Dealmaker: Capital One Closes $31M in Freddie Mac Small Balance Loans
Capital One, McLean, Va., provided Freddie Mac small balance loans totaling $31.1 million to finance nine southern California apartment communities.
Sponsor Positive Investments, Los Angeles, received nine hybrid loans that combine an initial five-year fixed rate followed by a 15-year floating rate. They will be amortized over 30 years. All loans closed with rates below 3 percent.
Positive Investments Principal Srinivas Yalamanchili noted the loans closed despite the restrictions to physical inspections and with additional requirements to counter the “uncertain” economy. For example, Freddie Mac now requires a 12-month debt service reserve held back at closing for all small balance loans.
Most of the loans were for acquisitions in southern California markets Spring Valley, San Diego, El Cajon and Bellflower. In total, a $25.3 million loan package financed the following properties:
–8947-8949 Troy Street in Spring Valley
–9360 San Diego Street in Spring Valley
–415 Grand Avenue in Spring Valley
–9249 Birch Street in Spring Valley
–5101-5111 Towle Court in San Diego
–9254-9260 Palm Street in Bellflower and
–Willow Creek Apartments in El Cajon.
The other two loans refinanced and recapitalized properties, including a $4.5 million loan for 45-unit community 706 McDonald Avenue in Wilmington a $1.3 million loan for Rio Rancho, a 20-unit community in Perris.