New York, NY — August 2, 2023 — Lument today announced the closing of $15.8 million in loans to refinance a five-property portfolio of Low Income Housing Tax Credit garden-style apartments in Riverside County, California. The loans replace existing agency debt placed by Lument and were arranged by Tom Dixon, a director on Lument’s affordable housing production team.
The loans are for Cottonwood Place II, Cottonwood Place III, Cottonwood Place IV, Mission Palms I, and Mission Palms II. All are Freddie Mac TAH 10-year fixed-rate loans with a 35-year amortization and five years interest only except Mission Palms I, which is 10-years fixed-rate with a 30-year amortization.
The sponsor is Palm Communities, a decades old Irvine, California based affordable housing developer with a portfolio of approximately 2,000 affordable units across 30 properties in the Golden State.
“We were grateful for Tom and his team at Lument for the speed and efficiency with which they pulled this financing together,” said Danavon Horn, Palm Communities’ CEO. “These refinancings not only successfully replaced existing debt but provided cash-out proceeds—a rarity in this environment. We’re pleased to have met our goals.”
Additional details about each property:
Cottonwood Place II: 61 units across five buildings in Moreno Valley
Cottonwood Place III: 58 units across five buildings in Moreno Valley
Cottonwood Place IV: 46 units across four buildings in Moreno Valley
Mission Palms I: 109 units across nine buildings in Riverside (age-restricted 55+)
Mission Palms II: 92 units across five buildings in Riverside
Lument, a subsidiary of ORIX Corporation USA, is a national leader in commercial real estate finance and delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. The company has approximately 600 employees in over 30 offices across the United States. Securities, investment banking, and advisory services are provided through Lument Securities, LLC, member FINRA/SIPC. Lument Investment Management, LLC, is registered as an investment adviser with the U.S. Securities and Exchange Commission. For more information, visit www.lument.com.