Matteson Acquires Urban Mid-Rise Trophy Property For $67M
- Apr 20, 2012
Novato, Calif.—The Matteson Companies announced the acquisition of Millworks, a 124-unit, Class A+ urban mid-rise apartment property built above a 39,119-square-foot Whole Foods Market. Located at 900 Reichert Avenue in the Old Town section of downtown Novato, Calif., the 420,882-square-foot property includes a three-level, 438-space parking garage and immediate access to Highway 101.
Matteson, based in San Mateo, Calif., is a real estate investment manager active in the western United States with more than $1 billion in assets under management. The company invests primarily in multifamily properties on behalf of private and institutional investors in core and value-added investment strategies.
The property was acquired for $67 million by Matteson on behalf of private investors. Matteson will provide asset management services and E&S Ring Management Corp. will perform the on-site property management. Jeffery Weber and Jason Flynn at Eastdil Secured represented the seller, Signature Properties, in the sale. Northmarq arranged acquisition financing from PPM and Sentinel on the residential and retail portions, respectively.
Downtown mid-rise apartments are a rare find in Marin County. Originally conceived and designed as luxury condominiums, the residences are over-sized and feature custom finishes and many high-end amenities, including granite kitchen countertops, Bosch stainless steel appliances, Kohler faucets, marble slab vanity countertops, marble shower surrounds and full-size washer and dryers in every unit. Most units feature private patios or balconies, as well as spacious walk-in closets. Designed to condo specs and with a condo map in place, the property provides the opportunity to sell units when market conditions dictate. The Whole Foods store, which offers fresh, local products, occupies much of the ground floor of the property, pursuant to a long-term lease. Groceries and prepared foods can be delivered directly to residents of Millworks at their request.
“We are very pleased with the investment,” says John Bellack, president of JB Matteson Inc. “The thoughtful design and quality construction position Millworks as one of the nicest properties in the Bay Area.
“Millworks is an example of our investment strategy to acquire newly built multifamily properties at a discount to replacement cost,” he adds. “We continue to invest in apartment properties in major metropolitan areas on the West Coast to achieve attractive cash returns on fundamentally sound real estate.”
Millworks is “Build it Green” certified and is one of the of the highest Green Point Rate buildings in the area. With features such as a living roof, dedicated bike storage, passive solar heating techniques, energy-saving dual glazed low-E vinyl/aluminum windows throughout, Energy Star appliances and dual flush toilets, every detail was designed with green building in mind. The property features many outdoor gathering areas including a rooftop garden with fountains, three courtyard areas and a tot-lot. Millworks also features an exercise room with state-of-the-art fitness equipment, a community room with flat screen TVs and wifi throughout, and a library with a quiet reading area.
NorthMarq arranges $11M Freddie Mac refi in Minneapolis
Minneapolis—Sue Blumberg, senior vice president and managing director of NorthMarq’s Chicago Regional office, arranged first mortgage refinancing of $11 million for The Kenwood, a 151-unit 220,663 sq. ft. senior housing facility located at 825 Summit Avenue in Minneapolis, Minn.
Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower, Kenwood Congregate Associates LLC, by NorthMarq through its seller-servicer relationship with Freddie Mac.
“This asset is in a beautiful area of Minneapolis where community is incorporated into everyday life for residents,” says Blumberg.