LOS ANGELES—Raintree Partners has secured $31.1 million through the Fannie Mae Structured ARM program to refinance a three-property multifamily portfolio in Los Angeles. The portfolio consists of a Taiko Village in Burbank, Villa Sofia in Sherman Oaks and Vista Paradiso in Studio City.

Raintree acquired all three properties in 2011 and 2012. Taiko Village in Burbank received the largest portion of the funds, $11.9 million, while Villa Sofia in Sherman Oaks received $10.5 million and Vista Paradiso in Studio City received $8.7 million. Capital One Multifamily SVPs Kristen Croxton and Greg Reed secured the funds on behalf of the borrower.

“The borrower needed prepayment penalty flexibility to accommodate a possible sale in the near future,” Greg Reed, SVP at Capital One Multifamily Finance, tells GlobeSt.com. “They also wanted to float over LIBOR and maximize the assets cash flow for the remaining hold period. FNMA was able to offer a very competitive spread over LIBOR with interest only for 5 years and loan proceeds that returned a portion of the original equity along with retiring the existing debt. FNMA did not require an interest rate cap but rather a springing cap that requires the borrower to buy a cap only when LIBOR hits 2% (currently at .15%). This was the first of its kind structure for any borrower with FNMA.”