SoCal Housing Developer Lands $108M Financing Package

The developer behind a 300-unit luxury apartment building in Orange County, Calif., has just landed a nine-figure refinancing package tied to the property. 

Huntington Beach-based Bonanni Development secured a fixed-rate, $88 million senior loan via Freddie Mac (FMCC) and a $20 million preferred equity contribution toward the property named VRV, at 12736 Beach Boulevard in the city of Stanton. Tom Kenny and Alex Gregoire of commercial mortgage banking firm BWE arranged the deals.

“This transaction involved a recapitalization that enabled a major paydown of the prior equity partner, while allowing the sponsor to rate lock early (during the lease-up process) thus capturing an attractive interest rate prior to the recent run-up in Treasurys,” Kenny said in a statement.

VRV opened last year and was about 80 percent leased as of this spring, according to CoStar. 

The new debt tied to the building is the second nine-figure financing package Bonanni has secured in recent years for one of its multifamily properties in Stanton, a small town 28 miles southeast of Downtown Los Angeles. The firm in mid-2022 landed a $100 million construction loan for its 321-unit Cloud House development, provided by Guardian Life Insurance Company of America, Commercial Observer reported at the time. Cloud House is at 12331-12435 Beach Boulevard, less than a block north of VRV. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.