Berkeley Point Capital Provides $52.4 Million Affordable Refinancing in San Diego

SAN DIEGO, CA – Berkeley Point Capital recently closed a $52.4 million Multifamily Affordable Housing refinance of Lantana Hills Apartment Homes in San Diego, CA. The property was constructed in two phases, with 300 units constructed in 1955 and the remaining 80 units constructed in 1986.

The complex is comprised of one and two-bedroom apartments featuring 23 acres of lush landscape and small parks, two swimming pools, a newly remodeled fitness center and both garage and surface parking. The property is conveniently located 15 minutes from downtown San Diego and close to the 805, 8, 94 and 15 freeways. 

The new loan, provided by Fannie Mae’s Affordable Housing Group, features a 12 year term, 8 years of interest only payments and 10 years of yield maintenance at a coupon of 4.5%. The financing was used to retire tax-exempt variable rate bonds totaling $37.5 million that were issued by the City of San Diego in 2004.

The complex underwent $5.9 million in renovations between 2014 and 2017, which included new wood flooring, quartz kitchen countertops, new kitchen appliances and accessories and an upgrade to a pet friendly community. The borrower plans on spending an additional $1.38 million in capital expenditures in 2018. 

Mitch Clarfield of Berkeley Point’s Santa Monica office, facilitated the loan for an affiliate of the Convermat Corporation.   

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