TODAY’S DEALS: Winthrop Acquires Four Class A Assets for $246M

Winthrop Realty Trust buys 761 units; TruAmerica buys a California community for $81 million; and Grandbridge arranges $26.5 million in financing for two California properties.

Winthrop PortBoston—The Boston-based REIT Wintrop Realty Trust has added four newly built Class A properties to its national apartment portfolio in a quarter billion dollar transaction. The communities, which are all built to condo specifications, include:

  • 44 Monroe, a 34-story, 184-unit, 2008-built community in Phoenix that includes 1,377 square feet of ground floor retail.
  • Highgrove, an 18-story, 92-unit apartment in Stamford, Conn., that was built in 2011.
  • Mosaic II, a 29-story, 396-unit community located in Houston that was built in 2009.
  • San Pedro Lofts, a 89-unit asset in San Pedro, Calif., that was built in 2008 and features 3,454 square feet of ground level retail space.

Winthrop obtained a $150 loan in connection with the acquisition. The financing features an initial term of three years, provides for two one-year extensions, bears interest at a rate of 2.69 percent during the three year initial term and LIBOR plus 200 basis points during the renewal terms, and requires payments of interest only.

Winthrop expects to enter into a venture with New Valley LLC, which will indirectly own the properties. When consummated, New Valley will acquire an approximately 16 percent interest and Winthrop will retain an approximately 84 percent managing member’s interest in the venture.

TruAmerica buys a California townhome community for $81M

Oceanside, Calif.—TruAmerica Multifamily, a joint venture with The Guardian Life Insurance Company of America, has acquired Piazzo D’Oro, a 221-unit multifamily townhome community in Oceanside, Calif., for $81 million. The asset also includes 17,000 square feet of leasable office space. The deal is the first acquisition for TruAmerica since it launched in July.

Piazzo D'Oro

“Piazza D’Oro is a Class A project that was built as condominiums during the economic downturn a few years ago. It is the highest quality asset in the submarket and benefits from terrific visibility as it sits just North of the 78 freeway in North San Diego County,” says Robert Hart, president, founder and CEO of TruAmerica. “The purchase of Piazza D’Oro provides a strong going-in investment yield in a market that still has a lot of growth ahead of it. The potential condominium exit is also attractive.”

Piazzo D’Oro totals 42 buildings on 14.4 acres. Amenities include a clubhouse, fitness center, outdoor recreation and dining spaces. It is located in close proximity to two retail centers. TruAmerica has an improvement plan in play that will upgrade the pool furnishings, update the leasing office and install modern signage.

TruAmerica secured a fixed-rate loan at 3.85 percent for 7 years through Cornerstone Real Estate Advisory Inc.

Grandbridge arranges $26.5M in financing for California properties

Los Angeles—Los Angeles-based Grandbridge Senior Vice President Shelley Magoffin and Vice President Perry Colligan recently originated and closed $26.5 million in first mortgage loans secured by two multifamily properties.

The first transaction was a $12.25 million nonrecourse loan secured by a 128-unit multifamily property located in Simi Valley, Calif. The second transaction was a $14.25 million nonrecourse loan secured by a 205-unit multifamily property located in Canoga Park, Calif. Both communities are high-quality, well-located properties.

Funding for both loans was provided by Lincoln National Life Insurance Company on behalf of a West Los Angeles investor and featured 15-year terms, 30-year amortizations with an interest-only feature. The interest rates were locked at application in the low 4 percent range.

“To secure the business, Grandbridge had to compete with another mortgage banking/broker firm that had a longstanding relationship with the borrower. To win the business Grandbridge had to provide clear and significant advantages over the competition. After Grandbridge secured the loan committed some issues identified in the third-party reports required attention. Grandbridge was able to understand the problems, identify solutions and eliminate unnecessary complications in the closing process,” Magoffin says.

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