TODAY’S DEALS: AvalonBay Nets Its Largest Bond Financing for San Fran Mixed-Use, and Other Transactions

By Anuradha Kher, Online News Editor, MHN and Coreen Bailor, Research Editor, CPNWashington, D.C.–AvalonBay Communities Inc. has received $135 million in financing–the multifamily REIT’s largest bond financing ever closed–to fund construction of Avalon Walnut Creek at Contra Centre, a $400 million mixed-use, transit-oriented development next to the San Francisco Bay Area Rapid Transit’s Pleasant Hill Bay station.Serving as AvalonBay’s finance counsel, law firm Goodwin Procter L.L.P. helped AvalonBay secure the letter of credit from Bank of America N.A., comprising $116 million in tax-exempt and $19 million in taxable multifamily housing revenue bonds.AvalonBay, Millennium Partners and the San Francisco BART comprise the partners investing in the public-private venture. While the first phase expanded the station’s parking garage, the second phase, which broke ground in July, will add 422 apartments, with 85 percent as affordable housing, as previously reported by CPN. Future phases will deliver 100 condominium units, 35,000 square feet of local service retail, a civic use area, a 19,400-sq.-ft. business conference center and 270,000 square feet of office space. The project is slated for completion in 2010.Tuan Pham, partner at Goodwin Procter, sees the combination of residential, retail and office space near mass transit as the future of urban multifamily housing. “The confluence of skyrocketing energy prices, turmoil in the homeownership market, and the desire to live, work and shop in one location near mass transportation makes this type of development very attractive,” he tells CPN. “It also helps that this development will reduce driving and, as a result, reduce our carbon footprint.”Wien & Malkin Strategic Capital V Invests $4M in Preferred-Equity Investment New York–Wien & Malkin Strategic Capital V (SC V) has participated in an $8 million preferred-equity investment that recapitalizes the unsold portion of a residential condominium in Arlington, Va.  SC V has invested $4 million.The Grove at Arlington is a 190-unit, four-story luxury apartment complex built as a rental residence in 2003. 91 of its units have been sold to date, and several others are under contract for sale. A majority of the remaining units are occupied under short-term leases. The $8 million investment is for a term of two years, with a one-year extension option. The funds are being used to reduce the senior loan balance and to bolster reserves while apartment sales continue. Arbor Completes Funding of Over $3M LoanWarner Robbins, Ga.–Arbor Commercial Funding LLC recently completed funding of a $3,400,000 loan under the Fannie Mae DUS product line to refinance Savannah Apartments (pictured), a 134-unit apartment property in Warner Robbins, Ga.The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.32 percent.