TEMECULA, CA—CBRE Capital Markets has arranged the sale and financing of The Vineyards at Paseo Del Sol, a 288-unit, class A apartment community here, to The Praedium Group for $69.65 million.
Curtis Palmer and Peter Sherman of CBRE's Beverly Hills office, along with Paul Runkle of CBRE's Ontario office represented the seller, The Dinerstein Companies.
“This is a landmark transaction for the Temecula area,” said Palmer. “The Vineyards is located in a thriving area with an estimated 2015 average annual household income of nearly $99,000. Its limited development pipeline, strong rental market fundamentals, outstanding schools and diverse growing employment base create a highly desirable submarket for the institutional multifamily investor.”
CBRE Capital Markets' Debt & Structured Finance team secured $43.3 million in financing for the acquisition of The Vineyards. Brian Eisendrath and Annie Rice of CBRE's Beverly Hills office arranged the five-year, full-term, interest-only, fixed-rate loan on behalf of the borrower.
“Obtaining a full-term interest-only bank loan with a fixed-rate is increasingly difficult in this market. We were able to leverage our relationships to provide an execution which allowed Praedium to implement its business plan,” said Eisendrath.
“Both fixed-rate and a full-term interest-only period were crucial for us. Brian and his team secured attractive financing that will allow us to maximize our cash-on-cash returns to investors,” said Asim Hamid, managing director of Praedium.
Completed in 2014, the 285,955-square-foot community is currently 87% occupied and is the only LEED Gold-certified apartment development in Temecula. It is comprised of one- and two-bedroom apartments and two- and three-bedroom townhomes with two car garages, averaging 993 square feet per unit. Amenities include a resort-style pool and spa with cabanas and outdoor televisions, state-of-the-art gym and yoga studio, dog park, bicycle sharing, and Wi-Fi throughout the indoor and outdoor common areas.
Located at 31901 Campanula Way, The Vineyards is walking distance to parks, Temecula Valley Hospital, and more than one million square feet of shops, cafes, grocery stores, and other retail amenities.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
