New York—The Bassuk Organization Inc. has originated a $73.5 million financing from TIAA-CREF for Chelsea Tower, a 33-story, 228-unit luxury apartment community in Manhattan at 100 West 26th Street.
Terms include 20-year permanent financing, with 35-year amortization. The borrower is S&P/DM 26 Development LLC, an entity comprised of members from the Steinberg & Pokoik families and The DeMatteis Organizations. The Bassuk Organization had previously placed the construction loan and the original permanent financing for the borrower in 2001 and 2004, respectively.
“In arranging the financing, we were seeking long-term financing to take advantage of the current interest rate environment,” says Richard Bassuk, president of The Bassuk Organization and CEO of The Greystone Bassuk Group. “We explored both 35-year FHA financing, as well as multiple long-term conventional financing options with major insurance companies.”
Lowe Enterprises grabs Washington asset
Everett, Wash.—Lower Enterprises Investors has picked up Covington Farms, a 352-unit community located in Everett, Wash., about 2 miles from Boeing’s Paine Field. The Los Angeles-based investor grabbed the 95 percent occupied property on behalf of an investment client. ARA brokered the sale.
“This acquisition is LEI’s first multifamily value-add investment in Washington State,” says ARA Portland-based principal Gail Neuburg. “The timing could not have been better. Boeing’s January announcement of a new contract keeping economic activity worth billions in the state and retaining thousands of jobs, only solidified the buyer’s faith in the bright future of this sub-market and the future success of their investment.”
Paine Field is a submarket that is home to Boeing, Aviation Technologies and dozens of other industry-related support companies, as well as Naval Station Everett. Built in 1986, Covington Farms has a strong amenity package that LEI intends to further improve the property with interior upgrades and community improvements.
HFF completes 3-year, interest-only, $3.95M loan on behalf of acquisition
San Diego–HFF announced that it has closed the $5.65 million sale of, and secured $3.95 million in acquisition financing for, Kenora Terrace, a 46-unit, garden-style multi-housing community in Spring Valley, Calif.
HFF marketed the property on behalf of Pacifica Companies. Doug Wetton Properties purchased the property for $5.65 million. HFF also secured a three-year, interest-only, acquisition loan on behalf of the buyer through a balance-sheet lender.
Kenora Terrace is located at 3541 Kenora Drive with nearby access to State Routes 94 and 125 and Interstate 8, which provide direct access to major employment centers in downtown San Diego and Mission Valley. Situated on 2.5 acres, the property totals 40,834 rentable square feet and includes 40 two-bedroom and six three-bedroom floor plans. Built in 1979, 13 of the property’s units were partially renovated prior to the sale. Community amenities include a playground, barbecue area and on-site parking.
The HFF investment sales team representing Pacifica Companies was led by director Hunter Combs. HFF’s debt placement team was led by senior managing director Aldon Cole.
“Kenora Terrace presented a great opportunity for investors with its desirable location within Spring Valley, family-oriented unit mix consisting of large two- and three-bedroom units, and high occupancy (fully leased at closing) in a historically well-leased submarket. Per MarketPointe, the East County San Diego submarket has a 3.5 percent vacancy rate compared to the 4.6 percent vacancy rate for the San Diego Metro, as of September 2013. Looking forward, Kenora Terrace’s submarket is forecast to have an average vacancy rate of 1.4 percent during the next five years according to Reis, lower than San Diego Metro (2.4 percent), the West (3.8 percent) and the nation (4.4 percent),” commented Combs.
Pacifica Companies is a San Diego-based diversified real estate group with $3 billion in assets. Based in Newport Beach, Calif., Doug Wetton Properties Inc. currently owns and manages more than 20 multifamily projects in Southern California.