MRK Partners Takes LA Pair for $109M
Located in Claremont and Santa Fe Springs, Calif., the 38-year-old communities total almost 300 units. CBRE's Affordable Housing team secured Freddie Mac financing and represented the seller.
MRK Partners has acquired two affordable multifamily properties in Los Angeles County for a combined $108.9 million. KDF Holdings was the seller.
The properties are Claremont Village (150 units) in Claremont and Pioneer Gardens (141 units) in Santa Fe Springs. Claremont Village, at 955 W. Arrow Hwy., was built in 1970 and features two- and three-bedroom units. Pioneer Gardens, at 11031 Cultura St., features one- and two-bedroom units and also dates from 1970.
Both assets are fully occupied and will continue to provide affordable housing to their residents. All of the units in both properties are kept affordable by a Low-Income Housing Tax Credit regulatory agreement that limits the community to residents with incomes below 60 percent of the area median, as well as a Section 8 Housing Assistance Payment contract.
Green Upgrades Ahead
Jim Flinn, senior vice president of CBRE Affordable Housing’s Debt and Structured Finance team, secured the debt for the properties. Both properties were financed through Freddie Mac with 15-year fixed rate loans for acquisition and significant rehab of the properties.
“We were able to secure additional loan proceeds for the client through the Freddie Green program, which will allow MRK to make additional environmentally conscious changes to the property,” Flinn said in a statement.
Dmitry Gourkine, senior vice president, and Johnathan Smith, vice president at CBRE Affordable Housing, along with Stewart Weston, executive vice president of CBRE Newport Beach, represented KDF Holdings in the sale of both properties.