When MacFarlane Partners finished Park Fifth, a 347-unit apartment tower in Downtown Los Angeles, the developer expected the property to be almost fully occupied, with enough income from the building to pay debt service almost two times over by 2022.
Because of this, the floating-rate caveat on MacFarlane's loan has caused the developer pain. At the end of September, MacFarlane was only making about 70 percent of the amount needed to cover monthly debt payments on the loan.
#landlords #debt-payments #interest-rates #commercial-mortgage-backed-securities #apartment-buildings
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