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A10 Capital Funds Refinancing of 2 MOBs

21 May 2015, 3:45 am

By Anca Gagiuc, Associate Editor

Two medical office buildings from Austin’s metro have been refinanced through a $4.6 million bridge loan. The commercial mortgage has been funded by A10 Capital, is secured by the two Class B buildings, and provided leverage of approximately 65 percent.

“The sponsor is an experienced CRE investment firm that focuses on opportunistic real estate properties. They needed a lender willing to work with them on a complex deal structure with many moving parts. Since this property is located in an expanding metro area with huge potential for growth in the medical office sub-market, A10 was able to structure a facility that met the requirements of the borrower,” said John Neff, principal & executive vice president of A10, in a statement.

The bridge loan was structured on a non-recourse basis. Proceeds were directed towards funding the refinance of a mature CMBS loan and toward facilitating the lease-up of the property.

“A10 Capital did a terrific job with us on a small, complex deal,” added Dennis Williams, managing director at NorthMarq Capital, who arranged the financing. ”The loan amount was under ($5 million) on an asset with a major tenant potentially expiring during closing, a ground lease, an appraisal issue and a maturity default with a CMBS lender.”

Strategic Hotels Snaps Up Four Seasons

12 May 2015, 3:38 pm

By Anca Gagiuc, Associate Editor

Strategic Hotels and Resorts is under contract to purchase the Four Seasons Austin Hotel for $197 million from Lodging Capital Partners and Prudential Real Estate Investors. The hotel will remain affiliated with the Four Seasons brand.

The hotel sits on 2.3 acres overlooking Lady Bird Lake in Austin’s central business district. It features 291 guest rooms, including 28 suites, 18,000 square feet of indoor meeting space, two food and beverage outlets and a 5,500-square-foot spa. Completed in 1986, the Four Seasons underwent major renovations in 2007 and 2014.

Strategic Hotels expects to close on the acquisition this month, and will initially fund the deal through existing cash balances and borrowings on its revolving credit facility.

“This is an exciting opportunity to acquire the only true luxury hotel in what is arguably our nation’s highest growth market,” Raymond Gellein, Strategic Hotels’ chairman & CEO, said in a statement. “As we have long stated, expanding our geographic diversity is a strategic priority. This acquisition not only achieves that, but adds yet another distinctive, high-performing property to our portfolio.”

Photo courtesy of Four Seasons Hotel Austin.

Dividend Capital Pays $69M for Portfolio

5 May 2015, 3:38 pm

By Anca Gagiuc, Associate Editor

Dividend Capital Diversified Property Fund Inc. has acquired a four-building portfolio of Class A office buildings in southwest Austin for $68.75 million.

Located at 1122 S. Capital of Texas Highway, the portfolio encompasses 274,000 rentable square feet. At the time of the sale, the portfolio was 99 percent leased to 22 tenants. Three of the four buildings were built in 1985, and the fourth was completed in 1998.

The transaction was funded with cash on hand and availability under the Denver-based REIT’s revolving credit facility. “The acquisition of City View supports our stated investment strategy by adding a high-quality asset with a diverse tenant roster in a market that we believe has strong long-term fundamentals. Strategically, the acquisition adds to our presence in Austin, which we believe produces operational benefits for DPF,” commented Michael Lynch, President of Diversified Property Fund.

Earlier this year, DPF expanded its office footprint in Austin by purchasing Rialto I and Rialto II for $37.3 million, adding another 155,000 square feet of office space to its portfolio. With the latest transaction, Dividend owns 20 office properties totaling approximately 4.3 million square feet.


Berkadia Arranges Sale of Capitol Village Apartments in Austin

25 Apr 2015, 5:41 pm

By Anca Gagiuc, Associate Editor

Austin’s Capitol Village Apartments, a 249-unit multifamily property, is under new ownership. InterGroup Corp. of Los Angeles sold the asset to a private investor from San Francisco.

“This was a highly attractive asset, receiving over 15 offers from a wide variety of investors,” said Forrest Bass, a vice president in Berkadia’s Austin office, in a statement. Bass and George Deuillet III, a Berkadia senior vice president, arranged the deal. “The seller owned the property—its last holding in Austin—for more than 10 years, and the purchase represents the largest Austin acquisition to date for the buyer,” Bass added.

The apartment complex, located at 6855 East Highway 290 near State Route 183, was 96 percent occupied when the deal closed. Built in 1969, it offers one-, two-, and three-bedroom apartments ranging in size from 400 square feet to 1380 square feet.

Amenities include fully equipped kitchens with electrical appliances, balconies, patios, fireplaces, ceiling fans, walk-in closets, pantries and mini-blinds. Community amenities feature a swimming pool, clubhouse, playground, fitness center, business center, barbeque area, carports, and laundry facilities.

Sackman Enterprises to Enter Austin with High-Rise

11 Apr 2015, 1:54 am

By Anca Gagiuc, Associate Editor

Sackman Enterprises Inc. has announced its largest expansion outside of the Northeast in its 30-plus year history. The New York City-based developer intends to build a 35-story luxury condominium tower, named 70 Rainey after its address, in the Rainey Street district, continuing the transformation of this downtown neighborhood.

Sackman, which bought the site from Austin-based Riverside Resources, plans to start construction this fall and open the project in late 2017. The mixed-use development will offer 164 residences ranging in price from $300,000 to $3 million. A two-story restaurant with patio bar will serve both residents and the public.

Amenities will include a 19,745-square-foot outdoor  deck, infinity-edge pool and waterfall, sun deck and outdoor lounge with kitchen, cabanas, fire pit lounges, gaming areas, outdoor grilling stations, a virtual golf course, fitness center and outdoor yoga deck, private dining room, business center and conference center. Lady Bird Lake and the Butler Hike and Bike Trail are nearby.

The condo tower is only the first of at least six projects Sackman plans in Austin over the next several years.

Photos courtesy of 70 Rainey.

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