Santa Monica Multifamily Property Refinanced for $10.5 Million
Meridian Capital Group brokers Seth Grossman and John Bianco facilitate a cash-out refinance for a multifamily property in Santa Monica, CA.
Meridian Capital Group brokers Seth Grossman and John Bianco have successfully arranged a $10.5 million cash-out refinance for a multifamily property located at 2929 Colorado Avenue in Santa Monica, CA. The property is a 24-unit apartment building with a mix of one and two-bedroom units. The property is located in a highly desirable area of Santa Monica, close to the beach and popular shopping and dining destinations.
The borrower, whose identity was not disclosed, sought to refinance the property to take advantage of the current low interest rate environment and to access equity in the property. The loan has a 4.75% interest rate, a 5-year fixed rate term, a 2-year interest only period, and a flexible prepayment penalty. The cash-out refinance will allow the borrower to access $2.5 million in equity in the property.
The lender for the transaction was not disclosed. However, Meridian Capital Group notes that the loan was highly competitive and attracted interest from a number of lenders. The brokers were able to negotiate favorable terms for the borrower, including the flexible prepayment penalty.
Seth Grossman and John Bianco are both Managing Directors at Meridian Capital Group, a commercial real estate finance and advisory firm. The firm has offices in New York, New Jersey, Maryland, Florida, Illinois, and California. Grossman and Bianco specialize in multifamily financing and have a track record of successfully arranging financing for properties in the Santa Monica area.
Overall, this transaction highlights the continued strength of the multifamily market in Santa Monica and the broader Los Angeles area. Despite the challenges posed by the COVID-19 pandemic, demand for multifamily properties in desirable locations remains strong. The low interest rate environment has also created opportunities for borrowers to access equity in their properties and refinance at favorable terms.