NewPoint Real Estate Capital Closes $122.6 Million Financing Package for Multifamily Property in Downey, California
DOWNEY, CA —
The financing package is composed of a five-year, fixed-rate Freddie Mac senior loan totaling $99.4 million. Additionally, NewPoint arranged $23.2 million in preferred equity from Torchlight Investors, a New York-based real estate investment manager.
Ed Zimbler and Ryan Koehler of NewPoint originated the financing.
“This transaction represented a highly distinctive agency financing, as it enabled the Sponsor to construct 52 accessory dwelling units (ADUs) post-closing. Combining permanent agency financing with preferred equity to finance new unit construction is an uncommon approach in the market, but this creative structure effectively met our client’s needs,” said Mr. Koehler. “We’re grateful for the collaborative efforts of the client, preferred equity provider, and lender deal teams across the country who came together to make this deal successful,” he added.
The community, totaling more than 400 units, offers a mix of one- and two-bedroom apartments with fully equipped kitchens, oversized closets, and private patios or balconies. Residents also benefit from the property’s prime location at the apex of five major freeways, providing easy access to shopping, entertainment, LAX airport, and Orange County.
“This transaction was complicated and creative, requiring clear communication and a willingness from all parties to think outside the box,” said Geraldine Borger Urgo, President of Agency Lending at NewPoint. “Ryan’s deep understanding of agency processes, paired with Ed’s extensive local knowledge of the California multifamily market, gave us the strategic edge to get this deal across the finish line. Their focus to find the best solution for the sponsor exemplifies the talent and tenacity that define NewPoint,” she added.
About NewPoint Real Estate Capital
NewPoint Real Estate Capital LLC (“NewPoint”) is a prominent commercial real estate finance company delivering lending solutions to investors of multifamily, affordable housing, seniors housing, healthcare, and manufactured housing properties nationwide. The firm leverages technology, data, capital, and the expertise of its industry-leading team to provide loan origination, servicing, execution, and a suite of financing products to meet the evolving needs of borrowers. In addition to being a Fannie Mae DUS®, Freddie Mac Optigo®, and FHA/HUD MAP and LEAN lender, NewPoint also offers proprietary affordable housing financing. NewPoint Real Estate Capital is owned by Franklin BSP Realty Trust (“FBRT”). FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. (Franklin Templeton) which is one of the world’s largest independent investment managers with $1.6 trillion in total assets under management.
About Torchlight Investors
Torchlight Investors LLC (Torchlight), an investment manager founded in 1995, provides institutional clients with exposure to commercial real estate markets. For three decades, Torchlight has invested across a broad array of private and public commercial real estate investments and currently has over $5.9 billion in assets under management. For more information, visit www.torchlight.com.
Media Contact
Dina Finnegan
Dina.Finnegan@newpoint.com
703-282-2516