TODAY’S DEALS: CBRE Sells Three-Property Portfolio in San Diego
CBRE sells three mixed-use assets; Beech Street closes a $30.9 million acquisition loan for a Houston property; and a Greenwich Village, N.Y., portfolio of mixed-use buildings sells for $32.34 million.
San Diego—CBRE Group Inc. has sold The Lofts, a three-property portfolio in the East Village neighborhood of downtown San Diego. The three mixed-use communities total 460 units and 23,000 square feet of ground floor retail. The seller, OliverMcMillan, developed the properties between 2006 and 2010. Each property was picked up by a separate single-use entity.
The Lofts at 655 is located at Sixth Avenue and G Street in the Gaslamp Quarter. It consists of 106 units, a gourmet burger restaurant/bar and downtown San Diego’s only ACE Hardware. Located at Seventh Avenue and G Street, The Lofts at 677 features 147 loft living spaces and two ground floor restaurants. The Lofts at 707 in located at Tenth Avenue and G Street and include 207 units.
Beech Street closes $30.9M loan for Houston apartments
Houston—Beech Street Capital has closed a $30.9 million Freddie Mac CME loan for the acquisition of The Westheimer, a 244-unit asset located in Houston. The borrower was U.S. Real Estate Investment Fund, which is managed by Boston-based Intercontinental Real Estate Corporation.
“The borrower was attempting to strike a balance between maintaining a low overall leverage position for the fund, while maximizing the cash-on-cash yield for its investors,” says Brian Sykes, senior vice president of originations in Beech Street’s Boston office.
The financing was structured as a 65 percent LTC/LTV loan with ten years of interest only payments.
Greenwich Village, N.Y., portfolio of mixed-use buildings sells for $32.34M
New York—Situated on arguably the most famous thoroughfare in Manhattan’s West Village— the intersection of Christopher and Bleecker Streets—a portfolio of six mixed-use, Greenwich Village walk-up apartment buildings has sold for $32.34 million. The contiguous properties are comprised of a total of 47 residential units and seven commercial spaces.
Eastern Consolidated Chairman and CEO Peter Hauspurg represented the seller of the package, multigenerational owner Noah Osnos, while Eastern Consolidated Senior Director Ben Tapper procured the buyers, a partnership between Dalan Management and RWN Real Estate Partners LLC. Eastern Chief Financial Officer Peter Takiff advised on the transaction.
“Not only are these properties all situated in an iconic West Village location but the mixture of regulated and free-market apartments, combined with below market retail tenancies offers significant financial upside to the purchasers” notes Tapper, who adds that the properties had been in the seller’s family for more than six decades and the buyers are known to be seasoned operators and purchasers of similar mixed-use real estate assets.
The six buildings are 89 & 91 Christopher Street and 329, 333, 337 & 341 Bleecker Street. The properties are contiguous, comprising a corner spanning 90 feet of extremely prime retail frontage along Bleecker Street and 90 feet along Christopher Street.
Danny Wrublin, principal of Dalan Management, says, “The transaction was a seamless experience from contract to closing. We are very excited to be taking on ownership of one of the prime retail and residential corners in the heart of the West Village.”
Ari Shalam, managing director of RWN Real Estate Partners, says, “Acquiring this portfolio is entirely consistent with RWN’s strategy of moving quickly with strong operators to acquire high-quality, well-located assets with strong value-add potential.”
Hauspurg adds, “The successful sale of such a large number of irreplaceable buildings in one of the Manhattan’s most coveted retail and residential neighborhoods is representative of the great value Eastern Consolidated brings to the transaction marketplace in New York City.”
Attorneys in the transaction were Eric Kahan, Esq. of Sperber Denenberg & Kahan PC for the seller and Dan Altman, Esq. and Chair, Transactional Department, of Belkin Burden Wenig & Goldman LLP for the buyer.