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12/29/15
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Greystone has provided $27 mil in total Freddie Mac Small Balance Loans for an 11-property portfolio of multifamily units in Los Angeles. The borrower is Crawford Park Financial, a Los Angeles-based real estate investment group.
The properties are all located within Baldwin Village in South Central Los Angeles and range in size from 17 to 72 units per property. They were acquired by the borrower over the past three years.
The loans, provided by Greystone under Freddie Mac’s popular Small Balance Loan offering, together represent one of the largest single-borrower portfolios closed using this new platform. They were arranged by Greystone’s Dale Holzer.
“The 11 properties were spread out amongst four multi-asset entities, in combination with multiple investors, so it was imperative that the transactions closed concurrently and at the application terms,” said Holzer, Director, Greystone.
As a result of the financing for 303 total units, the borrower will receive significant cash-out proceeds which will be returned to investors and will fund future seismic work to comply with the City of Los Angeles’ new seismic retrofit ordinance. Additionally, while the properties are classified as market rate housing, 98% of the units will maintain affordable rent levels as a benefit from Freddie Mac’s favorable terms. Loan terms for the Freddie Mac financing include 10-year fixed rate, non-recourse, LTV up to 80%, and a step-down prepay structure.
“We received quick, diligent feedback on documentation with insightful recommendations for improvement,” said Joanna Crawford, one of the main principals of the borrower group.
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