Apartments Get $108M Loan
Redwood Urban has received a $108 million refinancing for nine multifamily buildings with a combined 400 units in L.A.
Bellwether Enterprise Real Estate Capital provided the Fannie Mae Credit Facility loan.
“BWE has a strong relationship with Redwood Urban, and we were thrilled to be able to work with them again on this truly impressive urban portfolio in California,” Jason Krupoff, a senior vice president at BWE, said in a statement.
“Building on our relationships with Redwood Urban and Fannie, we were pleased to secure financing for these excellent communities.”
Scott McCarter, principal of Redwood Urban, said in a statement that the company had financed 14 assets with BWE.
The properties in the financing are located in Hollywood, Beverly Hills and Long Beach.
The Hollywood properties at 1820 Whitley Ave., 1837 Whitley Ave., 1912 Whitley Ave., 1823 Grace Avenue, 6600 Yucca Street and 6651 Franklin Ave. have a combined 267 units.
The Beverly Hills properties, at 9152 Alden Way and 8600 Burton Way, comprise 29 units.
The Long Beach assets, at 210 Third Ave. and 225 Long Beach Blvd., boast a combined 104 units.
The loan is full-term, interest-only financing.
Apartments are one of the highest-interest asset types in L.A. right now. In 2021, investors spent $18.5 billion on apartment assets, up from $8 billion the year before and $13.3 billion from pre-pandemic investment levels, according to data from CBRE Group Inc.
The only asset type to see more interest in 2021 was industrial properties. During that year, $20.7 billion worth of industrial assets changed hands, according to data from CBRE.
Office, retail and hotel assets, meanwhile, saw much lower sales volume.
Apartments in desirable areas, such as Long Beach, are seeing an especially large amount of demand. That market, according to Newmark Group Inc., has seen 12% rent growth in the last year alone.
1820 Whitley Ave. in Hollywood