PORTLAND, ORE. — Ready Capital has closed $7.7 million in financing for the recapitalization, renovation and lease-up of an industrial and office portfolio located in the Lloyd District submarket of Portland. The sponsor will use loan proceeds to recapitalize funds and repurpose the older industrial buildings into a combination of Class B creative office, commercial kitchen and industrial office space. Ready Capital closed the non-recourse, floating-rate loan that features a 36-month term, two extension options, flexible pre-payment and a facility to provide future funding for capital expenditures, tenant leasing costs and interest and carry shortfalls.
Affordable HousingFinance InsightMidwestMultifamilyNortheastSoutheastTexasThought LeadershipVideoWestern
Berkadia: Affordable housing concerns require local solutions
David Leopold, Senior Vice President and Head of Affordable Housing at Berkadia, speaks with reporter Nellie Day about the ever-growing need for affordable housing and the challenges of meeting increasing demand. As Leopold discusses the differences between subsidized affordable housing and “organic,” workforce housing that is not driven by subsidies, he looks at the short- and long-term impacts of each approach. “Like all real estate, affordable housing challenges are very local. And the solutions to affordable housing are also local,” Leopold says. Developers have different tools available to them depending on where they are doing deals. Watch the video to hear more from Leopold about the challenges of affordable housing and how Berkadia is helping to tackle the issue. This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week newsletter series, followed by video interviews from MBA CREF.
Finance InsightMidwestMultifamilyNortheastSoutheastTexasThought LeadershipVideoWalker & DunlopWestern
What Does Walker & Dunlop’s New Venture Mean for Multifamily Lending?
Walker & Dunlop has entered into a joint venture with commercial real estate data science company GeoPhy to optimize the multifamily valuation process. The new appraisal company is called Apprise, and its goal is a five-day appraisal to accelerate the delivery of capital to real estate operators, Walker & Dunlop’s clients among them. Brad Savage, MAI, CCIM, Chief Product Officer of Apprise, discusses the marriage of data and human expertise in Apprise’s approach to commercial valuation. Apprise’s proprietary platform acts as a co-pilot for its appraisers, making sense of complex datasets and streamlining manual processes. By producing more credible reports in less time, Apprise allows clients to make quicker, more informed investment decisions. Watch the interview to learn how the program works and what it means for the industry.
EL SEGUNDO, CALIF. — JLL has arranged the sale of an office campus located at 1960 E. Grand Ave. in El Segundo. Terms of the transaction, including the name of the seller, buyer and acquisition price, were not released. Totaling 5.4 acres, the two-parcel property features a 12-story, 260,000-square-foot office building plus development potential to build up to 94,000 square feet of creative office or hotel space. The building features 21,500-square-foot floor plates, parking for 926 vehicles, a fitness deck, communal outdoor workspace and a plaza. At the time of sale, the property was 79 percent leased. Tom Bohlinger, Andrew Harper and Will Poulsen of JLL represented the seller and procured the buyer in the transaction.
LOS ANGELES — Vista Investment Group has closed on the first two properties in a $50 million portfolio acquisition of four Los Angeles-area, rent-controlled multifamily communities totaling 167 units. The company acquired Park Winona, a three-story building located at 1840 Winona Blvd. in Hollywood. Built in 1963, the property features 50 apartments in a mix of studio, one- and two-bedroom layouts. Vista plans to implement a capital improvement program that includes upgrading apartment interiors with high-end finishes and renovating common areas and amenities. Tony Azzi of Marcus & Millichap represented the undisclosed seller in the deal. Vista also purchased Leeward Apartments, a three-story building located at 2810 Leeward Ave. in Koreatown. Built in 1923, the 19,776-square-foot property features mostly studio apartments, as well as a limited number of one-bedroom units. Bryan Glenn of Kidder Mathews represented the buyer and undisclosed seller in the transaction.
LAS VEGAS — LaPour Cos. and G2 Capital Development, both based in Las Vegas, have broken ground on Narrative, a Class A office building located in Las Vegas. Situated in the southwest portion of the valley near the 215 Beltway and South Durango, Narrative will feature 100,184 square feet of office space in a four-story building. Slated for completion in fourth-quarter 2020, the development is the first of its kind in the area since the recession, according to the developers. Upon completion, Narrative will become the headquarters of Colliers International | Las Vegas.
GLENDALE, CALIF. — Ready Capital has closed $23 million in refinancing for a creative office portfolio in Glendale, a suburb of Los Angeles. The undisclosed sponsor will use loan proceeds to pay off existing debt and acquire additional properties at the 59,000-square-foot property, which consists of 12 industrial/flex buildings that are or will be redeveloped into creative office space. Ready Capital closed the non-recourse, floating-rate loan that features a 36-month term, two extension options, flexible pre-payment. The financing includes a facility to provide future funding for capital expenditures, tenant leasing costs and interest/operating reserves.
PHOENIX — Orion Investment Real Estate has arranged the purchase of Encanto Village, a shopping center located at the corner of 15th Avenue and Thomas Road in Phoenix. A Phoenix-based private investor sold the asset to Arizona Partners for $2.3 million. Built in 1951, The Original Hamburger Works has anchored the 20,000-square-foot shopping plaza since 1967. The buyer plans to renovate the plaza and stabilize the rent roll. Andrew Harrison, Ari Spiro and Sean Stutzman of Orion Investment Real Estate represented the buyer in the deal.
CARLSBAD, CALIF. — Commercial real estate investors, brokers and lenders are expecting a surge of activity in the first half of 2020, according to the 2020 RCM LightBox Investor Sentiment Report. Participants of the survey noted the intersection of strong market fundamentals, ample investor capital and the potential for increasing headwinds generated by a slowing economy, the impending presidential election and other factors. The report is sponsored by RCM Lightbox, a commercial real estate online marketplace and database facilitating commercial real estate transactions. Incorporating views from more than 275 investors, brokers, lenders and economists, the report found that nearly 70 percent of participants believe 2020 investment activity will be the same or higher than in 2019. Almost 80 percent believe 2020 sale prices also will be the same or higher as well. “In the first half of the year, capital will rush to put money to work ahead of the election and before the Fed changes its mind on interest rates,” says K.C. Conway, chief economist of the CCIM Institute and director of research and corporate engagement at the Alabama Center of Real Estate (ACRE). “The wind is at your back for the first six months.” Presidential election will create …
CAMARILLO, CALIF. — STAG Industrial has completed the disposition of two freestanding industrial buildings in Camarillo for $88 million. An undisclosed Southern California-based real estate investment and development company acquired the assets. John DeGrinis, Patrick DuRoss and Jeff Abraham of Newmark Knight Frank represented the seller, while DeGrinis, DuRoss, Abraham, Kevin Shannon, Jim Linn, Bret Hardy and Andrew Briner, also of NKF, represented the buyer in the transaction. Located at 3001 Mission Oaks Blvd., the 308,780-square-foot asset features 28- to 30-foot clearances, 23 dock-high positions with the potential for 15 additional doors, a 14,540-square-foot office space, ESFR sprinklers and ample parking. The second property is a 425,039-square-foot building located at 3175 Mission Oaks Blvd. that features 30- to 35-foot clear heights, 31 dock-high loading doors, 19,680 square feet of office space, ESFR sprinklers and parking.