SAN DIEGO — Northmarq has arranged a $51.2 million loan for Rose Canyon Business Park, a 232,863-square-foot industrial asset in San Diego. Built in 1976, the multi-tenant industrial park is located at 4901-4907 Morena Blvd., just north of downtown San Diego. Northmarq arranged the two-year loan, which features extension options, through its relationship with an undisclosed bridge lender. The floating-rate loan enables the unnamed sponsor to carry out its value-add business plan over the next three years at Rose Canyon Business Park.
AURORA, COLO. — Bellwether Enterprise (BWE) has secured $43.1 million to fund the new construction of 15 Sable Apartments, an affordable housing community in Aurora. Developed by DBG Properties and Featherstone Development, the community will be a four-story apartment complex situated on a walkable, transit-oriented site. BWE provided tax-exempt and taxable loans through its BWE Private Placement platform. The loan features an 18-year term with 40-year amortization schedule, and interest-only payments for the first six years from closing. Anthea Martin in BWE’s Denver office originated the loan through a private placement on behalf of the borrowers. The project was made possible through the support of the City of Aurora; a property tax abatement partnership with Aurora Housing Authority; a private activity bond allocation from Colorado Housing and Finance Authority; a subordinate loan from Colorado Department of Local Affairs Division of Housing; a tax credit equity investment from Arizona-based Affordable Housing Partners; and a sale of property by the Regional Transportation District.
COLORADO SPRINGS, COLO. — Chartwell Hospitality has sold the 119-room Home2 Suites by Hilton hotel in Colorado Springs for $29 million. The buyer was ARA US Hospitality Trust. The hotel is situated at the foothills of the Rocky Mountains near the Fort Carson military base and the Broadmoor Convention Center and Resort. The pet-friendly hotel features a 24-hour business center, meeting space, indoor heated pool and a combined fitness and laundry center.
SAN JOSE, CALIF. — Mag Mile Capital has arranged a $20 million cash-out senior mortgage in connection with the financing of a light industrial flex property located at 355 E. Trimble Road in San Jose. The 96,780-square-foot property is owned by 355 Trimble Owner, an entity affiliated with Chicago-based Highlands REIT, which has owned the property debt-free since acquiring it as part of a spinoff in 2016. Highlands and global tech hardware manufacturer Veeco executed a 16-year lease at the research-and-development property in January 2021, which included one year of rent abatement to complete a substantial tenant buildout.
RIALTO, CALIF. — CBRE has brokered the $6.8 million sale of Jackson Apartments, a 41-unit apartment community located at 205-242 W. Jackson St. in Rialto. Cray Carlson of CBRE represented both the buyer and seller in the transaction. Both parties requested anonymity. Built in 1971, Jackson Apartments is situated west of San Bernadino and near several employment centers, including distribution centers for Staples, Under Armour and Target, according to Apartments.com.
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Tax-Efficient Investment Strategies Open New Opportunities Despite High Interest Rates
The recent Silicon Valley Bank and Signature Bank collapses — and the takeover of First Republic Bank — have revived regulatory scrutiny on bank risk to a degree that is reminiscent of the financial crisis 15 years ago. Suddenly, it seems, everyone is concerned about the trillions of dollars in commercial real estate debt held at banks — and regional and community banks in particular — and whether it can be refinanced at higher interest rates as it matures over the next couple of years. The same holds for hundreds of billions of dollars of commercial mortgage-backed securities. The conditions are exacerbating a pullback in credit that started last year, which, along with the elevated interest rate environment, has depressed commercial real estate investment sales. In February, property sales dropped 51 percent, from $54.9 billion to $26.9 billion from a year earlier, according to MSCI Real Assets. Taken together, the wall of maturities, higher interest rates, bank collapses and a slumping economy have largely spooked the investment market, suggests Spencer Lund, chief investment officer with NAI Legacy in Minneapolis, Minn. (which also serves Chicago, Denver and Scottsdale, Ariz.) Still, it’s also the type of environment that breeds opportunity as prices …
WESTMINSTER, CALIF. — Shopoff Realty Investments has released plans to redevelop the Westminster Mall into a 26-acre mixed-use property. Located in the Orange County city of Westminster, the project will include housing, walkable green spaces, dining, retail and a hotel in place of the old Sears and Macy’s stores. Shopoff plans to break ground on the new project, named Bolsa Pacific at Westminster, in 2025. The entire transformation is set to include more than 1,000 apartments across three buildings; 100 for-sale townhomes; a 175-room hotel; 25,000 square feet of retail stores; a food hall; and 2.5 acres of green space, including an amphitheater, dog park, pickleball courts and food kiosks.
PHOENIX — Blackstone and Dominium have expanded their partnership to develop Casa Azure, which will bring 196 new affordable housing units to Phoenix. Blackstone will provide $31 million of tax credit equity to support the development. This increases Blackstone’s commitment to expand the affordable housing stock in Maricopa County to a total of 568 new LIHTC units through $79 million of investments. Casa Azure will be an age-restricted property available to those earning at or below 60 percent of the area median income.
LOS ANGELES — Matthews Real Estate Investment Services has brokered the $20.1 million sale of a portfolio comprising 12 single-tenant retail properties. Located largely in California and Washington, Napa Auto Parts occupies all the properties on a net-lease basis. Brandon Perez and Bill Pedersen of Los Angeles-based Matthews arranged the sale on behalf of the undisclosed limited liability company. A publicly traded REIT purchased the portfolio.
MOORPARK, CALIF. — Danco has purchased an 18-acre development site in the Ventura County city of Moorpark, with plans for a 200-unit affordable multifamily project. The proposed development, known as Vendra Gardens, will feature 80 one-bedroom/one-bathroom units, 68 two-bedroom/two-bathroom units, and 52 three-bedroom/two-bathroom units. It will also include a 2,500-square-foot leasing building and a 2,500-square-foot amenity building. Danco received funding for the project through tax credits by the California Debt Limit Allocation Committee and a grading permit has been issued. The units will be available for those who earn 30 to 60 percent of the area median income (AMI), which will account for 65 percent of the total project. Lee & Associates-LA North/Ventura’s Matt Benwitt and J.C. Martin facilitated the land sale on behalf of the buyer. The seller was Essex Property Trust.