Advanced’s Santa Ana Apartments Get Freddie Mac Refinancing

Northmarq and Advanced Real Estate are continuing their refinancing partnership with a new deal in Orange County.

Minneapolis-based Northmarq originated a $50.1 million Freddie Mac refinancing loan tied to River House Apartment Homes in Santa Ana, Commercial Observer reported. The 240-unit garden-style complex is owned by Irvine-based Advanced Real Estate.

The property at 2111 West 17th Street features a mixture of one- and two-bedroom units and amenities for residents including a fitness center, a pool and spa, a playground and a dog park.

Freddie Mac, or the Federal Home Loan Mortgage Corporation, offered a 70 percent loan-to-value ratio with a 35-year amortization. The terms proved attractive to Advanced, according to Northmarq’s Brendan Golding, who helped arrange the deal on behalf of the real estate investor.

“Advanced was excited when Freddie Mac rolled out its new 10-year loan program, featuring a 1.2x debt coverage ratio and a 35-year amortization schedule,” Golding said in a statement. “This is the most aggressive permanent program in the market, which allowed Northmarq to maximize cash-out proceeds for the borrower.”

The collaboration between Northmarq and Advanced Real Estate marks the second such loan in the past month.

Last month, Advanced Real Estate secured a $109 million debt package to refinance three apartment communities in Azusa and Anaheim, a neighboring city to Santa Ana in Orange County, Those fixed-rate loans, like the latest ones for the River House Apartment Homes, have 10-year terms with a 70 percent loan-to-value ratio.

In that deal, the refinancing included 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.

Elsewhere in Southern California last month, Northmarq secured the $31.5 million refinancing of Manhattan Gateway Shopping Center, an 82,000-sq.-ft. big box retail complex at 1800 Rosecrans Avenue in Manhattan Beach. Prior to that, the firm arranged a $60.5 million senior loan for the acquisition of five historic apartment buildings in Los Angeles: the 170-unit Park Wilshire at 2424 Wilshire Boulevard; the 181-unit Langham at 715 South Normandie Avenue; the 61-unit Sir Francis Drake at 841 South Serrano Avenue; the 51-unit Fontenoy at 1811 Whitley Avenue; and the 74-unit Piccadilly at 682 Irolo Street.

— Chris Malone Méndez