ORANGE COUNTY, CA—The Orange County office of Berkadia Commercial Mortgage has provided a $33.2-million loan through Freddie Mac for the Alexander at South Virginia, a gated multifamily community at 11380 S. Virginia Rd. in Reno, NV. The loan was for acquisition financing on behalf of buyer RPM Co., which purchased the 350-unit luxury property from AG Spanos for $55.3 million.

Berkadia's David Bleiweiss, VP, and Anthony Ansevin, AVP, worked with the borrower to originate the 10-year, fixed-rate, full-term, interest-only permanent financing. The property, which features one-, two- and three-bedroom apartment homes, is currently 96% occupied. Bleiweiss says his team was able to leverage its strong relationship with Freddie Mac “and execute an early rate lock, closing the deal quickly in an abbreviated time span.”

Institutional Property Advisors' EVP investments Stanford Jones and VPs investments Philip Saglimbeni and Salvatore Saglimbeni advised the seller on the sales transaction. Kenneth N. Blomsterberg, first VP investments in Marcus & Millichap's Reno office and winner of the 2013 Reno Summit Multi-Family Broker of the Year award, also provided representation. The same team also advised the buyer.

“The investment appeal of this asset is driven by stable operations, a favorable yield, free-and-clear delivery and embedded upside through loss-to-lease capture,” says Jones. “Supply constrains in the Reno market and strong demand for apartment living should continue to place upward pressure on rents.”

Blomsterberg says this is RPM's second acquisition in the Reno apartment market. The company acquired the View Apartments in September 2012.

Amenities at the Alexander include a resort-style swimming pool and spa with fountains; a contemporary clubhouse with lounge, designer kitchen and a fully equipped media room with movie theater; an executive business center; a billiards room; a cardio center; and concierge services. Interiors average 1,034 square feet and offer a diver mix of floor plans that feature gourmet kitchens with breakfast bars, in-unit laundry, private terraces, 9-ft. ceilings with crown moldings, fireplaces, wood cabinets and granite countertops. Many units also include views of Mt. Rose and the surrounding Sierra Nevada Mountains.

This is the second large multifamily deal that has reported on within the past few days involving the IPA team of Jones and the Saglimbenis. As we reported last week, the team has arranged the sale of Township, a newly constructed 132-unit apartment complex in downtown Redwood City, CA, for $83 million or approximately $628,800 per unit.


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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.