TA Partners Defaults on Nearly $200MM in Loans Linked to Two Irvine Apartment Projects

TA Partners, Mack Real Estate Credit Strategies, Orange County, Irvine, Von Karman Apartments, Derian Apartments

By The Registry Staff 

In a turn of events, real estate developer TA Partners has defaulted on loans amounting to nearly $200 million tied to two apartment projects in Irvine. This default comes less than two years after the loans were initially extended by lender Mack Real Estate Credit Strategies, according to a report from The Real Deal. 

As of Oct. 1, TA Partners was delinquent on payments amounting to $11 million related to the two loans, as revealed by two separate notices of default filed with Orange County. Mack Real Estate Credit Strategies had provided two senior loans totaling $197 million in 2022, states the report. A foreclosure for the properties could come as early as Jan. 4 as state regulations indicate that a foreclosure can be scheduled 90 days after a notice of default. 

The loans in question were part of a larger $262.5 million debt package provided by Mack Real Estate Credit Strategies. This capital was earmarked to complete the construction of 658 residential units spanning across two projects. The two projects are situated at 18831 Von Karman Ave. and 17422 Derian Ave. in Irvine. 

According to TA Partners’ website, the Von Karman apartment development would accommodate 287 units in a five-story structure. The project is listed on TA Partners’ website as “in construction” and would total 316,127 square feet and offer a number of onsite amenities, including a fitness room, leasing center, lobby, courtyard and more.

The apartment project along Derian Avenue is also listed as “in construction” and, when completed, would offer 371 apartment units. This project would also stand five stories and take up approximately 390,519 square feet. 

TA Partners’ original plan was to use Mack’s loans to finalize construction without the need for additional equity contributions, a strategy that now appears to be in peril due to the default. The loans were initially set to mature in 2027, presenting a reasonably long-term outlook for repayment. 

The implications of TA Partners’ default on these substantial loans are far-reaching. For TA Partners, the immediate concern lies in averting a foreclosure and finding a solution to address the delinquency. This could involve negotiations with Mack Real Estate Credit Strategies to restructure the terms of the loans or securing alternative funding sources.