TODAY’S DEALS: Charles Dunn Co. Completes $8.1M L.A. Sale
Charles Dunn. Co. sells a 33-unit community in Echo Park; Berkadia provides a $19 million, seven-year, floating-rate loan for an acquisition in Portland, Ore.; and Bainbridge Cos. grabs an asset in Virginia Beach.
Los Angeles—Charles Dunn Co. has completed the $8.1 million sale of a 95 percent occupied, 33-unit, non-rent controlled property at 1154 Belleveue Ave., just west of Sunset Blvd. in the Echo Park neighborhood of Los Angeles.
Michel Hibbert of Charles Dunn represented the seller, Bellevue Development Ventures. The buyer was Unison Investment Company, an Arcadia, Calif.-based investor that was represented by John Chu of New Life Properties. The closing cap rate was a 4.7 percent and the price-per-square-foot was $411.
“The asset offered the buyer a non-rent controlled property near Downtown Los Angeles,” says Hibbert. “This transaction was part of a 1031 exchange and the buyer plans on holding this stabilized investment property for the long term.”
Built in 2008, the three-story luxury apartment property includes a mix of studio and one-bedroom units that include balconies or patios, granite bathroom counter tops, crown molding, hardwood laminate floors and walk-in closets. Common area amenities include a courtyard, laundry facilities, gated entry and 45 subterranean parking spaces.
Berkadia provides $19M, seven-year, floating-rate financing for acquisition
Seattle—The Seattle office of Berkadia Commercial Mortgage LLC recently originated $19 million for a multifamily property located in Tualatin, Ore. Senior Vice President Jeff Stuart worked with the borrower, Affordable Housing Associates, to close the seven-year, floating-rate financing through Berkadia’s Freddie Mac Program.
The borrower utilized the loan to acquire Tualatin Meadows, a 240-unit property located at 18755 SW 90 Avenue that was constructed in 2000 with Low Income Housing Tax Credits. The loan features a 2.37 percent interest rate, 80 percent loan-to-value ratio and a 30-year amortization schedule.
“Portland’s multifamily market is particularly active right now due to strong fundamentals,” says Stuart. “Our team marshaled its long-standing relationship with Freddie Mac and extensive knowledge of the regional market to deliver competitive loan terms that the client needed for this acquisition.”
Tualatin Meadows consists of one- and two-bedroom units and was 98 percent occupied at the time of sale. Amenities include a fitness center, pool, clubhouse and playground. Situated on more than 11 acres of land, the property is approximately 13 miles southwest of downtown Portland.
Bainbridge Cos. Grabs 288 Units in Virginia Beach
Virginia Beach, Va.—The Bainbridge Cos. has acquired Woodshire Apartment Homes, a 288-unit garden-style asset located in Virginia Beach, Va. ARA Mid-Atlantic principals Mike Marshall and Drew White, as well as ARA Richmond/Norfolk, Va.-based broker Wing Ewing, represented the seller, Chandler Management Corp.
The 1975-built asset is located less than a mile from I-264, and is near the heart of Virginia Beach Town Center. Occupancy was 95 percent at the time of sale.
“Woodshire is the latest in a recent trend of well-positioned B class properties slated for unit interior upgrades around the Hampton Roads MSA,” says Ewing. “We have seen several properties near Virginia Beach Town Center have success with renovation programs, due to the ever-widening rent gap between class A and B apartments. The new owners should see excellent returns through focused capital improvements.”
