Santa Rosa, Calif.—Centerline Capital Group has provided a $17.9 million Fannie Mae affordable loan to facilitate the acquisition of Redwood Park Apartments in Santa Rosa, Calif. The Borrower is Redwood Park Venture LP and the sponsor is Security Properties. This is the second deal that Centerline recently closed with Security Properties. In late 2012, Centerline provided Security Properties with an $11 million FNMA Affordable Preservation loan to refinance an affordable asset in Claremont, Calif.
Redwood Park Apartments is a 156-unit asset consisting of 12 two-story apartment buildings and one one-story community/leasing office building. Approximately 60 of the units have recently been renovated. Amenities include a lounge area, in-ground swimming pool with spa and a laundry room. The property benefits from a California Section 214 Welfare Tax Exemption.
“As long as the property is under a regulatory agreement and provides 20 percent of the units to tenants that are at or below 80 percent of area median income, the property will benefit from a considerable real estate tax abatement of up to 90 percent of actual taxes but not special assessments,” says Suzanne Cope, senior vice president of debt originations at Centerline Capital Group.
Kennedy Wilson buys 366-unit asset in Utah
Holladay, Utah—Kennedy Wilson has added Sandpiper Apartment Homes to its portfolio. The 366-unit asset is located in Holladay, Utah, just 10 miles east of Salt Lake City. Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap, represented the seller, DiNapoli Capital Partners, in the transaction.
“Apartment demand in the Salt Lake City metro continues to be strong, with a 110-basis point decrease in vacancy to 3.7 percent for the 2012 calendar year,” says Stan Jones, executive vice president of investments at IPA. “Additionally, employers in the metro added 18,000 jobs, returning employment to pre-recession levels. A healthy recovery is underway here, positioning Sandpiper for continued high occupancy and strong rent growth.”
Sandpiper Apartment Homes is composed of 46 residential buildings with a mix of two-, three- and four-bedroom units. Interiors include condominium-style floor plans with in-home laundry connections and reserved covered parking or garages immediately outside of each unit’s entry. Shared amenities include four outdoor swimming pools.
Grandbridge closes an $11.3M loan for Georgia student housing
Statesboro, Ga.—Grandbridge Real Estate Capital has closed an $11.3 million first mortgage loan secured by University Village at Southern, a 532-unit asset in Statesboro, Ga., that serves Georgia Southern University. The refinance transaction was originated by Raleigh-based Robert Hukill,with funding provided through Freddie Mac.