New Standard Equities Successfully Refinances Three Assets While Sheltered In Place
Freddie Mac Lends Over $104,000,000 to NSE Year-to-Date
Jun 11, 2020, 09:12 ET
ENCINO, Calif., June 11, 2020 /PRNewswire/ -- New Standard Equities (NSE), a Los Angeles-based, full-service multifamily investment and management company, refinanced its third property in two months and its fourth this year through Brian Eisendrath's team at CBRE. Freddie Mac provided the financing and allowed NSE to take advantage of a small window of opportunity to capitalize on historically low-interest rates with its refinancing of SeaGlass Village in Bremerton, WA, Village Fair in Bremerton, WA, The Mark in Hayward, CA, and Elevate at TownGate in Moreno Valley, CA. Each loan enhanced returns for its investors and provided near term reserves at the site level to weather the current economic downturn.
NSE's $24,900,000 refinance of the 182 unit SeaGlass Village Apartments in Q1 provided investors with 100% return of equity and significant profit, plus it positioned the property for strong performance with its attractive spread of 230 bps over LIBOR. The 120 unit Village Fair refinancing of $18,562,000 was the property's second capital event in two years and also resulted in repatriating all equity to investors as well as generating a mid-teens IRR and positioning the site for further long-term cash flow and appreciation, assisted in part by its 213 bps spread over LIBOR. For The Mark, a 150-unit property in the Bay Area, NSE locked in a new $35,640,000 loan, which is fixed at 2.94% for its 10-year term. This was a considerable improvement over the interest rate floor attached to its old loan at 4.25% and will help increase cash flow significantly. Finally, the team secured a new $25,000,000 loan for Elevate at TownGate, a 227 unit property in Riverside County, and returned more than 10% of investor equity, and greatly improved NSE's ability to deliver durable cash flow particularly with the new loan's 5 years of interest-only payments at 254 bps over LIBOR.
"Through our strong, long-term relationship with Freddie Mac and CBRE, as well as our hard-working team leaders, NSE managed to close each refinance at an optimal position while also providing a significant cash cushion to cover any near-term operating challenges related to Covid-19 deferments," said Edward Ring, founder and CEO of NSE. Ring further added, "With an eye toward maximizing investor returns, we are very proactive when it comes to optimizing the capital structure at each of our assets. When we can do that in a manner that simultaneously expands our potential holding period, we are delivering improved investment security as well."
NSE is planning to re-engage with its $5MM+ capital improvement program on all four properties, which span the west coast from the Pacific Northwest to Southern California. Upgrades will consist of interior unit improvements, including washer/dryer installations and exterior enhancements to common areas throughout the properties.
ABOUT NEW STANDARD EQUITIES
Founded in 2010, New Standard Equities (NSE) is a full-service real estate company providing property management, asset management, construction management, and project investment. The company deploys private and institutional capital to acquire and operate multifamily assets that offer investors long-term appreciation and cash flow. While it is headquartered in Los Angeles, NSE has extensive hands-on experience in all major West Coast markets from San Diego to the Pacific Northwest.
For further information contact:
Julie Blank, New Standard Equities, Inc.
(818) 582-3589; [email protected]
SOURCE New Standard Equities, Inc.
