Downey Village Apartments

Transaction description

Grady Seldin and Nathan Toomey of PSRS arranged an $18.5 million non-recourse cash-out refinance for a 129-unit garden-style multifamily complex in Downey, California. Built in 1955 and composed primarily of 124 high-demand one-bedroom layouts alongside five two-bedroom units, the property has maintained occupancy levels consistent with broader submarket performance over its long operating history.

PSRS previously financed this property in 2021, and on this transaction, the incumbent life insurance lender beat out a competing bank offer by extending more favorable terms and easing underwriting requirements to retain the loan on its books. The result was an interest-only term with prepayment flexibility built into the back end. It reflects a broader pattern among life insurance lenders to stretch for strong operating assets and repeat, proven borrowers, even against more aggressive offers from other capital sources.