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Westphal Company secures $56.1M refi for San Diego apartment complex
The nonrecourse 10-year loan is fixed-rate and structured with interest-only payments, and the deal helped Westphal unlock equity while preserving cash flow.
The Westphal Company has secured $56.1 million in permanent financing for a 354-unit apartment complex in eastern San Diego County, according to Commercial Observer. Northmarq arranged the fixed-rate loan through its Fannie Mae platform for Wintercrest Village Apartments, located at 12002 Wintercrest Drive in Lakeside, California.
The nonrecourse financing runs for 10 years and includes interest-only payments for the full term. Property records show Westphal Company owns the garden-style community, which offers one- and two-bedroom units and amenities including two swimming pools and spas, outdoor courtyards, and fitness rooms.
Northmarq said the refinance allowed the borrower to extract equity from the property while maintaining its cash flow, and that the lender waived all operating escrows. Northmarq’s Aaron Beck, Conor Freeman, and Robbie Driscoll facilitated the financing.
Commercial Observer also noted that San Diego’s multifamily market stabilized in the second quarter, with vacancy at 5.0% and asking rents up 0.5% to $2,598 per month. The outlet added that investment sales were about 25% slower than a year earlier, while median pricing increased 25% to $415,000 per unit.