Dealmaker: Capital One Closes $33M Fannie Mae Loan for Bay-Area Apartments
Capital One provided a $33 million Fannie Mae fixed-rate loan for City View and The Pines, two Walnut Creek, Calif. apartment communities.
Kristen Croxton and Greg Reed, Senior Vice Presidents in Capital One Multifamily Finance’s Newport Beach, Calif., office, originated the 10-year fixed-rate acquisition loan, which will remain interest-only for the full term.
Borrower Raintree Partners, Dana Point, Calif., develops, acquires and owns Class A and B multifamily residential and mixed-use properties in major West Coast markets but focuses on California.
The assets went under contract in December, but the transaction was delayed because it took the seller longer than expected to find a 1031 asset for an exchange. The interest rate locked in February.
Reed said Capital One closed the loan virtually due to its established relationship with both Raintree and Fannie Mae. “We found ways to meet the requirements of closing despite escrow and county offices being closed as well as maintain loan proceeds in a market where values and income have become slightly more volatile than normal,” he said.
City View and The Pines total 140 units and date to 1961 and 1971. Raintree said it plans to renovate the properties, complete deferred maintenance and upgrade units.