TODAY’S DEALS: Alliance Residential JV Completes $160M Apartment Acquisition
JLL arranges a 549-unit sale in Coronado, Calif.; Capstone Real Estate Services lands a 10-property management gig; and Grandbridge finances a $27.8 million construction/permanent loan for the development of a seniors housing property.
Coronado, Calif.—One of the year’s largest multifamily trades in California has closed with $160 million sale of Coronado Bay Club. The 549-unit unit community is located in Coronado, Calif., and was acquired by a joint venture of Alliance Residential and a large institutional investment fund. Jones Lang LaSalle’s Capital Markets team marketed the property on behalf of LaSalle Investment Management.
“With our $160 million plus purchase of Coronado Bay Club this week, Alliance’s Southern California region is continuing our tremendously quick start out of the gate this cycle,” says Drew Colquitt, Alliance’s managing director for acquisition, development and construction in SoCal. “We were staffed strategically coming out of the recession and in a solid position to purchase well-located multifamily development sites at discounted prices, as well as undertake several early-cycle development starts and value-add acquisitions.”
The 18-building community is comprised of three-story, garden-style assets situated on 13.9 acres on the bay across from downtown San Diego. Amenities include tennis courts, a fitness center, resort-style pool, spa, saunas and locker rooms, a dog park, picnic area with barbecues, a 18,000-square-foot clubhouse, meeting rooms, a business center, catering kitchen, media room, on-site beauty salon and garage parking.
“With an unparalleled waterfront located in a gateway city, the sale of Coronado Bay Club sets the market along the south coast of California this year and is a testament to San Diego’s strength overall,” says David Young, managing director at JLL. “Job growth in the health and technology sectors has fueled the economic revival in the region, leading to an occupancy rate of 97 percent.”
Young worked alongside JLL Executive Vice President Darcy Miramontes and Vice President Kip Malo, as well as International Director Jubeen Vaghefi, in arranging the sale.
Capstone lands 10-property management gig
Dallas—Capstone Real Estate Services Inc. has been awarded the management contract for a 10-propety portfolio totaling 1,026 units in Texas and Mississippi. Five of the properties are completed, and two are new construction lease-ups. Three additional assets will begin construction during the first quarter of 2014.
The Texas properties are located throughout the state in Longview, Abilene, Dallas, Denton, Waco and Tyler, and are supported by our Dallas/Ft.Worth and Abilene offices. Additionally, Capstone’s current presence in Mississippi is expanded by two properties, located in McComb and Long Beach.
Grandbridge finances $27.8M construction/perm loan for development of seniors housing
Minneapolis, Minn.—Grandbridge Real Estate Capital closed a $27.8 million first mortgage construction/permanent loan secured by The Waters on Mayowood, a seniors community anticipated to open in late 2014 in Rochester, Minn. The development loan, originated by Minneapolis-based Tony Carlson, was funded through one of Grandbridge’s banking relationships and featured a construction term, interest-only component, permanent term, and closed with a very low interest rate.
Located near the world-renowned Mayo Clinic and adjacent to the Apache Mall, the 175-unit community is being developed by a local Rochester developer and will be operated and managed by The Waters Senior Living, an owner and operator of senior living communities in the Twin Cities.
Living options will include independent living, senior living (with a la carte personal care and health services available as needed), memory and Alzheimer’s care and enhanced care. The 276,000 square foot facility will include a four-story assisted living wing with 70 units and six enhanced care suites, a four-story independent living wing with 71 units and a two-story memory care wing with 28 units. In addition, 24/7 nursing care is available.
Property amenities include a dining room, state-of-the-art wellbeing center, day spa, library, creative arts studio, club room with golf simulator and spiritual center designed to host a variety of wellbeing-focused activities, programs and services. The one- and two-bedroom apartment homes include full kitchens, washers and dryers, and ample closet space.
Grandbridge successfully worked with the borrowers and lender to structure this transaction to meet the unique funding objectives of the developer.
