Northmarq Supplies $109M Refi for SoCal Apartments

Advanced Real Estate has landed a $109 million debt package to refinance three apartment communities in Southern California, Commercial Observer has learned.

Northmarq originated the Freddie Mac-backed financing through its agency lending arm for the 428-unit multifamily portfolio in Anaheim and Azusa. The fixed-rate loans were all structured at 10-year terms with eight years of interest, using a 70 percent loan-to-value ratio, a 1.20x debt service coverage ratio and 35-year amortization, according to Northmarq.

The refinancing includes loans of $26.6 million for Villa Serrano Apartment Homes in Anaheim, $50.14 million for Summer Crest Apartments in Anaheim and $30.016 million for Le Med Apartments in Azusa.

“We were able to maximize cash-out proceeds for the borrower by structuring a high leverage permanent loan,” Alex Kane, senior vice president of debt and equity at Northmarq, said in a statement.

Kane led the financing with Northmarq’s Newport Beach, Calif.-based debt and equity team that also consists of Joe Giordani, Brendan Golding and Alvin Cao.

Located at 201 South Magnolia Avenue in Anaheim, the 1968-built Villa Serrano Apartment Homes comprises 117 units with one-, two- and three-bedroom layouts. Community amenities include a pool, fitness center, community room and barbecue grills.

The 1971-built Summer Crest Apartments at 828 West Ball Road in Anaheim, less than two miles from Disneyland, features five buildings with 183 units. Property amenities include a pool, fitness center, private gated access and barbecue grills. 

Le Med Apartments at 950 West Sierra Madre Avenue in Azusa, 24 miles from Downtown Los Angeles, was constructed in 1988 with 128 units. Amenities in the eight-building complex include a clubhouse, pool and spa, electric vehicle charging spaces, fitness center, firepit, basketball court and barbecue grills. 

Robb Cerruti, chief operating officer at Advanced Real Estate, said in a statement that Northmarq “delivered the most aggressive loan sizing available in the market, paired with highly competitive pricing.

Cerruti added that the loans were structured to achieve “maximum cash-out proceeds” that will  aid Advanced Real Estate’s new fund targeting multifamily acquisitions across Southern California.  

Andrew Coen can be reached at acoen@commercialobserver.com