TODAY’S DEALS: IPA Brokers a 274-Unit Texas Sale
IPA arranges a Texas sale; Beech Street Capital provides $9 million for an off-market purchase in Texas; and Eagle Group Finance provides $1.4 million for the acquisition of entitled land near downtown Los Angeles.
Corpus Christi, Texas—Institutional Property Advisors has arranged the sale of The Reserve at Saratoga, a 274-unit community located in Corpus Christi, Texas. Terms of the sale were not released. The buyer, however, was a private Baton Rouge, La., company. The seller was a joint venture between a California equity provider and a Memphis, Tenn.-based operational partner.
“The Reserve at Saratoga provides the new owner with an exceedingly stable multifamily asset in a well-established submarket of an economically diverse and growing coastal city,” says Will Balthrope, executive director at IPA. “Average rents and occupancies have been steadily increasing throughout the Corpus Christi MSA and population growth in the area is expected to rise.”
The Reserve at Saratoga was built in 2006 and 14.7 acres. Community amenities include an indoor basketball court, outdoor recreational areas, a business center with coffee bar, a fitness center, swimming pool, controlled access gates and attached and detached garages.
Beech Street provides $9M for off-market Texas purchase
Eless, Texas—Beech Street Capital has closed a $9 million Fannie Mae conventional loan for an off-market acquisition in Euless, Texas. The 1983-built, 384-unit property is a gated community in close proximity to shopping centers, hotels, restaurants and a large business park that employs 34,000 people. It was acquired by an out-of-state buyer. The fixed-rate loan has a 10-year term with an interest-only period of one year, 9.5 years of yield maintenance and 30 years of amortization.
Eagle Group Finance provides $1.4M for acquisition of entitled land near downtown
Los Angeles—Private alternative lender Eagle Group Finance has provided a local private investor with $1.4 million in acquisition financing for a half-acre parcel of land near Downtown Los Angeles.
The land, which is fully entitled for multifamily development, has been held in receivership since 2011 when it was foreclosed on by the construction lender. The previous owner defaulted in mid-construction, completing only the underground parking garage.
“This was not your typical land purchase loan because of the existence of the garage,” says Eagle Group President Brian Good. “There were a lot of issues and details to work out in a short amount of time, but we were able to act quickly so the borrower would not lose out on the opportunity to acquire the land.”
The two-year, interest-only financing represented approximately 50 percent of the acquisition costs with the borrower bringing new equity into the deal. According to Good, the borrower plans to seek bonus density on the entitled land and develop a 60-unit market-rate apartment complex.
Eagle Group Finance is an operating unit of Los Angeles-based Eagle Group LLC, which through its operating units provides short- and long-term financing, capital advisory services and placement of institutional real estate investment capital, third-party loan servicing and property management, and commercial real estate brokerage services.
