Interstate Equities Corporation (IEC) finalized the recapitalization of The Gates at Marina, a 136-unit multifamily garden-style community located at 299 Carmel Ave. in Marina. The deal gives a commingled fund advised by New York-based Clarion Partners a majority stake in the property, while IEC retains a minority equity position and will continue its onsite management. IEC acquired The Gates in January 2021 for $39.3 million, and the 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,” said Brendan Gibney, IEC’s director of investments. “In a chronically undersupplied market like Monterey County, The Gates Apartments meets the demand for upgraded yet affordable rental homes.”

He continued, “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. Interior renovations will continue under the new partnership with Clarion Partners as the majority owner.” 

Berkadia managing director Scott MacDonald and senior managing director Jason Parr led the marketing efforts, while director Hank Workman placed the debt.

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