Archon Group Executes 1,164-unit Purchase

Archon Group closes on a large portfolio; Charles Dunn Co. brokers the sale of an entitled land parcel in Huntington Beach, Calif.; and Meridian Capital Group negotiates $72.8 million in financings in New York and boroughs.

Stone Ridge

Denver & Colorado Springs—Archon Group has completed the largest single-buyer portfolio sale in the state of Colorado since 2006 with its purchase of 1,164 units from Connecticut-based Five Mile Capital. Altanta-headquartered ARA represented Five Mile Capital in the transaction.

“Although the portfolio spanned from Colorado Springs to Aurora, there was more interest for the entire portfolio than the individual properties,” says Terrance Hunt, principal at ARA. “This shows there is strong buyer appetite for scale in this market.”

The portfolio included:

  • Waterfield Court (Aurora, Co.)—This 482-unit asset was built in two phases between 1988 and 1996. Located in an infill location southeast of metro Denver, this property currently has had just 57 percent of the homes renovated, positioning the asst for a value-add play.
  • Rolling Hills (Castle Rock, Co.)—Built in 1987, this property has 186 one- and two-bedroom units situated in 12 buildings. The asset sits on 18 acres.
  • Whispering Hills (Colorado Springs, Co.)—A 216-unit asset located near the Garden of the Gods tech and industrial employment corridor.
  • Stone Ridge (Colorado Springs, Co.)—A 280-unit asset located closer to downtown Colorado Springs near Peterson Air Force Base and Fort Carson.

“The Colorado Value-add Portfolio is the largest multifamily transaction sold to a single investor in Colorado since 2006,” says Shane Ozment, a principal at ARA. “The current interest rate environment created a significant cash-on-cash yield for the investor day one of the ownership. The buyer plans to renovate the units to take advantage of the market.”

Entitled mixed-use parcel trade hands in Huntington Beach

Huntington Beach Land Parcel

Huntington Beach, Calif.—Charles Dunn Co. has completed the $10.3 million sale of 2.7 acres of land located on Beach Blvd. in Huntington Beach, Calif. The parcel was sold by Los Angeles-based Main Beach and purchased by Elan Huntington Beach. Charles Dunn Co. represented both parties.

“Recent city zoning changes now allow for a mixed-use development on this property,” says Albert Silton of Charles Dunn Co. “The buyer recognized the need for new multifamily housing in the Five Points neighborhood, and closed after successfully entitling the property for a mixed-use project that will consist of 274 units and 8,500 square feet of commercial space.”

The site is within walking distance to the Five Points Plaza retail center which includes Aeropostale, Bank of America, Bath & Body Works, Chico’s, GAP, Gap Kids, Loehmann’s, Old Navy, Pier 1 Imports and Trader Joe’s. Also located nearby along Main and Delaware Streets, are medical offices and Pacifica Hospital.

7/30/12

Meridian negotiates $72.8M in financings in New York and boroughs

New York–Meridian Capital Group LLC, a leading national commercial real estate finance and advisory firm, announced the following transactions:

-Meridian negotiated a new mortgage in the amount of $20,000,000 on a 56-unit, 14-story multifamily building on Gold Street in New York. The loan features a rate of 3.05 percent and a five-year term. Avi Weinstock and Josh Rhine negotiated the transaction.

-A new mortgage of $26,500,000 was placed by Meridian on a 94-unit, 16-story multifamily building on Park Avenue in New York. The loan features a rate of 3.50 percent and a 10-year term. Avi Weinstock negotiated the transaction.

-Meridian negotiated a new package of mortgages totaling $15,400,000 on four multifamily buildings composed of 273 units located on Albany Avenue, Lenox Road, New York Avenue and Union Street in Brooklyn, N.Y. The loans feature rates of 3.25 percent and 10-year terms. David Hayum negotiated these transactions.

-A new mortgage of $4,800,000 was placed by Meridian on a 54-unit, six-story multifamily building on Clinton Place in New Rochelle. The loan features a rate of 3.25 percent and a 10-year term. David Zlotnick negotiated the transaction.

-Meridian negotiated a new mortgage in the amount of $3,100,000 on a 42-unit, four-story multifamily building on Winthrop Street in Brooklyn, N.Y. The loan features a rate of 3.38 percent and a five-year term. Avi Weinstock negotiated the transaction.

-A new mortgage of $3,000,000 was placed by Meridian on a 50-unit, six-story multifamily building on Frame Place in Flushing, N.Y. The loan features a rate of 3.38 percent and a seven-year term. Avi Weinstock negotiated the transaction.