$38,500,000 Acquisition of 164 Newly Constructed Multifamily Townhome Units in Oxnard, California

Transaction Description: Gary E. Mozer, Katie H. Rodd, Michael Anderson and Kyle Howerton arranged $38,500,000 in 10 year on-book non-recourse acquisition financing from a national life insurance company on a 164-unit Class A multifamily property in Ventura County, Southern California. The subject is part of a masterplanned community with a complicated HOA structure. The newly constructed property was built in two phases and was in lease-up during the closing process. Sized to 70% of acquisition, the loan is priced at 185 basis points over the 10-year Treasury and locked at 3.90% at application execution, eliminating interest rate fluctuation during the closing process even though the property had not yet reached stabilized occupancy. Five years of Interest Only payments maximizes the Sponsor’s cash flow during the initial hold period but still provides the lender with acceptable balloon balance at the end of the term.