A community near Los Angeles’ Miracle Mile has received a major loan. Mesa West Capital provided a $65 million acquisition loan to Sares Regis for its purchase of the Los Angeles community The Preston. The five-year, floating-rate loan was arranged by CBRE’s Jesse Weber and Scott Williams and originated by Mesa West’s Joshua Westerberg, a director in the San Francisco office.
The four-story Preston offers 169 units through studios, one- and two-bedroom floorplans with amenities including a 336-spot parking garage with EV parking stations, a pet park, a pool and a clubhouse with a fitness center. According to Yardi Matrix data, The Preston is 95.3 percent occupied with tenants paying an average rent of $2,543.
Located at 630 Masselin Ave., The Preston is situated near Los Angeles’ Miracle Mile, a stretch of downtown on Wilshire Boulevard that offers retail, entertainment, dining, and a large selection of museums. The property will also benefit from two subway stations that are currently being developed along the Metro Rail’s Purple Line extension.
The Preston is also due for some upgrades as Sares Regis will commence a multi-million dollar renovation program on the exterior, common areas and amenities to make them look more contemporary. Sares Regis will also renovate the apartments as the units roll.
GROWING THE CALIFORNIA PORTFOLIO
According to Yardi Matrix data, Sares Regis purchased The Preston from the real estate management firm Heitman for $86.8 million in January. In the same month, the company also expanded its portfolio in Arizona with the acquisition of a 240-unit Phoenix community for $54.3 million.
As for its California portfolio, Sares Regis also owns a 344-unit community in San Diego that it purchased with the help of an $80 million loan in May 2018 and a 535-unit community in Aliso Viejo, Calif. that received a $141.5 million refinancing in June 2018.