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Deutsche Bank Provides Financing Package for 375 Apartments

By Kelly Sheehan, Online News Editor

JUNE 11, 2007 -- Hollywood, Calif. -- Deutsche Bank Berkshire Mortgage (DBBM) recently provided a $465-million financing package for the acquisition and development of Hollywood and Vine, a 400,000-sq.-ft. mixed-use apartment development project in Hollywood, Calif. The project will be developed by Legacy Partners Affordable Housing Fund (LPAHF).

The financing package includes three components:


A $180-million Fannie Mae new construction forward credit enhancement originated and closed by DBBM. The bonds being enhanced are a new issue low-floater tax-exempt bond issued by the Community Redevelopment Agency of the city of Los Angeles.


A $135-million senior secured construction facility. Deutsche Bank acted as sole-lead arranger and sole-book running manager.


A $150-million Capital Commitments Facility for the Legacy Partners Affordable Housing Fund. Deutsche Bank acted as Administrative Agent and Deutsche Bank Securities Inc. acted as sole-lead arranger and sole book manager. This facility is backed by unfunded capital commitments and will not be secured by the real estate.


Hollywood and Vine will be part of a larger 4.65-acre, transit-oriented, mixed-use development. This larger community will ultimately include an MTA Transit Plaza, with a stop for the Red Line subway and connecting buses; a 305-room W Hotel; a 143-unit W Residences condominium tower; 48,700 square feet of street-level retail; and parking areas. The borrower will own a leasehold interest on the property, with a 99-year ground lease agreement with the Los Angeles County Metropolitan Transportation Authority.

The Legacy portion of the project consists of 375 luxury studios and one-and two-bedroom units. Seventy-eight units will be set aside as affordable housing, with 75 of those apartments reserved for very low-income levels. Other features of the project include interior landscaped courtyards with fountains, fire pits and intimate seating areas, a resident clubhouse, a fitness center, a pool and spas.