“These three financings are emblematic of the growth of our real estate portfolio and our consolidation of our capital sources. The two loans with Wells Fargo enabled us to consolidate multiple individual loans and increase our acquisition line of credit while simultaneously lowering our interest rates,” said Steve Jaffe, executive vice president and general counsel of BH Properties.
In addition to the company’s relationship with Wells Fargo, Jaffe said BH Properties’ flexibility in its capital magnifies the company’s ability to purchase unstable assets and close transactions at an unprecedented rate.
Wells Fargo Senior Vice President and Regional Manager Todd Popovich said: “The repackaging of multiple facilities into a Wells Fargo CMBS loan and a large mega facility held on book not only offered a revolving feature to provide substantial capital for further acquisition activity, but also simplified the relationship which in turn sets the stage for BH Properties continued growth in 2014.”
The U.S. Bank loan of $60 million was secured by nine properties in five states. This marks the second financing, but the first portfolio loan, with U.S. Bank for BH Properties.
“We are very excited to close our first portfolio loan with BH Properties and look forward to growing our relationship with the company,” said Adrian Metter, senior vice president of U.S. Bank. “BH Properties is a smart, savvy company and we’re pleased to partner with them on this transaction.”
The CMBS loan with Wells Fargo was secured by the Ocean Breeze Apartments in Huntington Beach.
“We had conventional financing on Ocean Breeze already with Wells Fargo – however the current lending climate and our long term view of this asset made CMBS debt a viable option. Wells Fargo was able to accommodate our desire and we closed this financing in 30 days,” said Jaffe.
In December, BH Properties ended the year with the $13.4 million purchase of Gilbert Town Square. The transaction, involving a 159,000-square-foot Class A retail shopping center located within the highly affluent Phoenix submarket of Gilbert, Ariz., was another in the firm’s strategy for the Arizona market.
“This purchase was a key component in our Southwest strategy,” said Jaffe, who noted that another purchase is on the horizon in the Arizona market. “It was a highly sought after retail center that is anchored by Regal Theaters and is shadow anchored by Brunswick Bowling Lanes. We expect to continue our growth in Arizona and in our other core markets in 2014 by purchasing both stabilized assets with some opportunity for growth as well as non-performing assets. ”
At year-end, BH Properties announced it finished with $100 million in transaction volume and $82 million in acquisitions, a 57 percent increase over the previous year’s results.
About BH Properties, LLC:
Founded in 1997, BH Properties is a Los Angeles-based commercial real estate investment company that focuses primarily on troubled assets in the industrial, multi-family, office and retail markets. With regional offices in Dallas and Salt Lake City, BH Properties has developed its own distinctive acquisition strategies in 18 states and become one of the repositioning experts in its core markets including California, Arizona, Nevada, Utah, Colorado, and Texas. For more information, please call (310) 820-8888 or visit www.bhproperties.com
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.5 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially. Wells Fargo perspectives are also available at blogs.wellsfargo.com.
About US Bank Commercial:
The U.S. Bank Commercial Real Estate team of financial professionals focuses on establishing long term relationships with commercial real estate clients ranging from local real estate developers to national investors. We are mindful of the responsibility we hold to advocate for the financial success of our clients while strengthening the communities that we serve. We take a collaborative approach to providing innovative solutions that support your growth and profitability. Whether you are a new client to U.S. Bank or a customer for 150 years, we are determined to find a way to help your business achieve its goals.