CBRE Investment Management Closes $76 Million Mortgage Loan for 240-Unit Multifamily Community in Southern California
March 7, 2022
A fund sponsored by CBRE Investment Management closed on a $76 million mortgage loan to finance 29th Street Capital’s acquisition of Sunterra Apartments in Oceanside, Calif., 40 miles north of San Diego. The floating-rate loan has an initial term of three years, can extend up to an additional two years, and features future funding to finance the sponsor’s business plan.
The garden-style property is located at 3851 Sherbourne Drive and includes 240 units that feature hardwood floors, stainless-steel appliances, washer/dryers in select units, and walk-in closets. Community amenities include a swimming pool, a fitness center, a lounge area with grilling stations, package lockers, two playgrounds, gated access and tenant parking garages.
“Our team was pleased to finance this transaction on behalf of a reputable repeat borrower that has extensive operating experience and deep local market expertise in San Diego County,” said Charles Kim, Managing Director for CBRE Investment Management. “Given the limited residential supply in the Oceanside submarket and its proximity to nearby employment hubs, local beaches and multiple retail amenities, Sunterra Apartments has performed well historically. Seller-renovated units have resulted in strong rental premiums, and with the additional planned improvements, we believe that the new owners will continue to generate meaningful rent growth.”
Mark Grace and John Montakab at Walker & Dunlop arranged the loan on behalf of 29th Street Capital, who continues to actively pursue acquisitions/developments in Southern California.
The property is well-located near College Boulevard, a main throughfare in Oceanside, providing excellent access to nearby employment hubs. The location also provides convenient access to nearby retail and entertainment amenities, including the Shoppes at Carlsbad, Camino Town & Country Shopping Mall, College Plaza Shopping Center and Legoland amusement/theme park.
CBRE Investment Management is a leading global real assets investment management firm with $146.9 billion in assets under management* as of June 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.