TODAY’S DEALS: Raintree Partners Acquires 270-Unit Property in Burbank for $43M
Raintree Partners aquires a 270-unit Burbank property in Burbank, Calif.; Red Capital Markets provides $19M in tax credit equity; and Oak Grove Capital recently originated $20.7 million for two seniors housing communities.
Burbank, Calif.—Laguna Niguel, Calif.-based Raintree Partners has completed the acquisition of 1200 Riverside Apartments. The 270-unit property located in Burbank, Calif., was purchased for $43.15 million, or $159,814 per unit.
No broker was involved in the sale and the purchase was financed with a new $30 million Fannie Mae loan originated through Greg Reed and Kristen Croxton of Deutsche Bank Berkshire Mortgage.
“1200 Riverside recently went through an $8.4 million renovation of the interior and exterior of the property,” says Jeff Allen, CEO of Raintree Partners. “Although the project was originally constructed in the mid-1960s, the renovation, which included an updated façade, replacement of all major building systems and substantial upgrades to the common areas, makes the property look and feel new.”
The community, which is currently 98.5 percent occupied, is comprised of six buildings on 4.17 acres. Amenities include a roof deck lounge, clubhouse, swimming pool and spa, fitness center, covered parking, and four laundry centers. There are also 70 horse stables and easy access to the adjacent Los Angeles Equestrian Center.
Red provides $19M in tax credit equity for affordable seniors housing
Atlanta–Red Capital Markets LLC recently purchased LIHTC equity for two affordable senior housing communities in Atlanta for Prestwick Development Company. Both of the properties utilized a combination of federal and state low income housing tax credits, FHA 221(d)(4) financing and a variety of soft funding sources.
Manor at Scott’s Crossing, located in northwest Atlanta, will consist of 100 one-bedroom units geared to elderly tenants (ages 62+) and built on a five acre redevelopment site. The property is situated in a mixed-use neighborhood consisting of single-family homes, apartment buildings and industrial uses. The Manor at Scott’s Crossing community will include a to-be-built three- and four-story “split” building with elevators, as well as an existing, two-story building that will be rehabilitated. Rents will be affordable to residents earning 50-60 percent of Area Median Income.
Gateway East Point, located in the city of East Point in southwest Atlanta, will also consist of 100 one-bedroom units geared to elderly tenants (aged 62+) and will be affordable to residents with incomes at no more than 50-60 percent of Area Media Income. The Gateway East Point community is being newly constructed on a 1.7 acre redevelopment site where the formerly vacant King office building had been located. Upon completion of the new project, the Gateway East Point community will provide a quality living environment at affordable rents to Atlanta, Georgia’s elderly population and will help further advance the area’s revitalization mission.
Ken Blankenship, managing partner of Prestwick Development Team states, “Prestwick had a short closing time frame and Red Capital was able to get us to the closing table on time and they coordinated well with our lenders.”
Peter F. TenEyck, director of Red Capital Markets LLC says, “Red Capital appreciates the opportunity to work with a seasoned group like Ken Blankenship and the Prestwick Development Team. Prestwick builds a beautiful product; these properties will be great additions to their communities, providing an excellent living experience for their elderly residents.”
Oak Grove Capital originates $20.7M for two seniors housing communities
St. Paul, Minn.—Oak Grove Capital recently originated $20.7 million in fixed-rate, permanent financing through its Fannie Mae DUS program for two senior housing communities, both operated by The Arbor Company and owned by a closed-end fund managed by Prudential Real Estate Investors.
The loans will refinance maturing mortgage debt on the Arbor Terrace of Decatur, a 66-unit assisted living facility in Decatur, Ga., and Arbor Terrace of Asheville, a 63-unit assisted living facility in Asheville, N.C. The loans have a seven-year term, 30-year amortization and 5-year yield maintenance.
“These loans were structured to fit our financing needs,” says Noah Levy, portfolio manager at Prudential Real Estate Investors. “We appreciate the efforts of Oak Grove to meet our timeframe and we look forward to continuing our relationship with them throughout the term of these loans.”
