LOS ANGELES-BH Properties has secured a combined $236.7 million in financing with two institutions. The Los Angeles-based company, which specializes in repositioning real estate and resolving difficult transactions quickly and effectively, secured the loans from Wells Fargo ($135 million), U.S. Bank ($60 million) and a CMBS loan, also through Wells Fargo ($36.7 million).
These financings were based on closings on multiple properties in the firm's portfolio.
“These three financings are emblematic of the growth of our real estate portfolio and our consolidation of our capital sources. The two loans with Wells Fargo enabled us to consolidate multiple individual loans and increase our acquisition line of credit while simultaneously lowering our interest rates,” says Steve Jaffe, executive vice president and general counsel of BH Properties.
In addition to the company's relationship with Wells Fargo, Jaffe said BH Properties' flexibility in its capital magnifies the company's ability to purchase unstable assets and close transactions at an unprecedented rate.
Wells Fargo SVP and regional manager Todd Popovich says that “The repackaging of multiple facilities into a Wells Fargo CMBS loan and a large mega facility held on book not only offered a revolving feature to provide substantial capital for further acquisition activity, but also simplified the relationship which in turn sets the stage for BH Properties continued growth in 2014.”
The U.S. Bank loan of $60 million was secured by nine properties in five states. This marks the second financing, but the first portfolio loan, with U.S. Bank for BH Properties.
The CMBS loan with Wells Fargo was secured by the Ocean Breeze Apartments in Huntington Beach.
“We had conventional financing on Ocean Breeze already with Wells Fargo--however the current lending climate and our long term view of this asset made CMBS debt a viable option. Wells Fargo was able to accommodate our desire and we closed this financing in 30 days,” says Jaffe.
At year-end, BH Properties revealed it finished with $100 million in transaction volume and $82 million in acquisitions, a 57% increase over the previous year's results.
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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.
