Hunt Real Estate Capital has provided a Fannie Mae affordable multifamily loan of $64.14 million to finance the acquisition and renovation of an affordable multifamily property located in San Pedro, Calif., near the Port of Los Angeles.
Park Western Apartments is a 216-unit property that comprises 14 residential buildings that were built in 1969. The property is located on a 7.72-acre site at 1327 W. Park Western Drive and contains 32 one-bedroom units, 128 two-bedroom apartments, 32 three-bedroom units, 24 four-bedroom apartments and a 1,300-square-foot maintenance shop.
The Fannie Mae M.TEB loan has a 17-year term, 40-year amortization and provides significantly greater loan proceeds to support a substantial rehab budget. According to RBC Capital Markets, this was the second largest Fannie M.TEB loan made and featured the lowest rate closed in the program since 2016.
The borrower is Park Western Housing, an entity formed to acquire, renovate and manage the property. The deal is backed by Richard Siebert and June Park of SDG Housing Partners, along with their nonprofit partner, Affordable Housing Access.
"The borrower originally acquired Park Western Estates in March of this year through Hunt and Century bridge loans that were closed within three weeks to meet the seller's closing deadline," said Aaron Wooler, a managing director in Hunt’s affordable housing debt unit. "With this new permanent financing and tax credit equity, SDG Housing Partners will be able to preserve an at-risk affordable multifamily development that the residents of Los Angeles cannot afford to lose."
The renovation plan includes work to the building exteriors, roofs, and mechanical, electrical, and plumbing systems, as well as upgrades to unit interiors, including both common area and apartment upgrades. Upgrades also will include landscaping, improvements to the driveway entry, installation of a dog run, new and updated site lighting, tot lot/playground reconfiguration, the addition of a sitting area, and installation of a pergola at the barbecue area.
Current property amenities include a courtyard, onsite management, central laundry facilities, playground, garage parking and picnic/barbecue area, as well as surface and covered parking. Upon completion of the renovation, additional amenities will include an exercise facility and community room. Renovations are expected to be completed within 14 months.
"With schools, healthcare, public uses, retail and transit access all within 1.6 miles of the community, Park Western Estates is located in a neighborhood that is well suited for affordable multifamily development," added Wooler.
San Pedro, Calif. is located in Los Angeles County, and the property is in a neighborhood in the southern portion of Los Angeles.
