Universe Holdings Receives $36.5M Cash-out for 11 Multifamily Properties

Capitalizing on the ongoing rise in property values in its 7,500-unit portfolio history, Universe Holdings recently received $36.5 million in cash-out financing secured by a Southern California portfolio of 11 of the firm’s smaller multifamily communities. The 10-year 3.53 percent fixed-rate financing from Fannie Mae allowed Universe Holdings to pay off the existing mortgages on the value-add properties and return capital to investors.

The financing also provided fresh capital to Universe’s balance sheet for future acquisitions in the Northeast and Southeast U.S. as the firm grows its national investment platform. The portfolio of 11 Legacy properties ranging in size from seven to 40 units are located in Los Angeles, the San Fernando Valley, Long Beach and San Diego.

The properties are Ocean Elements at Alamitos Beach in Long Beach, Chateau Barry in Los Angeles, Citronia Luxe Towers in Northridge, Chateau Emilita in North Hollywood, Chateau Laurel in North Hollywood, Chateau Olympic in Mid-Wilshire Los Angeles, Chateau Parkside in Culver City, Studio Village in Studio City, Chateau Whitsett in North Hollywood and Chateau Sycamore in Hollywood.

After having partnered with Freddie Mac for more than $400 million in loans including several refinancings in the past three years, Universe decided to explore opportunities with a variety of lenders before settling on Fannie Mae.

“With the help of JLL, we secured approximately 10 quotes from a variety of lenders including Fannie, Freddie as well as various banks and debt funds, and we opted for Fannie which offered the best terms and execution,” said Henry Manoucheri, Universe CEO. “It took a Herculean effort to manage all the various aspects of this process including minimizing any extra interest or any pre-payment penalties and still have everything close on time to maximize our cash-out. It was 90 days of hard work.”