TODAY’S DEALS: Canyon Catalyst Fund Acquires a Pair of Bay Area Apartments

The Canyon Catalyst Fund and Sack Properties buy two Bay Area apartment assets; Coseo Properties completes a Michigan multifamily acquisition; and BMC completes an $18.5 million cash-out refinance in a tertiary market.

Sunnyvale & Pacifica, Calif.—The Canyon Catalyst Fund and Sack Properties have made two investments in the San Francisco area, acquiring a 116-unit garden-style apartment community in Sunnyvale and a 44-unit community in Pacifica; the latter enjoys views of the San Francisco Bay. Both assets will be subject to a series of improvements executed over the next year.

“The San Francisco Bay area has long been a highly desirable market for multifamily investment due to strong underlying fundamentals and the robust demand for apartment housing, so these are particularly compelling investments for our new partnership,” says Maria Stamolis, managing director at Canyon Capital Realty Advisors.

720 North is a Class B asset in Sunnyvale that features 17 separate buildings. The improvement program will focus on addressing deferred maintenance and upgrading the common areas by installing new landscaping, improving the community’s three pools, creating a new dog park and purchasing new fitness equipment.

Skyline Vista is a 44-unit asset in Pacifica close to the South San Francisco BART Station. Ground floor units feature large private yards. The asset will see improvements targeting landscaping and amenities, the construction of a new leasing office and a remodeled barbecue and picnic area.

“We were drawn to these two apartment communities because they are both in prime locations and offer tremendous upside potential through a series of much-need property improvements,” says Kirby Sack, CEO of Sack Properties. “Given the high cost of homeownership in the San Francisco area, we believe 720 North and Skyline Vista will offer great options for people looking for recently renovated, attractive homes at reasonable prices.”

Coseo Properties completes a $13.8M multifamily acquisition

Ypsilanti, Mich.—Coseo Properties Inc. has acquired a 468-unit community from Erie Investments for $13.8 million. University Green is located a 799 Green Road in Ypsilanti, Mich., and represents the 10th multifamily community to close escrow in the last 20 months as Coseo Properties expands its portfolio to 14 properties with a collective 2,000 units. The most recent acquisition serves Eastern Michigan University.

“CPI’s competitive advantage is its expertise and deep roots in the Michigan market and judicious experience in identifying attractive economic and demographic fundamentals in dynamic secondary markets,” says Calvin Coseo, vice president of investor relations at Coseo Properties.

The apartments portfolio in Ypsilanti was built between 1968 and 1974, with major renovations in 2011. Coseo Properties has plans to modernize units.

BMC completes $18.5M cash-out refi in tertiary market

Dallas—BMC arranged an $18.5 million cash-out refinance loan on a five-property multifamily portfolio located in San Angelo, Texas. The loan represented a 70 percent LTV cash-out refinance, 5-percent, 5-year fixed rate and a 30-year amortization.

Keith Van Arsdale, president and CEO of BMC says, “We successfully secured competitive debt for a large loan in a tertiary market, which sometimes can be challenging.” BMC arranged the loan thru a bank correspondent.

BMC Capital is the leading lender for small-balance multifamily and commercial loans in the country anticipates originating at least 150 such transactions in 2013.

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