TODAY’S DEALS: Lee & Associates Closes 240-Unit Transaction in Ontario, Calif.
Lee & Associates transacts $35 million apartment sale in Ontario, Calif.; Praedium Goup and Greystar joint venture to acquire a value-add opportunity for $21M; and CBRE provides $23.7 million refinancing for Tucson, Ariz. property.
Ontario, Calif.—The Lee & Associates Multi-Housing Investments Group has transacted the sale of Montierra Apartments for $35 million. The 240-unit complex is located in Ontario, Calif., and is proof, according to the firm, that investor confidence has returned to the Inland Empire. Jackson Square Properties purchased the asset from Coastal Ontario LLC. Jim Fisher, Mike Smith and Craig Stevens, principals at Lee & Associates, represented both the buyer and seller.
“Many investors anticipated the Inland Empire would be a slower market to recover because this market was especially impacted by the recession,” Fisher says. “However, a number of transactions have taken place here in the last few months with others in the pipeline to follow.” Increased demand for apartment assets and low interest rates has fueled the volume of investment transactions in Southern California, the firm maintains.
Oceanside, Calif.–The Praedium Group, a New York City-based national real estate investment firm, and Greystar Real Estate Partners, a multifamily management, development and investment company participated in their fourth joint venture in the acquisition of Sunset View Apartments in Oceanside, Calif. The partnership purchased the 112-unit, apartment complex for $21 million from a private owner.
“The San Diego apartment market is well-positioned to capitalize on the improving economy,” says Russell Appel, president of The Praedium Group. “Sunset View is an attractive property that can be enhanced with a capital improvement program.”
As part of its ongoing investment strategy, Praedium continues to actively enhance the properties within its existing portfolio, while also identifying new opportunities for acquisition through The Praedium Fund VII LP, a $900 million real estate private equity fund with purchasing power of $3 billion.
This acquisition marks Praedium’s fourth with Greystar, including their most recent Broadstone at the Ranch, a 256-unit apartment property in Westminster, Colo., that the partnership purchased for nearly $22 million.
“Greystar manages several properties in Northern San Diego and looks to capitalize on this market knowledge with the acquisition of Sunset View,” say Kevin Kaberna, managing director and head of Investments for Greystar in the Central and Western Region. “Furthermore, we look forward to enhancing the experience of the residences by improving the interiors, exteriors and clubhouse. “
CBRE provides $23.7M refinancing to Arizona complex
Tucson, Ariz.—CB Richard Ellis Group has provided $23,686,900 in non-recourse financing for Finisterra Apartment Homes through its direct HUD FHA lender, CBRE HMF Inc. The 300-unit luxury apartment complex is located near restaurant row in Tucson, Ariz. The loan was financed through HUD’s Section 223(a)(7) program, resetting the amortization term back to the original 40 years and reducing the interest rate from the original HUD construction loan. Nevins Adams Lewbell Schell (NALS) owns the property.
“We are pleased to work with NALS to refinance this fine property,” says Jayne Hulbert, president of CBRE HMF Inc. “Borrowers recognize this as a strategic time to lock in favorable rates for 35 to 40 year terms without balloon payment deadlines and are using the opportunity to add refinancing flexibility to their portfolios.”
Tracy Kennedy, vice chairman in CBRE’s Debt & Equity Finance office in Austin, Texas, originated the refinance. Kennedy partnered with John Taylor, first vice president in CBRE HMF in CBRE’s Seattle office.