SANTA ANA, CA-Developer Nexus Cos. of Santa Ana has lined up $247 million through Newport Beach-based Buchanan Street Partners to finance construction of the Skyline at MacArthur Place in the Orange County Airport Area. The financing is the largest ever arranged by Buchanan Street, which secured the funds from Fremont Investment and Loan and Lehman Bros.
Tim Hawthorne, EVP at Buchanan Street Partners, describes the financing as a $215-million construction loan from Fremont Investment and Loan and a $32-million mezzanine loan from Lehman Bros. The loans will finance the construction of two 25-story high-rise residential towers totaling 349 for-sale units.
Hawthorne notes that the "strong sponsorship and team at Nexus" were important factors in securing the financing. He adds that the Nexus project "continues the trend towards more urban development in Orange County," where high-rise living has been gaining increasing momentum.
Skyline at MacArthur Place, scheduled to be completed in March 2008, will be the tallest residential development in the Orange County Airport Area. Units will range from 1,000 sf to 2,400 sf and are expected to sell from the upper $500,000's to as much as $2 million for the penthouses.
In addition to providing what Hawthorne calls "a very well-designed and a cosmopolitan living option to the growing population and evolving lifestyle trends in Orange County," the Nexus project will represent one of the solutions to the housing crunch in Orange County. According to the California Department of Finance, the Orange County population has grown 27% since 1990, reaching three million as of last year, and high-rise projects are considered an inevitable solution to the tight housing conditions.
The Skyline at MacArthur Place project is being designed by Renzo Zecchetto Architects and Perkins & Co. architects, with Nexus is serving as the general contractor. Nexus Cos. includes Nexus Development Corp., Nexus Construction Services and Nexus Residential Communities. The companies provide real estate development, construction, marketing and management.
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