(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
GOLETA, CA-Prudential Huntoon Paige, the FHA-insured lending business of Prudential Mortgage Capital Co., has closed a $31.5-million FHA loan on behalf of the Towbes Group to refinance the Sumida Garden Apartments here, as well as a $20.7-million FHA loan for CreekBridge Apartments in Salinas, CA. The 200-unit complex here, just outside of Santa Barbara, was built by the borrower in 2008-2009 and includes 34 affordable-housing units, while the 220-unit Salinas property was built in 2005.
For Sumida Garden Apartments, the new, 35-year, fully amortizing loan replaced the construction loan used to develop the property. To complete the transaction, the deal team negotiated for several months and worked with the City of Goleta and Santa Barbara County to help ensure the transaction met legal requirements from the Department of Housing and Urban Development.
Prudential has a long history of lending to Towbes through its other capital sources, though this is its first FHA-insured transaction with the California real estate company. Johnson Capital Group Inc. was the mortgage broker on the transaction.
“The high quality of this property, combined with the strength of the borrower and the market made this an attractive transaction,” said Martin Herz, a principal with PHP, in a prepared statement. Herz led the transaction with John Jacobs, a principal based in Los Angeles.
The CreekBridge Apartments transaction was brokered by Newmark Realty Capital Inc. Through this transaction, Prudential was able to help reduce debt service on the property by more than $700,000 annually, according to the firm. Herz worked on the transaction with Jaime Zadra, a principal based in Los Angeles.
“Housing demand in the Salinas area is expanding, given growth in nearby Monterey, Carmel and San Jose,” said Herz. “Given the projected growth and the quality of this property, we’re very happy to include it in our servicing portfolio.”
The Salinas property, which sits on 12 acres, includes a mix of units ranging from one to four bedrooms and includes such features as granite countertops, 9-ft. ceilings and fireplaces. The development also includes a pool, spa, fitness center, tennis court, playground and large central courtyard.
As GlobeSt.com reported in May, Prudential Huntoon Paige was one of 20 lenders selected to participate in a pilot program HUD had launched in February—the Multifamily Low Income Housing Tax Credit pilot. Lenders who completed the training program are qualified to start processing applications.
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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.
