4-Property LA Portfolio Lands $267M

By IvyLee Rosario

G.H. Palmer secured $266.8 million in refinancing for a four-property portfolio totaling 1,359 units in Los Angeles. George Smith Partners’ Principal & Co-Founder Gary Tenzer arranged the seven-year, fixed-rate, interest-only, non-recourse loans priced at 3.5 percent with a 65 percent loan-to-value. 

Skyline Terrace

“Based on our client’s investment in implementing energy- and water-saving technology in all four properties, there will be (an) anticipated operating expense reduction of 35 percent in energy costs and 28 percent in water costs,” said Tenzer. “We were able to utilize the positive cash flow these savings create to negotiate with the lender to achieve an 18 basis point rate reduction on the loans, and a 5 percent increase in proceeds.”

The Portfolio

The portfolio comprises the following properties: 

• Skyline Terrance Apartments, 930 Figueroa Terrace, Los Angeles

Featuring 198 one- and two-bedroom floorplans, apartments range from 580 to 950 square feet across one, four-story building. Originally constructed in 1988, Skyline is currently 98 percent occupied, according to Yardi Matrix. Interior features include washer/dryers, vaulted ceilings, ceramic tile and private balcony/patios. Residents have access to amenities such as a fitness center, clubhouse, swimming pool, spa and 300 covered parking spaces. 

• Pasadena Park Place, 101 Bridewell St., Los Angeles 

Totaling 128 units, Pasadena Park was built in 1987 and is currently 90 percent leased, according to Yardi Matrix. Floorplans offerings include studio, one- and two-bedroom floorplans ranging from 440 to 830 square feet. Community amenities include carports, 250 parking spaces, swimming pool, fitness center, four laundry facilities, spa, playground and private balcony/patios. 

• River Ranch Townhomes and Apartments, 18005 Anne’s Circle, Santa Clara

River Ranch Townhomes and Apartments

The 465-unit River Ranch community encompasses one-, two- and three-bedroom apartments and townhomes, ranging from 650 to 1,309 square feet. Featuring 47 two- and three-story buildings, the 1999-built property is 96 percent leased, according to Yardi Matrix. Interior features include washer/dryers, vaulted ceilings, private balcony/patios and enclosed garages. Common area amenities are two swimming pools, playground, 930 covered parking spaces, fitness center and two spas. 

The Terrace, 21311 Alder Drive, Santa Clara

The largest of the four properties, Terrace comprises 568 one-, two- and three-bedroom units ranging from 624 to 1,070 square feet. The community features 60 one- and two-story buildings, originally constructed in 1991. With a current occupancy rate of 97 percent, according to Yardi Matrix, interiors include washer/dryers, vaulted ceilings, fiberglass showers and private balcony/patios. Residents have access to amenities such as a fitness center, 1,080 covered parking spaces, a tennis court, playground, four spas and seven swimming pools. 

“It is particularly satisfying to execute this large transaction on behalf of a client with whom I have worked for many years and have closed more than $1.5 billion of debt transactions on their behalf,” added Tenzer.

Earlier this summer, George Smith Partners secured $4.5 million bridge financing for the acquisition and condominium conversion of Patio del Moro, a courtyard-style apartment community in West Hollywood. 

Images courtesy of George Smith Partners