TODAY’S DEALS: Portland Micro Unit Asset Lands Mezz Loan
Pembrook Capital Management closes a $6.3 million mezzanine loan; HFF secures $41 million for apartments adjacent to Disney World; and The RADCO Companies acquires an apartment community for $31.2 million.
Portland, Ore.—Pembrook Capital Management has closed a $6.25 million mezzanine loan to fund the development of a 123-unit micro-apartment project in downtown Portland, Ore. Kehoe North West Properties is developing the project, which is known as Tess O’Brien. The asset consists of two six-story buildings with an amenity package including a private courtyard with fire pit and barbecue, indoor bike parking, an exercise room, dog wash station and community room with chef’s kitchen.
Tess O’Brien project is located near the Portland Streetcar loop and a short distance from the Pearl District. Nearby dining and shopping destinations abound, and Portland’s major employment centers are easily accessible. All building approvals are in place for the development, with construction anticipated to commence in May 2015 and finish in August 2016.
HFF secures $41M for apartments adjacent to Disney World
Winter Garden, Fla.—HFF has secured $41 million in financing for Windermere Cay, a Class A garden-style asset that will total 380 units adjacent to Disney World in Winter Garden, Fla. Working on behalf of the borrower, Six Pines Realty, HFF secured the 10-year, fixed-rate loan through New York Life Real Estate Investors.
Windermere Cay is being developed in two phases, with phase one’s 272 units completed in 2014 and phase two’s 108 units anticipated in Fall 2015. The fully completed property will feature two swimming pools with cabanas, a dog park, detached garages, Internet café, electric car charging station, theater room, outdoor fireplace and verandas, summer kitchen, and a clubhouse with a party room, business center and state-of-the art fitness center.
The RADCO Companies acquires apartments for $31.2M
Oklahoma City–The RADCO Companies has acquired Warwick West, a best-in-class apartment community located in the Northwest submarket of Oklahoma City. The 424-unit property was purchased for about $31.2 million. Warwick West is RADCO’s sixth property in the state of Oklahoma and its fourth in Oklahoma City.
RADCO financed the acquisition with private capital, in addition to a bridge loan from NXT Capital. Since August 2011, the company has raised more than $226 million of private equity to fund its purchases.
Warwick West was originally constructed in 1978 on 17.4 acres in the city’s Northwest submarket. It offers its residents 16 unique floor plans, including 195 one-bedroom apartments, 199 two-bedroom units, 29 three bedrooms and one five-bedroom layout. In addition, 16 of its units are coveted townhomes. Community amenities include three swimming pools, a fitness facility, rentable event space, tennis courts and a picnic area with barbeque grills.
The property is situated along the Northwest Expressway, which connects Oklahoma City residents directly to downtown, and is immediately next door to the No. 1 ranked hospital in Oklahoma, the 511-bed Integris Baptist Medical Center, and Deaconess Hospital.
RADCO will employ a strong value-added strategy and invest $6.6 million to improve the property’s exterior, expand its amenity package, renovate units, and rebrand it under RADCO’s “Ashford” trademark, yet still embrace Warwick’s rich history. As such, the property will be renamed The Warwick – An Ashford Community.