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Sunset Village Goes Condo in $29M Deal

OCEANSIDE, CA-Sunset Village, a 114-unit complex that is 98% leased, is acquired by a joint venture that starts the condo conversion. The converted complex, to be renamed Bethany Summit, will offer units starting at $285,000.

By Amanda Paxson | Updated on September 22, 2005

OCEANSIDE, CA-A joint venture of the Bethany Group and Overland Realty Capital has acquired the 114-unit Sunset Village apartment complex in a $29-million deal and has started rehabbing the for a condo conversion. The property is being renamed Bethany Summit and the new units, which are expected to be completed in about six months, will be marketed for $285,000 and up.

The $29-million co-investment included nearly $6 million from Overland Realty Capital and $23 million in financing from CW Capital, according to Holliday Fenoglio Fowler. HFF represented the Bethany Group in arranging the acquisition financing and joint venture equity for the project.

Orange County-based Steve Gunther from HFF tells Globest.com that the finance structure for this deal was “somewhat atypical” of what he is accustomed to seeing. The acquisition and bridge financing carry a term of two years, with an adjustable rate, and are leveraged at 80% of the total cost, including remodeling costs.

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