Tuesday, January 18, 2022

DWG Capital Group, Newmark Arrange $92.7 Million Debt and Equity Financing for Three-Community Inland Empire Multifamily Portfolio


LOS ANGELES—Judd Dunning, president, DWG Capital Group, and Brian Bowis, managing director, Newmark, have arranged $92,723,000 in debt and equity financing for a 397-unit multifamily portfolio across three Inland Empire locations in California.

Dunning and Bowis facilitated the financing on behalf of a Los Angeles-based private client, an experienced owner and operator of apartment communities with a disciplined approach to asset management. The funding for the three communities was secured through an undisclosed lender, one of their many ongoing core capital markets relationships.

“Our structured finance and capital markets teams collaborated to ensure our client had explored every available capital solution before making the best and final decision,” commented Dunning. “The assets all have strong fundamentals with significant upside and our final financing stack was designed to best accommodate the our clients immediate business plan, which was embraced by our lender.”

Vista Springs is a 212-unit, apartment community at 21550 Box Springs Road, Moreno Valley, Calif. The newly placed loan funds the project and completes a successful capital improvements program, including the remodeling of the remaining 100 units and exterior improvements to provide parking garages and enclosed private patios.

Highlander Pointe is a 133-unit apartment community situated at 1055 W Blaine Street, Riverside, Calif. The new loan enables the borrower to reposition the highly sought-after Highlander Pointe property situated within a supply-constrained Southern California market. One of the few luxury properties within the Riverside market, the community offers significant value-add opportunities.

Acquisition financing for Pebblebrook Apartments, a 52-unit project at 631 Church Street, Redlands, Calif., further enables expansion within the Inland Empire that will allow the sponsor to provide best-in-class housing within a high-income community located 60 miles northeast of Los Angeles and 45 miles west of Palm Springs.

“Each of the properties demonstrate dynamic features with stable in-place cash flow and unrivaled upside potential. Our comprehensive marketing efforts focused on delivering excellent terms for a repeat client while demonstrating his impressive track record in creating value within the multifamily sector. The offering was extremely well received by the capital markets and we are thrilled that we have been able to structure this complicated transaction.

“DWG’s relationship with the private fund and borrower and ability to analyze multiple solutions and strategies, combined with Newmark’s understanding of the broader multifamily arena, resulted in a tremendous outcome and we look forward to continuing to work with the company further grows its portfolio in strategic markets.”

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Inland Empire Business Journal
The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.