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8/05/16
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Universe Holdings has acquired controlling interest and full ownership of the Acacia Park apartment community in San Bernardino from its special service partner following a strategic recapitalization. The asset, today valued at $41 mil, is now positioned for long-term hold after Universe fulfilled its obligations to its original lenders and equity partners.
The strategic recapitalization was the culmination of a nearly six-year turnaround plan developed for an asset hit hard by vacancies and declining rents during the financial and housing crisis of the late 2000s. Universe, working with special servicer LNR Partners, developed a structured plan to stabilize Acacia Park, maintain debt service while transferring some principal to equity, and manage the asset forward to a final resolution through sale or refinance by August 2016. This plan allowed Universe to return Acacia Park to 95 percent occupancy with significant improvement in rents and cash flow, raising the property’s appraised value from $22.5 mil in 2009 to $41 mil in today’s market.
Acacia Park is a 304 unit apartment community featuring a mix of one- and two-bedroom units. The property is located at the foothills of the San Bernardino Mountains, directly across the street from California State University San Bernardino at the corner of Little Mountain Dr and North Park Blvd W in the City of San Bernardino. Acacia Park features spacious, newly renovated apartment homes with lush mature landscaping, community pool and additional amenities including spa, tennis courts, sand volley ball court, fitness center, onsite management and 24-hour maintenance service.
HFF’s Charles Halladay repped Unviverse in this transaction. Universe acquired Acacia Park with a substantial new privately raised equity commitment paired to a 10-year fixed rate loan through Freddie Mac.
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