Real estate briefly: Cerberus recapitalizes Muller Co. office portfolio; Midway City apartment complex refinanced

Originally Published: The Orange County Register

Hanley Investment Group Real Estate Advisors in Corona del Mar and SRS Real Estate Partners in Newport Beach have sold a new McDonald’s ground lease in Azusa for $3.54 million. The unidentified buyer in a 1031-exchange was represented by Mark Repstad with Realty Advisory Group in Los Angeles. A private investor from Newport Beach sold the property and was represented by Executive Vice President Eric Wohl of Hanley Investment and Senior Vice President Michael Walseth of SRS’ National Net Lease Group.

The Muller Co. in Irvine has formed a joint venture with an affiliate of Cerberus Capital Management to recapitalize the firm’s three office properties in Orange County. Terms were not disclosed. Muller’s portfolio includes Airport Tower in Irvine; Orange Executive Tower in Orange; and Main Street Town Center in Santa Ana. According to principal Jon M. Muller, after holding onto the portfolio since 2007, the firm’s original equity partner wanted out, leading to the joint venture with Cerberus.

SC Development has taken a $9.5 million Freddie Mac fixed-rate loan through Capital One to refinance Midway Meadows, a 92-unit apartment complex in Midway City. Kristen Croxton and Greg Reed with  Capital One Multifamily Finance’s office in Newport Beach originated the deal. Midway Meadows was built in 1987 under a 30-year ground lease from Orange County. The lease called for an age-restricted affordable housing property for the term of the ground lease, which has expired. SC Development plans to continue operating the complex under the current tenant base.