Angelo Gordon, Glencrest Team on $51M Bay Area Deal

Vineyard Gardens. Image courtesy of HFF

Alternative investment firm Angelo, Gordon & Co. has teamed up with newly formed multifamily investor Glencrest Realty Group to buy Vineyard Gardens, a 180-unit community in Santa Rosa, Calif. HFF secured about $51 million in financing for the acquisition and repositioning of the asset.

Located at 240 Burt St. in the southeast section of the city, just east of U.S. Route 101, the property comprises 27 two-story buildings offering 119 two-bedroom units, 60 one-bedroom units and one three-bedroom unit, as well as 60 two-story townhomes.

HFF worked on behalf of Glencrest to set up the joint venture equity partnership with Angelo Gordon. The firm also obtained a 10-year, floating-rate lease-up loan through Freddie Mac on behalf of the partnership.

The seller of the asset is St. Regis Properties, which acquired Vineyard Gardens in 2008, according to Yardi Matrix data. The property, completed in 1985, is 87.8 percent occupied.

New platform eyes opportunistic deals

The property’s new owners plan renovations including upgrades to the clubhouse and leasing office, modernization of select units, and the creation of an outdoor patio area.

“Vineyard Gardens exemplifies the type of opportunistic investment Glencrest will pursue, and I’m honored by the commitment of HFF, Angelo Gordon and Freddie Mac to my new platform,” commented John Adair, founding principal of Glencrest, in a prepared statement.

Adair, formerly a principal at Prime Residential, currently has an ownership interest in more than 9,700 apartment units throughout the western U.S.

Headquartered in New York, Angelo Gordon manages about $32 billion across credit and real estate strategies. The company recently formed a joint venture with The Donaldson Group and Declaration Capital to purchase Plaza Towers, a high-rise apartment community in Hyattsville, Md., for $42.6 million.