JLL Capital Markets announced today that it has arranged $58.5 million in financing to fund the recapitalization of a nine-property multi-housing portfolio located in Oakland, California.

JLL worked exclusively on behalf of Mosser Capital (Mosser) and its new foreign investment partner to secure the seven-year (including extension options), floating-rate loan through Société Générale. The loan includes interest-only payments through the first five years of the term with an initial advance of $49.5 million and an additional $9 million in future funding for unit renovations, the addition of new accessory dwelling units (ADU’s) and other expenses. Mosser originally acquired the assets in a series of transactions and aggregated the portfolio between 2016 and 2017. 

The portfolio consists of 282 existing rent-controlled residential units, including the addition of 28 to-be-built (accessory dwelling units (ADU’s), and four ground-floor retail suites. The properties are centrally located in highly desirable submarkets of Oakland: Cleveland Heights, Adam’s Point, Lakeside, Uptown and East Lake. Units average 522 square feet.

The JLL Capital Markets team representing the borrower was led by Senior Managing Director Peter Smyslowski and Director Bercut Smith.

“Closing this loan during the recent market disruption posed some unique challenges,” Smyslowski said. “However, thanks to the borrowing team’s outstanding reputation and experience, Société Générale never wavered from its commitment to close the loan in a timely manner.”

SAN FRANCISCO, CA – September 17, 2018 – HFF announces $113.5 million in financing for a 12-property, 455-unit multi-housing portfolio with 13 ground-floor retail suites in San Francisco, California.

The HFF team worked on behalf of the borrower, Mosser Capital (Mosser), to secure the six-year (including extension options), floating-rate loan through an affiliate of Walton Street Capital, L.L.C.  The loan included interest-only payments through the first five years of the term.

The properties in the portfolio are: 775 Geary (36 units), 1029 Geary (58 units), 17 Decatur (8 units), 840 Van Ness (50 units), 2360 Van Ness (21 units), 245 Leavenworth (48 units), 305 Hyde (38 units), 347 Eddy (40 units), 371 Turk (25 units), 575 O’Farrell (47 units), 618 Bush (38 units) and 891 Post (46 units).  All properties are near mass transit, employment and retail amenities in the highly desirable Civic Center, South of Market, Chinatown and Russian Hill submarkets.

The HFF debt placement team representing the borrower included senior managing director Peter Smyslowski and associate Bercut Smith.

“The sound economic fundamentals of this multi-housing portfolio and the San Francisco market attracted a diverse array of domestic and foreign capital providers,” Smyslowski said.  “Mosser could not have been more impressed by Walton Street’s expert loan execution.”