Veritas Urban Properties Lands $7.5M for San Diego Development
- Oct 21, 2014
San Diego—HFF has arranged $7.5 million in construction-permanent financing for the development of Hillcrest Apartments, a 36-unit, five-story apartment building being developed by Veritas Urban Properties in San Diego’s Hillcrest neighborhood. The 71 percent loan-to-cost, 12-year, fixed-rate loan was provided by a correspondent life company lender. HFF senior managing director Aldon Cole and associate director Bryan Clark placed the debt.
When the property stabilizes the construction loan converts to a permanent loan locked in at 4.29 percent, with an interest only period of up to 27 months. There is also an earn-out feature that allows Veritas to draw additional loan dollars at stabilization.
The asset will be located on a 15,200-square-foot parcel at 4021 Eighth Ave., just northwest of Balboa Park. Completion is set for 2016. Veritas Urban Properties has developed more than 1,000 units and 60,000 square feet of commercial space in the San Diego area. Murfey Construction Inc. will be handling construction.
NorthMarq secures $23.2M for a Colorado acquisition
Thornton, Colo.—The Dallas office of NorthMarq Capital has secured $23.2 million in acquisition financing for Summit at Thornton, a 322-unit community located at 101 E. 88th Ave. in Thornton, Colo. The deal was structured with a seven-year term with two-years interest only and a 30-year amortization schedule. RADCO Companies was the borrower, and the financing was arranged via Freddie Mac.
“We were able to provide RADCO with a favorable floating rate Freddie Mac loan in order for RADCO to continue to do what they do best; acquire properties with great upside potential in order to reposition the asset within its submarket,” says Suzanne Jones, vice president in NorthMarq Capital’s Dallas regional office.
Equicap arranges an $18M condo construction loan in NYC
New York—Investment advisory firm Mortgage Equicap has arranged an $18 million nonrecourse construction loan for a 12-unit condominium conversion near Gramercy Park in Manhattan. The news was announced by Daniel Hilpert, managing director at the New York-based firm.
Equicap was able to arrange 80 percent financing through participation between a bank, which took the A note, and an unconventional lender, which provided a more highly leveraged B piece.