Jackson Square Properties Secures $454M Refi for Seven Multifamily Properties
By Greg Cornfield October 8, 2020 4:30 pm
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Jackson Square Properties has secured $454 million in Fannie Mae (FNMA)-backed debt to refinance seven multifamily assets in California, Oregon and Utah.
Newmark (NMRK) Knight Frank originated the funding as part of its multifamily capital markets platform. The financing came in two packages, including a new $384.75 million facility for a six-property portfolio with 1,633 units. Four properties are located in Southern California, one in Northern California, and one in Oregon.
The new facility has a $130 million, 10-year full term interest-only tranche and a $254.75 million 15-year tranche with 14 years of interest-only at a 74 percent loan-to-value ratio. The 10-year tranche has a coupon of less than 2.5 percent, while the 15-year tranche was below 2.9 percent.
The portfolio includes the 288-unit Palisades at Sierra Del Oro and the nearby 300-unit, both in the city of Corona, as well as the 280-unit Village Oaks in Chino Hills. All three properties are located in Southern California’s Inland Empire. It also includes the 233-unit Terra Nova in Chula Vista near San Diego; the 244-unit Hawthorn Village in Napa Valley; and the 288-unit Terrene at the Grove, located in Wilsonville, Oreg.
The other refinance was a $69.3 million, 10-year, full-term interest-only fund for the 624-unit Callaway Apartments, located in Taylorsville, Utah. The 73 percent loan-to-value advance priced in the 2.8 percent range.
NKF announced the funding but declined to confirm the name of the borrower. NKF’s Mitch Clarfield and Ryan Greer led the effort.
“[T]his execution proves that despite the current challenges and unclear economic environment, it is possible to secure excellent financing at historically low rates,” Clarfield said in a statement.
