Norwalk, CT - December 20, 2007 – GE Real Estate today released details of a $15.1 million loan that enabled a privately held real estate firm to purchase a 136-unit apartment complex shortly after another lender backed out of the deal.
"We were within days of completing a deal to acquire Sommerset Apartments here when the initial lender backed out of the agreement,” said Jeff Jaeger, principal, Jackson Square Properties, LLC. “We completed other similar real estate acquisitions in California and elsewhere and were surprised when that lender decided against completing this deal.”
"Fortunately GE Real Estate, one of the premier property lenders in the country, stepped forward and we negotiated loan terms that not only allowed us to meet the deadline for closing on the transaction, but also GE was fair and competitive. GE Real Estate thoroughly analyzed this deal and understood why we were excited to include Sommerset Apartments in our portfolio."
Troy Tegeler, managing director at CBRE Melody, which brokered the transaction, concurred, saying, “When credit tightens, we can count on GE Real Estate to deliver timely, on-book financing for our clients’ solid investment opportunities."
Sommerset Apartments is a 136-unit complex in a predominantly residential area located in Vacaville, California, a bedroom community between Sacramento and San Francisco in Solano County. The county’s population is expected to grow by 10 percent between 2005 and 2010, and the more than 6,200 multifamily units in Vacaville have an overall occupancy of 94 percent. Rents are also expected to increase 5.6 percent this year.
"It’s a stable residential area in part to its proximity to Travis Air Force Base and major employers, including Genetech,” said Nathan McElmurry, director, GE Real Estate. “There are a lot of biotech and pharmaceutical companies locating in the area.
"In addition to the demographics and the area’s favorable economic outlook, we were impressed with Jackson Square’s executive team and the Company’s success in operating and owning apartment buildings in strong multifamily markets here and in other states. This, coupled with the CBRE Melody team’s depth of multifamily experience, gave us a high level of comfort on the deal."
San Francisco-based Jackson Square Properties was formed to purchase value-added real estate and capitalize on strong multifamily markets. The Company owns properties in California, Arizona, Utah, Nevada, Florida, Georgia, Tennessee, Illinois, Virginia and Texas. The Company was founded in 2003 and the three principals in the firm have ownership interest in more than 10,000 apartment units valued over $1 billion.
GE Real Estate’s North America Lending division offers financing for retail, industrial, self-storage, multifamily, office, student housing, regional malls and outlet centers. North America Lending is also a provider of financing solutions for niche asset classes including affordable housing, golf, hospitality, vacation ownership, manufactured home communities and RV resorts.
GE Contact:
(Press inquiries only)
John Oliver
Office: 203/750-3089
Cell Phone: 203/984-7757
john.oliver@ge.com
For other inquiries please call 1-888-GE-First extension 333
HLB Communications, Inc.
Richard Ringer
312/649-0371
rringer@hlbcomm.com
Notes to editors:
About GE Real Estate
GE Real Estate (
www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$72 billion in assets and a presence in 31 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (
www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$276 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.
