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Mar. 1, 2013

Investor Obtains Acquisition Financing for West Coast Multifamily

By Dees Stribling, Contributing Editor

Los Angeles and Seattle—Multifamily investor Pacific Urban Residential has obtained $43.7 million in first mortgage debt for the acquisition of two apartment properties, one in Seattle and the other Los Angeles. Both deals were arranged by Jake Roberts and Anita Paryani Rice of Marcus & Millichap Capital Corp., with Mesa West Capital providing the financing.

The properties involved are Totem Lake Apartments, a 200-unit community in the Seattle suburb of Kirkland, and Waterstone at Cheviot Hills, a 120-unit apartment property in West Los Angeles. Both loans carried a three-year term and each represent 75 percent of total acquisition and repositioning costs.

Palo Alto-based Pacific Urban acquired Totem Lake from Security Properties of Seattle. Built in 1977, the property sits on more than 18 acres adjacent to Evergreen Hospital, and is 96 percent occupied. A portion of the $22.4 million loan will be used to complete a multimillion-dollar renovation initiated by the seller, which includes upgrades to the interior finishes and the addition of washers and dryers in each unit.

The Waterstone at Cheviot Hills is a four-story apartment building featuring 120 studio, one- and two-bedroom units.  Dating from 1986, Waterstone features a rooftop swimming pool, fitness center and renovated common area, and is 98 percent occupied. Pacific Urban also plans to undertake a significant renovation of all unit interiors with some of the $21.3 million loan.

During the past two years, Pacific and its institutional partners have been in a buying and selling mode, doing about $600 million in apartment deals. Currently, Pacific’s multifamily portfolio totals over 6,000 apartment units on the West Coast. The firm says it is seeking additional multifamily property in the San Francisco Bay area, Southern California and greater Seattle.