Optimus Properties, LLC, through a trio of coordinated refinancings, has refinanced the debt on three multi-family properties. The total capitalization for the three refinances is roughly $18 million and resulted in the return of approximately $3 million in initial equity. George Smith Partners secured all three loans. Two of the loans were made by Greystone & Co. and one by Umpqua Bank.
Greystone provided Optimus with an approximately $6 million, non-recourse loan for a 43-unit Multifamily property in the greater Seattle area. The loan provided 70% leverage and is fixed at a rate of 4.04% for ten years. Over the past several years, Optimus completely renovated the exterior of the property and turned just over one quarter of the units.
“Secondary and tertiary communities in the Greater Seattle area are being fueled by ongoing job growth and strong economic fundamentals, resulting in strong growth potential for well-located multifamily investments,” Kamyar Shabani, Principal of Optimus Properties, stated. “We felt comfortable entering the market how we did, with the partnerships we have.”
K. Joseph Shabani, Co-Founder of Optimus Properties, argues, “With big tech and other major multinational companies choosing to make Seattle their home – affordable, clean, and accessible living is a priority – and we are here to fill that order.”
Greystone also provided Optimus with an approximately $7 million non-recourse loan for a mixed use property with 46 residential units and 5,350 SF of ground floor retail space located in Koreatown. The loan provides 65% leverage and is fixed at a rate of 3.50% for five years.
Umpqua Bank provided Optimus with an approximately $5 million non-recourse loan for a 40 unit multifamily property also located in Koreatown. The loan is fixed at a rate of 3.85% for five years. Over the past 3 years, Optimus renovated the common areas as well as approximately half of the units.
“We saw Koreatown as an opportunity well positioned to grow in 2011-2012, seeing how it is so centrally located to major employment hubs in West Hollywood and Downtown, we felt there to be a clear value proposition,” said Kamyar Shabani.
Optimus Properties, LLC, located in Los Angeles, California, was founded by Kamyar Shabani and K. Joseph Shabani and employs a disciplined investment approach focused on value creation in office, retail, office and medical office properties throughout Los Angeles.