Property Acquisitions and Dispositions
Mesa West Capital has provided an affiliate of Houston-based The Dinerstein Companies (“Dinerstein”) with $59 million in first mortgage debt for its acquisition of Manor Six Forks, a 298-unit multifamily community in Raleigh, NC, which is now rebranded as “Infinity Six Forks.”
Mesa West’s five-year, non-recourse financing for Manor Six Forks allows Dinerstein to enter the Raleigh market. Brian Hirsh, Mesa West Executive Director, led the Chicago-based origination team with Russell Frahm, Executive Director in Mesa West’s New York office.
“Raleigh is one the fastest growing markets nationally with an increase in high paying professional jobs and an attractive cost of living relative to the gateway markets. We expect high quality, well-located multifamily will continue to be in strong demand as Raleigh continues to grow,” said Hirsh. “Despite increases in Raleigh’s new multifamily supply, net absorption has been positive through the first half of the year,” continued Hirsh. “While many U.S. markets are facing volatility and a variety of headwinds, experienced sponsorship is as important as ever, and we are confident in Dinerstein’s ability to execute on a value-add business plan.”
Manor Six Forks, which was 95% leased at closing, is situated between North Hills and Downtown Raleigh, two of the city’s most dense and dynamic submarkets. Built in 2010 and partially renovated in 2019, the property at 900 E. Forks Road features a mix of one- to three-bedroom floorplans ranging in size from 800 to 1,357 square feet. The highly amenitized community includes a clubhouse, resort-style pool, rooftop lounge and a fitness center.
The financing was arranged by Matt Greer and Andrew Wilson in Newmark’s Austin office.
News From The Mogharebi Group
For Immediate Release
The Mogharebi Group Completes $31.25 Million Sale of 138-Unit Apartment Community in Whittier, CA
Costa Mesa, CA (September 5, 2023) – The Mogharebi Group (TMG) has arranged the $31.25 million sale of Citrus Court, 138-unit apartment community in Whittier, CA.
The garden style community located at 8121 Broadway Avenue is encumbered by a 99-year ground lease with 41-years remaining, which adds to the already challenging conditions investors are facing when buying real estate in the Los Angeles area, according to TMG Executive Vice President Otto Ozen who advised the seller on the transaction.
“Less than 3% of all Southern California real estate transactions are subject to ground leases and we have done well more than our share,” said Ozen. “A ground lease is like a melting ice cube. You start with the maximum term and from that point on, each year is less desirable as financing becomes more difficult. However, given our experience, we were able to overcome the hurdles, generate multiple offers and close within 90 days of entering into the purchase and sale agreement.”
Citrus Court is located in Whittier, which has grown into one of the more affluent and dynamic residential areas in Southern California. Considered a Los Angeles County gateway city, it is 12 miles southeast of The City of Los Angeles where a challenging political and regulatory environment has had a chilling effect on multifamily investment. In addition to restrictive eviction policies, the city’s recently passed Measure ULA taxes sellers 4-5% on sales over $5 million. Since April 1, 2023 when the law went into effect, there have been only 10 multifamily sales over $5 million, compared to 77 sales that were recorded in the same time period the previous year.
Those investors who have been driven away from doing business in Los Angeles are also drawn to Whittier and other second ring cities for their numerous demand drivers including relative affordability, excellent schools, and access to employment hubs throughout Los Angeles, the San Gabriel Valley and Orange County.
Built in 1967, Citrus Court offers a mix of spacious studio, one-, two, and three-bedroom floorplans with an average size of 843 square feet. The seller recently completed renovations in 120 units, updating kitchens & bathrooms and installing new hardwood floors. Community amenities include on-site laundry, two swimming pools, wi-fi lounge, BBQ area, and controlled access gates.
About The Mogharebi Group
The Mogharebi Group (http://www.Mogharebi.com) is a real estate investment and advisory firm specializing in the multifamily property sector throughout the Western United States. Backed by unparalleled local market knowledge, an extensive global network of top real estate investors, state-of-the-art technology, and direct access to capital with more than $950 million in revolving inventory, The Mogharebi Group is the best choice to meet the needs of major private investors and investment funds.
Media Contact:
Brandon Beck/DB&R Marketing Communications, Inc.
(805) 777-7971 (office)
(818) 540-8077 (mobile)
This email address is being protected from spambots. You need JavaScript enabled to view it.
Berkadia has arranged the sale and financing of Abbington Crossing, a 468-unit apartment community located in Charlottesville, Virginia. Senior Managing Director Drew White, Senior Director Carter Wood and Director Cole Carns of Berkadia DC Metro, Norfolk, and Richmond, respectively, represented the seller, Weinstein Properties.
This email address is being protected from spambots. You need JavaScript enabled to view it., This email address is being protected from spambots. You need JavaScript enabled to view it. and Jerad Roberts of Northcap Commercial are pleased to announce the recent off-market sale of the 2500 E. Fremont Street Apartments for $2,200,000 ($68,750/unit). This sale consisted of 32 units built in 1954, located at 2500 E. Fremont Street in Las Vegas, Nevada. The property was delivered vacant at time of sale.
Berkadia announces it has arranged financing for Atlantic Pacific Companies and LEM Capital to acquire Verona View Apartments, a 293-unit apartment community in Plantation, Florida.
