Cornerstone Acquires $58.6M Mixed-Use Community

Cornerstone acquires a 163-unit mixed-use development in California; NorthMarq secures a $48M refi loan; and Boston Capital invests in the rehabilitation of an affordable housing community in Texas.

Paragon at Old Town

Monrovia, Calif.—Cornerstone Real Estate Advisors LLC has acquired Paragon at Old Town, a 163-unit mixed-use community located in Monrovia, Calif., from seller Urban Housing Group. The purchase price was $58.6 million. Institution Property Advisors represented both parties.

“Paragon at Old Town has differentiated itself from the rest of the competitive product in the area and stands tall as a premier Los Angeles County asset,” says Ron Harris, executive vice president, IPA. “The property experienced an expedient lease-up and effective rents have increased substantially following stabilization in the fourth quarter of 2010.”

Paragon at Old Town was built in 2010 and is located at 700 South Myrtle Ave. Units feature gourmet kitchens with high-end fixtures, nine- or 10-foot ceilings, hardwood floors, private balconies/patios, walk-in closets, full-size washer/dryers, and central air and heating. Community amenities include a 24-hour fitness center and a swimming pool with spa, sun deck and cabanas.

NorthMarq secures $48M refi loan from portfolio lender

Metropolitan Apartments

San Mateo, Calif. — Jeffrey Weidell, executive vice president and managing director of NorthMarq Capital’s San Francisco Regional office, arranged first mortgage financing of $48 million for the Metropolitan Apartments, a 218-unit multifamily property located at 337-338 S. Fremont Street in San Mateo, Calif.

Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower, San Mateo West, a California Limited Partnership, by NorthMarq through its correspondent relationship with Teachers Insurance and Annuity Association. Weidell says the transaction is a structured early refinance with a portfolio lender.

Boston Capital invests in Texas affordable development

Red Oak, Texas—Boston Capital has invested in the rehabilitation of Red Oak Apartments, a 116-unit development in Red Oak, Texas, for families earning 60 percent or less of the Area Median Income. The general partner is California-based Highland Property Development LLC.

The renovations will include central air conditioning, new EnergyStar refrigerators, ranges and microwaves, ceiling fans, and free high-speed internet access. The program will also include the development of new community amenities including a perimeter fence, three common laundry buildings, new playground equipment, a sports court and a barbecue/picnic area.

“We are pleased that our investment in Red Oak Apartments will create environment-friendly improvements while increasing the sustainability of our portfolio through the installation of energy-efficient split system units and EnergyStar appliances,” says Jeff Goldstein, chief operating officer and director of real estate, Boston Capital.

The property is comprised of three adjoining affordable housing developments that total 19 one- and two-story buildings. The apartments have been rehabilitated with tax credit equity from the Low Income Housing Tax Credit (LIHTC) program.