Transactions - Landmark Capital Advisors

Beach-Side Mixed Use Project Refinanced

$16,000,000

Bridge Loan

California

Beach-Side Mixed Use Project Refinanced

Capital Raise Amount: $16,000,000

Financing: Bridge Loan

Location: California

Landmark Capital is pleased to announce a successful $16 million bridge loan transaction in Huntington Beach, CA. Proceeds were used to refinance a 29-acre site within close proximity to the Pacific Ocean and immediately inland from Pacific Coast Highway.

Challenge of the assignment:

The lack of entitlements, including a coastal permit requirement, and the former oil storage use, presented financing challenges. The quality of the sponsor, the sophistication of the lender, and the uniqueness of the asset all contributed to a successful funding.

Solution:

Landmark Capital was able to identify a sophisticated lender who would fund on an entitled former oil terminal and execute under a tight timeframe.

Met 15

$19,500,000

Bridge Loan

Texas

Met 15

Capital Raise Amount: $19,500,000

Financing: Bridge Loan

Location: Texas

Challenge of the assignment:

At the time of closing, a structural remediation program to mitigate foundation movement was only 50% complete. In addition, the majority tenant at the property (85% of GLA) had an open termination option which they could exercise at any time.

Solution:

Landmark Capital identified a lender that was comfortable with the sponsor’s ability to complete the remediation and negotiate new leases with the existing tenants. The financing enabled the owners to partially pay down their equity partner’s capital account to bring down the all-in cost of capital to the transaction.

Stone Creek Ranch

$6,900,000

Bridge Loan

Colorado

Stone Creek Ranch

Capital Raise Amount: $6,900,000

Financing: Bridge Loan

Location: Colorado

Landmark Capital secured $6,900,000 of short-term bridge financing to replace a maturing land loan on a 251-acre site with final plat approval for 329 residential lots in, Douglas County, CO.

Challenge of the assignment:

Secure short-term, non-recourse debt financing to provide the Sponsor with sufficient time to complete: final agency approvals; builder sale documentation; the infrastructure financing plan for the ultimate sale of this 329 lot subdivision. The underlying hard-money loan had less than 60 days remaining without extension options at the outset of the assignment. The Sponsor had existing offers for preferred equity and debt; however, was looking to avoid the proposed prepayment penalties.

Solution:

Having completed multiple bridge loan transactions based on pre-sold lots, Landmark Capital was able to identify a lender who understood the demand drivers of Metro-Denver and the immediate sub-market. Landmark Capital quickly learned the intricacies of the project, enabling the company to present the risks and opportunities in a coherent manner, leading to a successful close.

The Gallery at River Ridge

$14,000,000

Joint Venture Equity

California

The Gallery at River Ridge

Capital Raise Amount: $14,000,000

Financing: Joint Venture Equity

Location: California

Landmark Capital sourced $14,000,000 of Joint Venture Equity to finance the acquisition, development and construction of 152 residential units in Oxnard, CA.

Challenge of the assignment:

Persuading a capital partner to invest in a project located in a secondary market with a relatively large number of lots.

Solution:

Landmark Capital had the resources and the collaboration to analyze the opportunity, identify a qualified investor, assemble the relevant market data to support a significant investment in a secondary market, and provide ongoing support to insure a successful close.

“Coming out of the severe downturn, we have been primarily using internal resources to capitalize our projects. It had come to a point, that in order to meet our growth goals, we needed to expand our capital sources to those more institutional in nature. Landmark Capital approached some select institutional candidates and we were able to consummate a deal with a premier residential equity capital provider. Landmark was also able to exhibit that the Oxnard market, which although considered a secondary market, has compelling attributes that make it attractive for an investor.”

Office Campus

$52,700,000

Senior Bridge Loan; Preferred Equity

California

Office Campus

Capital Raise Amount: $52,700,000

Financing: Senior Bridge Loan; Preferred Equity

Location: California

Landmark Capital Advisors is pleased to announce the successful recapitalization of a 300,000 square foot office campus in Northern California.

Challenges of the assignment included:

Heavily concentrated tenant rollover schedule
Maturing CMBS loan pay-off was nearly 100% of appraised value
Highly complex capital structure with multiple investor tranches

Solution:

Landmark Capital crafted a capital structure that provided the preferred equity investor with upside participation, while maintaining an attractive, blended cost-of-capital and long-term ownership control for the sponsorship entity.

The Oviatt Hotel – Bridge Loan

$6,000,000

Bridge Loan

California

The Oviatt Hotel – Bridge Loan

Capital Raise Amount: $6,000,000

Financing: Bridge Loan

Location: California

Landmark Capital arranged financing for the acquisition of a 117 unit hotel building in downtown Los Angeles, CA.

Challenge of the assignment:

Although very well located, the property had been recently removed from the City of Los Angeles’ Residential Hotel Ordinance (RHO) and was still leased to tenants on a weekly and monthly basis. The borrower needed acquisition financing to take down the property and process plans for a conversion into a boutique hotel.

Solution:

Landmark identified a lender that was comfortable with the in-place tenancy and provided short term financing at an attractive rate with a flexible prepay schedule.

Portola Center South

Capital Raise Amount: $100,000,000

Capital Type: Senior Debt

Location: California

Portola Center South

Capital Raise Amount: $100,000,000

Capital Type: Senior Debt

Location: California

Landmark Capital announces the successful $100 million recapitalization of Portola Center South. Proceeds will be used to refinance an existing loan on a 95.5 acre parcel in Lake Forest and provide additional capital to improve the site to blue-topped condition.

The Barlow

Capital Raise Amount: $52,300,000

Capital Type: Construction Loan; Bridge Loan; Permanent Loan

Location: California

The Barlow

Capital Raise Amount: $52,300,000

Capital Type: Construction Loan; Bridge Loan; Permanent Loan

Location: California

CBU Student Housing

Capital Raise Amount: $33,500,000

Capital Type: Senior Debt

Location: California

CBU Student Housing

Capital Raise Amount: $33,500,000

Capital Type: Senior Debt

Location: California

Assignment: Private University in Riverside needed to recapitalize a multifamily facility adjacent to its campus that had gone up in value when it was converted from market rate apartments to student housing.

Challenges: University had owned the student housing facility for less than a year but was growing quickly and needed to re-deploy capital into other campus construction projects. The University couldn’t refinance into a GSE loan because the project wasn’t yet seasoned as a student housing asset. The University also couldn’t enter into a JV equity deal with an investor due to their tax structure as a not-for-profit.

Solution: The Principals of Landmark identified an east coast lender active in the tax exempt bond financing market which enabled the University to borrow at a higher advance rate and lower cost than they would have otherwise been able to through conventional lenders.

Village Walk

Capital Raise Amount: $5,500,000

Capital Type: Joint Venture Equity

Location: California

Village Walk

Capital Raise Amount: $5,500,000

Capital Type: Joint Venture Equity

Location: California

Landmark Capital is pleased to announce the successful capitalization of 46 to-be-built single-family homes and townhomes in Cotati, Sonoma County, CA

Challenge of the assignment included: Gaining a capital partner’s confidence to enter a market considered as secondary by institutional capital providers where transactional data is not as readily available as other markets due to a lack of development in the past 8 years.

Solution: Landmark Capital Advisors identified an equity partner that knew the market, was familiar with the sponsor, and had a relationship with the land seller which helped facilitate the timely close of the transaction.

The Ranch at Eastvale

Capital Raise Amount: $5,000,000

Capital Type: Joint Venture Equity

Location: California

The Ranch at Eastvale

Capital Raise Amount: $5,000,000

Capital Type: Joint Venture Equity

Asset Type: Entitlement

Location: California

On behalf of Summit Development and two Southern California family office investors, Landmark Capital is pleased to announce the successful closing of The Ranch at Eastvale. Equity proceeds to the joint venture partnership were used to buy-out an equity interest held by Lehman Brothers, extend the escrow period, complete entitlements, and provide balance sheet capacity to close on 76 net acres of land in Eastvale, CA. The development will consist of approximately 2,000,000 square feet of mid-range industrial and commercial space.

Challenge of the assignment included: Capital was required to extend an option period with remaining entitlement risk, precluding most institutional equity sources from pursuing the project. Funding was required within six weeks of being introduced to the project, and due to the large acquisition price, called for two separate investment groups to fund the joint venture.

Solution: Landmark Capital identified two, well-qualified family office investors capable of understanding and assessing an option and entitlement risk profile, as well as developing a large-scale industrial project. Landmark Capital invested significant upfront time with the sponsor to understand the complexity of the transaction and to develop a simplified summary approach to the business plan, enabling investment partners to quantify the risks and mitigants in short order despite a complicated structure and variable entitlement timeline.

“After working to raise “entitlement equity” for over 12 months and encountering a lot of “blank stares” I was fortunate to meet Adam Deermount and Dave Kidder. They quickly underwrote the transaction and introduced me to several smart/qualified equity sources. Landmark had instant credibility with these investors and we were able to close a very complex transaction in 45 days start to finish. I highly recommend Landmark Capital Advisors.” Bryan Bentrott, Principal at Summit Development Corporation.

Met 15

Capital Raise Amount: $28,200,000

Capital Type: Joint Venture Equity

Location: Texas

Met 15

Capital Raise Amount: $28,200,000

Capital Type: Joint Venture Equity

Location: Texas

Landmark Capital is pleased to announce a successful recapitalization of a flex office building.

Challenge of the assignment included: The transaction was a recapitalization and restructuring of a legacy tenant-in-common investment that had been in bankruptcy. At the time of closing, the property was approximately 50% complete with a structural remediation program to mitigate foundation movement that was the result of expansive soils and defective construction. In addition, the majority tenant at the property (85% of GLA) had an open termination option which they could exercise at any time.

Solution: Landmark Capital Advisors identified an equity partner that closed all-cash with the sponsors within 3 weeks. The financing enabled the owners to pay off their existing debt, re-commence the remediation work, and fund a TILC reserve to negotiate new leases with the existing tenants. The financing also contained a feature to enable the bulk of the investment to be refinanced out shortly after closing with traditional bridge debt to bring down the all-in cost of capital to the transaction.

Curtis Park Village – 74

Capital Raise Amount: $22,000,000

Capital Type: Joint Venture Equity

Location: California

Curtis Park Village – 74

Capital Raise Amount: $22,000,000

Capital Type: Joint Venture Equity

Location: California

Assignment: Private homebuilder in Northern California needed equity to purchase the first phase of finished lots and construct homes in a large, infill subdivision in the City of Sacramento.

Challenges: Lack of comparable infill subdivisions to support new home values, smaller lot and home sizes than preferred by many investors, perception of Sacramento as a secondary market, complicated acquisition structure with the land developer.

Solution: The Company identified an equity investor who understood the challenges of infill development well and had a bullish outlook on the interior Sacramento market. The investor was willing to work side-by-side with the Sponsor to solve some of the structural challenges in the deal.

Met Center 10

Capital Raise Amount: $29,250,000

Capital Type: Permanent Loan

Location: Texas

Met Center 10

Capital Raise Amount: $29,250,000

Capital Type: Permanent Loan

Location: Texas

Sonata at the Preserve

Capital Raise Amount: $15,700,000

Capital Type: Senior Debt

Location: California

Sonata at the Preserve

Capital Raise Amount: $15,700,000

Capital Type: Senior Debt

Location: California

Assignment: Public homebuilder client needed non-recourse AD&C debt to purchase and build a 65 lot subdivision in the Preserve master plan in Chino.

Challenges: Builder had a relatively weak balance sheet and credit was impaired coming out of the Great Recession. In addition, the structure of their bonds didn’t allow them to put up a corporate guarantee for any construction loans, making it difficult to obtain debt from traditional lenders.

Solution: Land Advisors Capital identified a regional bank that was increasingly bullish on the homebuilding market in Southern California and had lending officers with extensive experience lending to the publics. The bank was able to underwrite the builder’s balance sheet and got comfortable with the steady improvement that was taking place. The bank was willing to get creative and structure a low advance rate loan with a completion guarantee to a related entity that was to hold a minimum amount of liquidity. They were also able to negotiate loan carve outs that were acceptable to the builder’s bond holders

91 St & McDowell – Bridge Loan

Capital Raise Amount: $1,275,000

Capital Type: Bridge Loan

Location: Arizona

91 St & McDowell – Bridge Loan

Capital Raise Amount: $1,275,000

Capital Type: Bridge Loan

Location: Arizona

Landmark Capital arranged financing for the acquisition of 21 acres of unentitled land fronting I-10 in suburban Phoenix, AZ.

Challenge of the assignment: The subject property was unentitled land being sold REO from a regional bank. The borrower was seeking financing to acquire the site, plat the property for various uses, and then sell off the individual parcels to vertical developers.

Solution: Landmark sourced a lender that was familiar with the site comfortable with the unentitled land and the borrower’s expertise in executing the business plan.

Reliant Corporate Center

Capital Raise Amount: $10,700,000

Capital Type: Permanent Loan

Location: Texas

Reliant Corporate Center

Capital Raise Amount: $10,700,000

Capital Type: Permanent Loan

Location: Texas

Cornerstone Ranch

Capital Raise Amount: $10,500,000

Capital Type: Senior Debt

Location: Arizona

Cornerstone Ranch

Capital Raise Amount: $10,500,000

Capital Type: Senior Debt

Location: Arizona

The Strand

Capital Raise Amount: $13,860,000

Capital Type: Senior Debt

Location: California

The Strand

Capital Raise Amount: $13,860,000

Capital Type: Senior Debt

Asset Type: Entitlement

Location: California

The Sponsor acquired an unimproved +/- .86-acre oceanfront site on The Strand in Oceanside. The site was previously a hotel, which had been demolished and was entitled for 24 attached condo units, which were not feasible to construct in current market conditions. The business plan was to re-entitle the site for 17 condo flats above an on-grade podium, close escrow contingent upon approval of the entitlements, and build and sell units. The Sponsor successfully re-entitled the site and is currently under construction. Landmark sourced the debt and JV equity for the transaction. Given the podium construction and an average proforma price of +/- $1.5MM per unit in Oceanside, identifying sources for both the debt and equity was a challenge that was accomplished through extensive market research and Landmark’s ability to identify new sources of capital entering the market.

Revelle

Capital Raise Amount: $9,025,000

Capital Type: Joint Venture Equity

Location: California

Revelle

Capital Raise Amount: $9,025,000

Capital Type: Joint Venture Equity

Location: California

Green Mountain

Capital Raise Amount: $9,000,000

Capital Type: Joint Venture Equity

Location: Washington

Green Mountain

Capital Raise Amount: $9,000,000

Capital Type: Joint Venture Equity

Location: Washington

Landmark Capital Advisors is pleased to announce a successful JV equity capital raise for phase I of the Green Mountain master planned community in Camas, WA, a suburb of Portland, OR. Proceeds will be used to finance the acquisition and development of approximately 51 acres approved for 201 single-family lots. The overall master planned community is 283-acres with 1,300 SFR lots and consists of a mix of SFR and attached product.

Challenge of the assignment included: Getting a capital partner comfortable with entering a new market where transactional data is less readily available because equity for local homebuilding and land development projects has not traditionally been dominated by institutional investors.

Solution: Landmark Capital, with its affiliated companies Land Advisors Organization and Market Insite, has the unique capabilities and resources to analyze an opportunity, assemble the relevant market data to support a significant investment, identify a qualified investor, and provide ongoing support to insure a successful close.

Grocery Anchored Mixed-Use Center

Capital Raise Amount: $8,820,000

Capital Type: Cash-Out Refinance

Location: California

Grocery Anchored Mixed-Use Center

Capital Raise Amount: $8,820,000

Capital Type: Cash-Out Refinance

Location: California

Landmark Capital Advisors is pleased to announce the successful recapitalization of a 37,047 square foot grocery anchored mixed-use center in Northern California.

Challenge of the assignment included: Loan provided both cash out to the borrower as well as good news funds to lease up the final remaining vacant space.

Solution: Landmark Capital sourced and structured a competitve floating rate loan that provided cash-out to the borrower as well as TI/LC costs with no prepayment penalty.

Gracies Place

Capital Raise Amount: $9,900,000

Capital Type: Joint Venture Equity

Location: Washington

Gracies Place

Capital Raise Amount: $9,900,000

Capital Type: Joint Venture Equity

Location: Washington

Alisal Oaks

Capital Raise Amount: $7,650,000

Capital Type: Senior Debt

Location: California

Alisal Oaks

Capital Raise Amount: $7,650,000

Capital Type: Senior Debt

Location: California

Industrial Project – Collis Roofing

Capital Raise Amount: $5,100,000

Capital Type: Non-Recourse DST Financing

Location: Florida

Industrial Project – Collis Roofing

Capital Raise Amount: $5,100,000

Capital Type: Non-Recourse DST Financing

Location: Florida

Landmark Capital Advisors is pleased to announce the successful closing of a non-recourse permanent loan to acquire a portfolio of 3 industrial buildings totaling 86,822 SF of space in Central Florida.

Challenge of the assignment included: The transaction represented a single-tenant sale leaseback of three warehouse facilities from a privately held unrated company to an acquiring entity that was structured as a Delaware Statutory Trust (DST).

Solution: Despite recent volatility in the market, Landmark Capital sourced and closed a cross-collateralized non-recourse loan with a competitive fixed rate that featured a front loaded reserve structure to maximize on-going ownership distribution

Artisan Palm Valley

Capital Raise Amount: $6,000,000

Capital Type: Senior Debt

Location: Arizona

Artisan Palm Valley

Capital Raise Amount: $6,000,000

Capital Type: Senior Debt

Location: Arizona

Lake Atlin

Capital Raise Amount: $6,200,000

Capital Type: Joint Venture Equity

Location: California

Lake Atlin

Capital Raise Amount: $6,200,000

Capital Type: Joint Venture Equity

Asset Type: Entitlement

Location: California

The project was an acquisition of a +/- 9-acre former school site in the Lake Murray area of San Diego. The Sponsor’s business plan was to purchase the site, record a Tentative Tract Map for +/- 50 single-family lots and sell the site to a homebuilder. The residential use conformed to the underlying zoning but there was no map in place when it was purchased. The seller was the San Diego Unified School district and they insisted on a quick close rather than allowing the Sponsor to close upon approval of entitlements. The project is still being processed and on track to receive approvals this year. Landmark sourced the JV equity for the transaction operating in a short time frame, which required a 45-day close of escrow.

Prosperity Business Park

Capital Raise Amount: $5,200,000

Capital Type: Construction Loan

Location: California

Prosperity Business Park

Capital Raise Amount: $5,200,000

Capital Type: Construction Loan

Location: California

Landmark Capital announces the successful closing of a $5,200,000 construction loan. Proceeds will be used to finance the construction of a 60,000 square foot industrial project with 30 for-sale condominium units located in West Covina, CA.

Golden Hill

Capital Raise Amount: $5,000,000

Capital Type: AD&C Loan

Location: California

Golden Hill

Capital Raise Amount: $5,000,000

Capital Type: AD&C Loan

Location: California

Challenge of the assignment included: Client wanted non-recourse financing at a fairly aggressive advance rate.

Solution: Landmark Capital was able to source non-recourse financing at 75% LTC.

Sol Palm Spring

Capital Raise Amount: $4,850,000

Capital Type: Joint Venture Equity

Location: California

Sol Palm Spring

Capital Raise Amount: $4,850,000

Capital Type: Joint Venture Equity

Asset Type: Entitlement

Location: California

The Sponsor acquired an unimproved +/- 7.5-acre site in Palm Springs caddy corner to the Palm Springs Convention Center and within easy walking distance of downtown. The site had an existing Tentative Tract Map for 81 attached multi-story units. Recognizing that the product was not feasible to construct in current market conditions, the business plan was to purchase the site, re-entitle the property for 46 single-family detached units, and construct and sell homes. The Sponsor successfully re-entitled the site and is currently constructing and selling homes. Landmark identified a new, emerging capital provider and sourced the JV equity for the transaction in 2012 at a challenging time in the market when there were very few capital providers willing to fund entitlements and vertical construction.

The Strand

Capital Raise Amount: $4,500,000

Capital Type: Joint Venture Equity

Location: California

The Strand

Capital Raise Amount: $4,500,000

Capital Type: Joint Venture Equity

Location: California

Del Mar Mesa

Capital Raise Amount: $4,400,000

Capital Type: Joint Venture Equity

Location: California

Del Mar Mesa

Capital Raise Amount: $4,400,000

Capital Type: Joint Venture Equity

Location: California

Curtis Park Village – 12

Capital Raise Amount: $4,000,000

Capital Type: Joint Venture Equity

Location: California

Curtis Park Village – 12

Capital Raise Amount: $4,000,000

Capital Type: Joint Venture Equity

Location: California

Litchfield Park

Capital Raise Amount: $3,550,000

Capital Type: Joint Venture Equity

Location: Arizona

Litchfield Park

Capital Raise Amount: $3,550,000

Capital Type: Joint Venture Equity

Location: Arizona

Grapevine

Capital Raise Amount: $2,660,000

Capital Type: Joint Venture Equity

Location: California

Grapevine

Capital Raise Amount: $2,660,000

Capital Type: Joint Venture Equity

Location: California

Harmony Lane

Capital Raise Amount: $2,500,000

Capital Type: Senior Debt

Location: California

Harmony Lane

Capital Raise Amount: $2,500,000

Capital Type: Senior Debt

Location: California

Pinnacle Point

Capital Raise Amount: $1,700,000

Capital Type: Joint Venture Equity

Location: Arizona

Pinnacle Point

Capital Raise Amount: $1,700,000

Capital Type: Joint Venture Equity

Location: Arizona

Arbor Lane

Capital Raise Amount:

Capital Type: Joint Venture Equity

Location: California

Arbor Lane

Capital Raise Amount:

Capital Type: Joint Venture Equity

Location: California

Preface Seascape

Capital Raise Amount: Undisclosed

Capital Type: Joint Venture Equity

Location: California

Preface Seascape

Capital Raise Amount: Undisclosed

Capital Type: Joint Venture Equity

Location: California

Rancho Cabrillo

Capital Raise Amount: $5,200,000

Capital Type: Senior Debt

Location: Arizona

Rancho Cabrillo

Capital Raise Amount: $5,200,000

Capital Type: Senior Debt

Location: Arizona

Ave 66

Capital Raise Amount: $5,100,000

Capital Type: Senior Debt

Location: California

Ave 66

Capital Raise Amount: $5,100,000

Capital Type: Senior Debt

Location: California

X Changer Center

Capital Raise Amount: $4,000,000

Capital Type: Senior Debt

Location: Texas

X Changer Center

Capital Raise Amount: $4,000,000

Capital Type: Senior Debt

Location: Texas

Murrieta 130

Capital Raise Amount: $3,660,000

Capital Type: Joint Venture Equity

Location: California

Murrieta 130

Capital Raise Amount: $3,660,000

Capital Type: Joint Venture Equity

Asset Type: Entitlement

Location: California

The Sponsor acquired an unimproved +/- 130-acre site fronting Winchester Road in Murrieta. The business plan was to purchase the site, record a Tentative Tract Map for 283 single-family detached lots and 15.7 acres of commercial, and sell the residential lots to a homebuilder(s). Landmark sourced a JV equity partner that quickly identified the strength of the location and the business plan and closed the transaction in a timely manner.

Ave 66

Capital Raise Amount: $2,375,000

Capital Type: Joint Venture Equity

Location: California

Ave 66

Capital Raise Amount: $2,375,000

Capital Type: Joint Venture Equity

Location: California

Preface Long Beach

Capital Raise Amount: Undisclosed

Capital Type: Joint Venture Equity

Location: California

Preface Long Beach

Capital Raise Amount: Undisclosed

Capital Type: Joint Venture Equity

Location: California

Assignment: Land Developer in Southern California needed equity to purchase a church site in Long Beach and map it for single family homes.

Challenges: Site had zoning but needed a residential map, developer was able to tie the site up at a low price but had to close before the map was recorded. Equity amount was too small for most institutional equity investors. Timing was very tight with no possibility for extensions.

Solution: The Company identified a local family office with substantial entitlement expertise and knowledge of the local market. The family office investor was willing to put up a substantial amount of equity to close the site along with a seller carryback loan and became comfortable with the downside of reselling the site to another church. The transaction went from LOI to closing in 4 weeks.