Four 1920s-Era Brick Buildings Change Hands
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LOS ANGELES-GlobeSt.com has learned that Meridian Capital Group LLC negotiated $12.5 million in acquisition financing for a four-building multifamily portfolio located in the Koreatown neighborhood of Los Angeles. The 10-year acquisition financing totals $12.5 million, represents 73.5% of the purchase price and features a favorable rate in the mid 4% range.
The portfolio is composed of four 1920’s-era master-metered brick multifamily buildings, consisting mostly of studio apartments located in Koreatown. The properties encumbered by the loan are located on West 8th Street, South St. Andrews Place, South Catalina Street and South Normandie Avenue.
Meridian’s senior loan originator, Jonathan Wintner, based in the company’s Los Angeles office, negotiated the transaction. Wintner possesses “significant knowledge of the Koreatown and Downtown Los Angeles markets,” according to Meridian Capital Group, and “was able to negotiate highly competitive financing for this portfolio of mature multifamily properties that many believe debt capital to be scare for.”
According to Wintner, “Borrower’s assume aggressive financing is not available for 1920’s vintage master-metered brick construction assets composed primarily of studio apartments. That is simply not the case,” he says. “Meridian has the in-depth market knowledge and lender relationships to obtain highly favorable, non-recourse, fixed-rate financing at higher leverage points for these exact deals.”
Beyond the financing component, the acquisition of these properties was also complex. Jonathan Barach, the purchaser of the properties and a principal of Vista Investment Group, LLC says that he met with Wintner and the lender roughly 40 days before he needed to close on the portfolio. “Wintner said he would deliver and close on time despite the fact that we were heading into the holiday season and the properties had some management-related issues.”
Barach added that “Wintner delivered,” noting that the process was “smooth and seamless.”
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