LOS ANGELES--(BUSINESS WIRE)--Prudential Huntoon Paige has closed a $31.5 million loan insured by the Federal Housing Administration for the Towbes Group to refinance the Sumida Garden Apartments, the company announced today. Prudential Huntoon Paige is the FHA-insured lending business of Prudential Mortgage Capital Company, the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU).
The loan refinances the 200-unit Sumida Garden Apartments complex in Goleta, Calif., just outside of Santa Barbara. Built in 2008-2009 by the Towbes Group, which has more than 50 years of experience building in the Santa Barbara area, the property includes 34 affordable housing units. Prudential has a long history of lending to Towbes through its other capital sources, though this is its first FHA-insured transaction with the California real estate company. Johnson Capital Group, Inc. was the mortgage broker on the transaction.
“The high quality of this property, combined with the strength of the borrower and the market made this an attractive transaction,” said Martin Herz, a principal who led the transaction with John Jacobs, a principal based in Los Angeles.
The new 35-year, fully amortizing, loan replaced the construction loan used to develop the property. To complete transaction, the deal team negotiated for several months and worked with the city of Goleta and Santa Barbara County to help ensure the transaction met legal requirements from the Department of Housing and Urban Development.
Prudential also recently closed a $20.7 million FHA-insured loan for CreekBridge Apartments in Salinas, Calif., about 230 miles north of Goleta in a transaction brokered by Newmark Realty Capital, Inc. Through this transaction, Prudential was able to help reduce debt service on the property by more than $700,000 annually, the company said.
“Housing demand in the Salinas area is expanding, given growth in nearby Monterey, Carmel and San Jose,” said Herz. “Given the projected growth and the quality of this property, we’re very happy to include it in our servicing portfolio.” Herz worked on the transaction with Jaime Zadra, a principal based in Los Angeles.
The 35-year, fully amortizing loan is secured by CreekBridge Apartments, a 220-unit apartment complex in Salinas, Calif., that includes 12 affordable units. Built in 2005, CreekBridge Apartments includes a mix of units ranging from one-to-four bedrooms and include such features as granite countertops, nine-foot ceilings and fireplaces. The development also includes a pool, spa, fitness center, tennis court, playground and large central courtyard. CreekBridge Apartments sits on 12 acres in Salinas on the central California coast.
Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with more than $72 billion in assets under management and administration as of June 30, 2012. Leveraging a 135-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; Prudential’s general account and proprietary balance sheet program; and other institutional investors. The company maintains a loan servicing portfolio of approximately $69.2 billion, as of June 30, 2012. For more information, please visit http://www.prumortgagecapital.com.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $961 billion of assets under management as of June 30, 2012, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/