Fannie Mae financing in the amount of $50m has been obtained by Capital One and provided to Allmark Properties to enable them to refinance their Rancho Cucamonga multi-family portfolio.
Allmark refinanced its current Fannie Mae debt on six apartment building to a fixed-rate loan for 10 years. Details concerning the original lender or the total of the debt being refinanced were unavailable.
Getting a favorable interest rate locked in was important to Allmark in light of indications from the Federal Reserve of its plans at its September meeting to increase benchmark interest rates. A prepayment penalty had stalled the company’s earlier attempts at refinancing.
Allmark was able to qualify for a significant reduction of interest rate by installing fixtures to cut water consumption by 25%, and making upgrades that fit in nicely with additional improvements it plans to enact in the future. These changes allowed the company to take part in Fannie Mae’s Green Rewards Program.
Rancho Cucamonga has seen apartment vacancy drop 10 points to 3.6% in 2018’s second quarter. A color brochure printing is often used by companies to fill apartment vacancies and, in the case of Allmark’s Terrace Apartments, could include amenities such as tennis courts, a dog park, basketball courts, a business center, barbecue areas, a fitness center, a spa, and swimming pools.
