Vacaville, Calif.—Portfolio lenders are coming to the rescue in a time when some lenders are backing out of deals. GE Real Estate recently made a $15.1 million loan shortly after another lender withdrew from the transaction.
The loan enabled the San Francisco-based Jackson Square Properties LLC to acquire a 136-unit apartment complex.
“We were within days of completing a deal to acquire Sommerset Apartments here when the initial lender backed out of the agreement,” said Jeff Jaeger, principal, Jackson Square Properties. “We completed other similar real estate acquisitions in California and elsewhere and were surprised when that lender decided against completing this deal.”
Troy Tegeler, managing director at CBRE Melody, which brokered the transaction, commented, “When credit tightens, we can count on GE Real Estate to deliver timely, on-book financing for our clients’ solid investment opportunities.”
Nathan McElmurry, director, GE Real Estate, said the property was located close to Travis Air Force Base and to major employers. He said the company was also impressed with Jackson Square’s executive team and the company’s success in operating and owning apartment buildings in strong multifamily markets. “This, coupled with the CBRE Melody team’s depth of multifamily experience, gave us a high level of comfort on the deal,” he said.
Sommerset Apartments is a 136-unit complex in a predominantly residential area located in Vacaville, a bedroom community between Sacramento and San Francisco in Solano County. The county’s population is expected to grow by 10 percent between 2005 and 2010, and the more than 6,200 multifamily units in Vacaville have an overall occupancy of 94 percent. Rents are also expected to increase 5.6 percent this year.
source: multi-housingnews.com
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