Capitalizing on rising property values in its growing portfolio of assets in Inglewood, CA, Universe Holdings has received $19.71 million in cash-out financing secured by seven of its Inglewood multifamily communities.
Two separate loans allowed Universe Holdings to pay off the existing mortgages on the value-add properties and return capital to investors. The financing also provided a significant amount of fresh capital to Universe’s balance sheet for future acquisitions.
“Dating back to when Universe CEO Henry Manoucheri first looked at the Inglewood market, we had a strategy of gathering a portfolio within a short distance of some of the major projects in the area, including the $5 billion Hollywood Park development that includes a new NFL Stadium, and the LAX Transit Line,” said Universe Holdings COO Jonathan Cohen. “Through the successful implementation of our business plan, we reduced operational costs at these properties, allowing us to exceed our original projections for occupancy and rental growth across the assets.”
Freddie Mac’s Small Business Loan (SML) program provided Universe Holdings with a $16.93 million blended rate loan with three years interest only to refinance a portfolio of six properties with a total of 77 units in Inglewood. The properties are Chateau Park Casino Royale 1, Chateau Park Casino Royale II, Chateau Park Casino Royale III, Chateau Park Casino Royale IV, Space Odyssey and Evergreen Fields.
Universe Holdings also received a $2.78 million supplemental loan from Capital One to refinance The Sycamores, a 50-unit property located at 875 Victor Avenue in Inglewood. The 88-month fixed-rate financing carries a 4.35 percent interest rate. The Sycamores is located approximately two miles from the new Los Angeles Stadium and Entertainment District.
“We have been able to increase our NOI over 100 percent and we continue to be active buyers in Inglewood and throughout Southern California,” Cohen said.