HFF Closes Sale of $130M Loan

HFF sells a loan secured by a Charlotte asset; MG Properties buys two California communities; and The Community Development Trust and LINC Housing Corp. form a joint venture to purchase a 60-unit asset in California.

The Vue

Charlotte, N.C.—Holiday Fenoglio Fowler has closed the sale of a loan secured by The Vue, a 409-unit, 51-story Class A luxury rental tower in Charlotte, N.C. The property was completed in 2010 using proceeds from a $195 million construction loan, which was bifurcated into a $65 million senior note and a $130 million junior note. In the transaction, which was announced Wednesday evening, HFF marketed the junior note on behalf of the sellers, a venture comprised of Asian and European insurance companies.

The Vue is located at 404 West 5th Street in Charlotte’s Fourth Ward neighborhood. The high-rise features a 4,000-square-foot lounge and a 35,000-square-foot amenity deck with a pool, yoga room, fitness center, sports court, business center and concierge service.

MG Properties buys two California properties

Temecula & Daly City, Calif.—MG Properties Group has acquired two properties in California. The San Diego-based investor and operator picked up Sage Canyon Apartments in Temecula, Calif., and Pacific Place Apartments, located in Daly City, Calif.

Sage Canyon, a 344-unit community, was purchased for $38 million. The 1988-built asset has a mix of two- and three-bedroom units. The acquisition was financed with a $30.9 million, 10-year, fixed-rate mortgage from KeyBank, with funding provided by Fannie Mae.

Pacific Place is a 72-unit mixed-use rental/retail property that was purchased for $20.4 million. The seller was an affiliate of Pacifica Cos. Built in 2009 as condos, the five-story asset has luxury one- and two-bedroom flats and townhomes with San Francisco Bay views. The acquisition was financed with a $15.1 million, 10-year, fixed-rate mortgage from CW Capital, with funding provided by Freddie Mac.

MG Properties Group plans to make both interior and exterior improvements at both properties.

Affordable Housing REIT, LINC joint venture to purchase property in California

Fresno, Calif.—The Community Development Trust (CDT), the country’s only private real estate investment trust (REIT) with a focus on providing capital for the preservation of affordable housing, and LINC Housing Corporation (LINC), a Long Beach-based nonprofit builder of affordable housing for low-income families, seniors, and people with special needs, announced that they have partnered to purchase Pleasant View Apartments in Fresno, Calif.

The property is a 60-unit, 100 percent affordable development serving both seniors and low-income families living in homes that range in size from one- to four- bedrooms. The deal represents CDT’s first acquisition with a nonprofit partner.

The partnership will allow CDT and LINC to provide new benefits for the residents of Pleasant View Apartments in the form of social services. LINC’s resident services affiliate, LINC Cares, will be providing service coordination and on-site activities such as tutoring, health and wellness clinics, and special events for the first time at the property. In addition, the partnership will facilitate a rehabilitation of Pleasant View Apartments, including full kitchen renovations to each unit, roof and window replacements, and a new community center and playground for residents.

“As CDT’s first equity purchase with a nonprofit partner, our investment with LINC, a well-established developer of affordable housing, is an important milestone for our organization,” said Joseph Reilly, CDT’s president and CEO.

“The quality affordable housing stock in Fresno is very limited, but Pleasant View Apartments presents an opportunity to help address the City’s need by improving existing homes for a large number of low-income residents,” added Brian Dowling, CDT’s vice president of community investments. “Seniors and large families of five or more people currently occupy more than half of the homes at the property. We’re looking forward to enhancing LINC’s outstanding work in California and continuing CDT’s mission to invest in affordable housing in underserved communities around the country.”

“This is a milestone for LINC Housing as well,” said Hunter L. Johnson, president and CEO of LINC. “We have traditionally relied on tax credits to fund our work, but as a result of the recession, we’ve had to find new ways to generate financing. Thanks to CDT’s capital investment, together we’re able to preserve and improve these affordable apartments for the seniors and families who call it home.”

CDT partially financed the acquisition of Pleasant View Apartments with an acquisition loan from the Low Income Investment Fund (LIIF), which has previously worked with LINC on several other transactions. The LIIF loan will enable CDT and LINC to meet the needs of the seller to close quickly, but also provides an opportunity to work with HUD to pursue long-term financing through the FHA 223(f) program. LINC is providing additional funding for the purchase and planning through generous support from The California Endowment and JPMorgan Chase Foundation. Both have identified Fresno as a focus area for affordable housing.