A fund sponsored by CBRE Investment Management has completed 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 variable rate loan has an initial term of three years, can be extended for up to two additional years and provides for future financing to fund the promoter’s business plan.
The garden-style property is located at 3851 Sherbourne Drive and features 240 units that feature hardwood floors, stainless steel appliances, washer/dryers in some units, and walk-in closets. Community amenities include a swimming pool, fitness center, lounge with grilling stations, parcel lockers, two playgrounds, gated access, and tenant parking garages.
“Our team was pleased to fund this transaction on behalf of a reputable, repeat borrower who has extensive operational experience and deep local market expertise in San Diego County,” said Charles Kim, Managing Director of CBRE Investment Management. . “Given the limited residential supply in the Oceanside submarket and its proximity to nearby employment hubs, local beaches and multiple retail outlets, Sunterra Apartments has historically performed well. Renovated units by the seller have resulted in strong rental premiums, and with the additional improvements planned, we believe the new owners will continue to generate significant rental growth.”
Mark Grace and John Montakab of Walker & Dunlop arranged the loan on behalf of 29th Street Capital, which continues to actively seek acquisitions/developments in Southern California.
The property is well located near College Boulevard, a major Oceanside thoroughfare, providing excellent access to nearby employment hubs. The location also provides convenient access to nearby retail and entertainment venues including the Shoppes at Carlsbad, Camino Town & Country Mall, College Plaza Mall, and Legoland Amusement/Theme Park.
CBRE Clarion Global Real Estate Income Fund published this content on March 07, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on March 07, 2022 15:49:08 UTC.