TruAmerica Multifamily Acquires 264-Unit Apartment Community for $90.5 Million in Huntington Beach

HUNTINGTON BEACH, CA – TruAmerica Multifamily has acquired Pacific Shores, a 264-unit apartment community in Huntington Beach, CA from affiliates of UDR, Inc. for $90.5 million.

Pacific Shores represents a true value add investment for TruAmerica, which targets well-located Class B multifamily assets that can benefit from strategic renovation while still keeping rents affordable for working families and individuals seeking quality rental housing.

Located at 7701 Warner Avenue, Pacific Shores features a mix of one- and two-bedroom floor plans with washer and dryer, private balcony or patio, and walk in closets.  TruAmerica will immediately begin a multimillion-dollar capital improvement program building on the moderate renovation of unit interiors started by the seller. 

TruAmerica also will undertake a complete overhaul of 74 units that have been virtually untouched since the property was constructed in 1970.  Improvements will include new stone countertops with under mount sinks, kitchen backsplash, and cabinet doors.  Upgrades to the community amenities and exterior will include improvements to the pool and spa area, dog park and fitness center, as well as new signage, landscaping, lighting and outdoor barbeque area.

“The competition for this property was extremely fierce,” said Greg Campbell, TruAmerica Senior Managing Director of Acquisitions and Dispositions.   “Huntington Beach is a high barrier to entry market boasting great multifamily fundamentals and the opportunity to acquire an institutional quality asset with such tremendous upside is difficult to find here.”

Given Huntington Beach’s excellent schools and desirable costal location, the city boasts some of the highest home prices in Orange County, creating a strong demand for quality rental housing, according to Mark Petersen who led the Eastdil Secured team, which marketed the property on behalf of the seller.  

TruAmerica’s acquisition was leveraged with seven-year agency financing through Freddie Mac’s select sponsor program.  The financing was arranged by Berkeley Point Capital Senior Managing Director Mitch Clarfield.

TruAmerica Multifamily is a vertically-integrated, value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica manages a $7.0 billion portfolio of approximately 33,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida.

Walker & Dunlop Provides $34.4 Million Loan for Multifamily Community in Newport News, Virginia

NEWPORT NEWS, VA – Walker & Dunlop announced that it closed a $34,425,000 United States Department of Housing and Urban Development (HUD) loan for Meridian Parkside, a Class A multifamily property in Newport News, Virginia. 

Dwight D. Dunton III of Bonaventure Realty Group and Phillip R. Roper III (the “Borrowers”) purchased the property in 2016. Walker & Dunlop worked in partnership with HUD’s Baltimore office to refinance the property with a 35-year, low-interest loan through HUD’s 223(f) program.

The financing paid off the existing bridge loan and a portion of the partnership debt from the original purchase, enabling the Borrowers to make immediate, short-term, owner-elected repairs. Walker & Dunlop’s Hal Reinauer, Tom Toland, and Chris Rumul spearheaded the financing assignment. 

Built in 2008, Meridian Parkside is a garden-style apartment community consisting of 13 buildings and 308 units. Situated on a 13-acre site, the property is within walking distance to Sandy Bottom Nature Park and just minutes away from Interstate 64, Fort Eustis, Langley Air Force Base, and Huntington Ingalls Industries, one of America’s largest shipbuilding companies.

The property offers spacious one, two, and three-bedroom apartments, a 24-hour fitness center, business center, game room, grilling stations, and a resort-style pool and sundeck.

Multifamily Community Changes Hands at Record-Setting Price of $74 Million in Ventura, California

VENTURA, CA – Marcus & Millichap announced its Institutional Property Advisors (IPA) division closed the sale of Via Ventura, a 192-unit apartment complex in Ventura, California. The property sold for $74 million, which equates to $385,417 per unit, the highest price per unit for a multifamily asset in the city of Ventura.

“One of the premier assets in Ventura County, this multifamily property presents new ownership with a compelling value enhancement opportunity through select upgrades to the property’s original interior finishes,” said Kevin Green, senior director.

Green, Greg Harris, Ron Harris, executive managing director, and Joseph Grabiec, senior director, represented the seller, an institutional investor, and procured the buyer, NNC Apartment Ventures Inc.

 “Via Ventura is situated within one of the most prestigious neighborhoods in the city of Ventura, where the median price of a single-family home is $632,000,” added Greg Harris, executive managing director.

 “The property’s highly favorable demand drivers include its location at the convergence of the 101, 126, and 33 freeways, and it is less than two miles from a Metrolink rail station,” noted Ron Harris.

Built in 2002, Via Ventura consists of 14 two-story apartment buildings on more than nine acres located near the 101 Tech Corridor, the Wellness District and other major employment hubs. The property is situated on a quiet residential street across from a five-acre park and is within walking distance of more than 800,000 square feet of retail, including the Ventura Gateway, Ventura Village, Montalvo Square, and Victoria Village shopping centers. The Ventura County Government Center, one of the region’s largest employers, is within walking distance. Hiking trails, beaches, Downtown Ventura, and Ventura Harbor are nearby.

Intracorp Breaks Ground on New Urban Boutique Neighborhood in the Heart of Irvine, California

IRVINE, CA – Intracorp has broken ground on the construction of LUX, its newest urban community in Orange County, CA. Having a well-established reputation for building quality homes in North America, Intracorp is developing LUX as a boutique enclave of luxury townhomes in the heart of Irvine.

This urban community of townhomes takes an exclusive approach to urban housing that features contemporary design, quality construction, and investment value. The development is conceived as a private, quiet, urban neighborhood experience that is also easily accessible to an exceptional mix of greater Orange County’s dining, shopping, recreation, entertainment, education, and transportation.

These groundbreaking three-story open-concept townhomes feature 2 to 4 bedrooms with direct access 2-car garages and range from 1,587 to 2,077 square feet. Unlike in other Irvine communities, LUX townhomes do not have Mello Roos, and offer a low tax rate, low HOA fees and additionally benefit from Irvine’s highly rated school district. The urban boutique neighborhood is designed around a private park area with barbecues, dining tables, and useable green space.

Amenities and services abound. LUX is in ready proximity to prestigious Southern California beaches, the John Wayne Airport, Irvine MetroLink, South Coast Plaza, Fashion Island, Segerstrom Center for the Arts, Park Place and UCI.

“Our company is very pleased to announce we’ve broken ground on LUX, our newest urban neighborhood in Southern California,” stated Intracorp Vice President, Development, Rick Puffer. “LUX represents our luxury boutique approach to the contemporary urban community. It exemplifies our ongoing commitment and innovation in building quality urban homes and neighborhoods that combine convenience and affordability for a unique So Cal living experience. LUX homeowners will be part of the Irvine School District and one of the first new home communities to be assigned to University High School in quite some time.”

Historic Centerville Neighborhood Celebrates Grand Opening of New Affordable Apartment Community

CAMDEN, NJ – ​​​​​​​With the snip of a red ribbon, the City of Camden celebrated the latest milestone in the revitalization of the important and historic neighborhood of Centerville, at a grand opening ceremony for The Branches at Centerville. The new development brings 50 modern, energy efficient, high-quality affordable rental apartment homes to a site formerly occupied by obsolete public housing.

The ceremony was hosted by The Housing Authority of the City of Camden (HACC) and its private-sector partner, The Michaels Development Company, and attended by city officials, state, and federal officials as well as residents and other community stakeholders.

“This is truly a great day for the City of Camden and the Centerville neighborhood, and I’m proud to say it’s just the first of many great days to come,” said HACC Executive Director Victor D. Figueroa.

The $16 million three-story low-rise building is the first phase of a comprehensive redevelopment planned for the former site of Clement T. Branch Village.

Featuring 44 one-bedrooms and six two-bedroom apartments affordable to households earning less than 60 percent of the area’s median income, The Branches at Centerville will accept Housing Choice Vouchers and provide project-based rental assistance to eligible residents through HUD’s Rental Assistance Demonstration program, a critical federal resource designed to help public housing agencies across the country improve and preserve affordable housing.

“The Branches at Centerville is a prime example of HUD programs at work,” said Lynne Patton, HUD Regional Administrator for New York and New Jersey.

“In this budget constrained environment, HUD’s Rental Assistance Demonstration allows Public Housing Authorities to leverage private resources to preserve affordable housing at the rate of 19 to 1,” Patton said. “The Promise Zone designation, coupled with a $13.2 million Mt. Ephraim Choice Neighborhood Implementation Grant provides support that will continue to improve the quality of life of this community and of Camden residents.”

Amenities at The Branches of Centerville include approximately 5,000 square feet of community space for resident services, wellness and recreation as well as quiet areas, juliet balconies, flex lounges on each floor, new flooring, common veranda spaces, and laundry rooms. The environmentally conscious design includes Energy Star-certified appliances and fixtures. A newly constructed on-site rain garden will help manage stormwater runoff at the community.

“We are privileged to once again be the HACC’s development partner, working with them to transform this neighborhood and lift the lives of its residents,” said Gary Buechler, president of The Michaels Development Company.

Financing for the development included $6.6 million in private equity raised from the sale of federal low income housing tax credits allocated by the New Jersey Housing and Mortgage Finance Agency as well as $3.8 million in private equity raised from state tax credits allocated by the NJ Economic Development Authority through its Economic Redevelopment and Growth program. The Housing Authority provided $2.3 million in Replacement Housing Factor Funds and Capital funding. TD Bank invested in both the federal and state tax credits, which were syndicated by Riverside Capital. TD Bank also provided a $9.6 million tax-exempt construction loan. Cinnaire Investment Corporation provided a permanent mortgage loan of $1.65 million.

Philadelphia-based WRT served as the master Architect and Marlton, NJ-based Prestige Building Company was the general contractor. Interstate Realty Management provides property management services, ensuring that The Branches at Centerville remains a long-term asset to the community. Branch Village is already 100 percent occupied. 

American Landmark Acquires 586-Unit Multifamily Community in Fast-Growing Atlanta Suburb

LAWRENCEVILLE, GA – American Landmark, one of the fastest-growing multifamily owner-operators in the country, has acquired Madison at River Sound, a 586-unit multifamily community located in the suburban city of Lawrenceville, Georgia, just outside Atlanta. The firm acquired the asset from Investors Management Group, Inc. of Los Angeles. Berkadia arranged the financing.

This is American Landmark’s third multifamily acquisition in suburban Atlanta in the past year. Belle Vista, in Lithonia, and Marbella Place, in Lawrenceville, are also newly acquired American Landmark properties. The company owns and operates over 60 multifamily communities across the Southeastern United States.  

The company plans to renovate apartment interiors and add more modern, luxurious details including plank flooring, new kitchen backsplashes, more modern cabinet hardware and sleek appliances, new countertops, and upgraded plumbing and lighting fixtures. Each apartment will also have its own washer and dryer unit.

 “This was a great opportunity to acquire a well-located property in need of full renovation in an area where we have experience and depth,” said Christine DeFilippis, Chief Investment Officer of American Landmark. “The property is in one of the fastest growing suburbs of Atlanta, close to major employers including Cisco and Georgia Gwinnett College.”

Built in 1996, Madison at River Sound is located at 980 Walther Boulevard and offers one-, two-, and three-bedroom units. Community amenities include a clubhouse with a fitness center, resort-style swimming pool, dog park, tennis courts, and playground.

The asset is situated only about five minutes away from Lawrenceville Market Shopping Center, Georgia Gwinnet College and University Parkway, offering convenience and access to employers and educational institutions. The community was 94 percent occupied at the time of acquisition.

American Landmark is a national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, North Carolina, and Texas. The company is committed to delivering great service and outstanding living environments to residents; delivering attractive risk-adjusted returns to investors and partners; and providing opportunities for growth, advancement and diversity to its team members.

South Los Angeles Public Housing Revitalization Moves Forward After Receiving $13.2 Million State Grant

LOS ANGELES, CA – The Michaels Organization announced that brand new affordable housing it is developing in partnership with the Housing Authority of the City of Los Angeles (HACLA) as part of a comprehensive revitalization of the Jordan Downs public housing community will benefit from more than $13 million in grant funding.

The grant, part of $35 million in funds received by HACLA from California’s Cap-and-Trade program, will provide funding for 81 new apartment homes, affordable to families earning up to 50 percent of the area median Income. Michaels will also receive $50,000 in additional grant funds to support neighborhood bicycle safety programs and $1.3 million for a new neighborhood park that is being created on the site in the important and historic neighborhood of Watts.

“Michaels Development Company is privileged to be HACLA’s private-sector partner on this critical redevelopment effort, and we are grateful for the support of so many community partners who have worked so hard to bring this substantial investment to the Watts neighborhood,” said Michaels Development Company Vice President Kecia Boulware, who is the lead developer for the second and third phases of new housing being developed on the Jordan Downs site.

“We are committed to transforming the vision of the Watts Community into reality by creating new job opportunities as well as high-quality, sustainable, affordable housing and additional public spaces that will benefit the entire neighborhood,” Boulware said.

California’s Cap-and-Trade Program includes an initiative known as the Transformative Climate Communities Grant, which provides funding for community-led development and infrastructure projects that achieve major environmental, health and economic benefits in California’s most disadvantaged communities. The program empowers communities most impacted by pollution to choose their own goals, strategies and projects to enact transformational change – all with data-driven milestones and measurable outcomes.

As a strong partner to the Housing Authority and a key player in the application process, Michaels’ developments are slated to receive the largest portion of the grant’s funding. Michaels spearheaded much of the application process, which involved collaboration with a wide variety of community stakeholders, local nonprofits and Los Angeles businesses working in the area. The group, known as the Watts Rising Collaborative, has been working to modernize Jordan Downs and bring significant jobs and investment to the Watts community. The Watts application was the highest-scoring of all six applications submitted for the Transformative Climate Communities grant and was selected over two other applications from the City of Los Angeles.

Michaels plans to break ground later this year on the first of the next two phases of housing slated for Jordan Downs. The first will bring 135 apartments in a mix of one, two, three, four, and five-bedroom layouts, in a combination of townhomes and flats. The architecture style of the three-story buildings will be in the Mediterranean tradition, with landscaping that is drought-resistant throughout. The buildings, which will be south of a new Century Boulevard extension, will be designed to a LEED Silver environmental standard. Apartment amenities will include in-unit washers and dryers, air conditioning and energy- and water-saving appliances and fixtures. Approximately 50 percent of the new apartments will be reserved for existing Jordan Downs residents.

The first phase of the Jordan Downs Revitalization is already underway with construction of 115 affordable apartments developed by BRIDGE Housing, which will be followed by the 135 new apartments Michaels is developing. Along with the new housing, the revitalization will bring more than 120,000 square feet of new retail space being developed by Primestor, as well as parks, public spaces and new streets designed to connect the Jordan Downs housing community to the wider Watts neighborhood.

Historic Chicago Building Secures $44.7 Million Loan for Conversion to 176 Market Rate Apartment Units

CHICAGO, IL – Walker & Dunlop announced that it arranged construction and permanent financing through the United States Department of Housing and Urban Development (HUD) in the amount of $44,685,300 for 30 East Adams in Chicago, Illinois. Built in 1926 and known to locals as the old Hartman Building, the historic property is home to the iconic Miller’s Pub in the heart of the Chicago Loop. The loan enables the adaptive reuse of the office building into 176 market rate multifamily units with ground level retail. This is one of many projects intended to restore the Loop’s old office buildings as apartment buildings.

Leading Walker & Dunlop’s team, Carolyn McMullen and Kyle Peterson arranged the financing for first-time HUD borrower Cedar Street Companies (“Cedar Street” or the “Developer”). Based in Chicago, the Developer has become well-known throughout the city for successfully converting several similar historic buildings into multifamily projects. 

The Company’s team utilized HUD’s 221(d)(4) program, allowing the Developer to capitalize on savings from the existing historic tax credits. The innovative team also implemented HUD’s green mortgage insurance premium (MIP), making this the first ever mixed-use project to receive such benefits. The fully-amortizing loan allowed the borrower to remove their interest rate risk by locking in the rate on a 40-year term with two years of interest-only payments.

Erik Larson, the Developer’s managing director of finance, remarked, “Walker & Dunlop was instrumental to providing an optimal debt facility to meet Cedar Street’s multiple goals for this project, primarily long-term ownership at a historically low cost of capital. Because of its wealth of contacts and product knowledge, Walker & Dunlop was able to arrange a long-term, very low interest rate product that will allow us to maximize the historic value of this building and deliver once in a lifetime returns to our investors.”

Ms. McMullen, senior vice president of Walker & Dunlop’s FHA Finance group remarked, “This was a complex financing with a lot of moving parts. We were fortunate to be working with a sophisticated and experienced partner in Cedar Street.” She added, “The Chicago HUD office’s direction and commitment to working with Walker & Dunlop was instrumental in our ability to structure and close the complex 221(d)(4) loan in December to meet the borrower’s timing constraints.”

Vice President Mr. Peterson added, “Cedar Street has an uncanny ability to unlock the value of underutilized assets through creative design and finance. Loans for substantial renovation and new construction have become more challenging to procure. Facilitating a relationship with HUD provides Cedar Street access to attractive capital to further enhance their development strategy.”

Once complete, 30 East Adams will include a rooftop deck, fitness center, and a new retail outlet on the ground floor adjacent to McDonalds and Millers Pub, two existing tenants who will continue to occupy their respective spaces. Located next to an L train stop and just blocks from shopping and cultural attractions, the property is a transit-oriented development that is rated as a Walker’s Paradise and Very Bikeable.

Campus First Expands into Florida with Acquisition of 661-Unit Student Housing Community in Gainesville

GAINESVILLE, FL – Campus First Student Living  and CF Real Estate Services, announced the acquisition of The Ridge, a 661-bed student living community located less than 1 mile from the University of Florida. This is just the latest addition to the rapidly growing student housing firm. Campus First focuses on student housing acquisitions, development, and property management. The addition of this student housing project brings Campus First’s student portfolio to just over 6,000 beds. The property is located in Gainesville, Florida, within walking distance to the University of Florida, and the new Celebration Pointe and expanded Butler Plaza retail centers.

“The addition of The Ridge to our Campus First portfolio furthers our investment strategy of adding well located student assets in growth markets,” states CF Real Estate Services CEO, Brett Finkelstein.

The Ridge is a premier student property that offers both 2 bedroom/bath apartments and a 4 and 5 bedroom townhome product with large floor plans, garages, granite countertops, stainless steel appliances, subway tile backsplashes, and bed/bath parity. The Ridge was constructed in 2015/2016, with the first units delivered in August 2016. This trophy property has a total of 178 units with 661 beds. The Ridge is unparalleled in the Gainesville market with its first-class amenities, including a 3-room fitness center, large clubhouse, and several study lounges. Outdoor amenities include a massive beach entry pool, 1000+ person pool deck, 25 person hot tub, 20 foot Jumbotron, and the only lazy river in the Gainesville market.

Campus First is a boutique style acquisition/development and property management firm that focuses on purpose built student housing. Campus First is a division of parent company, CF Real Estate Services, headquartered in Atlanta, GA. Campus First currently owns or manages 6,000+ student beds, while CF Real Estate Services currently owns or manages 25,000 market rate and workforce housing units located throughout the Southeast, Southwest, and Mid-Atlantic regions of the United States.

Renovations and value-add improvements for The Ridge are valued at more than $700,000 and are scheduled to begin prior to the 2018/2019 school year. Property renovations will include improvements to the clubhouse and the build-out of new private study areas. Within the fitness center, there are plans to add additional fitness equipment, Fitness on Demand™, and a yoga studio. Within the pool area, there will be new fire pits and game areas. Ownership also plans to upgrade the dog park.

“We are eager to introduce our boutique style management to the Gainesville market. Campus First Student Living will present students an opportunity for an elevated off-campus living experience that they will not receive elsewhere,” states Christopher Feeley, President of Campus First.

Freddie Mac joins Fannie Mae in needing federal funds because of accounting losses

(RECAP: Freddie Mac joined Fannie Mae Thursday morning in announcing that it would need funds from the Treasury thanks to accounting losses prompted by the new tax law. The bailed-out government-sponsored enterprise told investors that it lost $3.3 billion in the fourth quarter of 2017, driven by $5.4 billion in accounting losses due to the tax changes signed by President Trump in December. Because the losses exceeded the company’s net worth, it needs $312 million from the Treasury.)