LOS ANGELES-The Los Angeles and Orange County branch offices of Berkadia Commercial Mortgage LLC have arranged $27.93 million in financing for two multifamily properties here. Berkadia senior vice president’s Allan Freedman and Ed Zimbler closed on a $13.85 million loan for the acquisition of Waterstone on Sunset, located in West Covina, CA, east of LA. The team was able to arrange a 10-year, fixed-rate loan on the 140-unit property. Freddie Mac made the loan, which includes a five-year period of interest-only payments and an 80% loan-to-value ratio.
Shortly after the Waterstone closing, Freedman and Berkadia vice president Edward Kim worked with Freddie Mac to arrange $14.08 million in permanent refinancing for the Monterey Gardens Apartments, a 152-unit property in Monterey Park, CA, which closed following the borrower’s seven-month ownership of the property, Berkadia structured refinancing, which provided a 90% return of equity to the borrower. Freedman and Kim worked with Freddie Mac to deliver a competitive structure on this refinance, including a five-year adjustable rate with a 2.77% start rate and 5.75% capped note rate.
“While each transaction had its own distinctive characteristics and challenges, we were able to work closely with Freddie Mac to find flexible options that met the borrower’s needs and timeframe, while addressing the lender’s own requirements,” says Freedman.
Berkadia could not be reached by GlobeSt.com for comment before deadline to answer questions about the identity of the borrowers or the seller of Waterstone on Sunset, the age and occupancy of the properties or the borrowers’ long-term plans for the properties. However, a spokesperson for the Waterstone borrowers tells GlobeSt.com that they are planning to improve the property’s curb appeal with new exterior paint and landscaping and are planning a new fitness center as well.
As GlobeSt.com previously reported, in June 2010 Berkadia originated $117 million in financing for a portfolio of 19 senior housing complexes in several states owned by Brookdale Senior Living. The fixed-rate loan, through Berkadia's Fannie Mae DUS program, had a 10-year term, an interest rate of 5.98% and a 30-year amortization.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
