Beach Point Capital Management provided a $105 million acquisition loan for the buyer, an entity named UP Province Holding, Commercial Observer has learned. It’s a three-year loan with two one-year extensions, according to a source close to the deal.
The project, called The Province, is underway on 2 acres at 400 West Valley Boulevard in the small city of San Gabriel, Calif. It will soon open with 127 residential units and 50,000 square feet of retail.
The source told CO that the deal is attractive because the assemblage with the 50,000 square feet of retail space is rare for the dense infill area, and the parties involved believe it will be a boon for the overall look and feel for Valley Boulevard. The property does not have any age restrictions, but the new owners plan to tap into a growing market of empty nesters who are downsizing their homes.
The Greater Los Angeles multifamily market has a 95 percent occupancy rate after the second quarter, according to a recent Colliers (CIGI) report. Average rent, at $2,179 per month, is currently 11 percent above pre-pandemic levels. Investment sales volume after the first half of the year hit $2.3 billion, far below the $6.6 billion total at this time last year.
The acquisition loan was the third major deal closed in June for Beach Point. Earlier this month, CO reported the firm provided the three-year floating-rate loan of $120 million for a planned 401-key property at 711 Seventh Avenue in Times Square. Beach Point also teamed up with Invictus Real Estate and Maxim Capital on a $62.3 million construction loan for a planned mixed-use project at 1730 Bedford Avenue in Brooklyn.
Chateau Group’s portfolio includes multifamily developments, hotels, and luxury single-family homes, according to its website.
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