Capital One Provides Bridge Loan for OC Apartment Community
Capital One Multifamily Finance announced it provided a $30.25 million floating-rate bridge loan for Jasmine Place Apartments, a 144-unit property located in Westminster, CA. Greg Reed and Kristen Croxton, Senior Vice Presidents in Capital One Multifamily’s office in Newport Beach, California, originated the transaction. The borrower, Golden Horizon Realty, has now closed seven transactions with Capital One Multifamily, totaling $125 million.
The property was originally developed as condos in 2009, and acquired by Golden Horizon. The company engaged The REMM Group, a local management company, which developed a lease-up plan for the more than 60 vacant units. Simultaneously, Golden Horizon pursued a bridge loan through Capital One to replace the existing debt and allow 12-18 months to stabilize the property and transition to a long-term conventional loan.
“Golden Horizon has put all the elements in place to make this property a success,” Reed said. “Our capacity to offer a bridge loan allowed us to provide the transitional financing structure they required in advance of a conventional take-out loan.”
Croxton emphasized the advantages of the longstanding relationship between Capital One Multifamily and Golden Horizon. “Our relationship with Golden Horizon enabled us to tailor a financing solution based on their projections and business plan,” Croxton said. “Golden Horizon has an extremely strong track record.”
“Working with Kristen and Greg is always easy,” says Marianne Moy, president of Golden Horizon. “This transaction demonstrates their capacity to help us address a broad range of financing issues that come up in the course of running our business.”
The floating-rate loan has an 18-month term with one six-month extension and full-term interest only based on a 30-year amortization.