An Orange County residential developer announced it secured more than $108 million in financing for a newly opened apartment complex.
Cleveland-based commercial mortgage banker BWE arranged for an $88 million senior loan from Freddie Mac and a $20 million preferred equity contribution for Bonanni Development’s VRV apartment complex on Beach Boulevard in Stanton.
The $108.4 million in financing was secured with a five-year fixed-rate term with interest-only payments at 4.96%.
VRV is Huntington Beach-based Bonanni Development’s second multifamily project in Stanton to secure more than $100 million in financing — the residential developer also landed $100 million loan for Cloud House, a 321-unit apartment development near VRV.
Financing for Cloud House was provided by Guardian Life Insurance Co. of America and arranged by mortgage banker Bellwether Enterprise Real Estate Capital.
“This transaction involved a recapitalization that enabled a major paydown of the prior equity partner, while allowing the sponsor to rate lock early (during the lease-up process) thus capturing an attractive interest rate prior to the recent run-up in treasuries,” Tom Kenny, executive vice president of BWE’s Irvine office, said in a statement.
“The deal highlights a great team effort between our origination team, the BWE agency underwriting group, an experienced and flexible preferred equity group, and a great development sponsor.”
Also working on the non-recourse agency loan was BWE vice president Alex Gregoire.
Bonanni Development, a real estate company with $750 million in market capitalization, recently completed VRV, a 300-unit apartment building with studio, one- and two-bedroom units.
VRV, located at 12736 Beach Blvd. in Stanton also features ground-floor retail, pool and spa, barbeque areas, fitness center, golf swing bay, business center, rooftop lounge, dog run and electric vehicle charging stations on a 3.75-acre site.
Across the street from the five-floor VRV is the new Rodeo 39 Public Market, a food hall venue with more than two-dozen vendors and live music.
An Improved Road to Summer
VRV is part of a stretch of Beach Boulevard — once known as the “Road to Summer” due to the highway being the only north-south thoroughfare to Orange County’s beaches — that has been targeted for redevelopment and revitalization.
AO, the biggest architectural firm in OC based on the Business Journal’s annual list, said in a Facebook post prior to construction that the apartment complex would “bring new spirit to Beach Boulevard,” according to various public documents about the thoroughfare’s redevelopment.
Also on Beach Boulevard is Bonanni’s Cloud House development.
The city of Stanton, meanwhile, is working with Jamboree Housing, Orange County and the California Department of Housing and Community Development to develop Aurora Vista, an adaptive reuse project on Beach Boulevard that would address homelessness.
Yet another element of Beach Boulevard’s revitalization in Stanton is Rodeo 39 Public Market, a food court with multiple dining options.
A 1.5-mile stretch of Beach Boulevard in Anaheim, between Stanton and Buena Park, has also been eyed for revitalization.
