Avanath Secures $121M Fannie Mae Loan for 669 Units in LA
It’s for the largest single-asset sale in Los Angeles County this year
Investors continue to park more money in large multifamily assets.
A 669-unit block in Los Angeles’ Baldwin Hills traded hands thanks to a $121 million acquisition loan from Fannie Mae, and advisers at Northmarq said it’s the biggest single-asset sale in the county so far this year.
Irvine-based Avanath Capital Management bought the large multifamily property from Calabasas-based Upside Investments for $220 million, Northmarq announced. It’s Avanath’s largest-ever investment in L.A.
“We were able to push our Fannie Mae affordable group to underwrite collections aggressively and maximize loan proceeds for Avanath,” Northmarq’s Joe Giordani said in a press release. “The team secured attractive full-term, interest-only, floating-rate debt with an aggressive spread and proceeds of 55 percent loan to purchase price.”
Avanath did not immediately respond to a request for comment.
The Baldwin Hills property is made up of the two-story Santa Rosalia and Santo Tomas apartments built in 1948. Santa Rosalia includes 326 units at 4220 Santa Rosalia Drive, and Santo Tomas includes 343 units at 4318 Santo Tomas Drive.
“With more than one million square feet of land, the future of this unique asset will serve as a model for large-scale housing in the city,” Northmarq’s Vince Norris said.
Giordani, Scott Botsford and Brendan Golding of Northmarq’s Newport Beach debt and equity team secured the loan. Norris, Jim Fisher, Mike Smith, Bryan Schellinger and Shane Shafer completed the sale for Avanath.
Gregory Cornfield can be reached at email@example.com.