Meridian Capital Group and Beech Street Capital Arrange $62.5 Million in CMBS and Mezzanine Financing for the Emerald Isle Age-Restricted Multifamily Property in Placentia, CA

Emerald Isle Apartments, 661 North Rose Drive, Placentia, CA

Kristen Croxton

Carlsbad, CA, October 7, 2013, – Meridian Capital Group, LLC, a leading national commercial real estate advisory firm, in partnership with Beech Street Capital, negotiated the $62.5 million refinancing of Emerald Isle, a Class-A age-restricted multifamily property located in Placentia, CA, on behalf of a sponsor based in Orange County, CA.

The 10-year, fixed-rate financing package is composed of a $56.5 million CMBS first mortgage and a $6 million mezzanine loan, both featuring five years of interest-only payments and favorable structural terms. The new debt allowed the owner to prepay the existing CMBS and mezzanine loans that did not come due until 2015 without having to contribute additional equity to the transaction.

Seth K. Grossman

Despite the significant defeasance prepayment penalty, the sponsor was motivated to lock in low prevailing interest rates and enhance cash flow through the interest-only feature that reduced monthly payments.

Meridian Managing Director, Seth K. Grossman, who is based in the Company’s Carlsbad, CA office and Beech Street Executive Vice Presidents Greg Reed and Kristen Croxton, who are based in Beech Street Capital’s Newport Beach office, worked in concert with the sponsor to structure and negotiate this transaction.

Greg Reed

The Beech Street Capital team has a long standing relationship with the sponsor and knew the interest-only feature currently available in the CMBS market would be accretive to their business plan.

Mr. Grossman of Meridian was brought in to cover non-agency lenders, ensuring the client had all of the best available financing alternatives presented to them.

“Greg and Kristen have been great to work with over the years and the two platforms complimentary skills sets have been a tremendous benefit for everyone involved,” said Mr. Grossman. “As evidenced by this transaction, the Beech Street Capital team clearly put their client’s needs first, exploring options beyond the agency lenders to obtain the financing most beneficial to their client,” he added.

The 422-unit Emerald Isle property is located at 661 North Rose Drive in Placentia, CA. The property is leased to seniors 55 years of age and over and has amenities and programs catering to an active lifestyle.

Built in 2001, Emerald Isle is in excellent condition and has enjoyed 97%+ occupancy for ten consecutive years with a current waitlist of more than 20 prospective tenants.

For a complete copy of the company’s news release, please contact:

Courtney Lewis

240-507-1948 or

Jenifer Bernardi

240-507-1946.