The Westphal Company has obtained permanent financing totalling $56.1 million for a 354-unit apartment complex in eastern San Diego County. This fixed-rate financing was arranged by Northmarq through its Fannie Mae platform.
The loan is a non-recourse facility with a ten-year term and full interest-only payments throughout the entire term. The property, owned by the Westphal Company, is known as Wintercrest Village Apartments. It is a garden-style apartment complex located at 12002 Wintercrest Drive in Lakeside, California.
Lakeside is an unincorporated community situated approximately 20 miles northeast of downtown San Diego. The apartment complex offers one- and two-bedroom units, as well as two swimming pools with spas, outdoor courtyards, and fitness centres, which complete the amenities for residents.
Financing Details and Market Development
Aaron Beck, Conor Freeman, and Robbie Driscoll of Northmarq brokered the financing. According to Beck, this agreement allowed the Westphal Company to extract equity from the property while maintaining cash flow. The lender also waived all operating escrows.
Aaron Beck explained that the Fannie Mae refinancing enabled the borrower to release locked-up equity and secure cash flow, with the loan continuing to represent true non-recourse financing without separate guarantees.
Current Market Data for San Diego
The San Diego multifamily market stabilised in the second quarter of the year. The vacancy rate remained at 5 percent, while asking rents increased by 0.5 percent to an average of $2,598 per month, according to Northmarq data for the second quarter.
Investment sales slowed by approximately 25 percent compared to the previous year. Despite this development, the median price per unit increased by 25 percent to $415,000.
