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May. 1, 2013

TODAY’S DEALS: Ridge Capital Joint Venture Acquires Napa Portfolio for $39.5M

Napa, Calif.—Ridge Capital Investors LLC and Redwood Real Estate Partners have acquired Saratoga Downs Apartments, a 124-unit apartment community, and Sheveland Ranch Townhomes, a 54-unit townhome development, both just south of downtown Napa, Calif., for a combined price of $39.5 million. The contiguous Class A properties were developed in 2006 and 2012, respectively. The combination of the properties, for a total of 178 units, creates an institutional-sized asset that represents the newest apartment product in the Napa market. The combined property has been rebranded as Saratoga Downs at Sheveland Ranch.

Over the first year of its ownership, the company plans to bring the property’s physical quality and overall resident experience to the top of the market via a substantial augmentation to the existing clubhouse, amenities and interior unit finishes. FPI Management Inc. will manage the property on behalf of the owner.

“Saratoga Downs at Sheveland Ranch offers the most diverse range of unit types and sizes in the market, and is the only property to offer new townhomes up to four bedrooms in size in a neighborhood environment,” Trevor Wilson, managing director of Ridge Capital Investors LLC, says. “Upon completion of our repositioning program, Saratoga Downs will offer the highest quality rental living experience in the Napa Valley, a market that has shown resilience in downturns and a healthy bounce back over the last 24 months.”

The Napa market currently stands at 96 percent occupancy with rental increases in excess of 15 percent over the past two years.

This is the fifth investment for Ridge Capital Investors in the last 12 months, and its third with Redwood. Over the next 12 months, the company plans to invest $50 million of equity in both multifamily and commercial properties in the Bay Area.

Vince Schwab of Marcus & Millichap’s San Francisco Office exclusively represented the seller and the buyers. Originally marketing just the 54-unit Townhomes, Schwab was able to assemble the adjacent 124 units for purchase.

Greystone originates $28M in bridge loans for two seniors communities

New York—Greystone announced that it has provided a total of $28 million in bridge loan financing to United Group of Companies Inc. for two market rate seniors apartment communities located in New York and Georgia. The loans were originated by Donny Rosenberg, managing director in Greystone’s multifamily lending group, in conjunction with Steve Germano, managing director of Greystone’s Portfolio Lending Group.

Greystone’s extensive bridge financing experience enabled the team to work through the complexities of age-restricted housing quickly, and successfully close the loans for the two properties. The loan proceeds were used to refinance existing debt. Greystone will work with United Group of Companies to provide long-term financing prior to the maturity of the bridge loan.

“Borrowers facing impending loan maturity continue to look to Greystone for their bridge financing needs,” Betsy Vartanian, head of Greystone’s FHA business, says. “Our clients often need to retire existing debt obligations quickly to avoid pending loan maturity but also want to secure long-term financing with favorable loan terms. Greystone is able to offer bridge financing quickly while simultaneously structuring the optimal long-term financing solution that best addresses the borrower’s needs and objectives. Our creativity and ability to move quickly coupled with our proven success in delivering permanent financing, often FHA insured, allow us to provide clients with the best possible interim solution as they plan their permanent capital structure over a lengthier period of time.”

Schulyler Commons in New York and The Lodge at BridgeMill in Georgia received $28 million of loan proceeds through Greystone’s bridge loan program. Both properties received attractive terms with a new maturity allowing the borrower to execute their business plan. “The United Group had a beneficial experience working with Greystone to close a complicated financial restructuring,” Michael Uccellini, president and CEO of United Group, says. “The talented and professional Greystone team was responsive, accommodating and brought great value in closing the financing transaction we required. This valued business relationship is strongly recommended to the development community and will certainly be utilized in the future, as we have other financing opportunities identified.”

Greystone provides bridge loans from $5 million to $30 million with a maximum Loan to Value ratio of 80 percent. There is no lockout period and no exit fee if permanent financing is originated via Greystone. A dedicated Greystone relationship manager guides a borrower through both programs, allowing for cost and time efficiencies on the takeout program. Loans are available for properties throughout the United States.

 

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