NEW YORK CITY — Madison Realty Capital (MRC) has provided $19 million in debtor-in-possession (DIP) funding for a residential conversion project in Midtown South. The DIP funding prevented a forced sale through the Chapter 11 Bankruptcy process and will enable the borrower to retain control of the property. Located at 11 East 36th St. and built in 1912, the 14-story, 68,727-square-foot property was originally an office building. The borrower is redeveloping the asset as a 66-unit residential condominium building with two ground-floor retail condominium units and 5,320 square feet of second-floor office space. MRC completed the DIP funding within a short timeframe to avoid the property being sold at bankruptcy auction. Proceeds of the first mortgage loan from MRC will be used to retire previous debt, simplifying the capital stack and permitting the borrower to proceed with the sellout of residential condominium units through the bankruptcy process.
Multifamily
NEWARK, N.J. — Teaneck, N.J.-based The Aspen Companies has acquired a HUD-supported apartment building in downtown Newark for $3 million. Located at 75 Lock St., the three-story property features 50 units with a mix one-, two- and three-bedroom layouts. The buyer plans to implement an aggressive capital improvement program to the property, including upgrading common areas, hallways and the exterior, improving building systems and renovating apartments. The property is located adjacent to the New Jersey Institute of Technology and near the New Jersey Performing Arts Center. The apartment building was 100 percent occupied at the time of sale.
MOUNT PROSPECT, ILL. — Cushman & Wakefield has brokered the $16.2 million sale of Timberlake Apartments, a 222-unit property located at 1450 Busse Road in Mount Prospect, approximately 24 miles northwest of Chicago. The value-add property consists of 16 buildings on a 12.8-acre campus with a rentable area of 169,538 square feet. Timberlake was 97 percent occupied at the time of sale and consists of a unit mix of one- and two-bedroom apartments. Bill Montana and Chris Sackley of Cushman & Wakefield represented the seller, a private partnership. An out-of-state investor seeking to increase its presence in suburban Chicago purchased the property.
DENVER – A 41-unit apartment building in Denver has sold to 2920 W 32nd LLC for $4.1 million. The community is located at 2920 West 32nd Ave. It was built in 1963. The LLC plans to renovate the property to capitalize on the strong rental market in central Denver. It was represented by Jim Knowlton of Pinnacle Real Estate Advisors. The seller, RHSW LLC, was represented by the Calame Lewallen Team of the same firm.
TACOMA, WASH. – The 35-unit Hannah Heights condominium development in Tacoma has sold to Pathfinder Partners LLC for an undisclosed sum. The building is located at 415 6th Ave. in the city’s downtown area. It was built in 2007 and is fully leased. Hannah Heights will continue to operate as a rental community for the immediate future while Pathfinder completes several common-area improvements. The company acquired the property through a court-appointed receivership sale from a regional bank.
PLANO, TEXAS — Dougherty Mortgage has arranged a $1.9 million Fannie Mae loan on behalf of DP Group LLC for the refinancing of Collin Park Apartments, a 60-unit multifamily property in Plano. The 10-year loan includes a 30-year amortization schedule.
DALLAS — Marcus & Millichap has arranged the sale of Villas Del Rey, a 141-unit apartment complex in Dallas. Bard Hoover and Nick Fluellen with Marcus & Millichap’s Dallas office marketed the property on behalf of the seller, a limited liability company. Joshua Luchs and Joshua Ross with Marcus & Millichap’s Encino office represented the buyer, an individual/personal trust. Brian Adams with Marcus & Millichap’s Dallas office arranged financing. Villas Del Rey is located at 8117 Barclay Street just off Buckner Boulevard and 10 miles east of downtown Dallas. The asset was built in 1970 and was renovated in 2003.
DOYLESTOWN, PA. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $25.6 million loan for the acquisition of a high-rise residential building in Doylestown. The buyer plans to continue to convert the building from a seniors housing to market-rate multifamily units. Additionally, the new owner plans to streamline operations and enhance the property with additional apartments and more community amenities. John Banas and Kristopher Wood of MMCC’s Philadelphia office arranged the 10-year loan, which features a 4.1 percent fixed rate, an 80 percent loan-to-value ratio and a 30-year amortization schedule.
EAGAN, MINN. — Dougherty Mortgage LLC has arranged an $11.7 million HUD 223(f) loan to refinance Cedar Villas Townhomes, a 104-unit, mixed-income townhouse property located in Eagan, Minn. Dougherty’s Minneapolis office arranged the 35-year, fully amortizing loan for the borrower, Cedar Villas LP. Built in 2004, the property consists of 18 residential buildings with 60 two-bedroom units and 44 three-bedroom units. The Section 8 project requires that at least 20 percent of the units accommodate residents whose income does not exceed 50 percent of the area median income. The townhomes include attached garages and feature washers and dryers, fireplaces, patios or balconies, vaulted ceilings, dishwashers and more. Amenities include an outdoor pool, a playground, community room and a fitness center.
HOUSTON — JLL Capital Markets has brokered the sale-leaseback of a 20,600-square-foot acute care rehabilitation center in Houston. Capital Square Acquisitions LLC bought the building for an undisclosed amount from Mentis Houston RE LLC, which will lease the property through April 2029. Rudy Hubbard, Kevin McConn and Rick Goings of JLL led the sales team. The acute rehabilitation center was built in 2008 and underwent an expansion in 2011 and 2012. The property is located near the Texas Medical Center