Business
Newmark Knight Frank Secures $454 Million in Refinancing of Seven Multifamily Assets, Three of which located in the Inland Empire
Real Estate Transaction Alert
Newmark Knight Frank (“NKF”) announced it has closed a pair of structured transactions totaling $454 million for the refinance of seven assets on behalf of a private, San Francisco-based owner and Fannie Mae Priority Sponsor.
NKF’s Vice Chairman Mitch Clarfield and Managing Director Ryan Greer led the GSE effort, providing the sponsors with the ability to release or substitute individual assets and annual opportunities to borrow additional proceeds commensurate with improved property performance.
The first transaction was a $69.3 million, 10-year, full-term interest-only advance to fund the addition of Callaway Apartments, located in Taylorsville, Utah, to a four-year-old Fannie Mae Credit Facility. The Facility is now comprised of five assets with 1,700 units and a balance of $240 million. Callaway is a 624-unit multifamily property with a strong mix of one- and two-bedroom floor plans. The sponsors used the proceeds to buy out a joint venture partner from a 2007 acquisition. 48 percent of the units met Fannie Mae’s affordable mission guidelines. The 73 percent loan-to-value advance priced in the 2.8 percent range.
In a second transaction, the NKF team funded a new $384.75 million Fannie Mae Credit Facility for the refinance of a six-property portfolio. The Fannie Mae execution was the winning bid in a highly competitive process involving several lenders with an interest in providing the requested financing.
The new facility had a $130 million 10-year full term interest-only tranche and a $254.75 million 15-year tranche with 14 years of interest only at a 74 percent loan-to-value. The 10-year tranche had a coupon of less than 2.5 percent and the 15-year tranche was below 2.9 percent. This facility marked the 19th Fannie Mae Credit Facility that the team has funded.
The six-property, 1,633-unit cross-collateralized portfolio includes four assets in Southern California, one in Northern California and one in Oregon.
- Palisades at Sierra Del Oro is located in Corona, CA and includes 288 units, built in 2015.
- Sierra Del Oro is located in Corona, CA and is comprised of 300 units, built in 1989.
- Terra Nova, situated in Chula Vista, CA and includes 233 units, built in 1985.
- Village Oaks in Chino Hills, CA totals 280 units, built in 1989.
- Hawthorn Village is located in Napa, CA and includes 244 units, built in 2003.
- Terrene at the Grove is located in Wilsonville, OR and includes 288 units, built in 2013.
“NKF and Fannie Mae were able to navigate the market uncertainty to deliver an excellent execution,” said Clarfield. “By leveraging the sponsor’s expertise, resilient property performances and the inherent credit benefit of the crossed collateralization, NKF was able to offer higher proceeds and full-term interest-only at very low rates, along with the superior structure and flexibility of the facility.”
Greer added, “We have been doing business with this sponsor for over 15 years, and five years ago proved the relative benefits offered by the credit facility structure. Product confidence prompted the sponsor to start a second facility for a separate pool of capital almost immediately after the first facility was funded. The borrower has been extremely satisfied with the functionality and benefits of the existing credit facilities.”
“We’re pleased to deliver a top-notch loan to our sponsor, and this execution proves that despite the current challenges and unclear economic environment, it is possible to secure excellent financing at historically low rates,” Clarfield continued. “Best-in-class property operations allowed them to capitalize on current market conditions and secure extremely low-cost, flexible debt for years to come.”
Business
Inland Empire Regional Chamber of Commerce to Lead California Delegation at GITEX GLOBAL 2023 in Dubai
Fostering Technological Synergy: Bridging the Tech Gap with Global Partners
Demonstrating the Inland Empire Regional Chamber of Commerce’s (IERCC) commitment to global tech collaboration and innovation, the organization will lead a California delegation to the world-renowned GITEX GLOBAL event in Dubai from October 16-20, 2023. Though the original invitation extended to IERCC’s President & CEO, Mr. Edward Ornelas, Jr., he will not be in attendance. Instead, the California delegation will be spearheaded by the Chamber’s newly-appointed CTO, Mr. Gabriel Rangel.
Organized by the Dubai World Trade Centre, GITEX GLOBAL 2023 promises to be grander than ever. The event is set to host over 6,000 exhibiting companies and startups, drawing more than 170,000 tech and business executives from over 170 countries. The mega-event will sprawl across 41 vast halls and, for the first time ever, will be held at two prominent venues – the iconic Dubai World Trade Centre and the new Dubai Harbour for Expand North Star, making it the host for the world’s largest startup event.
Mr. Edward Ornelas, Jr. commented, “While I regret not attending GITEX personally, I am proud to have Mr. Rangel at the helm of this effort. I’m confident that our delegation will foster new collaborations and present the Golden State as a tech powerhouse.”
This year’s conference adopts the compelling theme of “The Year to Imagine AI in Everything”. Attendees are poised to witness the grandest showcase of AI tech giants and industry frontrunners. Additionally, it promises to kindle profound dialogues and debates concerning the socio-economic implications of burgeoning AI technology.
“Leading the California delegation at GITEX offers us an unmatched platform to nurture and solidify relationships with global tech partners,” said Mr. Gabriel Rangel, CTO of IERCC. “As the technology landscape continues to evolve, it’s critical for us to be a part of these international collaborations. I’m honored to spearhead this mission on behalf of the Inland Empire Regional Chamber of Commerce.”
An integral part of the California delegation, Mr. Ram Thanapandian, Principal Technology Consultant to the State of California and Chair of CA State Treasurer Fiona Ma’s Technical Advisory Commission, will be present, providing invaluable insights and representing the State of California Treasurer’s Office.
IERCC’s leadership in organizing this delegation underscores the crucial role that California plays in the global tech ecosystem and mirrors Dubai’s ambitious vision as encapsulated in the Dubai Economic Agenda (D33). This strategy aims to substantially expand Dubai’s economic landscape in the upcoming decade, securing its stature among the world’s leading global cities.
Trixie LohMirmand, Executive Vice President of the Dubai World Trade Centre and CEO of KAOUN International, remarked on the invaluable contributions the California delegation will bring to the event. She looks forward to an event marked by knowledge-sharing, collaboration, and pioneering discussions.
For additional information on GITEX GLOBAL 2023, please refer to: GITEX 2023 Preview.
Coming October 5th
Economic Horizon 2024: What Lies Ahead?
The Inland Empire Regional Chamber of Commerce, in collaboration with Beacon Economics and the County of San Bernardino, is thrilled to announce that the anticipated economic forecast conference, Economic Horizon 2024: What Lies Ahead, Inland Empire? will be held October 5th from 3:30 PM to 6:30 PM at the El Prado Golf Courses in the vibrant city of Chino, California.
Esteemed economist, Dr. Christopher Thornberg will present complete outlooks for the U.S., California, and Inland Empire economies. “The Inland Empire stands at the crossroads of remarkable economic opportunities and challenges,” said Thornberg. “I’m excited to unpack the trends and shifts that will define the region’s economic landscape in the next year, and beyond.”
Known for his razor-sharp observations, and fun, energized delivery, Thornberg’s presentation will include pointed discussions about inflation, the Fed’s next move, housing markets, strengths and instabilities in the economy, and what current trends mean for the nation, state, and local region.
The conference will also be graced by the insights of California State Treasurer Fiona Ma as keynote speaker. In her words, “The strength of California’s economy is deeply interwoven with the growth trajectories of its regions. The Inland Empire, with its dynamism and resilience, is a testament to this synergy. I am honored to join ‘Economic Horizon 2024’ and share a vision where policies, partnerships, and potentials converge to elevate the Inland Empire to unprecedented economic heights.”
“This conference is a testament to the collaborative spirit of the Inland Empire and our commitment to fostering a robust, resilient economy,” said Edward Ornelas, Jr., President of the Inland Empire Regional Chamber of Commerce. “Our partnership with Beacon Economics and the County of San Bernardino aims to offer a platform for profound economic discussion, forecasting, and strategic future planning.”
Attendees can anticipate not only expert insights into the economy but also networking opportunities and a chance to connect with key business, government, and nonprofit leaders from across the region.
Full event details are available at: economy.iechamber.org
Bizz Buzz
Webb Investments acquires Silver Creek Industries, an industry leader in modular construction for schools
Webb Investments today announced the launch of a new company, Silver Creek Modular, after acquiring the assets of Silver Creek Industries, a highly respected modular construction company known for bringing innovative, sustainable and cost-effective solutions to the education industry.
Silver Creek Industries’ existing business, including its employees and its Perris, Calif., manufacturing facility, will remain with the new company, with Webb providing the investment capital, resources and expertise to enhance Silver Creek’s presence in the modular construction marketplace.
The acquisition closed in June of 2023, following Silver Creek Industries’ Chapter 11 filing in the Central Bankruptcy Court of California.
“We are thrilled to have the opportunity to bring Silver Creek into our family business, and look forward to building on our shared commitment to improving educational opportunities within communities across our region,” said Kiana Webb, CEO of Webb Family Enterprises. “This acquisition aligns with our strategy to invest in established firms that can help us drive community revitalization and inclusive growth, while improving quality of life and increasing economic output.”
Silver Creek Industries was founded in 2004 and has completed more than 1,000 projects in the education, commercial, medical, military, government and multi-family housing markets. More recently, the company’s focus has been on providing high-quality, sustainable modular buildings for schools and educational institutions. Silver Creek Industries is well known for delivering projects on time and on budget, with minimal disruption to school and the community.
Webb Investments is a privately held, family-owned company focusing on creating a community development ecosystem that drives inclusive, organic growth and transforms the areas they serve.
For more information on Webb Investments, please visit webbinvestments.com.
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