Quantum, Green Park hand Westdale a fat wad of money
A strategic partnership between Dallas-based Quantum First Capital and Bethesda, Md.-based Green Park Financial has closed $212 million in loans to aid Dallas-based Westdale Asset Management Ltd.'s purchase of 19 apartment communities from Glenborough Realty Trust, which is based in San Mateo, Calif. The fixed-rate loans were provided through Washington, D.C.-based Fannie Mae's Delegated and Underwriting System (DUS). The properties, which are located in Texas, Georgia and Arizona, contain a total of 5,742 units.
The loans are cross-collaterized, which means that “if one is default, they all are in default,” said Stuart Wernick, president of Quantum. The financing provides the new debt required to complete Westdale's $400 million purchase of Glenborough's multifamily portfolio, which consists of 37 properties nationwide.
Eastern Consolidated peddles Manhattan apartment tower
New York-based Eastern Consolidated Properties Inc. has arranged the $28.5 million, all-cash sale of 585 West End Avenue, a 16-story, 129-unit apartment building on Manhattan's Upper West Side. The seller, represented by Eastern, was the Azaria family, which owned the property for more than 45 years. 585 West End Avenue Realty LLC was the buyer, represented by Ike Kaplowitz of Westchester, N.Y. Terms of the transaction were not disclosed. The tower was built in the 1920s and features a large lobby. Units located on the higher floors have views of the Hudson River.
In other Northeast news, Irving, Texas-based JPI has begun construction on Jefferson at Aberdeen Station, a 290-unit apartment complex in Aberdeen, N.J. The complex will open in October 2001, while completion of the entire facility is slated for September 2002. The apartments will range in size from 767 sq. ft. to 1,297 sq. ft., while rents will vary from $1,250 to $2,300 per month.
Malone Mortgage helps GEAC rope in Texas nursing homes
Dallas-based Malone Mortgage Co. has financed Minneapolis-based Governmental & Educational Assistance Corp.'s (GEAC) purchase of five Texas nursing homes by providing a total of $28 million in tax-exempt bond financing. Houston-based Century Care Inc. was the seller.
Malone Mortgage provided the financing through the U.S. Dept. of Housing and Urban Development's (HUD) 232/223F Multifamily Accelerated Processing (MAP) program. The loan-to-value for each of the five properties is 100%. Steve Mentesana, commercial loan originator for Malone, arranged the transactions.
Lynnhaven Nursing Center, a 183-bed facility in Corpus Christi, Texas, was the most expensive of the properties and was purchased for $8.5 million. The loan carries a 28-year term. Ebony Lake Healthcare Center, a 122-bed facility in Brownsville, Texas, was purchased for $6.6 million. The loan carries a 31-year term.
“It is a rare situation that this many like properties can be financed and purchased in a single loan transaction,” said Bernard P. “Bud” Malone, president of Malone Mortgage, in a statement. “A funding program of this magnitude takes a great deal of planning and cooperation. It is a tribute to both buyer and seller and HUD that it reached a successful completion.”
AMLI is busy in Chicago, Houston and Denver
In a joint venture with the European pension fund BPMT, Chicago-based AMLI Residential Properties Trust has purchased Osprey Lakes, a 483-unit apartment complex in Gurnee, Ill., a northern suburb of Chicago. The complex has been renamed AMLI at Osprey Lake.
AMLI and BPMT contributed 70% and 30% of the equity capital, respectively, while the New York State Teachers Retirement System (NYSTRS) provided permanent loan financing for the purchase. The interest rate on the 10-year loan is 7.02% and will amortize over a 30-year schedule. AMLI at Osprey Lake is the third complex purchased by AMLI's and BPMT's second co-investment program.
Built in two phases in 1997 and 1999, AMLI at Osprey Lake features 682,942 sq. ft. in 22 three- and four-story apartment buildings. The average size of the units is 941 sq. ft.
In other AMLI news, the company has formed a joint venture with the New York State Common Retirement Fund to develop and own AMLI at King's Harbor, a 300-unit complex in Houston. The project will be funded without debt, and the retirement fund and AMLI will contribute 75% and 25% of the equity, respectively.
Total development cost of King's Harbor will be approximately $20 million. Occupancy will begin in first-quarter 2001, while completion of the entire project is slated for fourth-quarter 2001.
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AMLI has also purchased AMLI at Gateway Park, formerly Legacy Gateway Park, a 328-unit luxury apartment complex in Denver. The complex, construction of which was completed earlier this year, is AMLI's second Denver community. The company entered the market at the end of 2000 with its purchase of AMLI at Lowry Estates.
California sees a series of winter deals
In sunny California, Addison, Texas-based Walden has sold Park Bonita Apartments, a 184-unit apartment complex in Bonita to San Mateo, Calif.-based G.W. Williams Co. for $19.5 million. The property was built in 1986. Meanwhile, Chicago-based Corus Bank has closed a $17.2 million construction loan for The Crossings at Otay Ranch, a 168-unit, Class-A apartment complex that will be located in south suburban San Diego.