Village of Marineo
NORTHERN CALIFORNIA
SAN JOSE, CA-GBR Palm Valley Podium LLC has a new mortgage on its 189-unit Village of Marineo from Guardian Life Insurance Co. in a financing arranged by NorthMarq Capital in this roundup of commercial real estate news in the West. Dennis Williams, SVP and managing director of NorthMarq Capital’s San Francisco Regional office, arranged the first mortgage for the multifamily property, which is at 100 Palm Valley Blvd. Financing was based on a 6-year term and a 30-year amortization schedule and was arranged by NorthMarq through its correspondent relationship with Guardian Life Insurance Co. Williams noted that the property represents the fourth phase of the 1,100-unit Palm Valley development. There are reciprocal easements for access, shared parking and amenities, which made the deal ineligible for Fannie Mae or Freddie Mac.
Essex Property Trust of Palo Alto has acquired the 121-unit Family Tree Apartments at 1000 Kiely Blvd. in Santa Clara from a local family trust for $31.4 million in a transaction arranged by SVP Theodore Kokernak of the Palo Alto office of Marcus & Millichap, who represented both parties. Built in 1971, the complex consists of units ranging from one to three bedrooms and one and two baths in 11 two-story buildings. The buildings are wooden frame with T-111 siding, mansard roofs and below-grade tuck-under parking. Kokernak describes the property as a garden-style, family-oriented community with historically high occupancy and a reputation for outperforming the competition.
Deutsche Bank closed the purchase of the $28.7 million A note and the $1.5 million B note on the 444 De Haro St. institutional quality office building in San Francisco in a transaction arranged by Jones Lang LaSalle. The notes are secured by the fee simple interest in the property, which includes 444 De Haro, a two-story 132,823-square-foot office building, and 488 De Haro, a three-story, 12,528-square-foot building. The notes, at an interest rate of LIBOR + 1.4% on an interest-only basis, are current and mature on Aug. 9. The JLL team included managing director Peter Nicoletti, managing director Jere Lucey, SVP Dustin Stolly and VP Patrick Shiver from the firm’s Special Asset Services and Note Sales group, along with investment sales specialists managing director Michel Seifer and SVP Rob Hielscher. Seifer said the deal generated significant interest even before it went on the market. “There was a frenzy of interest from domestic and local investors who envisioned the potential attractive outcomes resulting from the near-term maturity date,” he said. The 145,351-square-foot property spans an entire city block in the Showplace Square/Potrero Hill neighborhood, plus additional development space on the south side of the site to accommodate commercial and retail uses.
ORANGE COUNTY
Beachwood Apartments
CT Realty Investors and WLCM have entered into a joint venture to buy apartment complexes in coastal submarkets throughout Southern California and have acquired three properties in Costa Mesa for approximately $10 million. The three complexes are the 18-unit Beachwood Apartments at 324 Victoria St., the 21-unit Orange Elden Apartments at 2151 Orange Ave. and the 16-unit College Avenue Apartments at 2290 College Ave. CT Realty and WLCM acquired the properties from local private parties and a trustee representing one of the propertes. The College Avenue Apartments transaction is scheduled to close by the end of May. According to James “Watty” Watson, CEO of CT Realty, CT entered into the joint venture with WLCM, a partnership including Chris Lee and Ray Wirta, with the goal of aggregating clusters of smaller apartment projects in coastal communities. The partners hope to assemble 300 to 400 apartments in the Costa Mesa submarket this year and have similar plans for other submarkets up and down the coast. Lee, a principal in the venture, said that the newly acquired Costa Mesa properties will be renovated, repositioned and managed by WLCM. The partnership has acquired and repositioned apartment projects in other markets over the past several years. The acquisitions were financed by equity provided by CT Cal Fund VI, WLCM and CT investors. The projects also closed with debt financing provided by CapitalSource Bank. Damien Breaux with Morgan Skenderian Investment Real Estate Group in Newport Beach, and Steven Brombal with Hendricks & Partners in Newport Beach represented CT Realty and WLCM in the acquisitions. The sellers were represented by Ken Morgan and Rick Applebaum of Morgan Skenderian.
Fairway Center
Fairway Center is 100% leased with the signing of three new deals at the 145,000-square-foot office building at
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