LOS ANGELES, CA - Canyon Capital Realty Advisors LLC has provided a $17.0 million mezzanine loan to a joint venture managed by GLJ Partners to construct Oak Springs Ranch, a fully entitled 312-unit multifamily community set on 21 acres in the City of Wildomar, located in Riverside County.
GLJ Partners, an experienced general contractor that has developed more than $8.6 billion in real estate projects, will begin construction this month. When complete, the property will feature 18 low-rise buildings with both flat and townhome-style residences along with extensive common area amenities including two outdoor swimming pools, a clubhouse, spa areas, a fire pit, playgrounds, picnic areas and a sport court. The property is also surrounded by a 14-acre open space preserve.
The first units will be ready for move-in as soon as October 2013, with the entire project anticipated for completion by August 2014.
“Canyon is pleased to provide the necessary financing to kick start construction on Oak Springs Ranch, which promises to provide much-needed quality housing to this area of the Inland Empire,” said Bobby Turner, Chairman and CEO of Canyon Capital Realty Advisors. “This deal highlights our continued interest in the Southern California area, and is also consistent with our investment focus of providing capital to experienced real estate operators with a strong record of success.”
Oak Springs Ranch will benefit from several local market attributes, including a strong residential market driven by limited supply and the community’s proximity to major employers, including Southern California Edison, Abbott Vascular and the Inland Valley Medical Center. Oak Springs Ranch is located on the north side of the Temecula/Murrieta corridor, just 20 minutes away from the large jobs centers in Corona. The nearby Clinton Keith Road interchange on the I-15 freeway is also currently undergoing a major widening and expansion by the Riverside County Transportation Department.
“This was a highly compelling deal for Canyon, based on the project’s strategic location, the strength of the immediate submarket and GLJ’s reputation as a top-tier local developer,” said Canyon Principal Jonathan Roth. “With Canyon’s financing in place, the owners will be able to carry out the long-term vision for Oak Springs Ranch and create a significant asset for the local community.”
“We are thrilled to be working again with GLJ Partners on a residential project with so much potential,” said Quincy Allen, Canyon Managing Director. “Oak Springs Ranch will offer a superior living experience in Riverside County and will help meet the strong demand for family friendly townhome-style rental units in the area.”
The GLJ Partners team brings decades of experience building tens of thousands of quality residential units throughout Southern California. The firm’s projects have received many design awards, and accolades from local residents and neighbors.
“Canyon has a tremendous record of success working with companies like ours to create fantastic projects all across the United States,” said Leonard Wood, Chairman of GLJ Partners. “Oak Springs Ranch promises to be a very significant addition to the area, and a residential project that is well received by the Inland Valley community.”
“With entitlements and financing now in place, we are ready to move forward immediately on the construction of Oak Springs Ranch,” said Garth Erdossy, President of GLJ Partners. “The location, high-end finishes, and robust amenities package will make these new rental homes second to none in the Inland Valley area.”
KTGY Group, headquartered in Irvine California, designed Oak Springs Ranch. The community will feature California Craftsman Style architecture.
Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Los Angeles, California, with approximately $20 billion of capital under management. Canyon’s real estate investment activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints. Canyon’s investment platforms include: (a) the Canyon Value Mortgage Funds which originate and/or purchase senior and mezzanine mortgage debt, (b) the Canyon-Johnson Urban Funds, a series of closed-end real estate funds and joint venture with Earvin “Magic” Johnson focusing on inner-city and urban real estate development and (c) the Canyon-Agassi Charter School Facilities Fund, a joint venture with Andre Agassi focusing on the development of learning friendly, environmentally responsible charter school facilities for best in class charter school operators.
GLJ projects are characterized by striking architecture, uncompromising attention to detail and an emphasis on sustainable building practices. Since the partnership began in 2007, the company has emphasized infill projects in highly desirable areas of Southern California – areas that benefit in the long term from healthy demand and a robust economy. GLJ develops and constructs all types of residential products, including single-family detached homes, prestigious multi-story rental housing with subterranean parking, and mixed-use residential/retail projects. The firm’s extensive experience with highly complex infill development has helped it hone successful strategies for gaining accord from numerous stakeholders, including government entities, neighbors and local businesses. The partners have an enviable record of securing entitlements for challenging sites.