LOS ALTOS, CA—Interstate Equities Corp. has finalized the recapitalization of The Gates at Marina, a 136-unit multifamily garden-style community in Marina, CA. The deal gives a co-mingled fund advised by New York City-based Clarion Partners a majority stake in the property, while IEC retains a minority equity position and will continue its on-site management, says Brendan Gibney, IEC’s Director of Investments, in a prepared release.
IEC acquired The Gates in January 2021 for $39.3 million, and today’s recapitalization values it at $45 million.
“It’s a win-win – not just for IEC and our partner, Clarion Partners, but also for the residents who will maintain the same high level of services to which they are accustomed,” Gibney said in the release. “In a chronically undersupplied market like Monterey County, The Gates Apartments meets the demand for upgraded yet affordable rental homes.”
IEC, which owns and operates multifamily properties in the Bay Area, Seattle, and Southern California markets, is a vertically integrated investment and property management company. This model enables the seamless execution of the company’s value-add strategy, the release says.
“During our ownership we built two ADUs (accessory dwelling units), added a leasing office, refreshed the exterior, and renovated roughly half of the unit interiors. The work produced a more functional community with sustained occupancy,” Gibney said. “Interior renovations will continue under the new partnership with Clarion Partners as the majority owner.”
Gibney thanked Kevin Salata, Clarion Partners Vice President of Acquisitions, as well as the brokerage team from Berkadia, including Managing Director Scott MacDonald and Senior Managing Director Jason Parr who led the marketing efforts, and Director Hank Workman who placed the debt.
Located at 299 Carmel Ave. in Marina, CA, The Gates at Marina Apartments features a predominantly two and three-bedroom unit mix with balconies or patios for each unit, updated kitchens, bathrooms, flooring, and appliances. An hour from Silicon Valley and less than one mile from the Pacific Ocean, the property affords residents a quiet coastal lifestyle with convenient access to renowned destinations like Monterey, Carmel-By-The-Sea, Pebble Beach, and Santa Cruz, with numerous in-town amenities.
Major employers like California State University Monterey Bay (CSUMB), Joby Aviation, the Defense Language Institute, and the Naval Postgraduate School are large drivers of the economy in addition to the millions of tourists who visit annually.