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Highland Realty Capital Secures Financing for $27M Tarzana MF Acquisition
Highland Realty Capital arranged a $17.275-million bridge loan for the acquisition of a two-building, 118-unit multifamily property in Tarzana. The asset at 6262-6323 Reseda Ave. was acquired by an affiliate of Los Angeles-based Hill Street Realty (HSR) for $27.1 million with a $3.425 million capital improvement plan for exterior and interior renovations.
HSR chose to secure a lower leverage loan of 55% LTC as a conservative measure to ensure positive cash flow while the duration and impacts of COVID-19 are still uncertain.
Highland’s Mike Guterman, who handled the transaction, says, “The lower leverage loan resulted in a 75-100bps savings compared to the typical 65-75% LTC acquisition loans available in the market.” The three-year, non-recourse loan was provided by a debt fund.
HSR is the sponsor of the HSR Income and Value REIT I, a private multi-family REIT focused on a value-add investment strategy. HSR has been in the value-add multifamily space since 2001.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Financing
- ◦Sale/Acquisition




