Dealmaker: Capital One Closes $33M in Freddie Mac, Fannie Mae Loans

Capital One, Bethesda, Md., provided $33.3 million in Fannie Mae and Freddie Mac loans to refinance three Los Angeles-area apartment communities.

Capital One Senior Vice Presidents Kristen Croxton and Greg Reed originated the transactions.

Sponsors SDC Capital and Loramar Holdings LLC, both headquartered in Burbank, Calif., received Fannie Mae loans totaling $13.3 million. The first loan equaled $9.1 million for The Rodney Apartments in Los Feliz. The second was a $4.2 million loan for Crosscreek Apartments, a 24-unit community in Van Nuys. Both 10-year fixed-rate loans included full-term interest-only financing and an interest rate below 3 percent.

“The sponsors are long-term investors who were eager to reduce their existing interest rates as well as take advantage of full-term interest-only,” Croxton said.

Due to the low leverage terms, Capital One used Fannie Mae’s Streamlined Rate Lock process.

In Culver City, Calif., Capital One provided a $20 million Freddie Mac fixed-rate loan to refinance a newly built 36-unit apartment community. Croxton and Reed worked with Alcole Capital Group Principals Brian Horner and Andre Gonzales on the transaction.

The 10-year loan included five years of interest-only payments followed by amortization on a 30-year schedule. The interest rate was below 3 percent.

“This transaction had a number of characteristics that we felt would be attractive to Freddie Mac,” said Reed. “Three of the apartments are rent-restricted. The sponsor was extremely strong. And the property was in the highly desirable Culver City submarket.”