TODAY’S DEALS: Sacramento Asset Trades for $14.3M

Marcus & Millichap completes a 97-unit sale in Carmichael, Calif.; Centerline closes a $4 million Fannie Mae loan to refinance a 146-unit asset in California; and Red Capital Partners uses its own balance sheet to provide a $25 million bridge loan.

Parkwood_2_smCarmichael, Calif.—Marcus & Millichap has arranged the sale of Parkwood, a 97-unit asset located in Carmichael, Calif., a city within the greater Sacramento metropolitan area. The sales price was $14.3 million, or $72,335 per unit. Eric Price, a senior associate in Marcus & Millichap’s Sacramento office, represented the buyer and seller, two family trusts.

“The sale of Parkwood demonstrates the demand from private investors for core assets in Sacramento’s premier rental markets,” says Price. “The new owner is in an excellent position to benefit from the area’s resurgent housing market and continued movement in rents.”

Constructed in two phases on 7.2 acres in 1973 and 1985, Parkwood’s unit mix features one- and two-bedroom floor plans. Amenities include access gates, two swimming pools, a fitness and recreation center, four laundry rooms and reserved parking for every apartment. Recent renovations include parking lot resurfacing, siding repair and new exterior paint.

Centerline completes a $4M refi in California

Stockton, Calif.—Centerline Capital Group has closed a $4 million Fannie Mae loan to refinance an apartment property located in Stockton, Calif. The city is located roughly 50 miles east of San Francisco. The property is a 146-unit garden-style apartment complex comprised of 17, two-story buildings. The borrower is a long-term Centerline client that has owned and managed real estate assets for more than 55 years.

”The borrower is an experienced owner and manager of multifamily properties,” says Matthew Olrich, vice president, at Centerline. “The property was built in 1974 and the management team has been very proactive in terms of repairs and capital expenditure projects since purchase. The property is also located in a strong apartment submarket, making this a solid deal for Centerline.”

Red Capital uses own balance sheet to provide $25M bridge loan

Somerby St. VincentHoover, Ala.—Red Capital Partners, the proprietary debt and equity  banking arm of Red Capital Group, has closed a $25 million balance sheet loan for a 199-unit, Class A, seniors housing community in Hoover, Ala., an affluent suburb of Birmingham.  The financing, consisting of an initial funding of $22 million with a $3 million earn-out available to the borrower, is anticipated to be refinanced by a Fannie Mae permanent loan.

The Somerby St. Vincent’s One Nineteen was developed by Dominion Partners and is operated by its affiliated management company, Somerby Senior Living Services. The community opened in 2009 and serves the independent living, assisting living and memory care segments of the market. The community is strategically located across from the separately owned and managed St. Vincent’s One Nineteen Health and Wellness Center, which offers an array of diagnostic and healthcare services.

“We were very pleased with Red’s competent delivery and execution on this transaction,” states Brian Parker, CFO of Dominion Partners.  “The loan structure allows for a capital stack that meets our long term objectives, and we can continue to focus on providing the highest quality of housing and services to our residents.”

“The Somerby transaction exemplifies one of many ways that we continue to use our balance sheet to provide a full spectrum of financing options to fit our client needs,” adds Mike Moran, chairman and CEO, Red Capital Group.  “Over the past 18 months, we have used our balance sheet capabilities to provide construction financing, as well as bridge to Agency and FHA permanent business.  Looking forward, given the dynamics in the markets, the ability to creatively utilize our significant and flexible balance sheet to better fulfill our clients’ needs will be an advantage in the marketplace – for both our clients and RED.”



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