13 October 2009

Swig Co. and Capmark Acquire Arbors at Warner Center

From San Francisco Business Times

A joint venture between an affiliate of the San Francisco-based Swig Co. and an institutional real estate investment fund managed by Capmark Investments LP has acquired the 250-unit Arbors at Warner Center multifamily residential community located in the Warner Center area of Woodland Hills.

The property was purchased for approximately $33 million dollars — about $132,000 per unit. Mitch Thurston and Andy Ahlers of Capmark Finance Inc.’s San Francisco office originated a new first mortgage for the acquisition through Freddie Mac’s CME multifamily loan program. Investors Property Services headquartered in Foothill Ranch will handle the day-to-day property management of the Arbors.

“We are very excited to have completed another venture with Capmark Investments to acquire a good institutional-quality residential community at a basis that should minimize our downside exposure and allow for great cash flow and potential upside as the economy and the local market recovers,” said Swig Co. Chief Investment Officer Ken Perry.

The Swig Co. and Capmark are also partners in the $200 million Kaiser Center project on Lake Merritt in downtown Oakland.

“This one-off investment in a multifamily residential property is clearly a departure from our business plan goal of acquiring additional urban office buildings,” Perry said. “However, in addition to being a great buy, this investment creates additional product-type and geographical diversity to our portfolio.”

The Arbors represents the Swig Co.’s second major real estate holding in Southern California along with the Arco Center office complex in Long Beach.

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