CARLSBAD, CA-GlobeSt.com has learned exclusively that Meridian Capital Group LLC has arranged and closed $21.4 million permanent financing for six properties in four states. The transactions involved retail, mixed-use, manufactured-housing and multifamily properties in California, Texas, Arizona and Oklahoma.
Seth Grossman and Ryan Gandell in the company’s Carlsbad office arranged a $9.5-million, 10-year, fixed-rate CMBS loan to refinance the 152-unit Elk Ridge Apartments, the only class-A multifamily property in Show Low, AZ. “By leveraging the experience and track record of the borrower and by keeping in constant communication with the lender, we successfully negotiated this highly accretive CMBS that was used to repay the existing full-recourse construction loan on the property,” said Grossman in a prepared statement.
Grossman and Gandell also recently closed on a $4.2-million refinancing of the 211-unit Southern Gardens multifamily property in Houston. The asset was financed with a 10-year CMBS loan that features an interest rate of 4.87%.
In addition, the pair closed on a $2.4-million, mixed-use property in Vallejo, CA. “The client needed a commitment within seven days in order to obtain the non-performing DPO property,” said Gandell in the statement. “We were able to quickly obtain a commitment for an 80% loan-to-cost, non-recourse loan.”
Also, the team closed on a $1.4-million, 10-year CMBS loan for an 88-pad manufactured housing community in Whitehouse, TX. “This community consists of primarily single-wide pads of which the majority are owned by the sponsor, a feature that posed a number of challenges in obtaining financing,” said Gandell. “We were able to mitigate lender concerns with the property’s solid 10-year history of consistent and strong cash flow and the average tenant tenure of greater than 10 years.”
Grossman also negotiated a $2.7-million, 10-year loan for a single-tenant Walgreens in Bartlesville, OK., and closed a $1.15-million, five-year, non-recourse balance-sheet loan for an eight-unit multifamily building located on Cheremoya Ave. in Los Angeles. The new financing on the latter property features a very attractive rate and a flexible step-down prepayment penalty that is 1% or less for four years of the five-year loan term.
As GlobeSt.com previously reported exclusively, in August Meridian Capital Group negotiated $9.6 million in permanent financing for the Perino’s Luxury Apartments on Norton Ave., just north of Wilshire Blvd. in the Koreatown neighborhood of Los Angeles. The 10-year, non-recourse loan featured a competitive fixed rate of 3.53%.
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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.
