Sacramento Assets Trade for $58.8M

ARA completes two Sacramento transactions; Aimco closes a $190.7 million loan to finance a major Venice, Calif., redevelopment initiative; and Meridian Capital negotiates $34.8 million in financing for fractured condos, multifamily and cooperative properties.

Pinnacle at Galleria

Sacramento, Calif.—ARA has facilitated the sale of two Sacramento assets for an aggregate total of $58.8 million. The two properties, which totaled 424 units, both had a 30-day marketing window.

Pinnacle at Galleria, a 236-unit gated community located in Roseville, Calif., was sold by a San Francisco-based REIT and purchased by an Oregon-based private buyer. The asset has some of the largest layouts in the submarket and a full amenity package. It is also located across the street from the Westfield Galleria at Roseville (anchored by Nordstrom) and next door to the Fountains at Roseville (anchored by Whole Foods). The property was 94 percent occupied at the time of sale.

The second asset, Waterford Cove, is a 188-unit community that was built in 1987. It was purchased by Oakmont Properties from GW Williams Co. Oakmont secured a new Freddie Mac financing for the purchase. The asset was also 94 percent occupied at the time of sale.

“The Sacramento rental market is rebounding and rents are on the rise,” says ARA’s Mark Leary. “Both buyers will benefit from an increase in rents and a decline in vacancy.”

Aimco closes $190.7M FHA loan for Venice redevelopment

Venice, Calif.—Apartment Investment and Management Co. has closed financing to fund its Lincoln Place redevelopment in Venice, Calif. The 35-acre property is located a short 10-minute bike ride from the famous Venice Beach and Santa Monica Pier. The community, which was built between 1949 and 1951, already saw an earlier phase of redevelopment last year when Aimco redeveloped four buildings with 65 apartment homes.

Over the next year, Aimco will redevelop another 41 buildings including 631 now-vacant apartment homes. The plan also includes the construction of 13 new buildings with 99 apartment homes, a 5,000-square-foot leasing center and a 6,100 square foot fitness center and pool area.

The redevelopment is being funded by a $190.7 million FHA-insured loan that closed last Friday. The loan bears interest at 2.73 percent and is interest-only until 2014, when it converts to a 40-year fully amortizing loan that is freely pre-payable after 10 years.

Meridian negotiates $34.8M in financing for fractured condos, multifamily and cooperative properties

New York—Meridian Capital Group LLC, a national commercial real estate finance and advisory firm, announced the following transactions:

  • Meridian negotiated a new mortgage in the amount of $1,500,000 on a 25-unit, five-story multifamily building on Nagle Avenue in New York. The loan features a rate of 3.00 percent and a 10-year term. David Zlotnick negotiated this transaction.
  • A new mortgage of $17,500,000 was placed by Meridian on two cooperative buildings totaling 590 units located on Seacoast Terrace in Brooklyn. The loan features a rate of 3.45 percent and a 10-year term. Cary Pollack negotiated this transaction.
  • Meridian negotiated a new mortgage in the amount of $7,500,000 on a 95-unit, 10-story cooperative building on East 41st Street in New York. The loan features a rate of 3.24 percent and a 10-year term. Steve Geller and Nicoletta Pagnotta negotiated this transaction.
  • A new mortgage of $4,250,000 was placed by Meridian on two multifamily buildings totaling 57 units located on University Avenue in the Bronx. The loan features a rate of 3.38 percent and a 10-year term. Scott Assouline negotiated this transaction.
  • Meridian negotiated a new mortgage in the amount of $2,500,000 on a 20-unit, seven-story fractured condominium building on East 119th Street in New York. The loan features a rate of 3.25 percent and a 10-year term. Isaac Filler negotiated this transaction.
  • A new mortgage of $1,500,000 was placed by Meridian on two multifamily buildings totaling 10 units located on Montrose Avenue in Brooklyn. The loan features a rate of 3.01 percent and a five-year term. Isaac Filler negotiated this transaction.