Lender-Owned Multifamily Site Sells for $5.1M
- Aug 03, 2012
Los Angeles—Marcus & Millichap Real Estate Investment Services has brokered the sale of 660-680 South Berendo St. a 34,800-square-foot, three-parcel, lender-owned development opportunity located Los Angeles’ Koreatown neighborhood. The sales price of $5.1 million equates to $146 per square foot.
“This sale marks the passage of one of the last remaining lender-ownded multifamily development sites in Los Angeles County,” says Paul Darrow, an associate at Marcus & Millichap. “The cycle has progressed to its next phase as the most of the entitled sites left over from the market boom have been worked out, sold, or are under contruction.”
Darrow and Ron Harris, an executive vice president investments, both in Marcus & Millichap’s Los Angeles office, represented the seller, a private lender. The pair also secured the buyer, a local owner/developer.
The site was entitled in 2007 for a 17-story tower consisting of 150 units with floor plans averaging 1,4000 to 1,800 square feet.
“Larger floor plans were common on condominium projects entitled between 2003 and 2007,” says Darrow. “The new owner of 660-680 South Berendo St. will most likely seek to reduce the size of the floor plans but increase the overall density in the property in an effort to deliver units that average close to 800 square feet, creating affordable living spaces for young professionals.”
Beech Street capital closes $7.7M to refinance Chicago skilled nursing asset
Chicago—Beech Street Capital LLC has provided $7.7 million in HUD 232/223(a)(7) loans to refinance two skilled nursing facilities in Chicago. The transaction was originated by Joshua Rosen, executive vice president of Beech Street Capital. Working from Beech Street’s Chicago office, Rosen leads the company’s nationwide healthcare efforts.
The financing structure will allowed the borrower to take advantage of substantial debt-service reduction. The lender provided a 24-year term with a low interest rate, allowing the borrower to keep te same term and amortization period as the existing loan.
The two nursing centers consists of 268 beds, and both facilities primarily cater to Medicaid residents.
Centerline supplies $2M, 80% refinancing loan to affordable property
New York—Centerline Capital Group announced it has provided a $2 million Fannie Mae fixed rate MBS loan to refinance the Southview Village Apartments, an affordable multifamily housing development located in Marion, Va.
Built in 1982, Southview Village Apartments is a 72-unit garden-style apartment complex. The loan was structured with a 10-year term and 30-year amortization. The loan was underwritten to 80 percent loan-to-value with a 1.55x debt-service coverage ratio. In addition, Southview Village Apartments has a 20-year HAP contract in place on 100 percent of the units.
“The Fannie Mae 10 year MBS product we put into place provided the customer with a full leverage, non-recourse loan at an attractive fixed rate that will help recapitalize and preserve Southview Village Apartments as an affordable housing property,” said Jim Gillespie, managing director at Centerline Capital Group.
The sponsor, Mark Carbone of Related Affordable, commented, “We were pleased to partner with Centerline Capital Group on the refinancing of Southview Village Apartments. Centerline provided excellent service throughout the process and we look forward to working with them on future transactions.”
Southview Village Apartments is located on View Drive, just off of Interstate 81, approximately six miles west of the downtown area of Marion. The property is comprised of five, three-story garden apartment buildings, and two, two-story townhouse buildings, with a variety of floor plans including one, two and three-bedroom units.
The property is subject to a HAP (Section 8 Housing Assistance Payments) contract with a 20 year term.
“At the time of closing the property was 100 percent occupied, and the property manager expects rental rates to remain the same in the near term,” added Gillespie. “These factors combined with the solid sponsorship made this an attractive deal for Centerline.”