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7/11/17
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Advanced Real Estate Services Inc (ARES) has obtained a $100.7 mil refi loan from Freddie Mac on Lakewood Manor Apartments, a 570-unit multifamily property in Long Beach.
ARES acquired the original 565-unit Lakewood Manor Apartments in 2005 and added a neighboring five-unit property in 2012. The property is located in close proximity to the Long Beach Airport and a short walk to the Lakewood Mall.
Since purchasing the property, ARES has added significant upgrades to the property including: new cabinets & countertops, flooring, fixtures, paint, electrical & energy efficient lighting upgrades, courtyard bbq’s and pergolas, new roofs, office remodel, and signage upgrades. These upgrades were completed by ARES’ in-house construction company, R3.
The refi is part of ARES’ long-term-hold strategy to buy under-performing assets, upgrade them, then refinance and use the proceeds to expand the portfolio while maintaining the current assets.The new financing enabled the company to pay off the existing loan, replenish the reserve accounts, and pull out over $40 mil of excess proceeds to be used for future acquisitions.
The loan was arranged NorthMarq Capital’s Mike Elmore. It has a low coupon rate of around 4% and also includes an interest-only period.
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