Greystone Provides $35M Fannie Mae Loan on Cali Apartment Community
By Mack Burke September 28, 2020 8:00 am
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Multifamily financier and servicer Greystone has originated $35 million in Fannie Mae-backed debt in order to refinance Westcourt Apartments in Colton, Calif., Commercial Observer has learned.
The 15-year loan pays interest at a fixed rate below 3 percent and carries a loan-to-value below 50 percent, according to information from Greystone. The deal resulted in the borrower, capturing around $10 million in cash-out proceeds.
The borrowing entity is My Montecito III LLC, and a private owner named Cyrus Alemozaffar is the registered agent of the LCC, as per information from San Bernardino County public records and business records from the website of the California Secretary of State.
Greystone’s Ana Ramos — out of the firm’s Los Angeles office — along with Marketplace Capital Group’s Dan LuVisi arranged the financing on the 515-unit asset.
“While there are many challenges for property investors as a result of the pandemic, there are also new opportunities due to sustained, low interest rates, and the potential for cash-out,” Ramos said in a statement. “Fannie Mae (FNMA) financing is an excellent choice for long-term, low-rate commercial mortgages for sponsors that have a proven track record.”
Ramos pointed to the challenges facing the state of California “environmentally, economically, and under the veil of COVID-19” as reasons why it’s important for lenders such as her firm to move quickly in addressing the needs of a borrower.
Built in 1987, Westcourt is located at 2069 West San Bernardino Avenue in Colton, Calif. It has 137 one-bedroom units, averaging 758 square feet, and 378 two-bedroom residences, which average 958 square feet. Monthly rents for the apartments range from just over $900 to around $1,200 for the two-bedrooms, according to Apartments.com.
Amenities include a tennis court, a fitness center, three swimming pools, two jacuzzis, a playground, covered parking and private patios or balconies in the units, as per the property’s website.
