Los Angeles, California | March 29, 2022
Apartment Income Investors (Aii) is pleased to announce the refinance of Village at Moorpark Shopping Center in Moorpark, California. Aii acquired Village at Moorpark ("VAM") in February 2020 in an off-market transaction sourced through an existing broker relationship. The property was purchased below market and at a favorable cost basis compared to the appraisal obtained at acquisition.
Due to the risk associated with high vacancies and short terms remaining on the leases, the loan at acquisition carried a high interest rate. After two years of operating the property, and managing through a pandemic, Aii was able to secure a new loan at a 2.5% lower rate for a 3-year term. Per the business plan for the Property, the refinance was obtained to lower the cost of debt and improve cash flow.
Michael Chesser, Founder and President of Aii, said, "Securing the loan was our most challenging endeavor over the last year, due to vacancies in some of the larger tenant spaces, and the effects of government shutdowns on the economy. The first two lenders we worked with backed out of the loan; success was attained with the third mortgage lender."
During the first two years of ownership, Aii was successful in opening Amazon Fresh and leasing up some of the smaller and in-line tenant spaces. The Karate school and Dover Saddlery and Dressage Extensions, a national saddle and equestrian retailer, is set to open by March or April. A Mathnasium tutoring center franchise has plans to open this summer.
A 45,000 sq. ft. building previously occupied by Dick's Sporting Goods has been receiving much attention from leasing prospects. Potential tenants range from major retailers to health clubs and industrial/retail uses. Leasing this space is the most important activity facing management to achieve success in our business plan.
Mr. Chesser said, "Village at Moorpark is well located and attracting above-average leasing activity. Our leasing broker gets as many calls for our building as he gets for 10 other competing buildings. He signed more leases at our property than at any other commercial retail property in the county last year. Management will stay focused and keep the momentum to become full and stabilized."
About Apartment Income Investors
Founded in 1994, Apartment Income Investors (Aii) has a proven track record of buying underperforming Class B multifamily and commercial properties and implementing renovation and repositioning strategies to improve operations and substantially increase the value of each property. This strategy has proven successful through several real estate cycles with above-average returns to investors. The company's goal is to transform homes, lives and communities while delivering superior investment returns.