Capital One announced that it has provided a $38 million Freddie Mac loan to fund the acquisition of The Dylan, a 208-unit apartment community in Oceanside, California, a city in San Diego County. The sponsor is 29th Street Capital, a privately held real estate investment firm that owns 7,500 units in fourteen U.S. markets. This was its first purchase in Southern California. Vincent Punzi, a Vice President with Capital One Multifamily Finance, originated the transaction.
 
The adjustable-rate loan has a three-year interest-only provision. Capital One was able to deliver a lower spread and higher proceeds at close than called for in the application.
 
The seller had begun making improvements to common areas and renovating individual units. 29th Street Capital plans to renovate the community to a higher standard, improving nonrenovated units and upgrading recently renovated units even further.
 
“We worked closely with the sponsor and its third-party manager to understand the proposed operating efficiencies post close and the planned improvements,” Punzi said. “This enabled us to secure higher proceeds than our competition.”
 
The Dylan was built in 1974 and consists of 18 two-story buildings. The gated community features a fitness center, security patrol service, playground, jacuzzi, and pool.
 
“Capital One provided multiple quotes prior to application, enabling us to select the best capital markets execution,” said Richard Marshall, Vice President of 29th Street Capital. “We appreciate the team’s commitment to providing superior service and excellent execution.”