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BURBANK, CA-Silverado Canyon Partners of Coto de Caza in Orange County has teamed with Capri Capital Advisors LLC of Chicago to acquire the 270-unit Royal Equestrian Apartments for $43 million in what is the largest deal yet for year-old Silverado, according to Mike Jara, managing member of the firm. The new owners plan an extensive upgrade of the property, which they financed with debt provided by the Chicago office of CharterMac Mortgage Capital. The seller was a private investor based in Los Angeles.Jara, who was the president of the Southern California region for San Francisco-based Carmel Partners before he established Silverado, tells GlobeSt.com that his new firm specializes in multifamily properties and will be looking for other deals like the Royal Equestrian. Jara, who has 15 years in the multifamily investment business, was with Lincoln Property Co., Avalon Bay and R&B Realty before his post at Carmel. “Our main focus is multifamily value-added deals in western markets,” Jara says. Silverado Canyon is looking primarily at Southern California properties but will also consider other western markets like Northern California, Colorado and Hawaii. The company plans the Royal Equestrian as a long term hold, but in other cases will likely have different exit strategies based upon investors’ requirements or the nature of the property, Jara says.Jara tells GlobeSt.com that Silverado was attracted to the Royal Equestrian complex, which is at 1200 W. Riverside Dr., as “a prime candidate for value creation because it is an older asset in an infill location in the middle of one of the strongest rental markets in the country.” Among the factors that have contributed to strong rent growth and record low vacancies over the last couple of years in the Burbank market, he cites the housing shortage in L.A. County, an absence of new apartment construction in the Burbank area over the past 15 year to 20 years, and the removal of units from the rental market as a result of condo conversions. With few developable apartment sites in this market and a strong demand from population growth and a strong economy, “Rent growth should be steady for years to come,” he says.Royal Equestrian’s 270 apartments occupy a 4.2-acre site with six three-story elevator-served buildings and amenities that include a fitness center, a business center, a clubhouse, a swimming pool and a spa. Silverado Canyon Partners’ renovation program for the property will be a complete upgrade of the common area amenities and the building exteriors, the addition of more covered parking for residents and designer upgrades of the apartment interiors. The apartments range from 466 sf to 740 sf, and are all either studios or one-bedrooms. The in-place rents are about $2 per sf, which Silverado expects to raise following the upgrades. Along the northern boundary is Riverside Drive, a major thoroughfare, and the property lies in Burbank’s upscale Equestrian District, adjacent to Griffith Park, biking, hiking, horse trails and the L.A. Zoo.

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