Newmark’s (“Newmark”) Multifamily Capital Markets team arranged a $167.85 million loan for the refinance of Summer House Apartments in Alameda, CA, as well as a $40.3 million loan for the refinance of Emerald Hills in Monterey Park, CA. Both loans were executed with Freddie Mac.
Newmark’s Vice Chairmen Mitch Clarfield, Stephen Gianoplus, Ramsey Daya and Senior Managing Director Josh Braceros led the effort on the refinance of Summer House Apartments, while Clarfield and Managing Director Ryan Greer arranged the 10-year refinancing of Emerald Hills on behalf of a private, Los Angeles-based owner and repeat Newmark and Freddie Mac select sponsor.
Summer House Apartments, located on Alameda Island, comprises 615 units and offers access to free shuttle service to the Lake Merritt BART Station and direct ferry service to Downtown San Francisco.
“Some would say that the sponsor could not have picked a more difficult time to refinance Summer House Apartments, but Newmark and Freddie Mac partnered to provide a great execution,” said Clarfield. “The COVID-19 pandemic created unprecedented challenges, but the collaboration between Newmark, Freddie Mac and the sponsor allowed us to work through the myriad of issues presented by the current environment.”
Clarfield continued, “We are thrilled to have been able to deliver an excellent loan secured by a mission-rich property in an infill Bay Area location for Freddie Mac. We are also grateful to the client for entrusting us with such an important financing at such a challenging time.”
The 184-unit Emerald Hills complex is located at 855 West El Repetto Drive, just east of Downtown Los Angeles and one block from South Atlantic Boulevard, proximate to various public transportation options, numerous grocers, shopping and dining options. The property presents a strong mix of studio, one-, two- and three-bedroom units, most of which have undergone recent renovations including new flooring, appliances, countertops and hardware. The property features a dog park, laundry facilities, a fitness center, two swimming pools, a BBQ area and a deck with panoramic views of Los Angeles.
According to Greer, “We were able to partner with the borrower to move quickly and close the refi of Emerald Hills two weeks early, taking advantage of strong property operations. “The early close and resilient property performance during the current health pandemic allowed for an increase in loan proceeds and lower debt service reserve.”
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,000 professionals operate from approximately 480 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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