Capital One announced today that it has provided two variable-rate Freddie Mac loans to Raintree Partners, totaling $91 million. The loans will be used to support Raintree’s investment in multifamily communities in Southern California.
The funding consists of a $77.3 million loan to refinance Colony Parc, a 272-unit community in Ventura, California, and a $13.7 million four-year coterminous supplemental loan for Hensley at Corona Pointe, a 628-unit complex in Corona, California. Kristen Croxton, Greg Reed and Tina Quirin, Senior Vice Presidents of Agency Finance at Capital One, originated the transactions.
“We worked alongside Raintree – a repeat Capital One and Freddie Mac sponsor – to best position their plans for continued improvement and investment across these two properties,” said Croxton. “With both transactions, our team was able to leverage our relationship with the Agency to maintain competitive pricing for the deals.”
At Colony Parc, the sponsor will use the proceeds from refinancing to continue improving the property. Since acquiring the development in 2012, Raintree has renovated the majority of its units, addressed deferred maintenance and upgraded building exteriors. The 10-year loan, with five years of interest-only payments, will be amortized over a 30-year schedule.
Raintree acquired Hensley at Corona Pointe at the end of 2021 and assumed the existing Freddie Mac loan on the property. This supplemental Freddie Mac financing allows Raintree to continue renovating the property.
“These transactions demonstrated how Capital One understood our business plans for the properties and structured the financing so we could achieve our goals,” said Aaron Hancock, Managing Director of Raintree Partners. “The team’s expertise and relationships led to increased proceeds for each of these deals.”
Raintree Partners develops, acquires and owns Class A and B multifamily residential and mixed-use properties in major West Coast markets with a focus on California. It now owns 55 assets totaling more than 6,300 units.
Capital One’s Commercial Real Estate Group offers a comprehensive array of financing solutions for property owners and developers nationwide, including balance sheet and agency lending. As a top-10 agency lender*, Capital One provides financing for multifamily investors nationwide through Fannie Mae, Freddie Mac and FHA programs. Additional information can be found at capital.one/multifamily.
*Fannie Mae reported 2021 Multifamily DUS(R) Lender Awards and Freddie Mac reported 2021 Top Optigo(R) Lenders by Volume.