Dealmaker: Capital One Closes $13M Fannie Mae Loan to Refinance Los Angeles Apartments
Capital One provided a $13 million Fannie Mae loan to refinance La Corona del Mar, a 107-unit apartment community in San Pedro, Calif.
Kristen Croxton and Greg Reed, both Senior Vice Presidents in Capital One Agency Finance’s office Newport Beach, Calif. office, originated the transaction. The team worked with Andre Gonzales, Principal with Alcole Capital Group, El Segundo, Calif.
Capital One provided the borrower with a 10-year fixed-rate full-term interest-only loan that amortizes on a 30-year schedule.
“We recommended that the borrower take advantage of Fannie Mae’s Green Rewards program,” Croxton said. “Under Green Rewards, Fannie Mae can lower interest rates and increase the loan proceeds due to the reduced expenses from the energy and water conservation devices the borrower agrees to install post-closing.” The Capital One team also took advantage of Fannie Mae’s streamlined rate lock procedure, allowing it to rate lock quickly and eliminate interest-rate risk while locking in a rate in the mid-3 percent range.
La Corona del Mar opened in 1986 and has been well maintained by the sponsor since it purchased the asset in 1996. The property looks out over San Pedro Harbor and the Palos Verdes Hills and is close to local beaches.