(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
RENO, NV-Sycamore Urban Properties of Irvine, CA has acquired the 153-unit Talus Point fractured condominium project from US Bank in the first step in the company’s plan to acquire 1,000 units in Nevada. Originally built in 1978 as a 153-unit apartment complex, Talus Point underwent a condominium conversion and sales program in 2006, selling only 28 units before entitlement and market conditions stalled the program. The remaining 125 units have since been operated on a lease basis.
The property was foreclosed upon by the original lender in 2009 and subsequently taken over by US Bank in a structured transaction with the FDIC. Mitchell Bradford, president of Sycamore Urban, says that Talus Point “provided an excellent opportunity to begin building our Nevada portfolio, which we plan to grow to over 1,000 units." He added, "With its historically high rate of occupancy and strong cash flow, we have multiple options for this property, either as a long-term hold and/or re-introducing the units for sale when the market warrants."
Sycamore was represented in the transaction by Greg Rutten of GRu Ventures in San Diego. Critical to the completion of this transaction was the securing of long-term financing, a difficult prospect at best for fractured condominium properties of this type, Sycamore notes in an announcement regarding the transaction. Fixed-rate, multifamily debt was provided by Pacific Western Bank of Los Angeles. EVP Scott Hardt of Pacific Western said, "We do not typically provide long-term, multifamily debt on fractured condominium assets. However, given Sycamore's track record of success on similar condo and REO properties and the experience and reputation of its executive team, we were able to do so."
Seller US Bank was represented by Lance Faulstich of Trinity Commercial and Cory Edge of Edge Realty, both located in Reno. The 125 Talus Point apartments range from studios to three-bedroom and 2.5-bathroom townhomes, many of which include private garages.
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