BWE, a national commercial and multifamily mortgage banking company, announced that it has secured $224,699,000 in financing for a six-property, 1,192-unit multifamily portfolio in Orange County, California, part of the Greater Los Angeles area. Five properties in the portfolio were refinanced in order to secure equity for the acquisition of the sixth property, the Regency Palms in Huntington Beach.
Jason Krupoff, senior vice president, and Doug Taylor, senior vice president, both in BWE’s Irvine office, originated the loans on behalf of the sponsor, a long-time, repeat client of BWE and a long-term investor-operator of Orange County multifamily properties.
Three of the properties, totaling $90,650,000 in loan proceeds, were financed by one of BWE’s correspondent life companies. The other three, including the acquisition, totaled $134,049,000 and were financed through Fannie Mae. The six individual loans were all non-recourse, permanent transactions with fixed rates. The loans have between five- and ten-year terms with thirty-year amortization periods, with the agency loans having initial interest-only payments.
“When our long-time customer approached us to discuss possible strategies to extract equity from their current portfolio to facilitate the acquisition of Regency Palms, we knew we could get an attractive first mortgage on the purchase – the key was generating enough proceeds from the refinances while we endured a rapidly rising interest rate environment,” said Krupoff. “In order to provide the best terms, our team moved quickly and leveraged our deep relationships with both agency lenders and life companies to secure the best execution for our client’s long-term business goals and immediate acquisition timeline, all while establishing a new life company relationship that they can utilize in the future.”
The refinancing and acquisition come as Orange County’s multifamily housing market shows strong fundamentals with little new supply and steady rent growth. The area’s coastal location and proximity to Los Angeles proper, access to high-quality schools and employment, and wide range of amenities make it an ideal location for renters and developers alike.
