TODAY’S DEALS: WNC Closes $48.5M California LIHTC Fund
WNC closes a 714-unit LIHTC fund in California; NAI Capital brokers a 16-unit sale in West Los Angeles; and Grandbridge Real Estate provides $21.15 million financing for an acquisition.
Irvine, Calif.—WNC has closed a $48.5 million institutional LIHTC fund known as WNC Institutional Tax Credit Fund X California Series 12 LP. The vehicle includes 11 investors, and will acquire nine properties located in four counties in California.
The portfolio is comprised of seven multifamily and two senior housing properties, and includes 714 units of affordable housing in Los Angeles, San Diego, San Bernardino and Kern counties. The fund is the company’s second California fund to close in the past 12 months, marking a total equity raise of $94.5 million in the last year.
“While other syndicators have come and gone in the California LIHTC market, we are very pleased to complete yet another successful offering with our development and investment partners,” says WNC President and CEO Will Cooper, Jr. “California has one of the largest gaps in income equality, as well as some of the nation’s most expensive housing. With the California Series 12 fund, WNC seeks to protect existing affordable housing projects through renovation and expand the stock of units available to the state’s working families and low-income seniors.”
NAI Capital brokers 16-unit West Los Angeles sale
Mar Vista, Calif.—NAI Capital’s Bluechip Investment Group has represented Revere Investments in the sale of a 16-unit apartment building located at 3974 Moore Street in Mar Vista, Calif. The buyer was the Morrow Family Trust. NAI’s Kevin Kawaoka and Mario Gandara worked to close the $5.8 million sale.
According to CoStar, the $360,000/unit sale set the highest price per unit in Mar Vista for a non-rent controlled apartment since December 2006.
“Our team successfully achieved 98% of the listing price and in the last three apartment deals have set new sales records in the areas of Santa Monica, Palms, and now Mar Vista,” says Kawaoka. “After implementing our unique marketing strategy we obtained over 15 offers in a short two-week period—many of which were from foreign investment groups. We leveraged our client’s position and were able to negotiate favorable terms while securing a buyer who was in a 1031 exchange. This deal traded at a 4.3 percent cap rate illustrating the on-going demand for well positioned apartment buildings in core markets.”
Grandbridge provides $21.15M acquisition loan
Charlotte, N.C.—Grandbridge Real Estate Capital recently closed a $21.15 million adjustable rate acquisition loan for the purchase of Lake Heather Reserve at Inverness, a 252-unit Class A garden-style apartment community in Birmingham, Ala. Funding for the loan was provided through Fannie Mae’s Delegated Underwriting and Servicing (DUS) Structured ARM (SARM) loan product.
The financing was originated by Charlotte, N.C.-based Senior Vice President Mike Ortlip. Josh Davis, CCIM, and C.J. Webb, CFA, of Grandbridge’s Charlotte office assisted with the transaction. Grandbridge’s Charlotte office has closed more than 30 multifamily debt transactions ranging from acquisition loans to refinances and mezzanine construction debt since January 2013.
