TODAY'S DEALS: Stiles Breaks Ground on Mixed-Use Development
Stiles begins a 321-unit mixed-use development in Florida; Concordia buys two seniors housing assets; and Meridian’s Carlsbad, Calif., office arranges over $100 million in financing in its first year.
Plantation, Fla.—Stiles has begun a two-part, mixed-use development in Plantation, Fla. The developer will construct a new luxury apartment community and redevelop a neighboring commercial retail segment.
The residential component, One Plantation, will feature 321 upscale units in two 12-story structures on a nearly six-acre site. Stiles, which is building the gated community in partnership with Prudential Real Estate Investors, has already landed $40.6 million in construction financing through PNC Bank.
One Plantation is scheduled to open for occupancy in June 2013. The neighboring commercial component, known as University Shoppes, should see completion in early 2014.
Concordia buys two senior housing communities in Pennsylvania
Sewickley, Pa.—Concordia Lutheran Ministries has purchased two seniors housing communities located in the Pittsburg suburbs of Sewickley and Wexford, Pa. The two assets have a combined 84 units, and were picked up for $7.9 million in cash. Marcus & Millichap advised the seller, a large private equity fund with offices in New York and Dallas.
“This transaction was a win-win for everyone involved,” says Jacob Gehl, a first vice president at Marcus & Millichap. “Our sellers were able to realize a very attractive return for their fund investors, and the buyer saw the long term value in stabilizing and expanding the operations.”
Meridian’s Carlsbad, Calif. office arranges over $100M in financing in first year
Carlsbad, Calif.—Meridian Capital Group LLC opened its office in Carlsbad, California in May 2011. Less than one year later, its Carlsbad office has already originated more than $100 million in new mortgage financing on behalf of a broad array of clients secured by properties located throughout the U.S.
Meridian’s Carlsbad office is overseen by Managing Director Seth K. Grossman, who returned to Meridian in May 2011 to form the new office and advance the firm’s geographic expansion in the west, particularly California. Grossman was previously employed at Meridian’s New York office, where he helped negotiate more than $3 billion in conduit and bank financing transactions.
The properties financed by Meridian’s Carlsbad office comprise a broad array of asset types, transaction structures and geographies, including a $21.2 million, 10-year, non-recourse Fannie Mae DUS loan provided by Beech Street Capital for the 94 percent occupied, 240-unit, class-A Lafayette Gardens multifamily property in Lafayette, La.; and a $9.3 million, 10-year CMBS loan for a 19-property multifamily portfolio located in Chicago.
In addition to these transactions, the office has also completed numerous transactions in California, including: a $3.2 million, seven-year mortgage provided by a local bank for a 36-unit multifamily property located in Los Angeles; a $1.4 million, five-year mortgage provided by a local bank for a 20-unit multifamily property located in Los Angeles: and a $1 million, five-year mortgage provided by a local bank for a six-unit multifamily property located in Beverly Hills.
“Meridian has successfully broadened the scope of its loan origination platform by winning new clients with portfolios located in California, as well as by engaging in dialogue with locally-based borrowers who have property holdings nationally,” says Grossman. “The diversity of the transactions completed by the Carlsbad office is a testament to the firm’s ability to leverage its strong reputation and deep industry knowledge to seamlessly execute nationally on financing transactions for all major property types through all the major lending channels available,” he adds.
Meridian, which has a longstanding office in Los Angeles, is actively working to augment both of its California offices by adding origination and placement talent. “While Meridian is a recognized national leader, in both dollar amount and transactional volume, we view the Western U.S. market as underserved. We believe it presents the firm a terrific opportunity to replicate in this geography the success that it has had elsewhere,” adds Grossman.