TODAY’S DEALS: PCCP Provides Ritchie Group with $56.5M for Stalled Utah Condo
The Ritchie Group lands $56.5 million to build out a stalled condo; Colliers completes a $6.3 million sale in Arizona; and Greystone provides a $11.7 million bridge loan for an affordable community in California.
Orem, Utah—PCCP LLC has provided The Ritchie Group with a $56.5 million senior loan for the acquisition, development and stabilization of a stalled condo project in Orem, Utah, known as Midtown360. The asset is located on 10.3 acres about 40 miles south of Salt Lake City. Originally known as Midtown Village, the development stalled in 2008 after partial completion with 40 units and some retail space.
“Although Midtown360 suffered during the economic downturn, it remains a Class A asset that has now been acquired by an experienced developer at well below replacement cost within a strong market,” says Jim Galovan, managing director with PCCP.
Loan proceeds cover the entire acquisition cost, and will be used to help complete construction and stabilize Phase I of the development, which includes 286 units and roughly 50,000 square feet of retail space in two mid-rise towers with two levels of underground parking. Construction is anticipated to take 18 months. Amenities in Phase I include a study lounge, business center, rooftop deck, a clubhouse, fitness center, pool and basketball court.
Phase II will involved the development of the third tower, and an addition 308 residential units that should be completed in about 24 months.
Colliers completes $6.3M condo sale in Arizona
Glendale, Ariz.—Colliers International in Greater Phoenix has closed the sale of Cedar Court, a 116-unit Class B community in Glendale, Ariz. The sales price was $6.3 million, or $53.879 per unit. Toronto-based Emma Capital Properties Inc. was the buyer.
The asset was built in 1988, and features seven two-and three-story buildings on 4.1 acres. The condos are within two miles of Arizona State University west and Glendale Community College. Other nearby employment centers include Aurora Behavioral Health System and Banner Thunderbird Medical Center.
Greystone provides $11.7M bridge loan for 132-unit California apartment community
Riverside, Calif.—Greystone has provided an $11.7 million bridge loan for the acquisition and renovation of a 132-unit affordable multifamily property in Riverside, Calif. The transaction was originated by Dale Holzer, a relationship manager based in Greystone’s Newport Beach, California office. Greg Richardson of Johnson Capital acted as the correspondent who introduced the deal to Greystone.
The non-recourse interest-only bridge loan for the property carries a two-year term with two, six-month extensions for the borrower, Beverly Hills, California-based Crystal Asset Management. Crystal Asset Management plans to improve the property’s exterior as well as allot capital for future interior unit upgrades. The property includes several affordability components including Section 8 residents.
“Greystone’s bridge loan met all of our requirements and provided the perfect lead-up by closing quickly and financing property improvements,” says Sol Rabin, managing partner of Crystal Asset Management.