Capital One announced that it has provided a $50 million Fannie Mae 10-year fixed-rate loan to Allmark Properties to refinance a portfolio of six apartment communities. Totaling 538 units, they are located in Rancho Cucamonga, a city in the Riverside/San Bernardino MSA. Chuck Christensen, Senior Vice President in Capital One Multifamily Finance’s office in Newport Beach, California, originated the transaction. A repeat customer of Capital One and Fannie Mae, Allmark Properties owns and manages over 2,500 units in California and Texas.
With interest rates steadily rising, Allmark was eager to refinance but was deterred by the prepayment penalty on its existing loan. After Capital One presented the company with an analysis of its options, it chose Fannie Mae’s Streamlined Early Rate Lock program. This initiative allowed it to lock-in rates while waiting three months for its prepayment penalty to fall to an acceptable level.
“We have worked with Capital One on a number of transactions over the years,” said Steve Strebel, Allmark’s CFO. “Chuck Christensen spends the time to understand our goals and always provides guidance and a variety of solutions in support of our business plans.”
Allmark developed the six contiguous properties in the Terrace Portfolio between 1971 and 1978. They are Fir Terrace, Arrow Terrace, Cucamonga Terrace, Placer Terrace, Terrace 78, and Terrace 12. They are operated as a single entity through a shared facilities agreement. Located in the foothills of Rancho Cucamonga, the community has a resort-style layout. Community amenities include tennis courts, basketball courts, a dog park, business center, BBQ areas, and swimming pools. Allmark has carefully maintained the community.
“Allmark received a substantial interest rate reduction by taking advantage of Fannie Mae’s Green Rewards Program,” Christensen said. “They qualified for the program by installing fixtures yielding a 25 percent reduction in water consumption, upgrades that dovetailed nicely with other improvements it plans to implement.”