NorthMarq arranged the Freddie Mac and Fannie Mae loans for six communities totaling 1,223 units in Southern California.
Advanced Real Estate Services, Inc., has refinanced a six-property, 1,223-unit multifamily portfolio in Southern California with $240.4 million in loans from Freddie Mac and Fannie Mae arranged by NorthMarq. The financings generated more than $100 million in cash-out proceeds that will be used as the initial investment into the $250 million Advanced Fund 20-1 for new multifamily acquisitions.
Three of the properties are located in Orange County, two in Riverside County and one in Los Angeles County, according to Michael Elmore, executive vice president/managing director of NorthMarq’s Newport Beach, Calif., office, which handled the refinancing transactions. Elmore said in a prepared statement that Freddie Mac financed the first five assets for $204.6 million during the initial phase of the COVID-19 crisis and held all the financial terms without change.
Pacific Palms Apartment Homes, a two-building, 149-unit property at 111 W. Orangewood Ave., and 2045 S. Haster St. in Anaheim, Calif., were refinanced with a $35.9 million, 10-year interest-only loan at a 2.71 percent interest rate by Fannie Mae further into the crisis. According to Elmore, Fannie Mae also held all terms and conditions, noting both lenders have long-term relationships with Advanced.
Advanced Real Estate Services managed to secure attractive financing during the peak of the pandemic. Richard Julian, the company’s president, attributed that success to its relationships with NorthMarq, Fannie Mae and Freddie Mac. In prepared remarks, he noted that Advanced already has three new properties in escrow that were purchased off market and is aggressively seeking more assets.
