Geoffrey Palmer has secured a $115 million loan to refinance his 566-unit residential complex at the edge of Downtown L.A.
Called the Orsini II, the property at the corner of North Figueroa Street and Cesar Chavez Avenue made an appealing case to an undisclosed lender, GlobeSt reported. The complex is currently 98 percent occupied and features 20,448 square feet of retail space on the ground floor.
Palmer’s 10-year loan is interest only and has a floating rate.
“Obviously, he wanted proceeds, but he could have gotten more money at a higher rate, so it was really a question of how much do you borrow,” Gary Tenzer of George Smith Partners told GlobeSt. “On a loan-to value-basis, it is relatively conservative.”
Even though lenders are typically more conservative than they were a decade ago, he added, multifamily properties can easily secure refinancing because of their appreciation.
“If you are looking at multifamily in Downtown L.A., everyone knows that multifamily values have skyrocketed, and so there is no question that you could refinance without putting cash in,” he said.
Palmer has another major DTLA residential project in the works — a 1.8 million-square-foot complex with 1,500 units to be located on a lot between Temple Street, Beaudry Avenue, Mignonette Street and the Harbor Freeway. [GlobeSt] — Cathaleen Chen