Iron Hound Management Arranges Restructuring of Securitized Debt on Memphis, TN Multifamily Assets

Ridgeway Crossing Apartments, Memphis, TN

Robert Verrone

(MEMPHIS, TN, OCT. 7, 2013) -- Iron Hound Management Company, LLC, a real estate investment company specializing in commercial debt and equity transactions and commercial loan restructuring, recently completed the restructuring of the $18 million securitized loan on two garden style apartment complexes in Memphis, Tennessee.

Iron Hound arranged interest forgiveness, interest deferral, waiver of prepayment penalties and preferred return for new equity on the assets.

The announcement was made by Robert Verrone, principal of Iron Hound Management Company.

The modified loan includes Ridgeway Crossing and Deerfield Apartments in Memphis, two communities totaling 720 units. The CMBS loan was transferred to special servicing with LNR Partners in November 2012 due to cash flow issues.

Iron Hound, which recently expanded its reach on the brokerage side to include loan debt and equity placement, has also recently restructured other Memphis area loans, including Willow Oaks Apartments and the Southland Mall.

Deerfield Apartments, Memphis, TN

“We were able to negotiate a deal that alleviated the property cash flow issues, while the sponsors provided new equity that will improve the properties and increase occupancy,” said John Wood, managing director of Iron Hound.

“Iron Hound was able to restructure the debt payments on these multi-family properties and allow the owners to concentrate on leasing and repositioning the assets.” 

Founded in early 2009, Iron Hound Management has completed nearly $10 billion in transactions since its inception and is actively engaged on over 30 assignments totaling more than $2 billion.

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

Great Ink Communications – 212-741-2977

Roxanne Donovan/Eric Gerard/Alyson Leiter

roxanne@greatink.com; eric@greatink.com; alyson@greatink.com http://www.ironhoundmgmt.com/.

Mail Box Money: Investors Score with Single Tenant Net Lease Properties

  

Sheree Strome

ATLANTA, GA (Oct. 7, 2013) – Single tenant net lease properties are the perfect solution for investors who are interested in owning real estate without having the responsibilities of a landlord. While interest rates are low, many believe now is the perfect time for investors to snatch up these properties.

 Those were a few of the points made during the most recent episode of the “Commercial Real Estate Show” radio program, hosted by Michael Bull of Bull Realty. Bull and his guests discussed sales velocity, what buyers look for and cap rates.

 “Over the next 18 months, we anticipate $15 billion in new product hitting the market,” said Geoffrey Linden, vice president of acquisitions for Agree Realty Corp. 

Although supply isn’t as robust as it was in 2006, new, high-quality product coming online means single tenant net lease properties should continue to be a popular investment, he added.

Karen Hutton

Dollar stores, drug stores and quick service restaurants are among the most popular products for sale, and all three experienced an increase in sales velocity during the past 12 months, said Sheree Strome, vice president of the national net lease investment group at Bull Realty.

For dollar stores, velocity jumped 23 percent, she said. Drug stores climbed 10 percent and quick service restaurants increased by 40 percent. “Buyers like credit tenants, good locations, triple net leases and rent increases for quick service restaurants,” Strome added.

 Cap rates have continued to fall, especially for triple net, 15-year leases, Strome said. Cap rates depend on a variety of factors, including the kind of tenant, lease terms, location and demographics. 

Geoffrey Linden

Auto parts stores tend to have cap rates between 6 and 7 percent, while drug stores are lower at 5 to 6 percent, she added. Dollar stores fall in the middle at around 6.5 to 7 percent.

 With interest rates expected to rise, the effect on cap rates remains unknown. “We’ve all enjoyed historically low cap rates and while interest rates will creep up over the next year, I don’t really see cap rates following rapidly behind them,” said Karen Hutton, CEO of The Hutton Cos.

However, Linden stated the opposite. “In net lease, we have long-term leases with fixed rental rates so we aren’t able to monetize on the improving economy,” Linden said. “The only way to keep up with other investment classes will be for cap rates to rise as well.”

 The entire episode on single tenant net lease investment properties is available for download at www.CREshow.com. The next “Commercial Real Estate Show” will be available on Oct. 10 and will examine the rebirth of the housing market.

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

Stephen Ursery

The Wilbert Group

404.405.2354

sursery@thewilbertgroup.com

Invest Atlanta Program Makes Home Ownership Dreams A Reality

ATLANTA, GA – When Tanya Howze first saw her two-year old grandson, Julian, run in a huge circle in her West Midtown house, she knew it was her dream home.

Brian P. McGowan

“I realized it wasn’t just for me, but it was the place we’d build memories as a family,” said Howze. “I also fell in love with the porches and hardwood floors – as soon as I walked in, I had that epiphany or aha moment.”

Howze was the first homebuyer to take advantage of Invest Atlanta’s new HOME ATLANTA 4.0 purchase program. Prospective homeowners can get a 30-year fixed mortgage with a five percent down payment assistance grant that they never have to pay back.

“This program is unique because it reduces the usual barriers to home ownership,” said Dawn Luke, Invest Atlanta’s Managing Director for Housing Finance. “We’re offering attractive interest rates and that much-needed down payment help for families that otherwise may not be able to afford a home.”

Mayor Kasim Reed

Unlike many mortgage assistance programs, buyers aren’t required to be first-time owners. HOME ATLANTA 4.0 also features higher income and purchase price limits than similar programs.

“There’s no better way to strengthen Atlanta’s economy and make our neighborhoods thrive than to open the doors of home ownership to more of our residents,” said Mayor Kasim Reed.

 “This program gave me more options for where I could live in the city,” said Howze from her West Highlands subdivision. “With some programs, I made too much money. But this one broadens the scope for the working class to be able to afford otherwise out of reach homes.”

Properties can be newly constructed or existing single family detached homes, townhouses or condominiums. The maximum purchase price limit is $374,268 and the property must be located within the city limits of Atlanta.

“We’re giving more Atlanta residents access to the American dream which is a powerful thing,” said Brian P. McGowan, President and CEO of Invest Atlanta. “We’re committed to working with homebuyers to make those dreams come true.”

For more guidelines on HOME ATLANTA 4.0 and to find out if you qualify for the purchase program, visit Invest Atlanta HOME ATLANTA 4.0.

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

Elizabeth Hagin

The Wilbert Group

c: 678-642-4301

o: 404-748-1367

Aqua Boracay by yoo in the Philippines Announces Strong Sales Momentum After Five Months on Market

Aqua Boracay by yoo resort, Bulabog Beach, the Philippines

Boracay, the  Philippines, (Oct.  7, 2013) – Aqua Boracay Group today announced that Aqua Boracay by yoo, the five-star residential resort designed by yoo in the Philippines, has sold 32 luxury residential beachfront units after only five months on the market.

Marco Biggiogero

 This coincides with the launch of Phase 3 of the development, located on Boracay’s stunning Bulabog Beach and featuring 144 one and two-bedroom luxury residences.

 In honor of launch of Phase 3 of the development, Aqua Boracay by yoo will present an exclusive 10% reduction on the listing price of ten studio apartments. The offer will allow astute investors to purchase a well-appointed studio apartment for as little as USD $199,999.

 “We are incredibly pleased to see how quickly buyers seeking a family retreat have embraced Aqua Boracay by yoo. It really is the most exciting design-led development in the Philippines and one of the countries strongest investment opportunities,” says Marco Biggiogero, chairman and co-founder of the Aqua Boracay Group.

 “Aqua Boracay by yoo has surpassed initial sales goals beginning with our sales launch events held in Singapore and Hong Kong in April of this year. We’ve seen a very positive response from buyers in these two markets and across several other countries in Asia and Europe.”

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

Hwee Peng Yeo

Director of Asian Markets

Glodow Nead Communications

Level 21, Centennial Tower

3 Temasek Avenue

Singapore 039190

HFF closes sale of Waldorf Astoria Naples and Naples Grande Golf Course in Naples, FL

Waldorf Astoria Naples, Naples, FL

TAMPA, FL – HFF announced today that it has closed the sale of the Waldorf Astoria Naples, a 474-room luxury resort, and the 18-hole Naples Grande Golf Course in Naples, Florida. 

               HFF marketed the property on behalf of the seller, an affiliate of Blackstone.  An affiliate of Northwood Investors purchased the hotel and the golf course.  Northwood will continue to operate the hotel with a Waldorf Astoria brand affiliation.

               Originally known as the Registry Resort, Blackstone acquired the property as part of its 2004 acquisition of Wayne Huizenga’s Boca Resorts Inc., which also included the legendary Boca Raton Resort and the Edgewater Beach Resort, among other assets.

The resort has 474 guestrooms including 29 gulf view suites and 50 bungalow suites plus more than 100,000 square feet of meeting and event space. 

Max Comess

Every room features a private, angled balcony with direct views of the Gulf.  Guests of the hotel have access to six on-site restaurants and bars, three heated outdoor pools with a 100-foot waterslide, a full-service luxury spa, 8,000-square-foot fitness center, business center and an award-winning tennis facility. 

The property is surrounded by 20 acres of a protected mangrove estuary intertwined with a system of bridges and elevated walking paths that afford access to three miles of beachfront on the Gulf of Mexico. 

The property is also immediately proximate to the renowned Waterside Shoppes, Southwest Florida’s most luxurious shopping mall.

Paul Hsu

The Naples Grande Golf Course is a highly-acclaimed, Rees Jones-designed private course located minutes from the hotel.  The 18-hole, par 72 course features 6,955 yards set among a lush landscape of native Florida pine hammocks, live oak, grand cypress trees, and brilliant water features.

  Originally completed in 2000, the course has been named one of North America’s “Top 100 Resort Courses” by Golfweek Magazine and named one of the “Top 50 Courses in Florida” with a 4.5 out of 5 star ranking by Golf Magazine.

               The HFF investment sales team representing the seller was led by senior managing director and head of HFF’s Hotel Group, Daniel C. Peek, directors Max Comess and Paul Hsu, and senior hospitality analysts Alexandra Lalos and Cyrus Vazifdar. 

Alexandra Lalos

               “The market for Florida oceanfront resorts is not only back, it’s thriving at a level that we have not seen since 2006 or 2007,” noted Peek.  “The story is not just about Miami anymore— investors and lenders are competing to enter all of the resort markets across the state.”

               Florida welcomed a record number of visitors during the second quarter, according to the most recent estimates released by Visit Florida, the state’s official tourism marketing corporation.  

From April through June this year, 23.4 million people visited the state, an increase of 2.6 percent over the same period in 2012.  The numbers include 19.7 million domestic visitors (+1.6% over 2012), 2.7 million overseas visitors (+9.3%) and 1 million Canadian arrivals (+4.9%). 

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

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

HFF closes loan sale secured by The Landmark mixed-use development in suburban Denver, CO

The Landmark mixed-use residential--retail development, Greenwood Village, CO

Eric Tupler

DENVER, CO – HFF announced today that it has closed the sale of a loan secured by The Landmark, a mixed-use residential and retail development in Greenwood Village, Colorado.  HFF marketed the loan on behalf of a consortium of banks.   

               The Landmark is comprised of 271 luxury condominium units located in two towers (Landmark & Meridian) of which 108 units were included in the loan sale. 

Brock Cannon

The retail portion of the property totals 144,325 square feet and is anchored by Landmark Theatres and leased to tenants including Ted’s Montana Grill, Hapa Sushi and Pure Barre. 

The property also includes a 1.12-acre development parcel zoned for up to 10,000 square feet of retail development.  The Landmark is adjacent to the Denver Tech Center with frontage along Interstate 25 in suburban Denver.

               The HFF team representing the seller was led by director Brock Cannon, senior managing director Eric Tupler and real estate analyst Matt Gangaware.

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

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

Pyramid Hotel Group Improves Full-Service and Select-Service Hotel Management Portfolios with Acquisitions and $50 Million-Plus in Property Improvements

  

Hyatt Regency Schaumburg, Schaumburg, IL

BOSTON, MA,  Oct. 7, 2013--Officials of Pyramid Hotel Group, one of the nation’s largest independent hotel management companies, today announced it has added 13 hotels, a combination of full- and select-service properties, to its portfolio throughout the continental United States through the first nine months of 2013.

Warren Fields

 Additionally, the company is continuing its robust project management project work, with more than $50 million in renovations/upgrades completed or underway this year.

The nine, full-service properties add more than 2,690 rooms to Pyramid’s management portfolio.  The hotels are owned by five, separate investment groups and spread across new and old markets for the company. 

“These nine properties reflect the range of our full-service hotel management expertise, from urban and suburban properties with significant meeting space and food and beverage operations to resort-style hotels, as well as both branded and independent properties,” said Warren Fields, chief investment officer. 

Fields added that Pyramid expects to see more large hotels changing hands as the hotel economy continues to improve and financing becomes more readily available. 

“There is a pent-up demand by a number of institutional investors to acquire major assets in this phase of the cycle.” 

Also, Pyramid added four, select-service hotels totaling 590 rooms throughout the United States since the beginning of 2013. “Three of the properties are an expansion of an on-going relationship with one of our portfolio investors,” Fields commented.

Fenway Park, Boston, MA

 “We are gratified by their continued confidence in our ability to deliver exceptional service to guests and build a superior bottom line.

 The fourth hotel is proximate to Fenway Park – home of the Boston Red Sox – and while it will receive the same attention to detail as all of our managed hotels, it is a source of a great pride to operate a hotel in the shadow of the greatest, classic baseball park in the world and in our hometown."

Commenting about Pyramid’s continued work executing over $50 million in project management and renovations, Fields noted, “This is an encouraging increase in the number of projects we managed last year, and we expect an upward trend with four to five additional projects in the planning stage both for hotels we manage and asset manage”.  

Additionally, Pyramid recently received the coveted “Hyatt Franchise Hotel of the Year Award” for the 470-room Hyatt Regency Schaumburg, Chicago. 

Fields stated, “This award rounds out our brand trophy case.  Pyramid now has received a top award from all five of the major, full-service brand groups and brings the total honors awarded to Pyramid to 24 in the past 10 years.  

"This recognition is especially humbling because only a small handful of elite operators may operate a Hyatt hotel, making competition for this award particularly intense.”

  

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

Chris Daly

Daly Gray

(703) 435-6293

chris@dalygray.com

Charles Dunn Completes $4.11 Million Sale of Shopping Center in Reseda, CA

  

Reseda Plaza, 18300 Vanowen, Reseda, CA

LOS ANGELES, CA, Oct.  7, 2013 – Charles Dunn Company, one of the largest full-service regional real estate firms in the western United States, has completed the sale of a Reseda Plaza, a 10,000-square-foot shopping center located near Reseda Blvd and the 101 Freeway at 18300 Vanowen in Reseda. 

Cheryl Pestor

Paul Kenworthy represented the buyer, a Los Angeles-based private partnership, Collins 36 Ltd. Cheryl Pestor of NAI Capital represented the private seller. The closing cap rate was 6 percent.

“This property is fully occupied with Popeye’s Chicken as its anchor tenant,” said Kenworthy. “The buyer was attracted to a stable, passive investment in a well-located, heavy populated area.”

Charles Dunn Company is one of the largest full-service regional real estate firms in the western United States. Established in 1921 and headquartered in Los Angeles, the firm’s brokerage practice continues

to be a market leader.

Paul Kenworthy

The firm also manages more than 21 million square feet of office, industrial, retail, residential and mixed-use properties for third party clients and provides construction management, architecture and design, general contracting and capital markets services.

With more than 260 team members in nine offices, Charles Dunn Company’s reach extends far beyond its physical locations, as its experienced professionals leverage their market knowledge, relationships, and expertise to achieve and exceed client expectations. www.charlesdunn.com

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

Darcie Giacchetto

D.G. Communications, Inc.

949.278.6224

www.charlesdunn.com

McCraney Property Company Breaks Ground On Two Orlando Spec Industrial Buildings Totaling 243,000 Square Feet in John Young Business Park

John Young Business Park, John Young Parkway, Orlando, FL

Steven McCraney

ORLANDO, FL  and WEST PALM BEACH, FL (Oct. 7, 2013) - McCraney Property Company (MPC), an integrated developer and manager of commercial/industrial flex and warehouse distribution properties located throughout Florida, has broken ground early on two Central Florida spec industrial buildings totaling 243,000 square feet at John Young Business Park.

MPC and Clarion Partners (Clarion), a large national investor and manager of commercial real estate, are joint venture partners on a three-building portfolio. General contractor Edwards Construction Services, Inc. was awarded both projects.

"Based on the increased demand for class A industrial on the I-4 corridor, we chose to break ground earlier than we expected on building III," said Steven McCraney, CCIM, SIOR, president and CEO of MPC.

 "There is no question that we are bullish on the Central Florida industrial market and are opportunistically seeking out build-to-suit projects."

Building II consists of 100,598 square feet with building III's footprint at 142,638.  Expected completion is for Q1 of 2014.

Dade Paper Distribution Center
John Young Business Park, Orlando, FL

Florida real estate has had its share of challenges, but the spotlight seems to be back on Central Florida's commercial real estate market.

 Foreign capital is flowing into the region as foreign investors seek asset quality, higher returns and asset safety. Renewed residential development is stabilizing land prices and lending rates are holding steady.

Once the two spec industrial buildings are built, the 393,000-square-foot portfolio will be complete.   Dade Paper's new 150,000-square-foot Central Florida distribution center/offices was the first of the three projects to be completed by MPC and Clarion.  It is fully operational.

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

Ashley Fierman

Account Coordinator

Boardroom Communications

afierman@boardroompr.com

Office: 954.370.8999

Cell: 954.330.1554

HFF secures $6.4 million refinancing for downtown Indianapolis multi-housing community

Mozzo Apartments, 531 Virginia Avenue, Indianapolis, IN

INDIANAPOLIS, IN – HFF announced today that it has secured a $6.4 million refinancing for Mozzo Apartments, a 65-unit, Class A multi-housing community with ground-floor retail and office in downtown Indianapolis, Indiana.

Ken Martin

               Working on behalf of Milhaus Development, HFF placed the 10-year, fixed-rate securitized loan with Goldman Sachs Commercial Real Estate.  The proceeds were used to retire the existing construction loan. 

               Mozzo Apartments is located at 531 Virginia Avenue along the Cultural Trail and close to Monument Circle and Fountain Square.  Completed in 2013, the property features studio, one- and two-bedroom units as well as 1,689 square feet of office space.  Mozzo Apartments achieved 100 percent occupancy in just three months.

               The HFF team representing Milhaus Development was led by associate director Ken Martin.

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

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

HFF Denver hires Brock Yaffe as associate director

Brock Yaffe

DENVER, CO – HFF announced today that Brock Yaffe has joined the firm as an associate director in its Denver office to focus on debt placement transactions nationwide.

Mr. Yaffe has more than 10 years of commercial real estate experience and most recently was an assistant vice president at NorthMarq Capital, LLC. 

Eric Tupler

Prior thereto, he was a loan review and portfolio analyst for Marquette Financial Companies.  Mr. Yaffe holds a Bachelor of Science in Business Finance from Montana State University in Bozeman, Montana and is an active member of the National Association of Industrial and Office Properties.

“Since opening HFF Denver in early 2012, we’ve continued to build out our platform of services.  Brock is yet another outstanding recruit with a wealth of experience and knowledge in the commercial real estate finance sector that we are fortunate to have on our team,” said Eric Tupler, senior managing director and office head of HFF’s Denver office.

  

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

Kristen M. Murphy

Associate Director

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

Cory Guy Joins Capital Square Realty Advisors as Senior Vice President of Sales

                                        

Cory Guy

 TAMPA, FL (Oct. 7, 2013) – Capital Square Realty Advisors, LLC announced today that Cory Guy has joined the company as senior vice president of sales, responsible for wholesale distribution of the firm’s Delaware Statutory Trust, or DST, interests through independent broker-dealers and registered investment advisors across the nation.

“In his 12-year career, Cory has enjoyed great success in the sale of DST and other real estate securities, raising over $1 billion for a single sponsor while overseeing the productive western region," said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.

"His understanding of commercial real estate and real estate securities plus strong industry relationships will help Capital Square Realty Advisors reach its goal of $100 million of acquisitions in 2013,” 

Louis Rogers

Guy holds Series 7, 22 and 63 securities registrations, as well as a California Real Estate License. Prior to joining Capital Square Realty Advisors, he served as a regional vice president for a national real estate sponsor, overseeing California, Nevada, Arizona, Utah, Hawaii and Alaska. 

Guy was responsible for raising capital for Section 1031 exchange-oriented DST offerings, real estate investment trusts (REITs), multi-member limited liability companies (LLCs) and a private wealth management program, where he and his western region team raised more than $1 billion for real estate programs.

Guy graduated from the University of California, Santa Barbara. He competed on the Professional Tennis Circuit prior to launching his real estate career in 2001.

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

Jill Swartz                                                                            

Spotlight Marketing Communications                    

 949.427.5172, ext. 701 – office                                   

 949.485.1552 – cell                                                            

 jill@spotlightmarcom.com

Greystone Closes $20.15 Million CMBS Loan on Houston, TX Multifamily Property

  

The Place at Greenway Apartments, Houston, TX

New York, NY – Oct. 7, 2013 – Greystone, a leading national provider of multifamily and healthcare mortgage loans, today announced it has closed a $20.15 million CMBS loan for The Place at Greenway property in Houston, Texas.

Robert Russell

Robert Russell, head of CMBS production at Greystone, originated the loan and managed the closing.

 Greystone structured the $20.15 million CMBS loan as a 10-year fixed rate on behalf of co-sponsors Redwood Capital Group of Chicago, Illinois and BH Management Services of Des Moines, Iowa, and was able to close the transaction in 19 days.

The Place at Greenway comprises 219 units with amenities including a pool, clubhouse, reserved covered parking and fitness center.

 “Partnering with Greystone to acquire The Place at Greenway enabled us to secure an extremely competitive loan during a volatile interest rate period, and we’re thrilled with the outcome,” said Mark Isaacson, Managing Partner of Redwood Capital Group.

Mark Isaacson

 “The team applied the utmost diligence and creativity to assemble an attractive loan package, and worked efficiently to lock the rate and close the deal quickly,” he added.

 “CMBS is increasingly an attractive lending option for multifamily real estate borrowers seeking alternatives to traditional agency loans.  The comparative ease of execution and flexible structures benefits borrowers at a time when the rate environment is more volatile,” said Rob Russell.

 “Greystone’s financial experts will continue to navigate today’s unpredictable market and develop financing options that best meet our clients’ needs.”

 Launched earlier in 2013, Greystone’s CMBS program provides clients with additional loan options and supplements the firm’s robust Fannie Mae, Freddie Mac, FHA and bridge loan services.

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

Greystone

Karen Marotta

212 896 9149

KMarotta@Greyco.com

Cognito

Jessica Kleinman/Josh Gerth

646 395 6300

Greystone@cognitomedia.com

Essex Realty Group Brokers Sale Of Four Commercial Condominiums in Chicago, IL

  

1232--40 North Milwaukee, Chicago, IL

  

Jim Darrow

CHICAGO, ILLINOIS – Monday, October 07, 2013- Essex Realty Group, Inc. is pleased to announce the sale of 1232-40 N. Milwaukee, in Chicago, Illinois.  The Subject Property consists of four commercial condominiums constructed in 2006.  The property contains +/- 4,275 net rentable square feet and is currently divided into three (3) separate units.

Jordan Gottlieb

The property benefits from its excellent location and visibility on Milwaukee Avenue.  The property will also benefit from a new fifteen million dollar redevelopment across the street which already has 100,000 SF of tenant commitments.

 The area’s strong demographics and popularity draws many national retailers including Chase Bank, Bank of America, Dunkin Donuts, H & R Block, CVS, Starbucks, LA Fitness, Foot Locker, and many more.

David Schwartz

 Jim Darrow and Jordan Gottlieb of Essex represented the seller and David Schwartz of Essex Represented the buyer in the transaction.  The price was approximately $1,150,000.

 Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

  

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

Douglas Fisher

Essex Realty Group, Inc.

773.305.4910

dougfisher@essexrealtygroup.com

www.essexrealtygroup.com

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.