GLENDALE, ARIZ. — Ready Capital has closed $29.4 million in financing for the acquisition and renovation of a 208-unit, Class B apartment property in Glendale. Upon acquisition, the undisclosed borrower will perform capital improvements to the unit interiors and property exteriors. Ready Capital closed the non-recourse, interest-only, floating-rate loan, which features a 36-month term, two extension options and a facility to provide future funding for capital expenditures.
NEW YORK CITY — Private equity firm Sycamore Partners Management has acquired Ste. Michelle Wine Estates for $1.2 billion. The transaction is the largest private equity purchase of a wine business in the U.S., according to Bank of the West, which led financing for the acquisition. Altria Group Inc. was the seller, according to reports by Bloomberg. Ste. Michelle Wine Estates is the third-largest premium winery in the U.S. with over 30,000 acres of vineyards spread across three states. Some of the company’s popular brands include Chateau Ste. Michelle, 14 Hands, Patz & Hall, Northstar, Erath and Stags Leap. Chateau Ste. Michelle is one of the largest brands in the Pacific Northwest, located roughly 18 miles northeast of Seattle in Woodinville, Wash. The winery — which produces 60 percent of Washington’s annual wine sales — also owns 3,900 acres of vineyards in the Columbia Valley of Eastern Washington, including Canoe Ridge Estate and Cold Creek. New York City-based Sycamore Partners specializes in consumer, distribution and retail-related investments. The firm has approximately $10 billion in aggregate committed capital. Bank of the West, headquartered in San Francisco, is one of the largest commercial lenders to the wine industry in the U.S. —Katie Sloan
OXNARD, CALIF. — CGI+ Real Estate Strategies has acquired Alturas, a multifamily property located in Oxnard, for $50.7 million in an off-market transaction. The company plans to rebrand the 170-unit community as Via Oxnard. Built in 1965, the property features one-, two- and three-bedroom units with 76 percent being two-story townhomes. CGI+ plans to upgrade and renovated the non-renovated units and common areas. Greg Harris, Joe Grabiec and Kevin Green of Institutional Property Advisors, a division of Marcus & Millichap, represented the undisclosed seller and buyer in the deal.
NORTH LAS VEGAS, NEV. — New York-based Tapestry Inc. has broken ground on North Las Vegas Fulfillment Center, an industrial property in North Las Vegas. Slated for completion in 2022, North Las Vegas Fulfillment Center will feature 788,000 square feet of distribution space. Serving retailers Coach and Kate Spade, the facility is designed to distribute an annual 22.2 million units and hold 4 million units in inventory for both retail and e-commerce. The project team includes Clarion Partners, Seefried Industrial Properties and JLL’s Kris Smith, Rob Lujan and Louis Tomaselli. Tapestry is a New York-based house of modern luxury accessories and lifestyle brands including Coach, Kate Spade New York and Stuart Weitzman.
BOISE, IDAHO — Newport Beach, Calif.-based RanchHarbor has purchased Glenbrook Apartments, a multifamily community at 563 S. Curtis Road in Boise. A private seller sold the asset for an undisclosed price in an off-market transaction. Built in 1973 and lightly renovated in 2017, Glenbrook features 112 apartments in a mix of one- and two-bedroom units. At the time of sale, the property was 92 percent occupied. RanchHarbor plans to perform deferred maintenance and an extensive exterior renovation program on the property. The renovation plan includes paint, new laundry rooms, installation of a dog park and wash station, package locker system, bike racks, barbecue areas and a new playground, as well as updating the pool area and clubhouse. The company also plans to replace windows in all units, add carports and update the unit interiors. Jake Miles of Marcus & Millichap represented the buyer and seller in the deal.
SEATTLE — Ready Capital has closed $14.9 million in acquisition, renovation and lease-up financing for a two-property, 100-unit multifamily portfolio in Seattle. Upon acquisition, the undisclosed borrower will implement a capital improvement plan to renovate unit interiors, cure deferred maintenance and upgrade common areas. Ready Capital closed the non-recourse, interest-only, floating-rate loan, which features a 36-month term, two extension options, flexible prepayment and a facility to provide future funding for capital expenditures.
SAN DIEGO AND BALTIMORE — Realty Income Corp. (NYSE: O) has completed the spin-off of substantially all of its office assets into Orion Office REIT Inc. (NYSE: ONL), a new, independent, publicly traded REIT. Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the United States. The portfolio is leased primarily on a single-tenant, net-lease basis to creditworthy tenants. Under the terms of the spin-off, Realty Income stockholders received one share of Orion common stock for every 10 shares of Realty Income common stock held as of the record date of Nov. 2, 2021. Wells Fargo Securities served as lead financial advisor, Moelis & Co. served as financial advisor and Latham & Watkins LLP acted as legal advisor to Realty Income in connection with the spin-off. Realty Income is based in San Diego, while the spin-off, according to SEC filings, is based in Baltimore.
AURORA, COLO. — Prime West has received $90.4 million in combined joint venture equity and construction financing for Claro at High Point, an apartment community located within an Opportunity Zone in Aurora. JLL Capital Markets worked on behalf of the developer and borrower to arrange Opportunity Zone joint venture equity through Bridge Investment Group Holdings, along with securing construction financing from a national bank. Leon McBroom, Mark Erland and Will Haass of JLL Capital Markets Debt Advisory team represented the developer in the financing and equity transaction. Situated within the High Point master-planned community, Claro at High Point will feature 365 apartments in a mix of one-, two- and three-bedroom floor plans with balconies or patios, central air conditioning, full-sized washers/dryers, kitchen islands and dishwashers. On-site amenities include a pool and spa with cabanas, co-working area, clubhouse, controlled entry, fitness center, off-leash dog park, dog wash and a bike repair and ski tune shop. RATIO Architects is serving as project architect and Catamount Constructors is serving as general contractor for the project. Completion is slated for summer 2023.
PASADENA, CALIF. — SummerHill Apartment Communities has completed the disposition of Theo Pasadena, a multifamily property in Pasadena. Waterford Property Co. acquired the asset for $67 million, or $638,095 per unit. Built in 2020, Theo Pasadena features 105 apartments, a central courtyard with a swimming pool, fitness center, cyber lounge, co-working space, and a rooftop dog park. Apartments offer oversized, dual-pane windows, UBS charging outlets and private balconies or patios. Kevin Green, Greg Harris and Joseph Grabiec of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer in the transaction.
LA JOLLA, CALIF. — JLL Capital Markets has arranged a $15 million refinancing for Monarch Cottages, a 26-unit, 52-bed, two-story, Class A memory care community in the San Diego suburb of La Jolla. JLL represented the borrower, Monarch Senior Living, in arranging the loan. Remodeled in 2016, Monarch Cottages comprises five companion studio and 21 private studio units averaging 370 square feet. Within a three-mile radius, the 75-plus population is over 6,500 and is expected to grow by 13.5 percent over the next five years. Additionally, the property’s surrounding area is extremely affluent, with a median housing value within a one-mile radius of $1.9 million and a median household income of $200,001. Alanna Ellis and Bercut Smith led the JLL Capital Markets debt team that represented the borrower.