New York, NY – October 1, 2015 – (RealEstateRama) — Hunt Mortgage Group, a commercial real estate lender, announced today that it has provided a $5.8 million Fannie Mae loan facility to refinance Pacific Coast Villas Apartments, a multifamily property located in Long Beach, California.
Located at 690 East Pacific Coast Highway, Pacific Coast Villas is a 50–unit garden style apartment community comprised of one-, two-, three- and four-bedroom units contained in six two-story buildings. The subject has a Housing Assistance Payments (HAP) contract covering all but the manager’s unit and it is in the second year of a five-year renewable term.
Proceeds from the loan will be used to refinance the existing debt and yield maintenance on the property and provide significant cash out to the sponsor. The borrower is Preston IV LLC, backed by Gordon E. Reese. The loan term is 10-years with five-years of interest only and amortization based on a 30-year schedule.
“Gordon is an experienced local operator and broker in southern California and a repeat Hunt Mortgage Group client,” said Bryan Cullen, Managing Director with Hunt Mortgage Group. “He purchased the Pacific Coast Villas in 2004 and we refinanced the property in 2006 and placed a supplemental loan on it in 2011. Hunt Mortgage Group has a dedicated Affordable Housing team that allows us to maximize proceeds when requested and provide the best loan terms available based upon that leverage.”
The broker was Rick Judge of Marcus & Millichap Capital Corporation. He said “Gordon and I came back to Bryan because we had a good experience on the two previous financings and we knew that Hunt understood the asset and would deliver.”
Pacific Coast Villas was built in 1979 and has consistently exhibited occupancy at or above 96%.