TODAY’S DEALS: Tricap, National Equity Buy 354 Luxury Units in Columbus
Tricap Residential Group and National Equity buy two Ohio apartment assets; Charles Dunn Co. completes a 22-unit sale in Santa Monica; and NorthMarq arranges $143.4 million in refinancings for eight apartment loans.
Columbus, Ohio—Tricap Residential Group and National Equity have acquired two boutique luxury apartment communities in Columbus, Ohio, on behalf of a private investment group. Bryant Park and Mercer Square total 354 units in the Sawmill area in the Northwest section of Columbus.
“The Columbus market, particularly the Dublin submarket, is one where we see significant potential for rent growth with relatively low downside risk,” says Bryan Pritchard, founder and principal of Tricap. “We’re excited to expand our footprint in Ohio and eager to build on this momentum as we strengthen our presence in the area.”
Amenities at the properties, which together are known as The Bryant Mercer Collection, include a private outdoor pool lounge, a grilling area, fire-pit, business center, fitness center and resident clubhouse.
Tricap acted as due diligence consultant on the deal and will serve as property manager. The acquisition marks their second foray into the Columbus market after closing on Sawmill Park, a 120-unit apartment community, in late 2012.
Charles Dunn completes a 22-unit sale in Santa Monica
Santa Monica, Calif.—Charles Dunn Co. has completed the sale of a fully occupied 22-unit multifamily property located at 316 San Vicente Blvd. in Santa Monica, Calif. The property was sold at a cap rate of 3.1 percent, which is the lowest cap rate for a multifamily property sold in 2013 in Santa Monica, according to Costar records.
Kimberly Roberts Stepp, senior managing director with Charles Dunn Company, represented the seller, Herzog Family Trust, as well as the buyer, 316 San Vicente, LLC.
“This property garnered multiple offers over its short listing period,” says Stepp. “The location and building quality offered the buyer a strong, long-term investment as well as the opportunity for appreciation in the coming years.”
Built in 1955, the property includes subterranean parking and a pool as well as hardwood floors and dishwashers in all the units. It is also just three blocks from the ocean and is situated on prestigious San Vicente Blvd.
NorthMarq arranges $143.4M in refinancing for eight apartment loans
Los Angeles—Michael Elmore, executive vice president and managing director of NorthMarq’s Los Angeles regional office, arranged refinancing of $143.4 million for eight individual apartment loans. These conventional market multifamily properties contain a total of 1,226 units.
The two largest loans, totaling $86.82 million on Villa Del Sol, located at 811 S. Fairview in Santa Ana, and Yorba Linda Pines, located at 18700 Yorba Linda Blvd., Yorba Linda, Calif. were placed for the borrower by NorthMarq through its affiliate AmeriSphere multifamily finance LLC, a Fannie Mae DUS Lender with a 10-year fixed loan term and a 30-yearm amortization schedule. The six other loans, totaling $56 million were placed with a national bank with a 30-year term and 30-year amortization schedule.
The financings generated approximately $45 million in cash out proceeds. With these proceeds, Advanced Real Estate Services (ARES) intends to invest in new apartment acquisitions. Based in Orange County, ARES owns and manages more than 6,000 multifamily units in Southern California primarily in Orange and Los Angeles Counties. ARES is also developing residential and mixed use projects in San Juan Capistrano, Corona del Mar and Trabuco Canyon.
“AmeriSphere provided an excellent execution on two new 10-year fixed rate loans, and they were willing to provide ‘all or nothing’ pricing despite losing the other six loans,” says Elmore. “The bank provided 30-year loans with a seven-year fixed rate period. They also provided strong and flexible economic terms and exceptionally low closing costs.”