California portfolio with LA Properties secures $223 million loan
The portfolio, held by a private investor, includes three multi-family properties with a total of 1,140 units; a single-tenant commercial building; a self-storage property with RV storage space; and two land leases.
Locally, a 1.64 acre Century City cooling plant with a ground lease was part of the deal.
The other land lease at issue was a property leased from Lowes Companies Inc. in Rancho Cucamonga.
In a land lease, different companies own the land and any improvements to the land or buildings on the land. This arrangement allows the landowner to get a monthly income without doing any work, as the company that leases the land is responsible for everything, including the property taxes. For the business that leases the land, a ground lease allows it to use desirable real estate.
The multifamily properties involved in the financing were the 892 Park Regency apartments in Walnut Creek; the 167-unit Concord Square Apartments in Reseda; and the 81-unit NMS Warner Center at Warner Center.
The Sand Canyon Self Storage Center in Santa Clarita was also part of the funding. The property has 792 storage units and 129 RV storage spaces.
A commercial building 100% leased to Gelson’s in Laguna Beach was also part of the financing.
George Mitsanas of San Francisco-based Gantry structured the loans, which were placed through four correspondents from Gantry’s life insurance company with the private investor. Correspondents of life insurance companies are lenders who contribute directly to the financing of loans.
“The current climate of long-term debt on existing assets remains extremely attractive for most types of commercial real estate assets,” Mitsanas, director of Gantry, said in a statement. “As advisor to the borrower and servicing agent to the lender, we pride ourselves on working to identify the best financing structures for all parties involved. In this case, we were able to place the loans for each unique asset type with the appropriate lender for that product, maximizing value for the borrower on valuation, rates, terms and operating cash flow. later.
Mitsanas added that he expects 2022 to be a “good year for recapitalization deals as commercial real estate investors continue to review portfolio holdings for relevant maturities.”
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