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$24M Loans Supply Cash for Apartment Owners
El Segundo, Calif.-(BUSINESS WIRE) –April 16, 2008 –LOS ANGELES-Two owners of apartment buildings have taken cash out for investments and upgrades to their properties via $24 million in refinancings, according to El Segundo, CA-based Venture West Funding, which arranged the loans at especially favorable rates and terms in light of today's credit markets. One group of loans totaling more than $12.35 million refinanced four apartment buildings comprising 131 units in Brentwood and Sherman Oaks, while the other deal was an $11.5 million financing for an 80-unit complex in Chatsworth.
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Chatsworth Property
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Matt Douglas, a principal of Venture West Funding and the broker on the deals, tells GlobeSt.com that all are non-recourse loans. “We originated these loans about four to five months ago to take advantage of low rates,” Douglas says. “These would have been more difficult in today’s credit environment if we were initiating them now.”
Douglas arranged the financing for the $12.35 million in loans through Union Bank and Luther Burbank Savings for a Northern California-based apartment investor. The four apartment buildings include three in Brentwood and one in Sherman Oaks that are an aggregate of 97% occupied.
The refinancings involved three five-year fixed rate loans and one 10-year fixed with an average rate less than 5.5%. The loan-to-value ratio ranges from 35% to 70% on the four buildings. Despite the general real estate credit crunch and the tightening of underwriting standards by lenders, Douglas comments that Venture West remains “very bullish on the outlook for multifamily lending during these volatile credit markets.”
For the Chatsworth property, Douglas arranged the financing through Union Bank for a Los Angeles-based private investor. The five-year fixed, interest only loan at 5.14% generated cash out of more than $6.2 million. Douglas observes that the loan is “representative of the deals we are seeing now in this market.”
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Brentwood Property
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The Chatsworth apartment project is 98% occupied and was appraised in excess of $17 million. The LTV ratio is 65%.
Venture West Funding was founded over 18 years ago and has funded more than $5.7 billion in loan volume since 2002. Venture West is one of the largest firms of its kind operating throughout Southern California, and specializes in providing mortgage loans secured by apartment buildings, commercial properties and single-family homes to a wide variety of borrowers. Venture West is headquartered at 2301 Rosecrans Avenue, Suite 3100, El Segundo, California, 90245 (310.706.4450). The firm also maintains a full-service office in Orange County at 2 Park Plaza, Suite 220, Irvine, California 92614 (949.475.5573).
CONTACT: Venture West Funding
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BANKING REAL ESTATE
SOURCE: Venture West Funding |
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