PLACENTIA, CA-GlobeSt.com has exclusively learned that New York City-based Meridian Capital Group LLC in partnership with Beech Street Capital, negotiated the $62.5-million refinancing of Emerald Isle, a class-A age-restricted multifamily property located in Placentia, CA, on behalf of a sponsor based in Orange County, CA.
The 10-year, fixed-rate financing package is composed of a $56.5-million CMBS first mortgage and a $6 million mezzanine loan, both featuring five years of interest-only payments and favorable structural terms. The new debt allowed the owner to prepay the existing CMBS and mezzanine loans that did not come due until 2015 without having to contribute additional equity to the transaction.
Despite the significant defeasance prepayment penalty, the sponsor was motivated to lock in low prevailing interest rates and enhance cash flow through the interest-only feature that reduced monthly payments, GlobeSt.com learns. Meridian managing director, Seth K. Grossman, who is based in the company's Carlsbad, CA office and Beech Street EVPs Greg Reed and Kristen Croxton, who are based in Beech Street Capital's Newport Beach office, worked in concert with the sponsor to structure and negotiate this transaction.
The 422-unit Emerald Isle property is located at 661 N. Rose Dr. The property is leased to seniors 55 years of age and over and has amenities and programs catering to an active lifestyle. Built in 2001, Emerald Isle is in excellent condition and has enjoyed 97%-plus occupancy for 10 consecutive years with a current waitlist of more than 20 prospective tenants.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
