Universe Holding has refinanced three of its Southern California multifamily assets with attractive, fixed-rate financing which will add approximately $100,000 a month in additional property cash flow.

The three new separate, five-year, interest-only loans totaling $26.7 million originated by Lument, and Chase Bank, take out a combination of convertible and floating rate loans that have experienced significant interest rates hikes over the past two years.   In addition to the interest rate savings, cash flow that had to be put into reserve for future replacement rate caps, will now be reinvested by Universe into the assets. 

The financings were secured by Serena Vista, a 110-unit community in La Mesa, CA, Chateaux Park Casino Royale V, a 15 unit property in Inglewood, and Chateaux Rexford, a seven unit apartment complex in West Los Angeles.  

“All three properties were performing well, and the refinancings will allow us to further increase their value through unit and other property-level improvements,” said Universe CEO Henry Manoucheri.  “The credit goes to Noah (Universe Director of Finance & Acquisitions Noah Kaufman) who worked months with our lenders on a cash neutral refi that lowers our borrowing costs and frees up capital that we can use more creatively.”

“Depending upon the market, we will seek cash-out refinancing in the next three-to-five years, and use those proceeds to continue to grow our portfolio with larger assets here in Southern California and the East Coast,” added Kaufman.