LOS ANGELES-GlobeSt.com has learned exclusively that Meridian Capital Group LLC has closed $15.6 million in permanent financing for two Southern California multifamily properties: the Superior at Venice in Venice Beach and another property in La Palma.
Jonathan Wintner, a VP in Meridian's local office, arranged an $8.4-million, 10-year Fannie Mae loan with an interest rate of 3.75% through the firm's correspondent relationship with Beech Street Capital for the Superior at Venice. The three-story, 38-unit multifamily property was completed in August 2009 and is within walking distance from the beach.
“Although the existing financing carried a substantial prepayment penalty, Meridian was able to negotiate both a favorable rate for the new 10-year term and allowed the sponsor to access trapped equity in the property through the refinance,” said Wintner in a prepared statement.
Ben Grossman, a managing director in the same office, closed a $7.3-million, seven-year Fannie Mae loan with an interest rate of 3.10%, also through the firm's correspondent relationship with Beech Street Capital, to refinance a 72-unit multifamily property located on Orangethorpe Ave. in La Palma. “By diligently watching the bond market and staying in constant communication with the borrower and lender, we were able to lock in a low rate exactly when the market opportunity was the strongest,” Grossman said in the statement.
Grossman tells GlobeSt.com that the borrower for the Superior at Venice transaction is a private investor/developer, and L'Abri Management is the borrower for the La Palma transaction. “The significance of these deals is really the execution. We turned them around very quickly in a market where people can't figure out how to get things done quickly. Both deals were done in 30 days and approval was done in under three weeks. That's valuable in a market where people are trying to capture rates.”
Grossman adds that the firm is preparing to close on another two transactions in California this week, one for a phased property in Salinas and another for a standard refinancing in Van Nuys.
As GlobeSt.com reported last week, Meridian arranged $67 million in construction financing the week before for Decron Properties Corp., a Los Angeles-based, diversified real estate development, investment, and property management firm, for the construction of 260 apartment units, 5,000 square feet of retail stores, and underground parking for 515 stalls in Playa Del Rey, CA. The LIBOR based loan was provided by Wells Fargo.
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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.
