Janez Pays $19M for Apartment Complex

SAN DIEGO-Janez Development has acquired a 105-unit apartment complex in Escondido for $18.93 million with plans to convert the parcel into entry-level priced condominiums. The off-market transaction was secured with financing for nearly $21 million through Chicago-based Corus Bank, with Tom Sherlock and Chris Dornin from Buchanan Street Partners, serving as capital advisor. An additional $5 million in equity was provided through a joint-venture partnership with an undisclosed Midwest-based institution.”This is a well-researched and targeted acquisition, reflecting our market insight that there is a lack of entry-level housing in San Diego County,” says Jeff Zuckerman, vice president of acquisitions for Janez. The property, located at 145-225 West El Norte Parkway, was built in two phases in 1985 through 1987. The complex consists of 13 two-story wood and stucco buildings housing 105 two-bedroom, two-bath units averaging 900 sf situated on five acres. Amenities include a common area clubhouse, two swimming pools and spas and secure garages and carports.Janez plans to sell the refurbished units starting under $300,000. Standard features in the new homes include maple cabinetry, granite countertops, wood-burning fireplaces, tile flooring and new appliances. “We believe Escondido, with its low-density housing, strong arts community, and close proximity to the I-15 and 78 corridors, is a perfect location to target residential expansion,” says Janez president John Kocmur. He adds that his firm is optimistic about Escondido and is seeing increasing construction activity with condominium prices starting in the low $400,000 range. According to representatives from Newport Beach-based Buchanan Street, the loan represents one of three transactions the company has had with Janez in the past 15 months. Previous to the Escondido transaction, Buchanan Street worked with Janez on a non-recourse construction loan for a $34 million mixed use development in downtown Oceanside. The ground-up development includes plans for subterranean parking, office, retail and residential units. Last year, Buchanan Street also helped Janez secure a bridge loan on a business park in the Inland Empire. According to Sherlock, the partnership between Janez and Buchanan Street continues to explore other opportunities. He tells Globest.com that the firms “are currently discussing other projects,” in the Southland.