Newly Built TOD Asset Trades in California

Details emerge on one of GE Capital’s last financings, and Capital One Multifamily Finance goes to bat for manufactured housing.
Courtesy Yardi Matrix.

Courtesy Yardi Matrix.

Montclair, Calif.—With a location smack in the middle between Los Angeles and San Bernardino, it is easy to see why GH Palmer Associations was drawn to The Paseos at Montclair North. The 385-unit apartment community was recently delivered by Trammell Crow Residential after the firm acquired the original developer, GLJ Partners. George Smith Partners secured an $81 million bridge loan for the acquisition through GE Capital. An interim bridge loan was necessary because the property was not fully stabilized at sale.

Terms of the 75 percent LTV bridge financing included a rate of 3.23 percent plus one month LIBOR, and full-term interest only, a term of five years. That LTV puts the sales price in the $108 million range. According to originator Gary Tenzer, principal and managing director of George Smith Partners, the loan was one of the last financings completed by GE Capital before its sale in April 2015.

The Paseos at Montclair North Pool

Courtesy Yardi Matrix.

The newly built community is located directly across the street from a major regional mall, and is one block south of the Metro link commuter rail, which offers service to Downtown Los Angeles and Pasadena. Amenities at the property include two pools, spas with cabanas, a central park with concert amphitheater and fountain, barbecue areas, an entertainment lounge and a fitness center.

George Smith Partners Principal Malcolm Davies previously worked with GLJ in 2012 to secure $25 million in joint venture equity for the land acquisition, as well as $53.7 million in financing for the construction of the multifamily property.

Capital One Multifamily closes $5M for acquisition of manufactured housing

Bethesda, Md.—Capital One Multifamily Finance announced that it has provided a $5 million Fannie Mae fixed-rate loan for the acquisition of Idle Wheel, a 153-space manufactured home community (MHC) in Woodland, Calif., part of the Sacramento MSA.

Damon Reed, senior vice president and Capital One Multifamily’s director of MHC Finance, originated the transaction. The sponsors are repeat customers of both Capital One and Reed.

Speed and certainty were priorities of the sponsors, who faced a financing deadline to secure their earnest money deposit.

Built in 1961, Idle Wheel is located in a residential area with convenient access to shopping and dining options. Project amenities include a clubhouse, pool, game room and laundry facility. The community is 99 percent occupied. The 10-year fixed-rate loan has two years of interest-only payments, 9.5 years of yield maintenance and a 30-year amortization payable on an actual/360 basis.