Saturday, March 31, 2012

Colliers International Completes 102,878-SF Industrial Investment Sale in Ontario, CA

ONTARIO, CA -- Clyde Stauff, senior executive vice president, and Ian DeVries, executive vice president of Colliers International represented the buyer Industrial Income Trust, Inc., a real estate investment trust based in Denver, and the seller The Caldwell Company in the $8,333,000 sale of a 102,878-square-foot distribution facility located at 5505 Concours Street (top left photo) in Ontario, Calif.

The class-A industrial facility included 65,572 square feet of cooler space.

“This transaction is indicative of the strong demand for leased class “A” industrial facilities in the West Inland Empire market,” Stauff said.


Darcie Giacchetto, Spaulding Thompson & Associates, 949.278.6224

George Smith Partners Arranges $9.9 Million in Financing for Clients

Los Angeles, CA– Commercial real estate investment banking firm George Smith Partners has closed four transactions on behalf of its clients, totaling $9.9 million.

“George Smith Partners has seen a steady increase in the volume of commercial real estate loan activity over the past quarter,” said Gary Mozer (top right photo), Principal and Managing Director of George Smith Partners.

“The market is steadily moving back into a positive place and we are seeing many of our clients both new and old, returning to the market to invest and reposition properties. These clients look to GSP’s experience and expertise to help them achieve optimal financing on their various investments across the nation.”
Transaction #1:

George Smith Partners’ Principal and Managing Director Gary Mozer and Vice President Michelle Lee (top left photo) have secured $5 million in permanent financing for a 12,500 square-foot retail center in Santa Monica, Calif.  The retail center, which is located on a high traffic corner, was fully leased and 80 percent occupied at the close of this financing.

“Facing a maturing loan, the building owner came to GSP in need of a quick, conservative loan to pay off its existing debt on the 45-year-old building,” explained Mozer. “By highlighting the property’s prime location, as well as our client’s strong rental history, we were able to find a lender willing to finance the loan, while simultaneously securing a $3 million cash-out refinancing for the owner.”

GSP achieved a low loan-to-value of 50 percent, allowing the lender to forego traditional requirements for reserves or impounds on the loan. The nonrecourse loan closed with an interest rate of 5.5 percent for 10 years, with an amortization of 27 years.

Transaction #2:

George Smith Partners’ Vice President Shahin Yazdi (middle right photo) secured $2.2 million for the cash-out refinance of a seven-unit retail building in Southern California.

“This property is held in a Trust with multiple owners, of which only half were willing to sign the repayment guarantee. Most lenders require 51 percent participation or better in order to approve financing,” explained Yazdi. “By displaying the financial strength and asset control of the owners who were willing to sign the guarantee, the lender was able to make an exception on its recourse policy and finance this loan.”

Yazdi secured this recourse loan at a rate of 5.375 percent for five years, with an amortization of 25 years and a loan-to-value of 70 percent.

Transaction #3:

 George Smith Partners’ Vice President Malcolm Davies (middle left photo) secured $1.5 million in financing for the acquisition of a coastal property consisting of a restaurant and apartments in the Pacific Beach neighborhood of San Diego, Calif. The loan provided the client with capital to redevelop and reposition the restaurant into a new concept.

“The capital providers in the market were concerned that the restaurant’s planned rebranding would negatively impact the cash flow of the established restaurant,” explained Davies. “We were successful in achieving financing for the client by using the property’s stabilized apartment units, as well as the equity of the restaurant’s liquor license, as the additional collateral needed to secure the loan.”

Davies secured this recourse loan at a rate of 6.7 percent for 10 years, with an amortization of 30 years and a loan-to-cost of 90 percent.

Transaction #4:

George Smith Partners’ Vice President Shahin Yazdi secured $1.2 million in financing for the cash-out refinance of a tertiary multifamily building in San Marcos, Texas. The 25-unit apartment building was constructed in 1991. The owner is an out-of-state investor who required cash-out financing for the highly leveraged property necessitating a loan-to-value of at least 75 percent.  

 “In order to find a lender willing to finance our out-of-state investor, we highlighted the experience of the property’s management company and its portfolio of properties, which demonstrated to the lender that the multifamily community had stabilized operations and substantial cash flow,” noted Yazdi.

“Through our extensive capital relationships, we were able to identify an institutional lender that was active in this tertiary market and willing to provide financing to our client. The lender was also able to fund our client beyond its pre-determined LTV constraints because of the extensive list of capital improvements our client had made to the property.”

The 10-year fixed rate loan closed with a rate of 5.65 percent, with an amortization of 30 years and a loan-to-value of 75 percent.


Corynne Randel/ Judith Brower
Brower, Miller & Cole
(949) 955-7940

Stan Johnson Co. Completes Sale of On-Campus Medical Office Building in Denton, TX for $5.3 Million

DENTON, TX – Stan Johnson Company, one of the nation’s premier net lease brokerage firms, has completed the sale of a 13,100-square-foot medical office property located at 2805 South Mayhill Road in Denton, Texas for $5.3 Million. 

Toby Scrivner,  Jeff Matulis, and Karen Vinsko, the healthcare focused investment team of Stan Johnson Company, represented the buyer, an Institutional REIT based in New York. 

The property (top left photo) featured a new, 15-year, triple net lease with market rental increases. The newly-constructed property is situated just off Interstate 35, adjacent to the Denton Regional Hospital, and on the campus of North Texas Hospital. Other nearby tenants include:  Texas Oncology, Care Now Urgent Care, and several medical office buildings.


David Ebeling
Ebeling Communications
(949) 278-7851

HFF closes $15 million sale of and arranges financing for New Jersey multi-housing portfolio

 FLORHAM PARK, NJ – HFF announced it has closed the sale of and arranged financing for a three-property, 126-unit multi-housing portfolio in Nutley, New Jersey.

HFF marketed the offering on behalf of the seller, AIG Global Investment Group.  Balt Investments LLC purchased the assets for $15 million free and clear of debt.

The portfolio is 94 percent leased overall.  The properties include Greylock Apartments, Lincoln Apartments and Ambassador Apartments.

The properties are the second pool of assets HFF has sold for AIG Global Investment Group.  In July 2011, HFF closed the $241.5 million sale of a 2,185-unit multi-housing portfolio in central New Jersey. 

The HFF team representing AIG Global Investment Group included senior managing directors Jose Cruz (top right photo) and Andrew Scandalios (top left photo), directors Jeffrey Julien (middle right photo) and Kevin O’Hearn (middle left photo) and associate Mike Oliver.

HFF senior managing director Jon Mikula (bottom right photo) represented the borrower.

 “The buyer was able to capitalize on an opportunity to purchase quality assets in Nutley with upside, where he already owned real estate so there are economics of scale,” said Cruz.  “AIG obtained solid pricing and was able to take advantage of a strong demand for that submarket.”

“The properties are well-positioned for an upgrade and will provide good long term growth,” added O’Hearn.

AIG Investments comprises a group of international companies, which provide investment advice and market asset management products and services to clients around the world. AIG Investments is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, hedge funds, private equity and real estate.

JOSE R. CRUZ                                  
HFF Senior Managing Director         
(973) 549-2000                                 

HFF Senior Managing Director         
(212) 245-2425                                   

HFF Associate Director, Marketing
 (713) 852-3500