(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
BERKELEY, CA-The Los Angeles branch of Berkadia Commercial Mortgage LLC has arranged a $37-million loan for the acquisition of a note secured on the Arpeggio, a multifamily/retail community here. In 17 days, Berkadia’s team, led by SVP Allan Freedman, worked with borrower CityView Bay Area Fund I LP to turn around the financing needed to purchase the note, which had recently been put up for sale.
The team arranged the non-recourse interim loan through Berkadia’s proprietary bridge lending program. The 18-month loan has a floating interest rate that reduces as the borrower achieves certain milestones.
“We applaud the Berkadia team for coming through on this financing so quickly,” said CityView’s president Sean Burton in a prepared statement. “Everyone worked together to close this deal on a one-of-a-kind property. We look forward to a continued relationship with Berkadia as we pursue more opportunities together.”
The Arpeggio is a mixed-use, transit-oriented development located at 2025 Center St., within walking distance of the University of California Berkeley campus. The 158,500-square-foot building consists of 143 one- and two-bedroom apartments, as well as retail and restaurant space. Building amenities include on-site management and leasing, a fitness center, subterranean parking, controlled-access elevators and street-level retail.
Apartments on the property feature a variety of luxury fixtures, including gourmet kitchens, high ceilings and private decks or balconies in select units. In addition, 10,000 square feet of the available commercial space is currently occupied by the Berkeley Repertory Theatre, which, Berkadia tells GlobeSt.com, signed a 20-year lease in October 2011, is in place and paying rent.
“The Arpeggio is a class-A asset in an excellent location in a thriving market,” said Freedman in a prepared statement. “There is a tremendous opportunity for CityView to take ownership of the premier property in the market. We look forward to working with the CityView team to get the title to the property and help them secure the optimal long-term financing option after they have leased the property.”
A spokesperson for Berkadia tells GlobeSt.com that the 142 apartment units in the property are completely vacant at this time, but did not comment on how CityView plans to market the apartment units. On the ground floor, 1,700 square feet of the commercial space will be built out as a leasing office, while 500 square feet will be built out as a fitness center. A 3,200-square-foot vacant retail space is available to be leased, and the remaining commercial space is suitable for a retailer or restaurant. The spokesperson says that exterior construction on the building was completed in 2011, while interior work continues.
As GlobeSt.com previously reported, in July Berkadia's Cutt Ableson and Jon Gilfillan secured an $11.2-million, fixed-rate CMBS loan on behalf of Cooper's Mill Apartments LLC, owner of Cooper's Mill Apartments in Webster, TX, to refinance the 366-unit, 1980s-built multifamily property. The 10-year loan has a 30-year amortization.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
