TODAY’S DEALS: HFF Arranges $59.5M for Multifamily Development in San Diego
HFF arranges a $59.5 million construction and mezzanine loan for a multifamily development in San Diego; Marcus & Millichap sells a 121-unit property in Santa Clara, Calif. for $31.4 million; and Invesco Real Estate acquires a 32-story property in Manhattan.
San Diego—HFF has arranged a $59.5 million construction and mezzanine loan for Circa 37, a 306-unit Class A multifamily community that is part of the first phase of the Civita master-planned development in San Diego. The group worked on behalf of Sudberry Development Inc. to secure the $47 million, three-year construction loan through Wells Fargo Real Estate Group Inc. A $12.5 million mezzanine loan was secured through a life insurance company.
Civita is a 230-acre urban infill community located in the Mission Valley neighborhood in San Diego. The tentative build-out plan includes as many as 4,780 residential units, 480,000 square feet of retail, 420,000 square feet of office, a civic center, recreation center and public parks/open space.
The Circa 37 project is slated for first occupancy in April 2012. The community will be comprised of 11 buildings with a mix of one-, two- and three-bedroom units that average 948 square feet each. Amenities will include a clubhouse, fitness center, game room, roof terrace, salt water swimming pool and an outdoor playground.
“Circa 37 is the first project within one of the largest development sites in central San Diego,” says Aldon Cole, director at HFF. Sudberry Properties is an ideal developer of the site due to their commitment to the community of San Diego and their prior successes in entitling and developing other Mission Valley sites. Upon build-out, this will be an outstanding development in an area that has long been identified as a preferred location to live, work and play.”
Marcus & Millichap sells $31.4M property in Silicon Valley
Santa Clara, Calif.—Marcus & Millichap Real Estate Investment Services has brokered the sale of Family Tree Apartments, a 121-unit multifamily apartment complex in Santa Clara, Calif. The transaction price of $31.4 million represents $259,504 per unit. Theodore Kokernak, senior vice president of investments at the firm’s Palo Alta office, represented the seller, a local family trust, and the buyer, Essex Property Trust.
“Family Tree Apartments is a beautiful, garden-style, family-oriented community with historically high occupancy and a reputation for outperforming the competition,” says Kokernak. “The property was recently renovated with many environmentally sensitive green features.”
Built in 1971, Family Tree Apartments consists of one one-bedroom unit, 81 two-bedroom units and 39 three-bedroom apartments situated in 11 buildings. Amenities include an on-site preschool, security gate, gym, pool, laundry, community clubhouse, basketball court and green spaces. Green features include all-electric power offset with alternative energy purchases, low-VOC carpets, Energy Star-approved efficient windows and compact fluorescent light bulbs.
Invesco acquires apartment property in Manhattan
New York–Invesco Real Estate acquired The Elektra, a 32-story apartment building in Manhattan’s Gramercy neighborhood, on behalf of an institutional client.
The building, built in 1992, has 166 residential units and 5,200 square feet of retail space and is located at 290 Third Avenue between 22nd and 23rd streets.
“The acquisition of The Elektra exemplifies the top-quality assets we seek for our investors’ portfolio,” says Todd Bassen, senior acquisitions director, Invesco Real Estate. “We are very happy to add the Elektra, a rare find with both market rate units and market rate taxes, to our New York City portfolio. This is the first multi-family property we’ve owned in Manhattan since 2004 and it meets Invesco’s objective of acquiring in top-performing markets.”
Other assets owned by Invesco in Manhattan include The Brill Building, 100-104 5th Avenue and 512 Broadway.