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3/13/18
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Quantum Capital Partners secured $25 mil in long-term, fixed-rate debt to refinance City Park Apartments, a 130-unit apartment complex located near the University of Southern California (USC) in Downtown Los Angeles. The property consists of two, four-story multifamily buildings.
City Park Apartments is located at 1246 and 1247 W. 30th St, two blocks from USC. The security buildings feature a mix of two- and three-bedroom floorplans. On-site amenities include subterranean parking, and a combination fitness center and recreation room. Although not operated as traditional student housing, its proximity to USC has made it an attractive option for University students. The property was 99% occupied at the time of the financing.
The sponsor is a local investor and management company, Park City LLC, which has owned the property since developing it in 1991. The company was seeking to refinance maturing debt with a long-term fixed rate loan before interest rates increased.
Quantum Capital Partners’ Kevin Wong arranged the financing. According to Wong, the historically high turn-over rate from the student tenants, for what was viewed by many lenders as a typical multifamily project, was a major challenge.
“By demonstrating the operational history as student housing and the long-term track record of high occupancy, we were able to secure an insurance company loan with a 22-year term at a fixed rate of 3.77%,” noted Wong. “In addition, we were able to secure a 60-day upfront rate lock on application, which protected the sponsor from rising interest rates that increased close to 40 basis points from application.”
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