Interstate Equities Completes $45M Recap of Central Coast Community

The deal brought in a Clarion Partners-advised fund as equity partner.

The community at 299 Carmel Ave. in Marina, Calif.
The Gates at Marina came online in 1987. Image courtesy of Yardi Matrix

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.

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