TODAY’S DEALS: Clal Insurance Grabs Another Apartment in Stamford

Stamford, Conn.—Clal Insurance has acquired its second apartment in Stamford within a month with the purchase of Glenview House, a 2008-built Class A asset. The 146-unit community is located at 25 Glenbrook Road, and features a retail space anchored by Walgreens. The sales price was $69.1 million. CBRE Group Inc. represented the seller, a joint venture between Cornerstone Real Estate Advisors, Stillwater Investment Management Corp. and Olympic Property Partners. In August, Clal closed on a 49 percent stake in 75 Tresser, a 344-unit community that was picked up in a joint venture with Waterton Associates for $121 million. Clal acquired its first multifamily property earlier this year with a 49 percent stake in Infinity Apartments in Edgewood, N.J. “Clal is building a sizable portfolio of quality, valuable assets in major metropolitan markets, like New York City and Chicago,” says Tamir Kazaz, CEO of Clal US Management, the wholly owned subsidiary of Clal Insurance. “We see immense potential with Glenview House—one of Stamford’s most prosperous rental properties.” Glenview is a four-story building that features a 24-hour fitness center, a business center, courtyard, heated swimming pool, grilling stations, patio and lounge areas. There is also a shuttle service that provides residents easy access to Stamford Transportation Center.

Capital One Bank closes $31.1M Fannie Mae Loan to refinance a portfolio of Class A Los Angeles apartments

Bethesda, Md.—Capital One Multifamily Finance announced that it has provided Raintree Partners with $31.1 million under the Fannie Mae Structured ARM program (SARM) to refinance a portfolio of three Class A apartment complexes in upscale Los Angeles neighborhoods.

These included loans of $11.9 million for Taiko Village in Burbank, $10.5 million for Villa Sofia in Sherman Oaks, and $8.7 million for Vista Paradiso in Studio City. Kristen Croxton and Greg Reed, senior vice presidents in Capital One Multifamily’s office in Newport Beach, Calif., originated the transaction.

The borrower, Raintree Partners, is a private commercial real estate investment and development company focusing on multifamily properties in major West Coast markets, specifically California. Since its founding in 2007, the firm has acquired more than 20 communities totaling more than 3,200 units including those under development. Raintree is a repeat customer of Capital One Multifamily and Croxton and Reed.

“This transaction is a good illustration of how customers benefit from our ability to execute tailored financing structures in a timely fashion,” Croxton says. “It is crucial that we move quickly to put our clients in a position to capitalize on opportunities as the debt markets rapidly shift.” Croxton and Reed took these three transactions, consecutively, from application to loan closing within a 30-day period.

The three properties had originally been developed as for-sale condominiums. In 2011 and 2012, Raintree purchased these assets out of bankruptcy and a portfolio of bank-owned REO. Upon acquisition, Raintree completed the remaining construction and began operating the three properties as for-rent condominium communities. The initial acquisitions were financed with floating rate bridge debt and upon stabilization Raintree looked to Capital One Multifamily for take-out financing options. “We kept Raintree informed in real-time about evolving conditions in the capital markets during lease-up,” Reed says. “This allowed the client to strike when the iron was hot and take advantage of an accretive debt structure.”

“The advantage of working with Kristen and Greg is that when we were ready to refinance, they could respond almost instantaneously because they already knew what we were looking for,” says Jeffrey Allen, Raintree’s CEO. “And they delivered.” The structured ARM has a sub-2 percent start rate, no initial interest-rate cap, returned a large amount of invested equity and five years of interest only. “The financing solution that Capital One Multifamily secured for us is, in effect, custom-tailored,” says Aaron Hancock, Raintree’s director of acquisitions. “It lines up perfectly with our investment goals.”

All three communities are Class A properties with modern design, high-end finishes and stainless steel appliances. Each property offers a full amenity package including dishwasher, refrigerator, gas stove, microwave, wood or carpet flooring, and fireplaces. The properties offer an array of one-, two-, and three-bedroom units, including townhome-style units that range up to 2,059 square feet. The properties are all well located within excellent submarkets and neighborhoods of Los Angeles and have achieved high occupancy while commanding high unit rents.

The structured adjustable rate mortgages have a 10-year term with five years of interest-only payments. They have a one-year lockout, followed by a 1 percent prepayment cost thereafter.

Marcus & Millichap brokers $10.9M sale in SoCal                             

Escondido, Calif.—Marcus & Millichap has brokered the sale of Tanglewood Apartment Homes, a 96-unit garden-style community located in Escondido, Calif. The sales price was $10.9 million, or $113,000 per unit. Christopher Zorbas, a first vice president investments in Marcus & Millichap’s San Diego office and David Sperling, associate, also in the firm’s San Diego office, represented the seller, Chrismark LLC.  The buyer is a Canada-based private investment group. “This asset provides the new owner with a solid value-add opportunity,” says Zorbas. “Constructed in 1977, the building has yet to undergo a significant renovation program, although select units have been upgraded and renovated over the last couple of years. The location, and Escondido itself, have grown significantly and will support the future growth of this property. For example, the building is around the corner from Palomar College’s 80,583-square-foot Escondido campus, which just received $10 million in renovations.” Community amenities include a gated swimming pool and spa, a tennis court, a clubhouse with a pool table and kitchen area, abundant covered and open parking, two laundry facilities and spacious courtyard areas.