Equity, Lending Market Strong for Multifamily Assets

(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

WOODLAND HILLS, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement yesterday, but GlobeSt.com has learned that CBRE debt & equity finance arranged the acquisition financing for the Arbors at Warner Center, a 250-unit multifamily project in Woodland Hills, CA. The joint venture equity and debt financing totaled $46.15 million, which included the assumption of an existing Freddie Mac fixed loan with seven years remaining at 52.3% LTV.

Mark McGovern and Scott Peterson of CBRE’s San Diego office originated and closed the joint venture between Cigna Realty Investors and Pacific Urban Residential. The property was sold by a private Northern California based investment firm in an off-market transaction.

“The equity and lending markets are very strong for multifamily assets, especially very well located projects like the Arbors,” McGovern says in a prepared statement. “Investors and commercial lenders still see well-positioned multifamily assets in Southern California as a secure investment.”

The seller renovated select unit interiors during its ownership with stainless steel appliances, granite countertops, refrigerators, tile flooring and new cabinet fronts. The Pacific / Cigna joint venture will complete the interior renovations upon unit turnover. Additionally, an upgrade to the building exteriors, signage and landscaping are envisioned. The project was nearly 100% leased at the time of sale, according to a prepared statement.

Located at 6333 Canoga Ave., the Arbors at Warner Center consists of seven three-story buildings and five two-story buildings on 6.69 acres. The unit mix is primarily comprised of one and two bedrooms with some studios and three bedrooms.