Bernards, Aimco Break Ground on $140M Calif. Redevelopment

Bernards breaks ground on Aimco's massive Venice redevelopment; Passco Companies completes its second Class A buy in two weeks; and Lucent Capital arranges $9.9 million for the acquisition and re-entitlement of a Platinum Triangle development site.

Lincoln Place

Venice, Calif.—Commercial builder Bernards has broken ground on Aimco’s $140 million redevelopment of Lincoln Place apartments in Venice, Calif. The project is being funded by a $190.7 million FHA loan that Aimco secured with Red Mortgage Capital LLC back in October. The financing represents the largest FHA Section 222(d)(4) unsubsidized loan ever insured by HUD.

The construction project involves substantial renovation of apartment buildings, including remediation/abatement of environmental issues common to older buildings, and the addition of 99 new apartment units constructed on three vacant lots, a new 5,000-square-foot leasing center and clubhouse and array of amenities. The current redevelopment effort involves 41 buildings with 631 now-vacant apartment homes. New amenities include a resort-style pool with cabanas, underwater music and fire pit, a rooftop social deck, a two-story fitness center, an outdoor workout space and a separate aerobics and spinning studio, an Internet café, and a centralized green open space benches, barbecues and picnic tables.

“This is a unique, historic apartment complex that exemplifies the mid-Twentieth Century, California lifestyle, and our construction team will take special care to preserve the property’s architectural integrity and historic character,” says Dave Cavecche, Bernards vice president. “We are extremely excited to have the opportunity to redevelop this classic California property into a modern housing project that serves residents’ needs and accommodates a 21st Century lifestyle.”

Passco completes a $24.8M buy


Charlotte, N.C.—Passco Companies has acquired The Enclave at Rivergate, a 216-unit Class A community in Charlotte, N.C. The sales price was $24.8 million. Passco received a $13.6 million Fannie Mae loan to finance the acquisition of the property.

“This is a distinctive apartment community with an exceptional location, just minutes from the best Charlotte has to offer,” says Bill Winn, president of Passco. “Residents enjoy spacious apartment homes with luxurious appointments in a relaxing, small-town atmosphere with outstanding schools and a location that also offers convenient access to big-city amenities, as well.”

The 2009-built asset is represents Passco’s second Class A acquisition within a two week period, as the company recently closed on The Glen at Alexander, a 216-unit community in August, Ga.

Lucent Capital arranges $9.9M for acquisition and re-entitlement of Platinum Triangle development site

Anaheim, Calif.—Real estate finance and investment advisory firm Lucent Capital has arranged a $9.91 million land loan for TSG-Platinum L.P., an affiliate of The Shopoff Group, to acquire and re-entitle 4.3 acres of in-fill land in Anaheim’s prestigious Platinum Triangle.

The non-recourse loan has a two-year term with a fixed interest rate along with one 12-month extension option. The lender is a Los Angeles-based private investment firm.

Lucent Managing Director Farzin Emrani notes that, “This land loan represents 88 percent of the purchase price.” He adds that, “Lucent Capital takes great pride in arranging unique capital structures such as this for best-in-class sponsors throughout the country.”

Commenting about the property, Lucent Senior Vice President Ethan Schelin states that, “The site has a prime location within walking distance of Angel Stadium, Disneyland, The Honda Center, and the planned Intermodal Transportation Center.”

The property consists of two separate but contiguous parcels that were previously entitled in 2008 with a neighboring site to be a massive mixed-use development that would include multifamily, office, hotel and retail uses. TSG-Platinum has assembled the site and will modify the existing entitlements to increase the multifamily unit count while reducing the overall intensity of the development and its environmental impact by removing the retail and restaurant components of the previous plan.