The Newport Beach, CA-based real estate investment bank Buchanan Street Partners provided 80% of the equity ($2.85 million) required to purchase the asset and also sourced $10.99 million in debt financing, an amount that includes money for renovations. The new majority owner, a Bay Area investor listed only as 2005 San Jose LLC, plans $800,000 in staged capital improvements to cure deferred maintenance and increase occupancy, according to Buchanan.

The loan, described as bridge financing for 85% of the purchase price, was funded by a private mortgage lender based on the East Coast, according to a source at Buchanan who could not reveal the name of the company. The loan carries a floating interest rate of about 5.25%. Tom Sherlock and Chris Dornin of Buchanan Street's Newport Beach office arranged the transaction.

The Buchanan source tells GlobeSt.com that the investment has better than average upside potential because the 18-year-old property consist largely of two-bedroom units and is 73% occupied despite the two-bedroom market in Antioch having an average occupancy of 98%.