Meridian Capital Group has arranged $27.8 million in acquisition financing for the purchase of a three-property multifamily portfolio in Escondido, California, on behalf of Clear Sky Capital Inc. The three-year initial-loan term, provided by a balance-sheet lender, features full-term interest-only payments with two one-year extension options.
The transaction was negotiated by Meridian managing director Seth Grossman and VP Sarah Kuebler, who are both based in the company’s San Diego office.
The Clear Sky Capital portfolio consists of three multifamily properties – The Grand Villa, Tanglewood, and Garden View – totaling 193 units and offers a mix of studio, one-, two-, and three-bedroom apartments. The communities are in close proximity to each other as well as major transportation routes, including the Interstate 15, the Escondido Freeway, and San Pasqual Valley Road. Situated near restaurants, cafés, and shopping centers, the properties are also 30 miles north of Downtown San Diego.
“Meridian was able to demonstrate the value-add potential of each property through unit and common-area renovations to achieve higher rents, while also highlighting the sponsor’s ability to lower expenses as they have successfully done many times in the past with similar vintage assets,” says Grossman. He adds that the properties were purchased in an off-market transaction.