TODAY’S DEALS: Ivanhoé Cambridge Invests $234M in Silicon Valley

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Ivanhoé Cambridge makes two big plays in the Silicon Valley; an Inland joint venture buys a mixed-use property in White Plains for $166.4 million; and Berkadia originates $38 million in refinancing for southern Florida properties.

ICS Transit Village

Silicon Valley, Calif.—Quebec-based Ivanhoé Cambridge has announced plans to invest $234 million into a development and acquisition in the Silicon Valley. The move, which is part of a joint venture with Shea Properties, involves the $171 million construction of a luxury 648-unit asset and the $63 million acquisition of Kimberly Woods.

Kimberly Woods

“The Silicon Valley region continues to provide excellent investment opportunities in the residential market,” says Daniel Fournier, chairman and chief executive officer of Ivanhoé Cambridge. “Conditions in this market, which boasts the most favorable employment prospects anywhere in the United States, are a strong incentive for us to build critical mass in rental stock. In addition, our venture with Shea Properties exemplifies the type of partnership we seek to develop as we pursue our growth in the United States.”

The new development project, known as ICS Transit Village, will include 648 units built in two five-story buildings. Groundbreaking is scheduled for spring 2013, with construction expected to wrap up by year-end 2015. The location will provide easy access to the new Apple Campus, which will house some 13,000 employees by 2015 and is slated to open around the same time that units start to come online.

Inland completes a $166.4M JV acquisition in White Plains, N.Y.  

City Center at White Plains

White Plains, N.Y.—Inland Diversified Real Estate Trust Inc. has acquired a majority interest in City Center at White Plains, a four-story, 381,905-square-foot mixed-use apartment property (24 units) and shopping center located in White Plains, N.Y. The asset was picked up in a joint venture between a subsidiary of Inland Diversified and affiliates of Cappelli Group Inc.

“I believe City Center at White Plains to be the best infill, in-city purchase ever facilitated by Inland Real Estate Acquisitions,” says Joe Cosenza, president of Inland Real Estate Acquisitions Inc. “The apartment units are in high demand, and are currently fully-leased with a waiting list. The strong lineup of high-profile retail tenants is supported by very strong demographics, including average household income of $115,000 within a three-mile radius of the center.”

Anchor tenants include ShopRite Supermarkets, Nordstrom Rack, New York Sports Club and Barnes & Nobel. The unit mix includes 10 studios, seven one-bedroom lofts and seven two-bedroom lofts.

Berkadia originates $38M in refinancing for southern Florida properties

Miami Gardens, Fla.—The New York office of Berkadia Commercial Mortgage LLC recently originated $38 million in financing through Fannie Mae for two multifamily properties in Miami Gardens, Fla. Senior Vice President Yuri Kletsman worked with borrower Rafuls & Associates Construction Corp. to secure the two 10-year, fixed-rate loans—one for $33 million and one for $5 million.

Berkadia worked closely with Rafuls & Associates, who was new to agency lending, to ensure that the deals were closed in a timely manner. Through the team’s combined efforts, the loans were closed on Sept. 10, 2012. Both loans feature a 65 percent loan-to-value (LTV) ratio and will amortize on a 30-year schedule.

The larger of the two loans was used for the permanent financing of the newly built Parkview Apartments, immediately following the community’s initial lease-up period. The Class A multifamily property is comprised of 238 three-bedroom units, which are currently 99 percent occupied. The $5 million loan was used to provide refinancing for Garden View Villa Homes.

“We want to thank Berkadia and Yuri Kletsman for such great efforts in helping us through the refinancing of the Parkview Apartments and Garden View Villa Homes. Yuri and his team were extremely efficient, professional and very supportive on our investment objectives,” said Richard Rafuls, President of Rafuls & Associates Construction.

“These two properties both offer best-in-class accommodations in a strong market and Rafuls & Associates Construction Corp. displayed a very high degree of professionalism and responsiveness in what was their first series of agency transactions,” said Kletsman.


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