Los Angeles

Franklin Pointe Associates LLC has sold the Franklin PointeApartments in Hollywood for $7.4 million. Located at 1825 N.Cherokee Ave., the three-story 53-unit apartment complex lies atthe heart of Hollywood's renaissance. Darin Beebower of MadisonPartners was the listing broker for the property, representing boththe buyer, 1825 Partners LP, an L.A.-based real estate investmentcompany, and the seller. The property was substantially renovatedby the previous owner and the new owner plans minimal cosmeticupgrades to the well occupied building. The complex has a unit mixcomprised of eight studio units, 29 one bedroom/one bath units,eight one bedroom/two bath/den units and eight two bedroom/two bathunits. The property consists of 42,945 square feet and is situatedon a 23,479-square-foot lot. Originally constructed in 1963, theproperty was renovated in 2007-2008. "The buyer recognized theunique opportunity to acquire a renovated asset in an excellentlocation at a basis that should minimize their downside exposurewhile allowing for great cash flow and significant potential upsideas the economy and local rental market recover," says Beebower.According to Beebower, the property received numerous offers fromlocal families and private investment groups attracted to theexcellent condition, outstanding location and optimistic belief inthe long-term strength of the sub-market. Brian Eisendrath of CBRECapital Markets secured the borrower's new seven-year debt at afixed rate of 5.45% via Freddie Mac's DUS program.

Dominion Healthcare Financial Corp., a subsidiary of DominionCorp., a national commercial real estate banking firm headquarteredin Los Angeles, closed a complicated $14.125 million loan on aportfolio of five skilled nursing facilities in California.Dominion Corp. VP Loren Thall structured a capital stack thatconsists of both senior and subordinated debt, of which $10.125million is secured by the real estate. The remaining $4 million issecured by the accounts receivables of the skilled nursing homes.The five-year loan amortizes over 25 years and is based on a debtcoverage ratio of 1.35 at an LTV below 70%. "This was the secondtime we have worked with this borrower," Thall pointed out. "Thishelped when coordinating the various and complicated ownershipstructures and other components of the transaction." He saysthe financing provided significant challenges because the debtneeded to be structured to allow for some of the equity partners'ownership interests to be phased out, while also completing alease-purchase option and providing working capital for the theborrower, an owner/operator of healthcare properties. Dominioneliminated the prepayment penalty of 1% after year one of thefive-year loan term. The properties totaling 235 beds, are locatedin San Francisco, Oakland, San Leandro and Culver City. All of theproperties were originally constructed in the 1960s and 1970s andhave since been renovated. The facilities offer skilled care aswell as acute care services and are also Medicaid and/or Medicareproviders.