The locally based private investor acquired the complex, whichis at 211 Yacht Club Way and includes a Charthouse restaurant, froma joint venture of the Irvine-based Bascom Group and the RockpointGroup LLC. Ron Harris tells GlobeSt.com that REITs, pension funds,sponsors partnering with institutional equity and otherinstitutional buyers were interested in the property, but the loneprivate buyer presented "a very compelling offer for the seller."Financing was not a problem, noted Harris: The buyer invested $16million of equity and financed the rest with a $33 million FannieMae loan.

"Considering the credit markets today, financing was not anissue for this buyer, who had a previous relationship with FannieMae," Harris adds. "The quality of the property and the income fromit allowed Fannie Mae to step up and make the loan without anyreservations ."

Harris notes that the property was marketed on an open bid basisand that the real challenge was overcoming the objections to theground lease, which runs for 55 years. "This caused many of thetraditional institutional buyers to reduce their offerssignificantly or precluded them from offering altogether," Harrissays. Nevertheless, the property still closed escrow at a 5.1% caprate and at approximately $300,000 per unit, which Harris describesas "a healthy price in this challenging market." The buyer wasrepresented by Mike Krantz of Southwest Investments.