Saturday, February 1, 2020

Continental Partners Secures Over $40 Million in Financing for Four Assets in Los Angeles County, CA

                            J.M. Grimaldi

Los Angeles, CA – Continental Partners, a leading national mortgage banking firm that provides Market-Smart capital and financial services to real estate owners and developers nationwide, has successfully secured over $40 million in financing regarding four Los Angeles County assets.

They include a 52-unit multifamily development in the Koreatown neighborhood of Central Los Angeles, a mixed-use multifamily and retail property in Santa Monica, California, a 26-unit multifamily development in Valley Village, California, and an additional Koreatown multifamily development consisting of 21 units.

 Brian Asheghian

The financing was arranged by J.M. Grimaldi, Executive Vice President at Continental Partners, and Brian Asheghian, Director at Continental Partners.

“Demand for rental units throughout greater Los Angeles remains at record highs, with vacancies consistently posting well under 4% throughout the metropolitan area,” says Grimaldi, pointing to a recent report from Marcus & Millichap

“That said, the market is also experiencing an incoming wave of construction deliveries. For these clients, we were able to successfully demonstrate the values of their assets and strategies to lenders amidst this influx of new product to secure competitive financing terms.”
The financing transactions include:

Construction Loan for 52-Unit Multifamily Development in Koreatown:

Continental Partners secured a $12.62 million construction loan for a 52-unit multifamily asset in the Central Los Angeles submarket of Koreatown

The sponsor purchased the site three years ago and was seeking a construction lender who would value the land based on the current market and maximize leverage at the lowest rate, with the option of a mini-perm loan once the asset reached stabilization, notes Grimaldi.

In addition to the debt on this land, the sponsor was underway on several other development projects,” says Grimaldi. “Due to our experience and deep understanding of the sponsor’s needs, our team was able to mitigate potential lender concerns regarding this debt and contingent liabilities through effectively communicating the strategy. 

"Ultimately, we were able to secure a lender that specializes in multifamily construction debt and understood the true value of the land.” 

According to Grimaldi, Continental Partners completed a thorough review of the sponsor’s outstanding debt and liquidity position and encouraged the lender to fund 72.5% of the construction loan upfront, instead of the originally proposed 70%, in addition to structuring a 2.50% holdback once the sponsor’s liquidity position changes.

The construction to permanent 10-year fixed loan is interest only through construction with a 30-year amortization schedule thereafter. The full recourse loan is sized to 75% of total project cost and is priced at 4.10%.

Refinancing for Multifamily and Retail Property in Santa Monica

Newly constructed mixed-use asset featuring 26 multifamily units and retail space in Santa Monica, CA

Continental Partners successfully secured $11 million in refinancing for a newly constructed mixed-use asset featuring 26 multifamily units and retail space in Santa Monica, California.

The sponsor had a construction loan that was nearing maturity and was seeking to refinance, requesting a seven-year fixed, non-recourse loan with five years of interest only payments, according to Asheghian.  

“Although the asset had received the certificate of occupancy, the retail space was vacant and was not anticipated to be leased by the time the construction loan matured,” explains Asheghian.

 “After strategically exploring several options, we were able to source a lender specializing in multifamily to fulfill the sponsor’s requests.” 

The Continental Partners team convinced the lender to fund the transaction just as the multifamily space was fully leased up. The firm further negotiated escrow provisions which allowed the borrower to fund the loan at pre-stabilization through a holdback, notes Asheghian.

“As a result, we were able to complete the funding of the transaction on time while avoiding unnecessary extension fees for the borrower,” continues Asheghian.

The seven-year fixed loan has a 30-year amortization schedule after the interest only period. The non-recourse loan is sized to 55% of value and is priced at 3.8%.

Construction Loan for 26-Unit Development in Valley Village

26-unit multifamily asset in the Los Angeles submarket
of Valley Village

Continental Partners recently arranged a $9.04 million construction loan for a 26-unit multifamily asset in the Los Angeles submarket of Valley Village.

 “Our ability to identify several more attractive financing options than our competitors, as well as close this construction loan in the fourth quarter, speaks to our strong, long-term relationships,” says Grimaldi. 

“We were able to structure an all-in debt package with a fixed construction period that rolled into permanent financing, without the need to go back to market once construction is complete.”

Grimaldi notes that this was the borrower’s first development, a major concern for a majority of construction lenders. To overcome this, Continental Partners advised the borrower to source a general contractor on the lender’s approved list, as well as accommodate the lender’s liquidity needs by refinancing other properties prior to closing.

The seven-year fixed loan sized to 70% of total project cost and is priced at 3.85%.

Permanent Loan for 21-Unit Multifamily Development in Koreatown

Newly constructed 21-unit multifamily asset in the Central Los Angeles submarket of Koreatown.
Continental Partners successfully secured $7.34 million in financing for a newly constructed 21-unit multifamily asset in the Central Los Angeles submarket of Koreatown.

The permanent loan was structured as a recourse burn-off, resulting in conversion to a non-recourse loan after 12 months of operating history at a 1.20 debt coverage ratio, according to Brian Asheghian, Director at Continental Partners.

“It was extremely important for our team to get the lender comfortable with only having the managing member sign on behalf of all partners of the asset,” says Asheghian, noting that the sponsor’s parents were both 25% owners of the property.

Continental Partners funded the loan at 95% occupancy. The 5-year fixed loan is priced at 3.7% with a stepdown prepayment penalty of 3, 2, 1.


Micaela Fehrenbach / Elisabeth Manville
(949) 438-6262

Hold-Thyssen Brokers Office Sales to Facilitate Business Growth in New Port Richey and Value Add Investment in Oldsmar, FL

Carol Kinnard

CLEARWATER, FL  ---  Hold-ThyssenInc., a full-service commercial property firm, recently completed sales of office properties in New Port Richey and Oldsmar to buyers expanding and investing. 
 In New Port Richey Carol Kinnard, transaction specialist at Hold-Thyssen brokered the sale of an office building at 6611-6613 Orchid Lake Road consisting of two 800 square foot suites within an industrial setting.

 “Seller is the Sherba family who operated a drop/ship business there for many years.  The Buyers own ServPro of West Pasco, located on an adjacent property. They purchased the Orchid Road building for $60,000 to accommodate business expansion,” Kinnard said.

Theresa Margaris
 Associate Theresa Margaris brokered the sale of an 852 square foot office condo at 301 E. Lake Woodlands Parkway in Oldsmar on behalf of the seller. 

 “The Gaudet Agency owned and operated an insurance brokerage in the property for many years.  The owner retired and sold the condominium for $135,000,” Margaris said. 

“The buyer, Next Biz, LLC, purchased the condo for investment purposes and is remodeling the space for an established salon tenant.”   


 Richard J. Fisher, Vice President/Investor Services, Hold-Thyssen, Inc. 
727-238-3876 ext 303

 Robert P. Hold, Principal, Hold-Thyssen, Inc.

 Beth Payan, Larry Vershel Communications Inc.

Winstanley Enterprises Continues Growth of Logistics Platform Throughout New England

Adam Winstanley

Concord, MA – Winstanley Enterprises LLC, one of the largest regional owners and operators of commercial real estate in New England, kicked off 2020 with a 460,000 square foot Class A warehouse and distribution acquisition in South Windsor, CT.

 The two properties, located at 135 and 175 Sullivan Avenue, were purchased for $44 million.

Situated on over 30-acres, the properties were constructed in 2015 and consist of a 292,000 square foot dry goods distribution center leased to Mobis Parts of America (a wholly owned subsidiary of Hyundai MOBIS) and a 168,000 square foot cold storage distribution center leased to Performance Food Group, Inc., a publicly traded foodservice company with $18B in annual revenues.

Lauren Dawicki 
Both locations will continue to operate as is with Winstanley Enterprises as the new landlord.

“This not only adds two premier properties to our portfolio, but also expands our logistics platform which has been an active sector for us,” said Adam Winstanley, a principal of Winstanley Enterprises.

 “We feel strongly about the long-term viability of warehouse and distribution properties.

 "Additionally, this is another location within the Interstate-91 corridor which is centrally located between New York and Boston, has favorable labor availability, and is within close proximity to airports and rail.”

Brad Ruppel 
Collectively 135 and 175 Sullivan Avenue are state-of-the art facilities, providing Class A, highthroughput efficiencies via concrete construction, 30’ - 32’ clear height, 57’ - 60’ deep loading bays, and an average loading ratio of +/- 8,500 rentable square feet per door (expandable to +/- 7,600).

Interior fit-outs include T-5/LED lighting, ESFR fire suppression systems, and many other modern and energy efficient amenities.

The acquisition was announced on January 30, 2020 and is the latest addition to the growing Winstanley logistics platform that now totals 8 million square feet.

 This purchase comes on the heels of Winstanley’s 975,000 square foot lease to Ahold Delhaize (executed December 2019) at Winstanley’s 2 million square foot Manchester, CT distribution center.

The brokers in the transaction were Brad Ruppel and Lauren Dawicki of CBRE, Inc.


 Sean Shortell
Watkins Strategies
 781-720-9726 (cell)