Dealmaker: Continental Partners Secures $36M
Continental Partners, Los Angeles, secured $35.9 million for multifamily and mixed-use projects in three states.
In Fremont, Calif., the firm secured a $19.75 million bridge loan for an 88-unit multifamily property in the East Bay/Northern Silicon Valley submarket. The private equity real estate firm sponsor rebranded the former Americana Apartments as Parc 88 Apartments.
Continental also secured $10.75 million in joint venture equity for Parc 88 Apartments.
The firm secured a $9.2 million value-add bridge loan for Hallwood Apartments, a 76-unit community in Portland, Ore. submarket Beaverton.
In Chicago, Continental secured a $7 million bridge loan for its private investor sponsor to acquire a 115,000-square-foot industrial building in the city’s South Loop “Motor Row” submarket. Sponsor KCI Cos., Chicago, plans to reposition the former auto dealership into a Class A mixed-use property with retail, entertainment and office space, said Continental Director Eugene Rutenberg.
Rutenberg said KCI requested an interest-only bridge loan that would close within 14 days of application. “The challenge was that most lenders were unable to provide the amount required due to the short timeframe and the fact that the transaction needed to close during the winter holiday season, which created a further hurdle as there was no time to obtain an MAI-certified value.”
To meet the time requirements, Continental provided lenders with several sales comps in the submarket to demonstrate the asset’s value, which persuaded the lender to close without an appraisal.
“Since the building is currently vacant and not yet generating any cashflow, it was critical that we were able to secure a loan with flexible terms that will allow the sponsor to rapidly move forward with the planned renovations,” Rutenberg said. “We were able to structure a one-year term loan with a one-year extension option, providing adequate time for the sponsor to complete his entitlements, permits and the architecture design process ahead of the repositioning of the property.”
The loan priced at LIBOR plus 750 basis points and was sized to 70 percent of the purchase price.
