Meridian Capital Arranges $75M for Adagio Acquisition
SANTA ANA, CA—Acquisition loan features four years of interest-only payments during initial term.
By
David Phillips |
davidphillips |
|
Updated on August 26, 2016
X
Thank you for sharing!
Your article was successfully shared with the contacts you provided.
SANTA ANA, CA— Meridian Capital Group has arranged $74.7 million in acquisition and recapitalization financing for the purchase of Adagio at South Coast , a 349-unit multifamily property on behalf of Decron Properties .
The acquisition loan, provided by a balance sheet lender, features four years of interest-only payments during the initial term, followed by an extension option. This transaction was negotiated by Meridian managing director, Seth Grossman and vice president, Sarah Kuebler , who are both based in the company’s Carlsbad, CA office. Decron paid $96 million for the property near the end of July. Adagio at South Coast is a two-story, garden-style property, located at 3124 South Main Street in Santa Ana, CA and houses one-and two-bedroom apartments, as well as large townhomes. Tenants enjoy close proximity to a variety of shops and restaurants, as well as easy access to the 55/405 Freeways and John Wayne Airport . Amenities include three swimming pools, spas, a fitness center and barbeque picnic areas. “Adagio at South Coast is the perfect fit for Decron’s recent focus on repositioning older assets and creating an affordable luxury option for renters in high-cost urban and suburban submarkets adjacent to major employment centers,” said Daniel Nagel, vice president of Finance at Decron. “We call it ‘affordable luxury,’ with a lowercase ‘a,’ because we offer the renter an apartment with luxury finishes in a location they need, amenities they want, at a price point they can afford.” “For generations Decron has achieved unparalleled success providing tenants high quality apartments and lifestyle amenities at an affordable price point,” added Grossman. “Highlighting Decron’s time-tested business plan, as well as their clear vision for the property, enabled this first loan closing between the lender and sponsor to occur successfully in less than five weeks.” Decron Properties serves as one of the premier diversified real estate development firms in the greater Los Angeles area. Decron specializes in acquiring, developing and managing multi-family apartment buildings as well as various types of commercial shopping centers, marinas, and office building. With the completion of this acquisition, Decron owns and manages 6,700 multifamily units across California, as well as 1.5 million square feet of commercial office and retail, in 55 communities. Founded in 1991, Meridian Capital Group is America’s most active debt broker and one of the nation’s leading commercial real estate finance advisory firms. In 2015, Meridian closed over 3,900 loans totaling more than $35 billion in transaction volume with 210 unique lenders, equating to $135 million per business day. Since inception, the company has closed more than $240 billion in financing with the full complement of capital providers, encompassing local, regional and national banks, CMBS lenders, agency lenders, mortgage REITs, life insurance companies, credit unions and private equity funds.
Want to continue reading? Become a Free ALM Digital Reader.
Once you are an ALM digital member, you’ll receive:
Unlimited access to GlobeSt and other free ALM publications
Access to 15 years of GlobeSt archives
Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
1 free article* every 30 days across the ALM subscription network
Exclusive discounts on ALM events and publications
*May exclude premium content
Already have an account? Sign In Now
Transform your lease administration. Download this eBook to discover five essential tips that will help you streamline processes, reduce risks, and maximize efficiency.
Join this on-demand webinar to explore best practices in real estate lease administration. Learn how to streamline your operations and achieve cost savings while ensuring compliance with lease accounting standards.
Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!
Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
Exclusive discounts on ALM and GlobeSt events.
Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.