TODAY’S DEALS: Manhattan Luxury Asset Trades for $280M

Equity Residential acquires The Beatrice in Manhattan for $280 million; Pierce Education refinances a 792-bed asset in Oklahoma; and Berkeley Point Capital provides a Freddie Mac CME five-year, interest-only, adjustable-rate mortgage.

The Beatrice

New York—JD Carlisle and DLJ Real Estate Capital Partners, co-developers of The Beatrice, have sold the property for a cool $280 million to Equity Residential. The 301-unit high-end rental comprises the top 29 floors of a 54-story mixed-use tower located at 105 West 29th Street in Manhattan’s Chelsea neighborhood. The rest of the building, including the 292-room Eventi Hotel and a 529-space garage, was not part of the sale.

“The sale of the Beatrice is testament to our development team’s consistent ability to deliver premier properties of the highest caliber,” says Jules Demchick, chairman of JD Carlisle. “Equity Residential recognizes the tremendous long-term value this property offers. New York City Class A multifamily is a highly sought after asset class delivering solid returns to institutional investors.”

The Beatrice rented out within six months of opening and has been running at near full occupancy since its rental program began in August of 2010. Amenities at the property include a landscaped plaza, 3,700-square-foot resident lounge with pool table, 54th floor terrace, roof-top deck, fitness center and laundry facilities.

Pierce Education refinances 792-bed asset

Crimson Park

San Diego, Calif.—Pierce Education Properties has landed a $23 million refinancing for Crimson Park, a 268-unit, 792-bed student housing community serving the University of Oklahoma in Norman, Okla. The refinancing was provided by Holliday Fenoglio Fowler, which placed the 10-year, 3.8 percent securitized loans with Freddie Mac’s CME Program.

Completed in 2005, community amenities at Crimson Park include a 24-hour fitness center, basketball court, sand volleyball court, putting green, resort-style pool, hot tub, fire pit, tanning bed and media room.

Pierce currently owns and manages a $275 million national portfolio of approximately 5,600 beds.

Berkeley Point Capital provides Freddie Mac CME 5-year I/O ARM

San Diego–Berkeley Point Capital LLC recently provided a first mortgage for the refinance of Gables Summerset, a 752-unit multifamily community located in San Diego. The loan was structured under Freddie Mac’s Capital Markets Execution program (CME) as a five-year, adjustable-rate mortgage with a maximum interest rate of 5.75 percent. The loan included full-term interest-only and flexible prepayment terms. The financing provided for the refinance of a maturing loan, while delivering cash-out proceeds to the sponsors.

The property is owned via a joint venture between entities affiliated with Gables Residential and institutional investors advised by J.P. Morgan Investment Management. Eastdil Secured brokered the transaction. Berkeley Point Capital Directors’ Adam Randall of its Bethesda, Md. office, and Kevin Mignogna and Charlie Haggard of its Irvine, Calif. office led the Berkeley Point team.

“Berkeley Point worked closely with Freddie Mac, the sponsors, investment advisor and mortgage broker to structure this transaction,” said Jeff Day, CEO of Berkeley Point Capital LLC. “Through the efforts of all involved, we were able to deliver the desired terms and proceeds while providing flexibility in both the prepayment and transfer provisions.”

Built in 1987, the community has been well maintained with exterior improvements completed between 2007 and 2011. Property amenities include a club house, fitness center, activity room, five pools, outdoor recreation areas and tot lots. Gables Summerset also participates in many green initiatives through energy efficiency and water conservation.


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