Security Properties Coinvests in Multifamily Fund

Security properties closes a 2,471-unit fund, sells first asset; an affiliate of True North Capital Partners acquires two Massachusetts apartments in a sale brokered by CBRE/NE; and Meridian negotiates financing for New York communities.

Seattle—It has been a successful investment run for the Security Properties Multifamily Fund, which was launched by Securities Properties in June 2011. Since then, the fund acquired, both directly and through joint ventures, 2,471 apartments located in Seattle, Portland, the San Francisco Bay Area and Phoenix markets. The total acquisition cost of the fund’s 17 properties was nearly $390 million.

“This fund allowed private investors an opportunity to allocate capital–directly and alongside major institutional partners–to a sizeable portfolio of cash flow-generating apartment properties,” says Ed McGovern, managing director of capital markets at Security Properties. “By leveraging our industry and capital relationships, the fund offered investors participation in a broader pool of larger properties which can be managed and marketed more efficiently.”

Security Properties recently sold its first asset in the Security Properties Multifamily Fund, called Chelsea Heights, located in Tacoma, Wash. The sale of the condo-to-apartment conversion project, purchased out of foreclosure, generated a highly attractive return to investors.

True North affiliate acquires two Massachusetts assets

AvenuesPortfolioSomerville, Mass. & Boston—CBRE/New England’s Capital Markets team has sold The Avenues Portfolio, a 116-unit portfolio comprised of two assets: 136-138 Highland Ave. in Somerville (66 units) and 286-288 Chestnut Hill Ave. in Boston (50 units). Chestnut/Highland LLC sold the portfolio to The Avenues Group LLC, an affiliate of True North Capital Partners, for $21.3 million.

“We are very pleased to have facilitated this transaction on behalf of the seller,” says Simon Butler, executive vice president/partner at CBRE/New England. “The Avenues Portfolio represents a fantastic urban infill apartment portfolio with a true value-add story.”

Meridian negotiates financing for properties in Brooklyn, Bronx, Staten Island and Yonkers, N.Y.

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

  • Meridian negotiated a new mortgage of $17.7 million on 90 condominium units located on Ridge Hill Road in Yonkers, N.Y. The loan features a floating rate of 200 basis points over 30-day LIBOR and a five-year term. Abe Hirsch and Daniel Jacob negotiated this transaction.
  • New mortgages totaling $8.53 million were placed by Meridian on three multifamily communities composed of 180 units. The properties are located on Kimberly Lane, Harbor Road and Slaight Street in Staten Island, N.Y. The loans feature rates of 3.38 percent and seven-year terms. Daniel Kirzner and Alan Friedman negotiated these transactions.
  • Meridian negotiated a new mortgage of $4.8 million on a 55-unit, five-story multifamily building located on East Gun Hill Road in the Bronx, N.Y. The loan features a rate of 3 percent and a 10-year term. Michael Kesselman negotiated this transaction.
  • A new mortgage of $3.68 million was placed by Meridian on a 14-unit, four-story multifamily building located on Maujer Street in Brooklyn, NY. The loan features a rate of 3.13 percent and a seven-year term with three years of interest only payments. Isaac Filler and Sam Shifer negotiated this transaction.
  • Meridian negotiated a new mortgage of $3.5 million on a 65-unit, five-story multifamily building located on Naples Terrace in the Bronx, N.Y. The loan features a rate of 3 percent and a 10-year term. Michael Kesselman negotiated this transaction.
  • A new mortgage of $2.45 million was placed by Meridian on a 41-unit, six-story multifamily building located on Anderson Avenue in the Bronx, N.Y. The loan features a rate of 3 percent and a 10-year term. Allan Lieberman and Asher Haft negotiated this transaction.