TODAY’S DEALS: Greystar Sponsors Recapitalization of $440M Portfolio with Ivanhoé Cambridge, Goldman Sachs and Partners

Greystar sponsors the recapitalization of a $440m portfolio; Colliers completes a $57.8 million sale in Arizona; and NorthMarq arranges $13.4 million in construction financing for a student housing asset in Oklahoma.

Charleston, S.C.—Greystar Real Estate Partners announced that the company sponsored the recapitalization of a $440 million portfolio of multifamily assets with Ivanhoé Cambridge, the Real Estate Principal Investment Area of Goldman, Sachs & Co. and other partners. The portfolio consists of five high-quality apartment communities, or 1,640 units, located in the Cupertino, San Jose and Sunnyvale, Calif., submarkets of Silicon Valley. Greystar will execute a value-add capital improvement program on the portfolio that will include both interior and common area improvements.

The transaction is another in a history of joint investments made by Greystar, Ivanhoé Cambridge and Goldman Sachs, which combined earlier this year to acquire a $1.5 billion portfolio of multifamily assets owned by Equity Residential. “This transaction represents a continuation of Greystar’s strategic focus on acquiring well-located apartment communities below replacement cost in markets with robust employment growth and long-term barriers to new supply,” says Kevin Kaberna, senior managing director of investments for Greystar’s West Region. “We believe there is a significant opportunity to utilize our capital renovation and operational expertise repositioning the portfolio and taking advantage of the positive fundamentals in the Bay Area.”

CBRE’s Newport Beach office arranged the $287 million debt financing for the portfolio through the strong support of CIBC’s real estate group. CBRE’s Troy Tegeler, who led the CBRE financing effort says, “CBRE along with CIBC were able to create a portfolio financing that met the complex needs of our clients.”

Eastdil Secured advised Ivanhoe Cambridge on the transaction and served as adviser and placement agent.

The portfolio is comprised of the following:

Market Properties Units
Cupertino, CA 1 120
San Jose, CA 3 1,372
Sunnyvale, CA 1 148
Total 5 1,640


Colliers sells a Scottsdale asset for $57.8M

The ParagonScottsdale, Ariz.—Colliers International has achieved the highest per unit sale in the last five years in Greater Phoenix for an asset without an active condo map with the sale of The Paragon at Kierland. The $57.8 million sale of the 276-unit Class A asset equates to $209,239 price per unit.

New York’s Sentinel Real Estate Corp. acquired the property, which is located at 15608 N. 71st Street in Scottsdale. Vancouver-based Sunstone Realty Advisors was the seller. More than 65 investors bid on the property and 22 investors placed bids at more than $50 million.

“The Paragon is among the most elite investment properties in Arizona,” says Jerry Tenge, senior vice president of multifamily investments at Collier’s Southwest Multifamily Advisors. “The future opportunities at The Paragon are numerous from converting the complex into condos, running a timesharing program or continuing to operate the complex as apartments.”

The asset was built in 2000 and renovated in 2008. Community amenities include a heated swimming pool with bar, a fire pit and cabanas.

NorthMarq arranges construction financing for an Oklahoma student asset

213 WStillwater, Okla.—NorthMarq’s Dallas regional office has arranged construction financing of $13.4 million for 213 W. Elm, a 194-unit student housing facility located in Stillwater near Oklahoma State University. The property is a mid-rise community that is more urban than typical for its market.

Financing was based on a 3-year term and a 30-year amortization with one-year interest only. The loan was arranged for the borrower, Elsey Partners, by NorthMarq through its relationship with a regional bank. This was the second project the borrower had started in the market. The first was delivered in 2013 and was 100 percent preleased before it opened.


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