"With the purchase of these two properties complete, offering an extended rate lock on La Jolla de Tucson enabled Holualoa to take this property off the street and also placate a very touchy seller," says Alliant Capital senior vice president Jay Blasberg.
Holualoa bought all three properties from Denver-based Apartment Investment & Management Co. In addition to La Jolla, they include the 411-unit Stonybrook Apartments and 253-unit Quail Ridge Apartments. The $32.7 million sale of Stonybrook and Quail Ridge closed in July. The buyer contracted the La Jolla property in September for $9.5 million. The sale marked the seller's exit from the market.
According to Blasberg, the transaction took 229 days to close, during which Alliant locked in the interest rate. The closing was complicated by the project's reliance on a $6 million construction bond issued by surrounding Pima County as part of an affordable housing program. About $4.3 million remained to be paid on the bond at the time of sale. The new loan, which has a nine-year term and a 30-year amortization, includes funds to close out the bond.
"Finalizing this three-property package financing for Holualoa posed many challenges," says Blasberg. "Our extended rate lock program allowed us to meet the restriction for paying off the underlying bonds on La Jolla de Tucson, thus completing the last piece of the puzzle."
According to Holualoa president Mike Kasser, the company bought the three properties based on the market's long-term outlook rather than a quick return. In regard to the the success in landing financing, he says, "Our interactions with Alliant Capital on this transaction - and many others - have been excellent."Their willingness to work diligently with us and meet our time lines has allowed this and other transactions to come to a successful conclusion."
Built in 1978 and located in Tucson's northwest business district, the 132,948-square-foot La Jolla features one and two-bedroom units from 414 square feet to 868 square feet that rent from $524 to $754 a month. Share amenities include swimming pool, spa, clubhouse, fitness center, lighted tennis, basketball and volleyballs courts, putting green and laundry center.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
