The Westphal Company has secured $56.1 million in permanent financing for a 354-unit apartment complex in eastern San Diego County.

Northmarq arranged the fixed-rate financing through the firm’s Fannie Mae platform. The nonrecourse loan carries a 10-year term with interest-only payments for the full term.

Property records identify Westphal Company owns the Wintercrest Village Apartments, a garden-style community at 12002 Wintercrest Drive in Lakeside, Calif., which is an unincorporated community roughly 20 miles northeast of Downtown San Diego. The property features one- and two-bedroom apartments, along with two swimming pools and spas, outdoor courtyards, and fitness rooms.

Northmarq’s Aaron Beck, Conor Freeman and Robbie Driscoll facilitated the financing, which allowed Westphal to extract equity from the property while maintaining its cash flow, according to Beck. The lender also waived all operating escrows.

“With this Fannie Mae refinance, we were able to unlock trapped equity for the borrower and preserve cash flow while keeping the loan truly non-recourse with no carve-out guarantees,” Beck said in a statement.

San Diego’s multifamily market stabilized in the second quarter, with vacancy holding at 5 percent and asking rents rising 0.5 percent to $2,598 per month, according to Northmarq’s second-quarter data. Investment sales slowed roughly 25 percent compared to last year, but median pricing jumped 25 percent to $415,000 per unit.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.