CLEVELAND — Berkadia has arranged a $72.9 million loan for the refinancing of The Beacon in Cleveland. Located at 515 Euclid Ave., the high-rise multifamily property features one- and two-bedroom units. Amenities include a pool, fitness center, rooftop sky lounge, dog park and onsite restaurants. Mark Vogel and Dan Geuther of Berkadia arranged the loan on behalf of the borrower, Ohio-based Stark Enterprises. Global investment firm KKR provided the seven-year loan, which features a 4 percent interest rate and a 65 percent loan-to-value ratio.
AcquisitionsCaliforniaContent PartnerDevelopmentFeaturesIndustrialLee & AssociatesLoansWesternWestern Feature Archive
Growing Southern California Industrial Demand Creates Shifts in Strategy, Outlook
Industrial real estate in Southern California has become what one might conservatively call a “fast-paced atmosphere.” The presence of multiple offers, sellers pushing up values and buyers continuing to chase deals have made for constantly increasing values and activity. Christopher J. Destino, SIOR, principal at Lee & Associates, spoke to REBusinessOnline about making strategic decisions in this unusual environment. REBusiness: What is the forecast for demand in industrial properties in Southern California? Destino: The future of demand in the area is very strong, with developers seeking new sites aggressively and underwriting steady future rent growth over the next couple of years. A lot of that is driven by e-commerce, and there’s still so much room to grow in the e-commerce world. E-commerce accounted for approximately 13.6 percent of retail sales in the first quarter of 2021 (a number that is steadily increasing). There is still a lot of room for that percent to increase, and that’s what is driving most industrial demand. REBusiness: What are the types of tenants have the most demand for space right now? Destino: The big three are distribution companies, contractors and service-type industries. There is a still a small manufacturing base, but those are the …
UNIVERSAL CITY, TEXAS — Lument has provided an $18.6 million Fannie Mae loan for the refinancing of Meadows Apartments, a 216-unit affordable housing property in Universal City, a northeastern suburb of San Antonio. All units at the property, which was built in 1972, are reserved for renters earning 80 percent or less of the area median income (AMI). Marc Suarez of Lument originated the loan through Fannie Mae’s Green Rewards program on behalf of the sponsor, locally based multifamily development and investment firm Lynd Co.
WICHITA FALLS, TEXAS — Red Oak Financial, a Michigan-based lender, has provided an $8.1 million acquisition loan for a 473,000-square-foot industrial building in Wichita Falls, about 140 miles northwest of Dallas. The rail-served property sits on 97 acres and consists of two buildings totaling 350,000 and 123,000 square feet. Combined, the buildings offer 20,000 square feet of office space, as well as 45-foot clear heights, 12 dock doors and 621 parking spaces. The borrower, an affiliate of Panda Biotech, plans to implement a $47 million renovation program.
NEW YORK CITY — New York City-based Paramount Group Inc. (NYSE: PGRE) has received an $860 million loan for the refinancing of 1301 Avenue of the Americas, a 1.7 million-square-foot office building in Midtown Manhattan. An undisclosed lender provided the five-year, interest-only loan. Designed by Skidmore, Owings & Merrill, the 45-story tower is located between West 52nd and 53rd streets and provides lower-level access to Rockefeller Center. In addition, the property, which was 71.5 percent leased at the time of the loan closing, features 30,000 square feet of retail space. According to Wikipedia, Uris Buildings Corp. originally developed 1301 Avenue of the Americas in 1964. J.C. Penney purchased the building in 1977 to serve as its new headquarters, only to relocate to the Dallas area 11 years later.
CHICAGO — Chicago-based Ziegler has arranged $85.5 million in bond financing for a trio of senior living properties in New England. The properties include the 147-bed Quaboag Rehabilitation and Skilled Care Center in West Brookfield, Mass.; the 150-bed Lutheran Rehabilitation and Skilled Nursing Center in Worcester, Mass.; and the 120-bed Lutheran Home of Southbury (LHS) in Southbury, Conn. The borrower was Ascentria Care Alliance, a Worcester-based skilled nursing operator. Proceeds of the bonds issued through the National Finance Authority will be used to acquire the real estate assets of LHS, fund various capital expenditures across the LHS campus, fund a debt service reserve fund and pay costs of issuance associated with the financing. Proceeds of bonds issued through the Massachusetts Development Finance Agency will be used by Ascentria to acquire the Brookfield and Worcester locations, refinance existing debt obligations in connection with the acquisition and fund improvements to the properties.
CARMEL, IND. — Lument has provided a $50.4 million Freddie Mac loan for the acquisition of Gramercy Apartments, a 436-unit apartment community in the Indianapolis suburb of Carmel. The seller purchased the property in 2004 and completed a $19.7 million renovation in 2016. The new owner plans to complete more than $5 million in additional renovations. Gramercy was originally built in 1967 and consists of 34 two-story buildings. Amenities include a fitness center, pool, sports court, dog parks and playgrounds. Occupancy has averaged 94 percent since March 2020. Xavier Salinas of Lument originated the 10-year loan, which features three years of interest-only payments, an adjustable interest rate and a 30-year amortization schedule. The buyer and seller were not disclosed.
SEATTLE — Cushman & Wakefield has arranged a $113 million construction loan for Skyglass Tower, a 29-story multifamily project located at 222 Dexter Ave. N. in Seattle’s South Lake Union submarket. The total project cost is $196 million, according to the borrower and developer, Gemdale USA Corp. The location puts the building within close proximity of several of Seattle’s largest employers, including tech giants Amazon, Google and Facebook. South Lake Union is also located in the heart of the city’s life sciences hub, according to Cushman & Wakefield. Skyglass Tower will consist of 338 apartments in various floor plans, 2,260 square feet of ground-floor retail space and 128 underground parking spaces. The building will also feature an expansive amenity package and unobstructed water views. Hewitt Architects is designing the project, with completion slated for October 2023. Insurance giant AIG provided the loan to Gemdale, a national development firm based in the Los Angeles area. Dave Karson, Chris Moyer and Keith Padien of Cushman & Wakefield arranged the debt. “Seattle is benefiting greatly from regional job creation, and South Lake Union is still a prime location for new developments,” says Karson. “Strong developers like Gemdale are getting great attention from debt …
DAVENPORT, FLA. — Berkadia has secured $43.2 million in acquisition financing for Legends at ChampionsGate, a 252-unit multifamily community located outside of Orlando. Mitch Sinberg and Matthew Robbins of Berkadia secured the financing on behalf of Taurus Investment Holdings, which acquired the property for $53.8 million from an undisclosed seller. The three-year, floating-rate, interest-only loan was underwritten at a 75 percent loan-to-cost ratio and inclues additional funds to finance capital improvements. Located at 8101 Champions Circle, Legends at ChampionsGate was built in 2002 and includes one-, two- and three-bedroom floor plans. The units include built-in shelving, digital thermostats, hardwood style flooring, walk-in closets and private balconies. Community amenities include a swimming pool, fitness center, playground, business center and yoga room. Situated 26.5 miles south of downtown Orlando, the community is approximately 7.2 miles from Interstate 4.
RED BANK, N.J. — JLL has arranged an $11.4 million loan for the refinancing of two office buildings totaling 79,022 square feet in the Northern New Jersey community of Red Bank. The first building at 310 Highway 35 South was completed in 2002, spans 40,705 square feet and was fully leased to financial services firm Markel Service Inc., a holding company for insurance, reinsurance and investment operations at the time of the loan closing. The second building at 322 Highway 35 South was built in 2007, totals 38,317 square feet and was 90 percent leased to five tenants at closing. Michael Klein, Jon Mikula and Carlos Silva of JLL arranged the seven-year, fixed-rate loan through Tristate Capital Bank on behalf of the borrower, locally based investment firm Denholtz Properties.