The Matthews Real Estate Investment Services office in El Segundo. The firm just announced its largest refinance ever involving three Fresno-area apartment complexes. Matthews image

Matthews Capital Market (MCM), the financing division of Nashville-based Matthews Real Estate Investment Services, has arranged $116 million in refinancing for three multifamily properties in Fresno. MCM First Vice President Geoffrey Arrobio led the loans.

The financing was structured as three separate non-recourse loans, with five years of interest-only payments. The borrower secured fixed-rate debt in the low 6% range and cash-out proceeds. 

The portfolio includes a 248-unit townhome community, a 476-unit multifamily complex and a 418-unit property, all in Fresno. The specific properties were not disclosed.

“We tailored a refinancing structure that allowed the client to pay off an existing past due note on one of the assets, in addition to providing the client with additional equity for other value add acquisitions,” Arrobio said. “It was a team effort all the way and a very successful transaction.” 

He added that the deal is MCM’s largest in its three-year history. 

Arrobio said Fresno’s economy and population growth factored into lender confidence in the transaction. 

“Fresno is a growing community and with multiple economic drivers, be it ag and universities or medical, and the locations of these properties were ideal, as were the quality of these assets,” Arrobio said. “So that comfort level with the economic backdrop of  Fresno’s diverse economy and population mix led to a pretty high comfort level for execution.