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7/21/15
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An affiliate of California Capital Real Estate Advisors (CALCAP) has obtained a $12.125 mil, fixed-rate bridge loan for the acquisition and repositioning of an REO portfolio of two apartment home communities in Las Vegas. The financing was provided by LA-based Thorofare Capital.
The distressed portfolio includes Ridgewood Apartments, a 112-unit community located at 3355 South Arville St, and Evergreen Apartments, a 228-unit community located at 5400 West Cheyenne Ave. CALCAP acquired the assets through Auction.com from Miami-based CMBS special servicer LNR Partners, LLC. Each property had suffered from a lack of capital infusion after being taken over through receivership in late 2014, leading to a deterioration of the properties’ physical condition and perception within the rental market.
A portion of the proceeds will be used to fund a multi-million-dollar capital improvement program across the 340-unit portfolio. Planned improvements include renovation of the exterior and common areas as well as refurbishment of 68 units that were taken out of rental inventory due to the limited availability of capital needed to turn the units.
Thorofare funded the non-recourse acquisition facility in just 20 days from application to meet the shortened escrow period. The financing structure included an interest reserve, and does not require amortization during the full term.
The borrower has retained Las Vegas-based B&R Property Management to oversee the renovations. Their business plan is to perform capital expenditures in vacant units and as tenancy rolls over, lease up the property at market rental rates, and maximize value through efficient property management.
CALCAP is a Los Angeles-based real estate investment company operating subsidiaries focused on value-add multifamily acquisitions, property management, and real estate lending across CA, NV, and AZ. The firm has acquired in excess of 2,200 apartment units since 2011. The property manager, B&R Property Management, currently supervises more than 5,000 units across 26 properties, all in the Las Vegas area.
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