$19.6 Million Loan For Age-Restricted Multifamily Asset Arranged by IPA Capital Markets
Dec 07, 2016

RANCHO SANTA MARGARITA, Calif., Dec. 6, 2016 – Institutional Property Advisors Capital Markets (IPA Capital Markets), a leading provider of debt and equity placements and advisory solutions for major investors, has arranged $19.6 million in debt for the acquisition of Buena Vida at Town Center, a 115-unit, 55-plus age-restricted multifamily property in Rancho Santa Margarita, California.

“The borrower was in 1031 exchange and wanted to acquire a large high-quality asset in a strong market that would provide stable returns for the upleg of an exchange,” says Michael G. Derk, first vice president capital markets. “We met our client’s investment goals by sourcing a lender willing to provide maximum leverage with interest-only, which lenders don’t typically do.”

“This transaction exemplifies a trend that we’re seeing where investors are selling their assets in order to transition into higher quality real estate in strong markets to hedge against potential marketplace downside,” adds Derk.

The loan was structured at a fixed rate of 3.25 percent interest with the first three years interest-only, then after converting to a 30 year amortization.  The term of the loan is 15-years with a 67 percent loan-to-value.