Pembrook Capital Management LLC completed an $8.37 million first mortgage bridge loan to an affiliate of Republic Urban Properties LLC, facilitating the acquisition of a 2.36 acre land parcel. The loan was originated by Chris Simon, located in Los Angeles. The sponsor was advised on the transaction by Curtis Palmer and Ted Fentin from Multi-Housing Capital Advisors in Beverly Hills.
The bridge loan will finalize the assemblage of a 3.55 acre land site to be used for the future development of a class A multifamily apartment complex, located at 1400 West San Carlos St. The property is expected to consist of 218 rental apartment units, as well as over 14,000 s/f of retail space. In addition, the Pembrook loan will allow Republic Urban Properties to obtain its building permits, finalize their development costs and procure their senior debt financing.
Located north of the Willow Glen neighborhood in the midtown section of the city, the property is close to a number of national retailers and other neighborhood services, which will be a strength for the future development of the multifamily complex. The expected date of commencement for construction on the project is July.
"Pembrook focuses on providing financing for experienced sponsors in core markets and we are excited to announce the completion of this transaction," said Stuart Boesky, Pembrook's president and chief executive officer. "In addition to being a leading hub for high-tech innovation, San Jose remains one of the strongest multifamily markets in the nation. Republic Urban Properties has significant experience in multifamily development throughout San Jose, and we anticipate strong local interest in the property upon its completion."
"Pembrook was the ideal lender for our financing needs," said Michael Van Every, senior vice president and managing partner for Republic Urban Properties. "Even though it remains a challenging market to obtain financing, we were looking for a smart and efficient solution that allowed us to complete our investment in a strategically located property poised for growth within the San Jose market."
"This transaction continues Pembrook's investment program of making commercial real estate loans throughout the U.S. The direct origination platform allows Pembrook to source what we believe to be high quality real estate, with strong fundamentals, and experienced and well capitalized sponsors," said Boesky.
At Pembrook, Boesky leads a team of 11 professionals in managing the firm's investments. In the last four years, Pembrook has originated or participated in 36 investments with total capitalization of approximately $1.54 billion nationwide and continues to actively invest in new senior mortgage, mezzanine, and preferred equity positions.