Highland Realty Capital is pleased to announce the successful recapitalization of Park Royal Apartments in San Mateo, CA and the El Norte Villas in Escondido, CA.
Working on behalf of a longstanding client, Highland placed both loans with a life company. Both loans were used to refinance existing debt, provide capital for future reinvestment into the assets, and generate funds for external investment opportunities for the Sponsor.
Both opportunities were presented to a wide array of lenders, including commercial banks, life companies, debt funds, conduits, and agency outfits. Given the superb location of both apartment communities, the impeccable track record of the Sponsor, and the historical performance of each asset, ultimately life company money was the most competitive on a moderately-leveraged basis. Highland negotiated a more flexible prepayment structure for its client, as well as an extremely competitive rate and term structure.
Jeff Eliason, Highland Principal, commented: “We received tremendous interest. For properties like these, it’s in the best interest of the Client to strategically expose them. The competition drove down the pricing by 15-20 basis points, minimized the fees, and maximized the flexibility, all to the Client’s benefit.”
Park Royal Apartments
Park Royal Apartments consists of 73 units developed by the Sponsor in 1951, with renovations completed in 2015, and includes 39 1BR units, 33 2BR units, and 1 3BR unit. The property features a 24-hour fitness center, bubbling whirlpool spa, BBQ and neighbor-friendly outdoor seating areas, resident clubhouse, lushly landscaped grounds, bike storage, and covered parking. There are 104 parking spaces.
El Norte Villas
El Norte Villas is a 236-unit apartment community located in the northern San Diego County city of Escondido. Built in 1986, it is situated on 9.77 acres and is comprised of 108 1BR units and 128 2BR units totaling 190,800 rentable square feet. Units include top-tier amenities including patios or balconies, modern kitchens with stainless steel appliances, modern bathrooms, luxury vinyl tile, updated lighting and window coverings, ceiling fans, fireplaces, and an in-home stackable washers and dryers.
About Highland
Highland Realty Capital has a strong track record structuring the best possible capital solutions for real estate clients, including: permanent loans, bridge loans, construction loans, mezzanine and preferred equity financing, JV equity, and asset sales. The Principals of Highland have closed in excess of $5.5 billion in financings involving all property types including: office, apartments, retail, industrial, hospitality, residential subdivisions, condominium developments, storage facilities, and land.
