Chicago—CB Richard Ellis’ Capital Markets Group has secured a $99 million first mortgage construction loan and arranged a joint venture partnership between Magellan Development and JP Morgan Investment Management. The proceeds were used to finance the development of The Coast at Lakeshore East, a 499-unit multifamily high-rise slated for completion in February 2013. Ground breaking will occur this June. The construction financing was secured as a long-term fixed-rate construction/permanent loan provided by Northwestern Mutual Life.
“Given the proven track record of the development team led by Magellan and the previous success within Lakeshore East, both debt and equity investors were aggressively pursuing one of the best apartment development sites in Chicago,” says Pete Marion of CBRE Capital Markets. “The project will benefit from Magellan’s ability to get out in front of Chicago’s strengthening downtown apartment market allowing them to be one of the first properties to break ground in this next cycle of apartment deliveries.”
Marino worked with John Clifford and Jesse Karasik in CBRE’s Debt and Equity Finance team and John Jaeger and Dan Cohen from CBRE’s Investment Property Multi-Housing team in representing Magellan Development and JP Morgan Investment Management.
The Coast will be a 45-story high-rise fronting the Chicago River along Wacker Drive. The project, which also includes a parking garage and 18,800 square feet of retail, is part of Magellan Development Group’s larger development known as Lakeshore East. The final $4 billion master planned project will be a neighborhood with 4,950 units and a six-acre park. Lakeshore East is currently 50 percent built out with 1,630 rental units and 1,444 condo units.
MAA acquires 297-unit community in Jacksonville, Fla.
Jacksonville, Fla.–MAA has acquired Tattersall at Tapestry Park, a 297-unit upscale community located in Jacksonville’s Southeast submarket. The property is located between the beach and downtown Jacksonville, offering close commutes and easy access to recreation.
“We are very pleased to expand our portfolio in the Jacksonville market to include Tattersall at Tapestry Park,” says Al Campbell, executive vice president and chief financial officer at MAA. “Jacksonville is North Florida’s employment hub and home to the largest deepwater port in the South. We believe Jacksonville will continue to offer strong leasing fundamentals for the foreseeable future.”
Tattersall at Tapestry Park is the second phase of mixed-use development that was built in 2009. The first phase, which was not bought by MAA, includes condos, retail, office space, restaurants and a hotel. Tattersall at Tapestry Park has a parking garage, pool, walking trail and lake.
Arroyo & Company completes $8M sale
Santa Rosa, Calif.—Arroyo & Company has represented both the buyer and seller in the transaction of Montecito Pines, a 76-unit community located in Santa Rosa, Calif. Jamie Clifford, David Silver and Pedro Arroyo handled the deal. The buyer secured a new loan at approximately 75 percent loan-to-value.
Montecito Pines is a garden-style property that was built in 1997. It is comprised of 40 two-bedroom units and 36 one-bedroom units. Community amenities include a swimming pool and spa.