HomeStreet Bank provided a $22.4 million acquisition loan for a recent 85-unit multifamily trade in Los Angeles County, which was part of a 1031 exchange.
The property, South Hills Apartments in West Covina traded for $32 million last month. The buyer is an entity linked to Orange County-based investors Doug Kerstner and Martha K. Kerstner, according to property records. The LLC is also tied to James Bailey and Madelyn Bailey.
The lender provided a seven-year loan with an interest rate of 3.75 percent, according to information from IPA Capital Markets, a division of Marcus & Millichap Capital Corp. (MMCC), which brokered the financing and represented the buyer. The note is structured with three years of interest-only payments followed by amortization on a 30-year schedule.