New York, NY — January 20, 2023 — Lument announced today that it closed a $23.5 million Freddie Mac loan to refinance La Brea Gardens, a 185-unit affordable multifamily community in Los Angeles, California. Lument Managing Director Aaron Wooler led the transaction.
“It was a pleasure to provide bridge financing for the sponsor, Western America Properties, affording them the time needed to negotiate a buyout price with their limited partner on this property, which included a number of provisions such as an existing Section 8 contract,” said Wooler. “Working with Freddie Mac, we were able to secure financing that included a seven-year term with amortization based on a 35-year schedule that fulfilled the sponsor’s goals.”
The loan ensures that 182 of the property’s units will be preserved for affordable housing for lower-income residents. Western America Properties is also a veteran-owned company, and La Brea was the first building in Los Angeles to implement a HUD directive to provide shelter to homeless veterans.
The property is subject to the California Tax Credit Allocation Committee (TCAC), which provides that 176 of the property’s units be occupied by individuals whose income is 50 percent or less of area median income (AMI), and six units will be occupied by individuals at 60 percent or less of AMI.
La Brea Gardens was originally completed in 1950 and renovated in 2001. Situated on 4.93 acres in the heart of Los Angeles, the property consists of a mix of studios, one-, two-, and three-bedroom units across six residential buildings. Property amenities include a clubhouse, business center, and laundry facility. The community also offers after school programs.
Lument 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 650 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.