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6/19/18
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SoCal developer G.H. Palmer has obtained new financing of $158.8 mil on Colony Townhomes, a 752-unit multifamily property located in the Canyon Country community of Santa Clarita. The new loan replaces a HUD loan, with a remaining term of 23 years and pre-payment penalties in place. Both loans were arranged by George Smith Partners (GSP).
Colony Townhomes is located at 17621 Pauline Court, south of Soledad Canyon Rd and just east of Hwy 14. It features two- and three-bedroom units with personal garages, and offers a host of amenities including a state-of-the-art fitness center, upgraded swimming pool and spa, and a family-friendly picnic area. Located in close proximity to Valencia town center and the Metrolink commuter rail, The Colony Townhomes also provides easy access to the 5, 14, 210 and 118 freeways.
The interest-only, non-recourse loan is fixed rate of 4.29% for a 10-year term. The loan, sized at 65% of value, was arranged by GSP’s Gary M. Tenzer. According to Tenzer, the interest rate savings for a new 10-year loan would offset the early pre-payment costs of the existing loan, while also providing the opportunity to cash out a significant amount of appreciated equity.
GSP was able to lock the rate within just 14 days of the sponsor’s application. Interest rates are predicted to continue to rise in the months ahead, with an increase of 50 to 75 basis points expected over the next 12 to 24 months, according to Tenzer.
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