Centerline Capital Refinances Six-Property Portfolio in Los Angeles for $23.5M
- Jul 07, 2014
New York—Centerline Capital Group provided a $23.5 million Fannie Mae credit facility to refinance a six-property multifamily portfolio. All of the properties in the pool are located in Los Angeles.
Proceeds from the loan will be used to fund future investments. The loan terms are 10-year term, 30-year amortization with five-year interest only. The borrower is a group of local real estate executives with decades of multifamily ownership and management experience that together currently own multiple properties in the Los Angeles area.
“The borrowing entity and its principals has been a very active in investing in multifamily properties in the Los Angeles area,” says Rick Warren, managing director at Centerline. “This was a complex deal that called for all six properties to be closed as one pool.”
“The strength of the sponsors and underlying real estate fundamentals made this a good deal for Centerline,” adds Warren. “We were pleased that the loan structure came together so well.”
The properties in the portfolio include:
-8916 Burnet Avenue. Centerline provided a $5.5 million loan to refinance 8916 Burnet Avenue. Located on the northeast corner of Burnet Avenue and Rayen Street in a residential area, this property is a multifamily residential community comprised of four, two-story apartment buildings with a total of 52 units. Property amenities include a pool and a small playground including a climbing system and a slide. Parking for vehicles is provided on asphalt pavement, within tuck under parking spaces, open spaces and carports.
-8926 Burnet Avenue. Located on the east side of Burnet Avenue between Nordhoff Street and Rayen Street, 8926 Burnet Avenue is located in a residential area and is a multifamily residential community comprised of eight two-story apartment buildings with a total of 61 units. This property was refinanced for $5.5 million. Property amenities include an in-ground, outdoor swimming pool and laundry rooms located on the first floor in one of the buildings. Parking for vehicles is provided on asphalt or concrete pavement within tuck under parking spaces and open spaces.
-9237 Van Nuys Blvd. Centerline provided a loan in the amount of $4.9 million for the refinance of this property. Located on the west side of North Van Nuys Boulevard in a multifamily residential area, 9237 Van Nuys is a multifamily residential complex comprised of one, two-story apartment building totaling 52 units. On-site parking is available via a subterranean garage under the building.
-11120-22 Arminta Street. Centerline provided a $2.7 million loan to refinance 11120-22 Arminta Street. Located on the south side of Arminta Street in a residential area, the property is a multifamily building comprised of one, two-story apartment building that houses 27 units. Parking for vehicles is provided on asphalt pavement and within tuck under parking spaces under the building.
-1215-25 N. Cherokee Ave. 1215-25 N. Cherokee Ave is a residential community comprised of two three-story apartment buildings totaling 40 units. It is located on west side of Cherokee Avenue in a multifamily residential area. Parking is available via on concrete pavement and basement parking garages. A loan in the amount of $4.3 million was provided for the refinance.
-6729 Cleon Avenue. Refinanced by Centerline for $2.4 million, 6729 Cleon Avenue is located on the west side of Cleon Avenue in a mixed commercial and residential area just south of the Burbank Airport. The property is a residential use building comprised of one, two-story apartment building totaling 32 units. Property amenities include an in-ground swimming pool and a laundry room is located on the ground floor of the building. Parking for vehicles is provided on asphalt pavement and within tuck under parking spaces under the apartments.
The broker on the deal was Brian D. Weisberg, principal of Commercial Realty Consultants Inc. Commenting on the deal, Weisberg says, “Without Ana Ramos and the entire team at Centerline, we would not have been able to complete the refinance of this six building portfolio. Not only was Centerline able to accommodate each and every request by the borrowers as well as secure large discounts on pricing, they also closed the transaction six calendar days after rate locking, three of which were over the Memorial Day weekend.”
Centerline employees involved in the deal include: Ana Ramos, Irma Olguin, Janine Soto, Kim Caldwell and April Swan-Rosney.
ARA brokers $39M sale of property next to Northern Colorado’s largest employment center
Fort Collins, Colo.—ARA brokered the sale of the 240-unit Terra Vida apartment community in Fort Collins, Colo. ARA Colorado’s Doug Andrews, Jeff Hawks, Terrance Hunt and Shane Ozment represented the seller, Milestone Development Group LLC and partner Les Kaplan, in the transaction.
Mountain View Capital, a Colorado-based real estate investment company, purchased the property for $39 million, representing a price per unit of $162,500 or $181.77 per square foot. The property was 96 percent occupied at the time of closing.
Terra Vida was constructed in 2012 by Milestone Development Group LLC and Les Kaplan, a Fort Collins-based developer. The property offers luxury conveniences not found at many other communities. In addition to each apartment home having its own garage, residents also have access to the property’s five lap lane, junior Olympic swimming pool, a 5,400 square- foot clubhouse, a 24-hour state-of-the-art health club, and a year-round pet washing station.
Located just west of Interstate-25 near East Harmony Road, Terra Vida has great proximity to major employers and Colorado State University (CSU), which is home to more than 27,000 students. East Harmony Road is a major east-west thoroughfare and the largest employment corridor in Northern Colorado. It is home to some of the region’s largest employers including Agilent Technologies, HP, Intel, Poudre Valley Health Systems and Wolf Robotics. Terrance Hunt explains, “Terra Vida is the newest and most luxurious apartment community in Northern Colorado. This property is strategically located to take advantage of the ongoing expansion of Harmony Road and the growing energy market in Northern Colorado.” Terra Vida captures the true essence of the old real estate saying, “Location, location, location.”