Jones Lang LaSalle Inc.’s Marc Schillinger, Keith Rosso and Eric Boucher secured the funding for a local, undisclosed borrower.
The loan is a 10-year, 2.29% fixed-rate Fannie Mae loan. JLL Real Estate Capital is a Fannie Mae lender.
“We are extremely happy when we have the opportunity to help our clients land great rates,” Schillinger said in a statement. “Record rates in record timing is the name of the game these days.”
“Despite two of the four existing loans having prepayment penalties, it still made sense for the borrower to pursue the refinance as they were able to cut their rate in half and receive cash out,” he added.
The financing closed in less than a month.
The properties range from 16 to 69 units, and the loans run from $5.8 million to $24 million.
A portion of the money will be used to acquire property in Beverly Hills, according to JLL.
This isn’t the only large loan announced in recent months.
In August, Tauro Capital Advisors Inc. said it had secured $50 million in loans for three developers for triple-net lease properties.
The largest was a $25 million loan, arranged for an unnamed Santa Monica-based developer, which will be used to develop new triple-net properties for tenants including 7-Eleven Inc., Starbucks Corp., Dutch Bros. Coffee and Chick-Fil-A.
All three came from private lenders and debt funds.
Also, in August, CBRE Group Inc. announced it had arranged $26.8 million in financing for office properties totaling nearly 71,000 square feet at 11925 Wilshire Blvd. in Brentwood and 2200 Pacific Coast Highway in Hermosa Beach.
The financing was arranged for Vectra Management Group, a real estate investment, development and management company with an office in L.A.
And earlier this summer, Santa Monica-based WS Communities received a $150 million loan for a portfolio of six multifamily assets in Santa Monica and the San Fernando Valley, along with a development site in Santa Monica.
The loan came from Madison Realty Capital.
Earlier this year, a 48-unit condominium project in Pasadena owned by Octane received a $34.5 million construction loan.
And in April, EAH Housing raised construction financing for Magnolia Villas, a 40-unit affordable community for low-income seniors in Santa Monica that is under construction.
Multifamily housing, like the portfolio that recently received financing, is faring better than other sectors during Covid-19. Experts say demand remains strong in the multifamily and industrial categories. Retail and hotel assets, however, are faring poorly.
For multifamily properties, CBRE expects the average rental rate in the United States to decline by 8.8% this year and vacancy to rise before recovering in 2021 and 2022.
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