Berkadia has completed the $76 million sale of ReNew at the Shops, a 400-unit garden-style multifamily property located at 28032 Marguerite Parkway in Mission Viejo, Calif. The community’s 20 buildings are spread on nearly 24 acres, leading to a low density of 16.8 units per acre.
Berkadia worked on behalf of the seller, FPA Multifamily, and the buyer, A & M Properties—which assumed the existing $37.6 million Freddie Mac loan against the property. The loan is set to mature in August 2026. Berkadia Managing Directors Joe Leon and Jeff Rowerdink, with Associate Director Michael Thagard of the company’s Irvine, Calif. office, completed the deal, representing both parties in the transaction. Managing Director Jackson Cloak also facilitated the loan assumption and furnished secondary supplemental financing for the acquisition on behalf of the buyer.
FPA Multifamily had acquired the property from ConAm back in 2014 in a deal that was subject to a $19.5 million loan held by Bank of America, according to data provided by Yardi Matrix.
ReNew at the Shops recently completed a $20 million comprehensive renovation costing $50,000 per unit. The property is adjacent to Saddleback College and The Shops at Mission Viejo mall, which features more than 150 stores and dining spots in one indoor center.
An upscale master-planned city situated directly east of Newport Beach, Mission Viejo boasts an average household income of more than $112,000. The city’s overall occupancy levels have averaged almost 96 percent per year since 2016.
“South Orange County is an extremely difficult marketplace to acquire apartment properties,” Leon said in a prepared statement. “In fact, the submarket has averaged only two sales per year over the last 20 years.”
Last month, Berkadia completed the sale of the Kensington Commons and the Charlee Lofts, two multifamily properties in San Diego, for a combined $28 million.
Image courtesy of Berkadia