TODAY’S DEALS: Donaldson Group and Angelo, Gordon Acquire 599-Unit Property

The Donaldson Group finalizes the acquisition of a 599-unit community in Forestville, Md.; NorthMarq Capital arranges a $32M mortgage via a life insurance company; and Prometheus expands its management role in the Pacific Northwest with three new properties.

Forestville, Md.—The Donaldson Group and its equity partner, Angelo, Gordon & Company, have acquired Regency Point, a 599-unit community in Forestville, Md., for $20 million. The partnership will invest an additional $16 million to renovate the property, which is located on 24.6 acres just inside the Washington Beltway.

The partnership acquired a defaulted $32 million senior loan on the property from Wells Fargo and foreclosed on the owner, MPI Cambridge, which had been in bankruptcy since mid-2009. The two firms agreed to sell the property in an August 2010 foreclosure auction, but the sale did not end up closing. The partnership has recently finalized its acquisition of the property.

“We view Regency Point as an excellent opportunity to acquire a well-located apartment community in a strong rental market at a historically low basis with significant opportunities to add value through renovation and repositioning,” says Carlton Einsel, executive vice president at The Donaldson Group. “Despite its excellent location within the submarket, the property has suffered operationally as a result of mismanagement and poorly capitalized ownership.”

The Donaldson Group plans to begin improvements immediately. The process will start with a full renovation of 77 units that are unoccupiable due to fire and other damage. They will also renovate additional unit interiors and improve the exterior façade. Regency Pointe is located just off of Pennsylvania Avenue in Prince George’s County, Md.

NorthMarq arranges $32M mortgage via life insurance company

Village of Marineo

San Jose, Calif. — Dennis Williams, senior vice president and managing director of NorthMarq Capital’s San Francisco Regional office, arranged first mortgage financing of $32 million for Village of Marineo (Palm Valley), a 189-unit multifamily property located at 100 Palm Valley Boulevard in San Jose, Calif.

Financing was based on a six-year term and a 30-year amortization schedule and was arranged for the borrower, GBR Palm Valley Podium LLC, by NorthMarq through its correspondent relationship with Guardian Life Insurance Company.

Williams says the asset is the fourth phase of the 1,100-unit Palm Valley development. There are reciprocal easements for access, shared parking and amenities, which made the deal ineligible for Fannie Mae or Freddie Mac.

Prometheus expands management role in Pacific Northwest

San Francisco–Prometheus Real Estate Group has added three properties to their portfolio of third-party management in the Seattle region. The three new fee managed assets in the Puget Sound region of Washington, all owned by Berg Holdings, brings Prometheus’s Pacific Northwest region unit count to nearly 4,500 units.

The new properties under management include Villaggio, a 292-unit luxury waterfront community located in Kirkland, Wa; Keeler’s Corner Apartments located in Lynnwood, Wa.; and Yarrwod Highlands Apartments close to Downtown Bellevue, Wa.

“Our entire team is extremely excited to work with Berg Holdings and take over management for these top-flight assets that complement our existing Pacific Northwest portfolio,” says Pat Calihan, Director of Acquisitions. “We’re planning to implement a number of proven strategies that will positively position these properties in a market already showing strong signs of recovery.”

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