LOS ANGELES—TruAmerica Multifamily and Capri Capital Partners have secured a $168 million loan through Freddie Mac's Premier Lease-Up program for the acquisition of the Vermont, a two-building, 464-unit luxury apartment complex in Koreatown. In an earlier story, GlobeSt.com reported that the joint venture purchased the property for $238 million in what is considered the largest apartment sale in California this year.
“The Freddie Mac Premier Lease-Up program was ideal for the borrower as it allowed them to secure nonrecourse financing on an unstabilized asset in a short period of time,” Allan Freedman, SVP with Bekadia Commercial Mortgage, tells GlobeSt.com. “We had a very short timeframe to lock and close the transaction, less than 30 days. One of the benefits of working with this borrower, though, was that their existing relationships and strength in the marketplace allowed us to pursue creative and flexible financing options for them.” Freedman, who is based in Berkadia's Los Angeles office, secured the funds on behalf of the borrowers along with Detroit-based Berkadia SVP Peter Benedetto.
The loan has an eight-year interest-only term. The Berkadia team was able to close the loan in just 29 days to meet the mandatory closing date. Benedetto and Freedman attribute this to the network of Berkadia offices throughout the country.
Although the Vermont traded hands with only 110 units occupied, about 24% occupancy, multifamily assets are in high demand with a lot of capital chasing deals. “Multifamily is the preferred asset class today given strong rent growth and market fundamentals,” says Freedman. “The market is seeing a surfeit of capital, as most lenders—banks, life companies, conduits and agencies—want to be in this arena.” The Vermont is averaging 10 lease transactions per week, and should be near or at full capacity early next year.
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Kelsi Maree Borland
