NEWPORT BEACH, CA, June 10, 2015 — Mission Capital Advisors today announced that its Debt & Equity Finance Group has secured 23 separate loans — totaling $309 million — for the refinancing of a diverse portfolio of real estate assets owned by The Seligman Group, a San Francisco-based family office. The 23 refinanced assets comprise the majority of The Seligman Group’s California holdings, and total more than 1.9 million square feet and 800 apartments.
Mission Capital’s New York and Newport Beach offices worked jointly on the complex assignment, with a team comprised of Managing Director Jordan Ray, Managing Director Ari Hirt, Director Gregg Applefield, Associate Director Steven Buchwald, Associate Jamie Matheny and Analyst Eugene Shevaldin.
“The Seligman Group was looking to refinance its wide range of California holdings. Our mandate was to field both fixed and floating rate options from a variety of types of capital providers,” said Ray. “Despite the inherent challenge of working with nearly two dozen individual assets, we efficiently arranged for the long-term refinancing of the entire portfolio at unprecedented levels – interest only for the term. It was great execution and the results were gratifying. Our client was able to replace the existing loans and take advantage of favorable market conditions as they take out additional cash.”
The portfolio includes 12 commercial properties in Orange County and San Francisco. The commercial properties include retail, industrial, flex and office holdings. The 11 Los Angeles multifamily properties comprise 817 units.
“We’re seeing incredible demand for investment in every property type from office, industrial, and flex to retail and multifamily,” said Hirt. “Working with a very diverse set of assets, we ultimately secured long-term financing at a blended average interest rate of approximately four percent on the entire Seligman portfolio. The majority of the loans have ten-year terms, and each is interest-only for the full term. We actually secured interest from lenders willing to provide even higher leverage, but our client ultimately decided that it was in their best interest to leave money on the table and take advantage of the opportunity for full-term interest-only debt.”
In recent months, Mission Capital has also secured a total of $130 million in financing for Los Angeles hospitality properties, arranging $60 million of construction financing for a downtown LA hotel and a $70 million take-out loan on a Koreatown Asset. The firm also recently secured a $50-million repurchase facility for Seattle-based real estate bridge lender.
“It’s very satisfying to close this portfolio deal, solidifying our presence in the California market shortly after expanding to the region,” said Applefield. “Having already secured nearly $500 million of financing in California this year – across every single property type – we have successfully demonstrated our expertise in terms of both lender relationships and client services.”
Mission Capital Advisors is a leading debt and equity brokerage, securing construction financing, acquisition financing and refinancing on all property types, including self-storage, hospitality, industrial, retail, multifamily and office. The capital markets solutions firm operates numerous regional offices and is extremely active across the country.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.missioncap.com.