Multifamily - Debt

NorthMarq arranges $76.8 million Fannie Mae Green Loan and 1031 exchange funds for $130 million Class-A multifamily asset Chino Hills, California

NEWPORT BEACH, CALIFORNIA (October 28, 2020) – Advanced Real Estate Services, Inc. (Advanced) has acquired The Crossings, a 346-unit newly-built apartment building in Chino Hills, California. The property was constructed in 2018/2019 and sits on more than 32 acres of land. The property boasts a large resort-style pool area, clubhouse, 2-floor-height gym, turf soccer field, dog park, EV charging stations, package lockers, business center and playground.  

“We purchased this property with 1031 exchange funds from a recent sale of a large mobile home park in Huntington Beach,” said Richard Julian, President of Advanced.  “Our investor partners were attracted to the quality of the building construction, low density site, and tremendous job growth in the area.” The property was not marketed and Margie Malloy from Berkadia’s Inland Empire office represented Advanced in the acquisition.

Advanced plans two more apartment acquisitions over the next 30-45 days as they continue to fulfill their 1031 exchange equity placement. It was also reported in September, that Advanced had launched a fund of up to $250,000,000 of private capital. Much of the proceeds were a result of a large $250,000,000 refinance they completed earlier this year with NorthMarq. “We are actively searching for more, large multi-family assets in our Southern California marketplace. We are in escrow on 2 other properties off-market. We hope there will be more opportunities as the market stabilizes and sellers are more comfortable bringing properties out.”

NorthMarq’s Newport Beach team, comprised of Mike Elmore, EVP/Managing Director, Joe Giordani, SVP/Managing Director, and Brendan Golding, Vice President, arranged the Fannie Mae Green $76.8 million loan, with ten years interest-only payments at a 2.44 percent fixed rate. 

“The ability to obtain a green certificate based on the new construction saved Advanced 30 bps, and we achieved the lowest rate for Advanced in the $2.3 billion we have financed over the past 20 years. Also, we were able to accelerate the closing date by over three weeks to accommodate the seller’s desire to close early,” said Elmore. 

With more than 9,000 apartment units in Southern California, Advanced already owns many other properties in the surrounding cities of Ontario, Montclair, Riverside, Azusa, Yorba Linda and La Habra. “This location is strategic as is continues to fill-out our geographic reach in the Western portion of the Inland Empire. We are bullish on this market, it continues to be one of the largest employment growth centers in the Western US,” said Julian.   

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.