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News release

Los Angeles

Affordable Housing Community Preserved in California

JLL secures $38.2 million in acquisition financing for The Palms Apartments in suburban Los Angeles

​​The need for affordable housing remains evident as ever, particularly in California’s higher cost markets. On behalf of Mariman & Co., JLL’s Capital Markets experts today announced the firm secured $38.2 million in acquisition financing for The Palms Apartments, a 338-unit affordable housing community located in Rowland Heights, Los Angeles County, California. The loan is a Freddie Mac adjustable-rate mortgage (ARM) serviced by JLL and features a seven-year term with three years of interest-only payments, followed by a 30-year amortization.

International Director Tim Leonhard led the JLL team on the transaction.


“The preservation of affordable housing properties continues to be an important need across the multifamily lending industry and Freddie Mac’s ARM product demonstrates a real commitment to providing affordable housing options with financial flexibility,” said Leonhard. “The loan allowed the borrower to acquire the partnership interest rather than the fee simple interest, allowing the 10-year ownership chain to remain intact. This unique structure, along with the flexible prepayment features, gave the borrower the ability to close very quickly while maintaining the option to re-syndicate this large affordable housing asset in the near future.”


Shawn Boyd, Chief Operating Officer of Mariman & Co. led the Acquisitions Team on the transaction for the sponsor.


“Housing costs in California, among the highest in the country, and growing rental unit scarcity is a real challenge for our state’s economy. Mariman & Co. is committed to providing affordable housing opportunities to serve the needs of working families and seniors state-wide. In partnership with JLL and Freddie Mac, we created a financing structure to enable a quick closing and certainty of execution, all to help us compete with conventional buyers. Going forward, we expect to achieve an attractive return on our investment and preserve future tax credit re-syndication options. Re-syndication gives us the flexibility to significantly improve physical asset condition and ensure long-term affordability, particularly in high cost, high demand markets,” said Boyd.


The loan features a 75 percent loan-to-value ratio and an interest rate of 2.815 percent. Mariman and Co. partnered with an institutional equity partner to fund the acquisition.


JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2015 alone, JLL Capital Markets completed $140 billion in investment sale and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 2,000 specialists, operating all over the globe.


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About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 280 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $58.3 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit