BWE, a national commercial and multifamily mortgage banking company, announced that it has secured total capital of $108.38 million for the VRV, a recently completed luxury apartment property in Stanton, California (Orange County).
Tom Kenny, executive vice president, and Alex Gregoire, vice president, both in BWE’s Irvine office, arranged the transaction, which includes an $88.38 million senior loan from Freddie Mac and a $20 million preferred equity contribution, from an institutional equity fund. The non-recourse agency loan features a 5-year fixed-rate term with interest-only payments at a 4.96% interest rate. BWE secured the financing for Bonnani Development, one of Orange County’s top residential developers and a repeat client of BWE.
“This transaction involved a recapitalization that enabled a major paydown of the prior equity partner, while allowing the Sponsor to rate lock early (during the lease-up process) thus capturing an attractive interest rate prior to the recent run-up in Treasuries,” said Kenny. “The deal highlights a great team effort between our origination team, the BWE agency underwriting group, an experienced and flexible preferred equity group, and a great development Sponsor.”
The VRV is a 300-unit luxury apartment building featuring a mix of studio, one- and two-bedroom floor plans with ground floor retail on a 3.75-acre site. The units feature premium finishes, including designer-curated color combinations, patio/balcony spaces, stainless steel kitchen appliances, kitchen islands, vaulted ceilings and large windows, spacious closets and dual vanities.
The community is located along the highly trafficked Beach Boulevard, which is traveled by 70,000+ cars per day, and within 0.5 miles from the 22 Freeway that is traveled by 185,000+ cars per day. Given the site’s proximity to both Beach Boulevard and the 22 Freeway, residents enjoy convenient travel west to Long Beach/Los Angeles and East to other Orange County hubs. Further, the apartment is located across the street from the new Rodeo 39 Public Market that features 25+ curated vendors with live music.
BWE
