MG Properties Buys Seattle Asset for $18.5M

MG Properties group buys a Seattle asset from an affiliate of Goodman Real Estate; Primedia completes its purchase of Rent.com; and Beech Street arranges a $10 million CMBS loan to refinance a student housing asset.

The Cornelius Apartments

Seattle—MG Properties Group has purchased The Cornelius Apartments, a 137-unit community located in downtown Seattle. The purchase price was $18.5 million, equivalent to $135,036 per unit. The seller was an affiliate of Goodman Real Estate.

The Cornelius is located in Seattle’s Belltown mix-use neighborhood, blocks from Amazon.com’s recently announced three-block, 3 million-square-foot planned Denny Triangle headquarters and office project. Built in 1925, The Cornelius underwent a capital improvement plan in 2010, which included a full renovation of apartment interiors, the addition of new common areas, and an upgrade to the building’s systems and envelope.

This transaction marks the second MG Properties acquisition from an affiliate of Goodman Real Estate within the past year. Pinnacle represented Goodman in the sale. MG Properties was self-represented. The purchase was financed with a $13.8 million, 10-year, fixed-rate loan from Freddie Mac arranged by CW Capital.

Primedia completes purchase of Rent.com

Primedia has completed its purchase of Rent.com from eBay Inc. The deal, which was first announced in late March, reportedly creates the nation’s largest network of rental listings.

While terms of the transaction were not disclosed, the purchase joins Primedia websites ApartmentGuide.com, Rentals.com, RentalHouses.com and NewHomeGuide.com. For the time being, Rent.com and ApartmentGuide.com, will continue to be operated separately.

Beech Street arranges $10M CMBS loan to refi student housing

Ann Arbor, Mich.—Beech Street Capital LLC arranged a $10 million CMBS loan to refinance Corner House Lofts, a 133-bed, student housing property in Ann Arbor, Mich. Joel Mazur, vice president out of Beech Street Capital’s Chicago office, originated the transaction and secured the financing.

The borrower wanted to take advantage of Ann Arbor’s strong rental market and the fact that the property was 80 percent pre-leased for the 2012/2013 school year. Beech Street worked with the borrower to determine the best path of execution. “Given the unique condominium ownership structure and the significant pre-leasing already achieved, it was determined that a CMBS loan would best suit the property,” states Mazur.

Built in 2004, the seven-story property is located directly on the campus of The University of Michigan on the bustling southeast corner of State and Washington Street. The ground floor commercial space of the building is a separate condominium that is leased to Buffalo Wild Wings. The property is and has historically been 100 percent occupied.

The fixed-rate CMBS loan has a 10-year term and a 30-year amortization schedule.