JLL Capital Markets announced that it has arranged $58.5 million in financing to fund the recapitalization of a nine-property multihousing portfolio located in Oakland, California.
JLL worked exclusively on behalf of Mosser Capital (Mosser) and its new foreign investment partner to secure the seven-year (including extension options), floating-rate loan through Société Générale. The loan includes interest-only payments through the first five years of the term with an initial advance of $49.5 million and an additional $9 million in future funding for unit renovations, the addition of new accessory dwelling units (ADU’s) and other expenses. Mosser originally acquired the assets in a series of transactions and aggregated the portfolio between 2016 and 2017.
The portfolio consists of 282 existing rent-controlled residential units, including the addition of 28 to-be-built (accessory dwelling units (ADU’s), and four ground-floor retail suites. The properties are centrally located in highly desirable submarkets of Oakland: Cleveland Heights, Adam’s Point, Lakeside, Uptown and East Lake. Units average 522 square feet.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Peter Smyslowski and Director Bercut Smith.
“Closing this loan during the recent market disruption posed some unique challenges,” Smyslowski said. “However, thanks to the borrowing team’s outstanding reputation and experience, Société Générale never wavered from its commitment to close the loan in a timely manner.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.