 600 N. Harbor Blvd., LaHabra, $7 million, 98 units, 4.35%; Somerset Apartments, 336 N. Garfield Ave., Montebello, $28.5 million, 256 units, 3.86%; Lakewood Manor, 4907 Hayter, Lakewood, $64.443 million, 565 units, 3.82%; Beachwood Apartments, 2970 W. Orange, Anaheim, $30 million, 301 units, 4.37%; Sundial Apartments, 2701 W. Ball Rd., Anaheim, $11.865 million, 106 units, 3.95%; California Palms, 901 S. Harbor Blvd., Santa Ana, $13.25 million, 190 units, 3.95%.

The $97 million financing in Redmond, WA was for Redmond Apartments at 6110 186th Place NE for 10 years, amortizing over 30. Elmore and Schwartz arranged the first mortgage financing in two separate loans for the borrower, who will operate the 882 units as two separate properties. Both loans were fixed at 4.06%. Elmore noted that the acquisition financing closed in 35 days. “Freddie Mac committed to a 35-day closing process and delivered a final loan at $4,000,000 above the application amount on time,” he said. “To do something that big that fast today is very difficult, and Freddie Mac, did a great job.”

The financing of the ARES portfolio was one of two large Southern California multifamily loans that NorthMarq has arranged recently that are part of $550 million of Freddie Mac financings that the company closed in September. The other Southern California financing was $190 million for the 1,306-unit Park Newport complex in Newport Beach. Details of that financing are described in a separate article today on GlobeSt.com.