Interstate Equities Completes $45M Recap of Central Coast Community
The deal brought in a Clarion Partners-advised fund as equity partner.

Interstate Equities Corp. has completed the $45 million recapitalization of The Gates at Marina, a 136-unit community in Marina, Calif.
The process involved procuring a new equity partner—a co-mingled fund advised by Clarion Partners—and also securing a $24.8 million Fannie Mae loan, which carries a 5-year term. Berkadia instrumented the deal.
The 1987-completed property previously traded in February 2021 for $39.4 million, according to Yardi Matrix information. A $29.5 million loan from CrossHarbor Capital Partners financed that purchase.
The Gates at Marina is at 299 Carmel Ave., within walking distance of the Seacrest Plaza shopping mall and less than 3 miles from the California State University at Monterey Bay campus. Downtown Marina is some 2 miles away.
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The value-add community features 19 two-story buildings spread across almost 7 acres. The unit mix consists of one-, two- and three-bedroom layouts, ranging from 582 to 1,167 square feet. Apartments have private balconies or patios, as well as walk-in closets.
Common-area amenities include picnic areas and Zen gardens, laundry facilities and a playground. The property also comprises more than 210 parking spaces.
A Berkadia-brokered deal
Berkadia Senior Managing Directors Jason Parr and Brett Betzler, Managing Director Scott MacDonald, Director John Hansen and Senior Director Kaohu Berg-Hee completed the recapitalization. Director Hank Workman and Managing Director Clay Akiwenzie arranged the financing.
Last year, Parr and MacDonald were part of the team that brokered the sale of a 185-unit community in Fremont, Calif., for approximately $90 million. The asset traded for about $20 million less than it did in 2019, when Clarion Partners acquired it from Blake Hunt Ventures.