Bonanni Scores $108 Million Refi for Stanton Apartments

Bonanni Development has landed $108.4 million in financing for a new 300-unit apartment complex in Stanton.

The Huntington Beach-based developer landed the loans for VRV, a five-story mixed-use complex at 12736 Beach Boulevard, the Orange County Business Journal reported.

The financing, arranged by Cleveland-based BWE, includes an $88 million senior loan from Freddie Mac and a $20 million preferred equity contribution. The debt has a five-year fixed-rate term with interest-only payments at 4.96 percent.

“This transaction involved a recapitalization that enabled a major paydown of the prior equity partner, while allowing the sponsor to rate lock early (during the lease-up process) thus capturing an attractive interest rate prior to the recent run-up in Treasuries,” Tom Kenny, executive vice president of BWE’s Irvine office, said in a statement.

The beige and white complex includes 300 studio, one- and two-bedroom apartments on nearly 4 acres.

The project, designed by Orange-based AO, includes ground-floor shops, a pool and spa, barbeque areas, a fitness center, golf swing bay, business center, rooftop lounge, a dog run and electric vehicle charging stations.

It sits across the street from a new Rodeo 39 Public Market, a food hall with more than two dozen vendors and live music.

VRV is Bonanni’s second multifamily project in Stanton to secure more than $100 million in financing. The developer also landed a $100 million loan for Cloud House, a 321-unit apartment building in Stanton, a small municipality between Buena Park and Huntington Beach.

VRV lies on a stretch of Beach Boulevard once known as the “Road to Summer” because it linked inland OC to the ocean. The boulevard, which became blighted with crime-ridden motels, has become a focus for redevelopment.

— Dana Bartholomew