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Follow on Google News | Quantum Capital Arranges $25 MM Loan for "Non Traditional" Student Housing Development Near USCBy: Quantum Capital Partners The financing was secured by City Park Apartments, comprising two, four-story multifamily buildings located at 1246 and 1247 W. 30th Street. Located two blocks from USC, the security buildings feature a mix of two- and three-bedroom floor plans. On-site amenities include subterranean parking, and a combination fitness center and recreation room. Although not operated as traditional student housing, its proximity to USC has made it an attractive option for University students. The property was 99 percent occupied at the time of the financing. The sponsor, a local investor and management company Park City LLC, which has owned the property since developing it in 1991, was seeking to refinance maturing debt with a long-term fixed rate loan before interest rates increased, according to Quantum Assistant Vice President Kevin Wong who arranged the financing. "The historically high turn-over rate from the student tenants, for what was viewed by many lenders as a typical multifamily project, was a major challenge," said Wong. "However, by demonstrating the operational history as student housing and the long-term track record of high occupancy, we were able to secure an insurance company loan with a 22-year term at a fixed rate of 3.77%. In addition we were able to secure a 60-day upfront rate lock on application, which protected the sponsor from rising interest rates that increased close to 40 basis points from application." About Quantum Capital Partners Quantum Capital Partners (http://www.quantumcp.com) is a leading mortgage banking firm that provides comprehensive real estate finance and advisory services across all major asset classes. We have more than $4 billion of debt and equity financing experience nationwide, working with a wide and diverse network of capital providers. Combined with our comprehensive knowledge of the capital markets that encompass the entire capital stack, Quantum repeatedly delivers expert advice and customized financing solutions on the most complex real estate transactions. End
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