BWE, a national commercial and multifamily mortgage banking company, announced that it had secured $43,400,000 in acquisition financing for Villa Del Mar, a 198-unit, four-building, three-story luxury apartment community and 209 adjacent marina boat slips located in Marina del Ray, California.
Mike Guterman, senior vice president in BWE’s Los Angeles office, arranged the acquisition financing from a life company on behalf of VDM Partners. The loan, which features a 70% LTP ratio, has a five-year fixed term with prepayment flexibility and two years of interest-only payments.
“When Villa Del Mar went on the market for the first time in over 40 years, we worked closely with our friends at VDM Partners to find a loan that would allow them to acquire the property and execute on their long-term plans. By highlighting the intrinsic value of the real estate, we navigated the challenges of securing a deal on a unique property like Villa Del Mar, which possesses both a ground lease and a marina, to ensure our client got the best possible terms,” said Guterman. “BWE is proud to use our large suite of capital solutions and excellent lending relationships to help our clients finance all types of properties, no matter how complex the deal.”
The property contains 198 units in large one- and two-bedroom arrangements, 209 boat slips, and 645 parking spots with 1,500 feet of frontage on the marina. The units feature amenities such as hardwood-style floors, marina-view balconies, and in-unit washer/dryers, while residents can enjoy a wide range of top-tier amenities on the property, including a custom-designed clubhouse, state-of-the-art fitness center, pool and spa, basketball and tennis courts, and barbecue areas.
Villa Del Mar is subject to a ground lease with the County of Los Angeles, which was recently extended in 2014. As part of the extension, the property’s previous ownership completed $27M in renovations in 2017, while VDM Partners will conduct approximately $8.5M in renovations to the marina boat slips by 2029 as required by the lease.
