In one of the largest transactions closed to date through CBRE Group’s Federal Housing Administration (FHA) lending platform, the firm has originated a $51m loan for the refinancing of The Meridian at Stanford Ranch, a luxury apartment complex in Rocklin, California, Real Estate Capital has learned.
The 35-year, fixed-rate, fully-amortizing loan was funded through the US Department of Housing and Development’s (HUD) Section 223(f) program, which facilitates the purchase or refinancing of existing multifamily rental housing.
The loan allowed the undisclosed borrower to lock in a “significantly lower” interest rate for the full term.
“The borrower recognized the opportunity to lock a favorable rate for a 35-year term without any balloon payment and the ability to recapture some of their equity,” said Andrew Behrens, a vice chairman with CBRE’s Debt & Structured Finance office in San Francisco, who led the financing.
The property’s 452 units, a mix of one and two bedrooms, make up 25 two- and three-story apartment buildings. In the northwest portion of Rocklin, about 20 minutes northeast of Sacramento and 100 miles from San Francisco, the community is part of a master-planned 3,500-acre lot. It features a pool and spa, fitness center, clubhouse, resident lounge, BBQ/picnic area, car wash station and tenant parking.
CBRE is a direct FHA lender offering the full array of FHA-insured financing for both multifamily and healthcare assets. Behrens originated the loan with senior vice presidents Jesse Weber and Mary McDonald, and vice president Noah Reischmann.