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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