WASHINGTON, D.C. — Total commercial real estate lending is estimated to have totaled $429 billion in 2023, according to a year-end report from the Mortgage Bankers Association (MBA). This figure represents a 47 percent decline from 2022 when lending volume totaled $816 billion and a 52 percent decrease from the record $891 billion set in 2021. Jamie Woodwell, MBA’s head of commercial real estate research, attributes the drop-off in loan volume last year to a combination of higher interest rates and uncertainty with property values and operating fundamentals in some property sectors, namely office. “The declines were broad-based, covering every major property type and capital source,” says Woodwell. “Much of the drop in originations was driven by a decline in borrower demand stemming from slowdowns in sales transactions and refinances. If property owners had the ability to sit pat, they generally did.” According to MBA, depositories such as banks were the leading capital source of mortgage debt for commercial real estate loans, followed by life insurance companies and pension funds, government-sponsored enterprises (Fannie Mae and Freddie Mac), private label CMBS and investor-driven lenders. Among different property types, multifamily properties saw the highest volume last year, with an estimated $264 billion …
LOS ANGELES — Beverly Hills-based Bolour Associates has provided more than $20 million in debt financing for the redevelopment of three retail projects in Los Angeles. Upon redevelopment, the sites will deliver 375 apartments. The borrower is North Carolina-based Grubb Properties. The portfolio includes: 700 Santa Monica Blvd., a 10,500-square-foot retail property slated for redevelopment into 99 apartments. 1200 Vine St., a 27,000-square-foot retail building in Hollywood that will be redeveloped into 151 apartments. 5240 Lankershim Blvd., a 30,900-square-foot land parcel in North Hollywood with plans for redevelopment into 128 units.
SUNNYVALE AND MOUNTAIN VIEW, CALIF. — Gantry has arranged a $14 million permanent loan to refinance a cross-collateralized pair of flex industrial facilities in Silicon Valley. The properties — located at 1250-1252 Borregas Ave. in Sunnyvale and 161 E. Evelyn Ave. in Mountain View — offer a total of 60,000 square feet. At the time of financing, both assets were fully occupied. Murphy Osborne and Andrew Ferguson of Gantry’s San Francisco office secured the financing on behalf of the borrower, a private real estate investor. One of Gantry’s correspondent life company lenders provided the 10-year loan, which features 25-year amortization and prepayment options throughout the life of the loan.
ATLANTA — A partnership between locally based developer The Benoit Group and Atlanta Housing, the city’s housing authority, has secured financing for the development of Englewood Senior, a $72 million affordable seniors housing project. Located on Atlanta’s southeast side near Grant Park and Zoo Atlanta, the property is a component of Phase I of the Englewood Development Plan, a $200 million overhaul of the former 30-acre Englewood Manor public housing site. Funding for Englewood Senior includes federal and state equity tax credit investment by Raymond James and JP Morgan, a Sterling Bank construction loan, permanent HUD-insured loan financing from Berkadia, Atlanta BeltLine tax allocation district (TAD) funds and a secondary priority loan from Atlanta Housing. Englewood Senior will feature 160 units reserved for households age 62 and older with income restrictions set at 60 percent of area median income (AMI) and will include over $2.5 million in rental subsidies for low-income families using Home Flex vouchers provided by Atlanta Housing. Amenities at Englewood Senior will include outdoor courtyards, movie theaters, fitness centers, a community room, 213-space parking garage and 15,000 square feet of retail space. Other components of Phase I include a mixed-income midrise building comprising 160 affordable housing units, …
ALGONQUIN, ILL. — Cambridge Realty Capital Cos. has provided a $15.5 million HUD Lean loan for the refinancing of The Pointe at Eastgate in Algonquin. The assisted living facility is designed for residents age 65 and older who are transitioning from independent living to a more supportive environment. The property offers private apartments and a variety of services, including weekly housekeeping, optional laundry service, medication set-up and reminders, assistance as needed with personal care, grooming and bathing, plus transportation to medical appointments and group outings. Brent Holman-Gomez of Cambridge originated the 35-year loan on behalf of the borrower, an Illinois-based limited liability company.
GLENDALE, ARIZ. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale and financing of Hangar at Thunderbird, a multifamily community in Glendale. P.B. Bell sold the asset to Decron Properties for $69 million, or $259,398 per unit. Completed in 2023, Hangar at Thunderbird features 266 apartments with nine-foot ceilings, wood-style vinyl plank flooring, laundry closets with full-size washers and dryers, closets with build-in shelving, and patios or balconies with exterior storage. The garden-style, controlled-access community offers a swimming pool, spa, adjacent outdoor game patio and shaded community playground with evening lighting. Steve Gebing and Cliff David of IPA represented the seller and procured the buyer in the transaction. Brian Eisendrath, Cameron Chalfant and Jake Vitta of IPA Capital Markets arranged $40 million in acquisition financing.
MARINA, CALIF. — Interstate Equities Corp. (IEC) has finalized the recapitalization of The Gates at Marina, an apartment community in Marina. The deal gives a co-mingled fund advised by New York-based Clarion Partners a majority stake in the property, while IEC retains a minority equity position and will continue its onsite management. IEC acquired The Gates in January 2021 for $39.3 million, and the recapitalization values it at $45 million. Located at 299 Carmel Ave., The Gates at Marina offers 136 units in predominantly a mix of two- and three-bedroom units with balconies or patios, plus updated kitchens, bathrooms, flooring and appliances. Scott MacDonald and Jason Parr of Berkadia led the marketing efforts, while Hank Workman of Berkadia placed the debt.
SPARKS, NEV. — Berkadia has arranged $11.5 million in joint venture equity for Five Ridges, a townhome-style build-to-rent development in Sparks, just east of Reno. Leggera Development is the developer for the project. Situated on 6.1 acres at 545 Highland Ranch Parkway, Five Ridges features 83 three-bedroom/2.5-bath units ranging in size from 1,494 square feet to 1,969 square feet. The community is situated within a 422-acre master-planned community comprising 1,246 residential units across 10 villages, including single-family detached homes, townhomes, multifamily, commercial properties, and two community parks with 100 acres of open space and 10 acres of amenitized community gathering areas. Cody Kirkpatrick, Chinmay Bhatt and Noam Franklin of Berkadia JV Equity & Structured Capital, along with Jared Glover of Investment Sales at Berkadia Nevada, represented Leggera Development. Berkadia arranged the equity through a global investment manager.
SAN LUIS OBISPO, CALIF. — PSRS has arranged $1.4 million in refinancing for Palm Street Apartments, a multifamily asset in the Central Coast city of San Luis Obispo. Jonny Soleimani and Thomas Rudinsky of PSRS secured the seven-year loan through a bank. Situated on 0.33 acres, Palm Street Apartments offers 11 apartments and on-site parking.
PHILADELPHIA — Los Angeles-based Thorofare Capital has provided a $13 million loan for the refinancing of a portfolio of five industrial buildings totaling 118,509 square feet in Philadelphia. Four of the buildings are contiguous, and the fifth is located less than a mile down the street. David Perlman, Edward Prosser, Henry Johnson and Chris DeLuca of Thorofare Capital originated the loan on behalf of the borrower, New York City-based investment firm Thor Equities Group.