Northmarq’s San Diego team, led by managing director Aaron Beck and VPs Wyatt Campbell and Conor Freeman, partnered with Mikee Anderson-Mitterling of Ballast CRE to secure a $46.5-million refinancing for Union Apartments in Chula Vista. The 170-unit apartment community was able to take advantage of Fannie Mae’s DUS platform for the loan.
According to Beck, the borrower utilized the property’s affordability component and Fannie Mae’s buy-down option to lock in an interest rate below 6%. This resulted in a higher loan amount and significant interest savings over the term of the loan. With a low LTV ratio of approximately 60% and strong debt service coverage ratio of 1.25x, this non-recourse Fannie Mae loan replaced floating rate construction debt with fixed-rate payments that are fully amortized.
Located within a supply-constrained submarket with overall vacancy rates around 4%, this newly constructed property is well-positioned for success.
The article “Northmarq Arranges Refi on New-Build Chula Vista Multifamily” originally appeared on Connect Commercial Real Estate Magazine.
