Home Price Decrease Good News for Aspiring Homebuyers; HFF Lands $125M in Refinancing

By Alex Girda, Associate Editor Home prices going down seems to have an ironic effect on the market. Prices have gotten to a point where interest rates have decreased and the percentage of Californian residents who can afford homes has now [...]

Home prices going down seems to have an ironic effect on the market. Prices have gotten to a point where interest rates have decreased and the percentage of Californian residents who can afford homes has now increased. The Los Angeles Times pointed out the fact that now that the median recorded price for homes stands at $292,120, and the percentage of Californian households that can afford homes rose one percent to 52 percent.

The increase was recorded in the last quarter, according to numbers posted by the California Association of Realtors. However, there is a flipside to the flipside, seeing as increased credit conditions are making it more difficult for first-time buyers to qualify for loans.

In other news, HFF Inc. has arranged $124.9 million in refinancing for four office buildings that are part of its portfolio. The sum has been arranged through two loans: a $20 million mezzanine loan acquired through an institutional investment advisor and the majority secured by means of a senior loan through GE Capital Real Estate. Holiday Fenoglio Fowler L.P. handled the financing matter on behalf of real estate investment and services company Kennedy Wilson. The loans have both been arranged with three-year terms.
The four office properties included in the portfolio are 303 and 333 N. Glenoaks Blvd. and 300 E. Magnolia Blvd., all situated in downtown Burbank, as well as 6100 Wilshire Blvd. in Los Angeles. The properties have a combined occupancy rate of 84 percent and include as tenants Turner Broadcasting, MTV Networks, the University of Redlands as well as the Department of Justice.