Northmarq Helps Advanced Real Estate With $109 Million Refi

Northmarq is coming to the aid of Advanced Real Estate with a nearly $110 million refinancing deal.

The Irvine-based landlord secured a $109 million debt package to refinance three apartment communities in Anaheim and Azusa, Commercial Observer reported. The fixed-rate loans have 10-year terms with a 70 percent loan-to-value ratio.

The refinancing includes loans of $26.6 million for Villa Serrano Apartment Homes in Anaheim, $50.1 million for Summer Crest Apartments in Anaheim and $30 million for Le Med Apartments in Azusa.

“We were able to maximize cash-out proceeds for the borrower by structuring a high-leverage permanent loan,” Alex Kane, senior vice president of debt and equity at Northmarq, said in a statement.

Villa Serrano Apartment Homes, located at 201 South Magnolia Avenue in Anaheim, consists of 117 one-, two- and three-bedroom units. Amenities on site include a pool, fitness center, community room and barbecue grills.

The Summer Crest Apartments at 828 West Ball Road in Anaheim are located less than two miles from Disneyland and feature 183 units across five buildings. Residents have access to a pool, fitness center, private gated access and barbecue grills.

Le Med Apartments at 950 West Sierra Madre Avenue in Azusa, the most recent construction opening in 1988, has 128 units in eight buildings.

“Northmarq delivered the most aggressive loan sizing available in the market, paired with highly competitive pricing,” Robb Cerruti, CEO of Advanced Real Estate, said in a statement. “They structured the loans to achieve maximum cash-out proceeds, which will be distributed to our investors.”

The funds will help the firm re-invest in other multifamily acquisitions across Southern California.

“We are actively looking at all on-and-off-market opportunities to purchase,” Cerruti said.

Last year, Advanced Real Estate dropped $62 million for the 210-unit Canvas L.A. apartment building at 138 North Beaudry Avenue west of downtown L.A. The $295,000-per-unit price there marked a haircut from the $88.3 million, or $395,000 per unit, that Chicago-based Magnolia Capital bought it for in 2018.

— Chris Malone Méndez