Silver Star Real Estate acquired the 147-unit Amber Ridge for $49.7 million
NEW YORK & LOS ANGELES (July 20, 2020) – Berkadia today announced that it has closed on an $8 million preferred equity investment for Silver Star Real Estate’s acquisition of Amber Ridge Apartments, 147-unit garden-style apartment community located on the outskirts of Los Angeles in La Verne, California. Silver Star Real Estate, based in Orange County, acquired the property through its affiliated purchasing entity, Amber Property Investments LLC, for $49.7 million, or $338,000 per unit.
Berkadia’s Joint Venture Equity and Structured Capital Group, led by Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick, delivered Harbor Group International (HGI) as the preferred equity partner. Since May of this year, this team has capitalized a total of eight multifamily property acquisitions and recaps located across the country with preferred equity behind Fannie Mae and Freddie Mac financing.
“We were impressed with Silver Star Real Estate’s focus on getting this acquisition closed, as they had put the property under contract pre-COVID, and sought to find a capital partner that had a deep understanding of the local market with boots on the ground in the Los Angeles area,” said Bhatt. “HGI’s deep experience structuring preferred equity behind Freddie Mac ensured a smooth transaction.”
Added Franklin, “La Verne is known for its highly ranked public-school system and strong demographics, with a median household income of approximately $85,000. As renters move out of Los Angeles to more affordable and nearby submarkets, La Verne has experienced significant rent growth over the past five years.”
“Berkadia and HGI were great partners throughout the acquisition process, particularly given the uncertain economic environment and increased underwriting parameters imposed by Freddie Mac,” shared Sunny Dharod, principal of Silver Star Real Estate. “Through constant communication from a dedicated, professional team assigned to our transaction, we knew we could depend on Berkadia and HGI to deliver us the needed capital to close this transaction,”
Built in 1973 and renovated in 2006, Amber Ridge is a garden-style apartment community located on close to 10 acres just off Historical Route 66. The community comprises 25, two-story residential buildings, with amenities including a swimming pool with spa, clubhouse with full kitchen and fireplace, business center, outdoor picnic area with BBQ, pet grooming salon and fitness center. It is located less than a mile from the University of La Verne and less than 10 minutes to the Claremont Colleges.
Silver Star Real Estate is led by Harshad and Sunny Dharod and owns 39 multi-family properties across Southern California and Arizona.