ARES Secures $263M Refi for 6 Properties in SoCal
The portfolio includes 1,255 units
By Greg Cornfield August 13, 2021 11:27 am
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Multifamily investment continues to flow in Southern California.
Advanced Real Estate Services (ARES) has secured $263 million to refinance six properties with 1,255 units in the Inland Empire and Orange County. NorthMarq secured the financing as a Freddie Mac (FMCC) lender. The loans were all structured for 10 years at full term and interest-only at 65 percent loan-to-value.
“This refinance is an exciting step in our cycle of purchasing great real estate, renovating, and then refinancing and re-investing those funds,” Richard Julian, CEO of Advanced, said in a statement.
“In this pool were properties where we had already completed that cycle multiple times. […] The majority of the proceeds from this pool will be re-invested in our new Advanced Fund 21-2 which kicks off this month. We will also admit into this Fund our private investor network as well as new investors with a goal of raising about $125 million.”
The portfolio includes two properties in Anaheim: the 301-unit Beachwood Apartments and the 106-unit Sundial Apartments. The portfolio also includes 161 units at the Countrywood Apartments in San Bernardino County; the 421-unit Uptown Fullerton; the California Palms Apartments in Santa Ana; and Crestwood Apartment Homes in Lake Forest.
NorthMarq’s Michael Elmore, Alex Kane, Joe Giordani and Brendan Golding arranged the financing. The transaction marks nearly $3 billion in closings between NorthMarq and ARES, including the $240.4 million refinancing last year for a six-property multifamily portfolio with 1,223 units in Los Angeles, Riverside and Orange counties. Last October, Commercial Observer also reported that ARES bought a 346-unit apartment building for $130 million in L.A. County after securing a Fannie Mae $76.8 million loan with NorthMarq.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
