CHW Acquires Market-Rate Multifamily for Affordable Conversion

Northmarq’s Westlake Village Multifamily Investment Sales team led by Vince Norris, Mike Smith, Jim Fisher and Tommy Yates, in collaboration with Northmarq’s Newport Beach Debt + Equity team led by Scott Botsford, Joe Giordani and Brendan Golding, completed the sale and acquisition financing for NOVO Apartments, a 126-unit market-rate to affordable housing conversion located at 1940 Fullerton Rd in Rowland Heights.

Northmarq completed the $38.3-million sale on behalf of the seller, Stratford Partners Real Estate LLC, to Community HousingWorks (CHW). CHW will convert the existing market-rate community into a fully Deed Restricted Affordable Housing Community.

“Despite ongoing administrative changes at HUD, we remain committed to advancing our efforts in this sector, working alongside our clients to address the pressing demand for affordable housing,” said Norris.

Northmarq arranged $24.9 million in permanent, fixed-rate acquisition financing on behalf of CHW through the Freddie Mac Targeted Affordable Housing Program. The loan features a 10-year fixed term, a 1.20x debt service coverage ratio and a 35-year amortization schedule.

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