A California portfolio including a number of L.A. properties received $223 million in permanent financing.
The portfolio, owned by a private investor, has three multifamily properties with a combined 1,140 units; one single-tenant retail property; one self-storage property with RV vehicle storage space; and two ground leases.
Locally, a 1.64-acre Century City cooling plant with a ground lease was part of the transaction.
The other ground lease involved was a property leased to Lowes Companies Inc. in Rancho Cucamonga.
In a ground lease, different companies own the land and the improvements to the land or buildings on the land. This arrangement allows the landowner to get monthly income while doing no work because the company leasing the land is responsible for everything, including property taxes. For the company leasing the land, a ground lease allows it to use desirable real estate.
The multifamily properties involved in the financing were the 892-unit Park Regency Apartments in Walnut Creek; the 167-unit Concord Square Apartments in Reseda; and the 81-unit NMS Warner Center in Warner Center.
The Sand Canyon Self Storage center in Santa Clarita was also part of the financing. The property has 792 storage units and 129 RV vehicle storage spaces.
A retail property 100% leased to Gelson’s in Laguna Beach was also part of the financing.
San Francisco-based Gantry’s George Mitsanas structured the loans, which were placed through four of Gantry’s life insurance company correspondents with the private investor. Life insurance company correspondents are lenders who help fund loans directly.
“The current climate for long-term debt on legacy hold assets remains extremely attractive for most commercial real estate asset types,” Mitsanas, principal at Gantry, said in a statement. “As both an advisor to the borrower and servicer to the lender, we pride ourselves in working to identify the best financing structures for all parties involved. In this instance, we were able to place the loans for each unique asset type with the appropriate lender for that product, optimizing value to the borrower on valuation, rates, terms and subsequent cash flows from operation.”
Mitsanas added that he expects 2022 to be a “strong year for recapitalization transactions as commercial real estate investors continue to review portfolio holdings for relevant maturities.”
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