Northmarq‘s Westlake Village Multifamily Investment Sales team led by Vince Norris, Mike Smith, Jim Fisher and Tommy Yates, in collaboration with Northmarq’s Newport Beach Debt + Equity team led by Scott Botsford, Joe Giordani and Brendan Golding, successfully completed the sale and acquisition financing for NOVO Apartments.
Northmarq completed the $38.3 million sale on behalf of the seller, Stratford Partners Real Estate LLC, to Community HousingWorks (CHW). CHW will convert the existing market-rate community into a fully Deed Restricted Affordable Housing Community.
“We are pleased that both the buyer and seller acknowledged the critical need for affordable housing in this high-resource area designated by California Tax Credit Allocation Committee (TCAC) and California Department of Housing and Community Development (HCD),” Norris said. “With this transaction, our team has successfully facilitated the conversion of 1,195 market-rate units to affordable housing, amounting to over $371 million in total volume. Despite ongoing administrative changes at HUD, we remain committed to advancing our efforts in this sector, working alongside our clients to address the pressing demand for affordable housing.”
As a direct agency lender, Northmarq arranged $24.9 million in permanent, fixed-rate acquisition financing on behalf of Community Housing Works through the Freddie Mac Targeted Affordable Housing Program. The loan features a 10-year fixed term, a 1.20x debt service coverage ratio, and a 35-year amortization schedule to maximize loan proceeds.
“The borrower benefited from the property’s naturally occurring affordability, which enabled Northmarq to secure an Affordable Conversion Loan,” said Golding. “We were able to deliver the most aggressive loan structure available in the market, including a 50% tax abatement underwritten at closing.”
Built in 1974, NOVO Apartments offers community living with a perfect balance of comfort and convenience. Units offer one- or two-bedroom layouts with stainless steel and black appliances, designer cabinetry, ceiling fans, chrome lighting fixtures, plush carpeting in bedrooms, wood-style flooring and two-tone paint.
Community amenities include a 24-hour fitness center, swimming pool and daybeds, heated spa, poolside Wi-Fi, expansive outdoor kitchen, outdoor lounge with fireplace, outdoor dining area, gas barbecues, spacious courtyards with seating, controlled building access and covered parking.
NOVO Apartments are located in a bustling neighborhood near ample dining options, shopping, fitness centers, salons, schools, parks and more. It is within close proximity of California State Route 60 and is 11 miles from downtown Anaheim and 23 miles from downtown Los Angeles.
