JLL organizes $ 173 million multi-family fundraiser

Image courtesy of JLL

JLL arranged a wave of multi-family loans totaling $ 172.9 million for 14 properties located across the United States. JLL’s Keith Rosso and Marc Schillinger led a team that represented borrowers who received loans ranging from $ 6.1 million to $ 40.1 million.

Five of the 14 loans were used to finance property acquisitions in Boise, Idaho; Pooler, Georgia; as well as in West Los Angeles, San Marcos and Escondido, California. The other nine loans were cash refinancings for properties in Bakersfield, Escondido and Sacramento, California, and Portland, Oregon. The loans covered a total of 1,334 units between the 14 properties.

According to JLL, all of the loans were part of Fannie Mae’s Green Finance Program, which allows borrowers to benefit from preferential rates and additional loan proceeds if they invest in energy and water efficiency retrofits. The program has grown considerably in recent years, reach $ 27 billion in 2018.

URBAN FLIGHT FURNISHED BY A PANDEMIC

Schillinger said in prepared remarks that JLL has seen a tendency for its clients to sell its urban infill assets and buy multi-family properties in sub-markets in suburban California that are more affordable. He added in his prepared statement that the trend is likely due to many residents adopting a remote working lifestyle and looking for cheaper alternatives to the traditional gateway market.

With the pandemic changing the look of the work environment, major California cities like San Francisco are forced to adapt. Many technical employees are leave San Francisco for cheaper cities like Sacramento and Lake Tahoe, according to a January report from Graceada Partners.

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