Portfolio to refinance 25 affordable apartment properties in the San Fernando Valley, Palms and Mar Vista Areas of Los Angeles
Irvine, Calif. – Jan. 27, 2021 – Sabal Capital Partners, LLC, a diversified financial services firm specializing in commercial real estate, lending and investing, today announced the close of a $73 million portfolio encompassing the refinance of 25 multifamily properties in the San Fernando Valley, Palms and Mar Vista areas of Los Angeles. The portfolio, called LA 25, represents 25 loans and 403 units that were refinanced by Sabal Capital Partners using its Fannie Mae Small Loan Program.
Comprising affordable apartment units, the portfolio provides lower cost rentals in key regions of Los Angeles County, which is commonly considered one of the country’s most expensive regions. Sabal closed the portfolio in 30 days, from term sheet to funding, with 65% loan-to-value (LTV).
“With a speed to close well below industry average, as well as low LTV, this portfolio demonstrates the efficiency of Sabal’s loan programs,” said Pat Jackson, founder and CEO of Sabal. “We were able to deliver quickly and efficiently even during the end of year rush, reflecting our steadfast commitment to providing streamlined service to borrowers and brokers nationwide.”
Sabal financed the properties through the Fannie Mae Small Loan Program, which provides fixed- and variable-rate financing up to $6 million for the acquisition or refinance of existing, stabilized, conventional multifamily properties with five or more units. Program highlights include lower cost of execution, competitive rates, certainty and speed of execution for borrowers and streamlined third-party reports.
All of the properties included in LA 25 are classified as affordable rental housing, a class of apartment properties which is confounded by significant supply and demand issues. According to The State of the Nation’s Housing Report 2020, by Harvard University’s Joint Center for Housing Studies, regulatory barriers – often at the state and local levels – make it difficult for the private market to supply well-located, affordable housing. The lack of new development drives heightened demand for existing affordable rental units.
“Our country is experiencing a dire shortage of affordable housing, and this problem is only amplified in high-cost areas such as Los Angeles,” added Jackson. “Financing lower cost apartment properties, such as the ones included in this portfolio, is crucial to keeping them available to lower income renters.”
For information on Sabal’s full suite of loan programs, including the Fannie Mae Small Loan Program, visit www.sabal.com for details and eligibility.
About Sabal Capital Partners, LLC
Headquartered in Irvine, California, Sabal Capital Partners, LLC and its commercial real estate lending and servicing subsidiaries and affiliates have originated over $4 billion nationally through their highly specialized wholesale lending platform. Sabal strives to keep clients and investors ahead of the curve, representing a corporate philosophy based upon the core practices of innovation, partnership, commitment to excellence and entrepreneurship. Sabal’s dedication to advancing the financial services industry has led to the development of SNAP™, an innovative platform designed to optimize the lending and investment processes and enable a highly efficient interaction between Sabal and its client and investor base. Sabal is a nationally rated Commercial Primary Servicer and Commercial Special Servicer by Morningstar with a CS2 ranking, an S&P Global rated Commercial Mortgage Loan Special Servicer with an average ranking, as well as a Fitch rated CMBS Primary Servicer with a CPS2- ranking and CMBS Special Servicer with a CSS3+ ranking. For more information about Sabal, visit www.sabal.com.
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