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NEWPORT BEACH, CA – February 28, 2019 – HFF announces it has secured $22.5 million in financing for the William Penn Apartments, a 189-unit, mid-rise apartment building in Los Angeles, California.
HFF worked exclusively on behalf of the borrower, Massie Capital Management, LLC, to place the five-year, floating-rate loan with a debt fund. Loan proceeds were used to return equity to investors and provide future funding to renovate units.
Originally constructed in 1928, the William Penn Apartments is located at 2208 W. 8th Street, one block south of MacArthur Park in Los Angeles’ Koreatown neighborhood. The property consists of newly remodeled studio floor plans within a seven-story, historic building that offers immediate access to downtown. On-site amenities include a newly renovated courtyard with fountain, fire pits and lounge seating; a 24-hour fitness center; resident storage; bike racks; and courtesy patrol service. The property was 94 percent occupied at closing and is currently undergoing unit renovations.
“Massie Capital focuses on identifying mispriced assets and delivering affordable, well-designed space to its tenants,” said Brian Massie, principal of Massie Capital Management. “The William Penn’s pioneering submarket and business plan required a unique lending partner. HFF was able to clear the market quickly and bring a closely held relationship with a lender who understood our vision for the property and provided local, accessible asset management for draw requests.”
The HFF debt placement team representing the borrower was led by director John Marshall and analyst Devon Dykstra.
“Every year market participants note that the bridge loan market is more competitive than ever and 2019 is no different,” Marshall said. “HFF advised our client to select a lender who could provide certainty of execution and the best terms available in the market.”