The Alders Apartments
$21,150,000 Multifamily Loan from Life Insurance Company
Grady Seldin of PSRS arranged the $21.15MM refinance of a multifamily property in Tustin, California. The subject property is a 134-unit, 2-story garden-style multifamily complex built in 1971. The owner, who also manages the property, keeps it updated and turns units with every move-out. The property is always occupied in line with the vacancy rate of the market. Financed with one of our correspondent life insurance companies, PSRS was able to secure for its borrower a non-recourse loan with a 10-year term and 30-year amortization.
While the incumbent bank lender provided an aggressive quote to keep the loan on their books, the borrower decided to lock in an attractive fixed rate deal for 10 years with no P&I reserves to remove the interest rate risk as the bank quote was fixed for only partial term and floating the remainder. Taking advantage of the historically low treasury, the long-term fixed-rate option was best suited for the borrower’s business plan.