Berkadia, a distinguished leader in the commercial real estate sector, announced the sale and financing of Lynn Villa Apartments, an 89-unit, garden-style multifamily property in Thousand Oaks, California.
Managing Directors George Spadier and Keith Rosso, and Associate Director Jeremy Kanter of Berkadia Los Angeles secured $17.5 million in acquisition financing through Aetna Life Insurance Company on behalf of the buyer, Hanes Investment Realty Inc. The 5-year loan featured a competitive fixed interest rate, interest-only payments, and a 65% percent loan-to-value ratio. The deal closed on June 25.
“Investors were drawn to the low in-place rents and value add potential,” said Barr. “The property sold over the asking price at a 3.8% cap rate on the in-place rent roll with 16 offers. It was the first time the property was on the market in over 30 years.”
“The sponsor was seeking a fixed rate non-recourse execution that allowed them to complete the value-add business plan at their own pace and without the hassle of capex draws,” said Spadier.
“Our team was able to place the 5-year fixed rate loan with one of our trusted correspondent life companies. The debt was fully funded on day one with very little structure and carried a competitive rate. In the end, it was a heavy value add deal that felt more like a perm execution.”
Located at 693 McCloud Avenue, the property is located directly across the street from The Oaks Mall. With the recent purchase of The Oaks Mall by Stockdale, the revitalization of the mall is anticipated to bolster the desirability of Lynn Villa Apartments. The property was built in 1970 and features 89 units on over three acres of land. Amenities include a pool, spa, leasing office, and multiple rooms to be reimagined as a clubroom and fitness center.
The buyers intend to renovate the property to increase the market value and rental income potential.
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets.
