Author: ipgocorp

DALLAS, TX – Century Bridge Capital announced that it has invested in a middle-income, residential project in Huzhou, China. The project will be jointly developed with Redsun Real Estate, a Hong Kong listed developer based in Nanjing.
Huzhou is a prefecture city in the northern Zhejiang Province in the Yangtze River Delta. It is known as the “City of Silk” in China and is an important manufacturing area for the region. As a pilot city in China’s strategic plan, “Made in China2025”, Huzhou’s manufacturing sector is well developed with prosperous industries including traditional as well as high-tech and emerging industries. Government support has attracted investments from high-tech companies such as Huawei.
Commenting on the investment, Century Bridge CEO, Tom Delatour, noted, “The Huzhou opportunity allows us to invest in the first phase of a planned two-phase project. The first phase consists of 377 low rise units and 57 townhouses, along with 350 underground parking units as well as a kindergarten facility with 15 classrooms. The project is located in the Renhuang Mountain Area which is part of the central urban district. The government has supported development in the area since moving their offices there in 2016 and it is considered the most livable region in Huzhou with premium educational sources and attractive natural surroundings.”
With respect to the market Mr. Delatour added, “Units representing 40% of the total residential being developed have already been sold. In addition, there is limited local land supply and much of the existing inventory in the market has been absorbed. Consequently, we believe that the location, quality, and amenities of the project combined with the increasing affordability of housing in Huzhou will drive strong sales velocity over the balance of 2020.”
Noting the strength of Redsun Real Estate as a joint venture partner, Century Bridge President, Wei Deng, commented, “Century Bridge is pleased to invest with Redsun Real Estate, a leading Hong Kong listed developer with an established presence in the Yangtze River Delta Region as well as recognized development expertise and industry status. We are confident that we will benefit from Redsun’s knowledge of the region as we work together in completing and marketing the Huzhou development. Our China-based team looks forward to working with and building our relationship with the Redsun Real Estate development and sales team.”

SAN ANTONIO, TX – Financing from Wells Fargo has been secured for the innovative revitalization and construction of a multifamily community at the historic Borden Creamery property that serves as a very visible welcome to San Antonio on US 281 adjacent to the Pearl district.
Plans include demolition of the current self-storage facility and construction of 338 premium multifamily units compatible with the art deco exterior of the Borden building, which will be preserved in a separate project by AREA Real Estate LLC to include 60,000 square feet of office and retail commercial space.
The multifamily property plan includes San Antonio River improvements and promotion of walkable neighborhoods with sidewalks and an elevated pedestrian bridge that connects the Tobin Hill community to the river and the Brackenridge Park Trail.
“We have worked collaboratively with Bexar County and the City of San Antonio, the Tobin Hill Neighborhood Association and the San Antonio River Authority to ensure a careful design that thoughtfully integrates our apartment community into the context of the surrounding community,” said Jimmy McCloskey, Executive Vice President of Development for Embrey.
Multifamily community construction on the 5.1-acre site is scheduled to begin in July. Project completion is scheduled for July 2023.

BETHESDA, MD – Walker & Dunlop announced that it structured $340,097,797 in financing for Cortland’s landmark acquisition of PURE Multi-Family REIT.
The $1.2 billion transaction comprised 22 properties with a total of 7,085 units. Walker & Dunlop secured debt for nearly half of the broader portfolio: eight distinct multifamily properties, all of which are located in major metropolitan areas across the United States Sunbelt.
The Walker & Dunlop financing team was led by Senior Managing Directors and Co-Heads of the New York City Capital Markets team, Aaron Appel, Keith Kurland, Jonathan Schwartz, and Adam Schwartz, as well as Director, Michael Ianno. Drawing on their choice network of capital providers, the team identified Deutsche Bank as the ideal lending partner. The financing includes flexible call protection and extension options at a floating rate.
The portfolio includes 2,170 units located within urban or high-density suburban submarkets, including Dallas, Houston, and Phoenix. Cortland, which operates more than 60,000 units nationwide, became the largest owner-operator in the Dallas-Fort Worth area with this portfolio acquisition. In keeping with its strong focus on elevating the resident experience, Cortland plans to make a significant investment in each of the properties to improve the exteriors, landscaping, amenities, and interior unit finishes.
“The acquisition of PURE Multi-Family REIT represents our confidence and conviction in multifamily growth,” said Mike Altman, Cortland Chief Investment Officer. “We’re grateful for a partner like Walker & Dunlop who believes in our business model and mission. By executing our financing on this acquisition, they’ve allowed us to continue our growth in these markets and to further our focus on delighting our customers with the resident living experience we provide.”
Walker & Dunlop’s Kurland commented, “We are honored by the faith and confidence Cortland had in our team to advise on one of their largest acquisitions in its history.” He continued, “We now look forward to leveraging the overall strength of the Walker & Dunlop platform, offering our clients truly best-in-class capital solutions for all asset types across the country.”

NEW YORK, NY – Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its March 2020 US CMBS Delinquency Report.
The Trepp CMBS Delinquency Rate inched up in March, a rare break from the downward trend that has extended for almost three years. The March reading was 2.07%, an uptick of three basis points from February. At least for now, heavy new issuance from late last year added performing supply to the denominator and some of the defaulted legacy loans continued to get resolved away in February.
The downward pressure of both variables on the delinquency rate should be reduced in the coming months with new issuance having stalled, distressed property sales being postponed, and COVID-19 related delinquencies starting to represent a new inflection point. Time will tell if the February level of 2.04% represents a post-crisis low for a long time to come.
For those looking for a large COVID-19 induced uptick in March, that was always unlikely, said Trepp Senior Managing Director, Manus Clancy. With most loans having payments due on the first of the month, most borrowers for performing loans would likely have made their March payment – this was before the industry gained more clarity on the magnitude of the outbreak’s disruption to businesses.
The largest rate drop among major property sectors in March belonged to the multifamily sector, with its delinquency reading dropping 16 basis points to 1.63%. The overall CMBS 2.0+ delinquency rate ticked up two basis points in March to 0.91%, up 26 basis points year over year. The retail delinquency rate climbed 27 basis points to 3.89%. Retail remains the worst-performing major property type.
For additional details, such as historical comparisons and analysis on all major property types, download the March 2020 US CMBS Delinquency.

TAMPA, FL – Preferred Apartment Communities announced its acquisition of Altis Wiregrass Ranch, a newly-constructed 392-unit Class A multifamily community located in Tampa, Florida.
Jeff Sherman, President of Multifamily said, “Despite the current near-term environment, our financial involvement in the development of this property since inception gives us a deep understanding of the positive long-term attributes of this best-in-class community and the growing market area around it.The opportunity to acquire it came through a real estate loan investment that PAC made for the development of the property over two years ago and once again illustrates the imbedded value inherent in these loans.” Mr. Sherman added, “This acquisition demonstrates our commitment to our strategy of selectively adding newly constructed Class A multifamily communities to our portfolio, which we believe will translate into sustainable and growing cash flows.”
Altis is located in Wiregrass Ranch, a master planned mixed-use community spanning over 5,000 acres with top rated schools, medical facilities including a hospital, destination shopping and dining venues. Mr. Sherman stated, “The continued growth in Wiregrass Ranch abounds; currently a 98,000 SF indoor sports facility and Marriott branded hotel are under construction behind Altis and recently, Raymond James submitted a preliminary site plan to Pasco County for their much anticipated satellite office expansion.” Mr. Sherman continued, “In addition to the exciting growth story of Wiregrass Ranch, we were able to secure outstanding project level debt for this property.”
PAC purchased Altis all cash, net of the full payment of our loan investment and all accrued interest. PAC executed a rate lock with Nationwide for a first mortgage loan bearing interest at a fixed rate of 2.90% per annum for a 10-year term that amortizes based on a 30-year schedule. PAC expects to close this loan with Nationwide during the second quarter of 2020. There will be no loan guaranties provided by PAC or our operating partnership.

MONTGOMERY, AL – Elevation Financial Group, a provider of multifamily and senior affordable housing, announced the sale of Elevation Real Property Fund V asset, Serenity Apartments at the Park. The 176-unit multifamily property located in Montgomery, Alabama, sold for $5.28 million.
With this sale, Fund V experienced a healthy profit reflective of Elevation’s initial acquisition having a very low basis, as well as the Fund’s success in repositioning the asset to be worth several million dollars more. In spite of the market turmoil around coronavirus, Elevation was able to attract strong sub-market pricing per unit (nearly $11,000 more than per unit acquisition pricing) and bring the asset to closing.
“In the midst of a national pandemic and an economic nightmare for market investors, Elevation is delighted to have delivered once again with its sale of Serenity Apartments at the Park in Montgomery, Alabama. This workforce housing property required a tremendous level of commitment by Elevation management to deliver on its promise to residents and investors, ” said Chris King, CEO of Elevation Financial Group. “I am proud that we turned over a full property to the new buyer and produced a strong profit for our investors, at a time when they need a little good news. To an investor community that has stood beside us faithfully, thank you for giving us the opportunity to serve you in good times and in bad times. As Elevation was birthed during the great recession, I have always believed that we have been equipped to do some of our best work during the hardest economic times.”
During the time of ownership, Elevation completely revitalized the community and made a number of value-add enhancements. One addition was Serenity Park, an expansive outdoor area for families and children. It was quickly recognized during the initial purchase that the outdoor space where families and children spent time was deteriorating and unsafe. Making this area safe again was a priority, but Elevation took it a step further and added a large playground, picnic areas with canopies, a soccer field and walking track. Serenity Park provided a place for children to play and families to bbq, picnic and exercise.
Additional enhancements include the rehabilitation of over 75 units, exterior painting and landscaping, the installation of water conservation kits in all of the units and a leasing office renovation.
Serenity Apartments at the Park represents the fifth property sold for Fund V with one asset, Serenity Townhomes at Montgomery, still remaining in the portfolio.
The past six months have been very active for Elevation with four properties sold and nine apartment communities purchased. The company also expanded into Virginia, Illinois and Indiana with the acquisition of multiple 55+ independent senior properties. In addition, Elevation recently closed on its seventh and largest fund, The Apollo Fund, which raised more than $43 million.

PITTSBURGH, PA – MultiVersity Housing Partners (MVHP) has been awarded management of Union on 5th, located steps from the campus of Duquesne University and less than 2 miles from University of Pittsburgh. MultiVersity Property Management (MVPM) will be overseeing the management of this Class-A student apartment property as well as all planned property improvements.
Union on 5th was converted into loft student apartments in 2016 and is made up of two-bedroom and three-bedroom apartments. The stylish apartments feature 20 ft plus ceilings, exposed brick walls, LVT and ceramic flooring, stainless steel appliances and are fully furnished. The property is 98% leased for the 2019-2020 lease term (school year).
MultiVersity Property Management (“MVPM”) has been appointed property manager, and will bring their forward-thinking approach and expertise in property management to maintain the assets position as Duquesne’s premier student housing option. As part of the property improvements, MVPM will be redesigning the lobby, relocating the office and leasing area, adding study space, renovating the hallways, added Luxer One package locker and constructing additional beds.
Union on 5th residents will be pleased with the hands-on approach of the MVPM team. MVPM prides itself on attention to detail and best in class customer service. An innovative and exciting resident retention platform will be implemented immediately.
“We look forward to adding our professional and hands on approach to this incredible asset. With MVPM’s oversite the property improvements that we have planned will take this asset to the next level,” Christopher Feeley, Managing Partner of MultiVersity Housing Partners and MVPM. “We are excited to enter the Pittsburgh market, as Pittsburgh is home to our Operations team and office. We look forward to building a large presence in Pittsburgh and the evolving uptown neighborhood in particular,” Anthony Magnelli, Principal of MultiVersity Housing Partners and MVPM.

LOS ANGELES, CA – As California goes through its coronavirus crisis, progress towards development of permanent housing options for the homeless becomes an ever more apparent public health and safety priority.
In Los Angeles, an important model for PSH is making its way through the planning process and is due for approval and construction start over the next six-month period.
Enlightenment Plaza will be a place where the formerly homeless can find an environment designed to provide the best support for their recovery and reintegration into the main stream of American life at a pace that they can control.
Located in an area which will not intrude into surrounding neighborhoods, but will nevertheless be within a transit intensive zone.
Anchored by its proximity to the metro red line station at Beverly and Vermont, Enlightenment Plaza will complement the existing facilities that have been developed by path in the same area, with 330 additional units of PSH, with places for veterans, and other homeless men and women who have experienced chronic homelessness.
The development is planned to encompass four to five phases of development over the next three years which will focus on delivery of on-site services and a variety of entrepreneurial activities designed to bring the tenants back into mainstream America, with emphasis on the “social contract” concepts of the Enlightenment theorists that are still of such basic value and currency today.
By building a complex of sufficient size, the project development team, comprised of the Pacific Companies, Flexible PSH Solutions and Killefer/Flamang (KFA) Architects, has been able to design a gated community which will provide the desired place of refuge for the tenants while taking advantage of shared facilities and modular technology designed to hold the cost per unit at the $450,000+/- level, or roughly $200,000 below the norm for recent scattered site PSH developments.
The development will have the added advantage of displacing a long time on-street camping enclave which has symbolized the problems of the homeless in the area over the past four to five years.
Stay tuned for progress reports on this model development.

JACKSONVILLE, FL – Broadshore Capital Partners, in joint venture with an investment client, announced that it has acquired the 280-unit Victoria at Orange Park apartment community in Jacksonville, FL, for $37.1 million. This is the first transaction through a new programmatic real estate investment joint venture focusing on equity and debt investments.
The new venture is targeting value-add opportunities in multifamily, such as Victoria at Orange Park, and other commercial properties. Over the next 30 months, the venture plans to make equity and debt investments ranging in size from $35 to $75 million, in approximately 8 to 12 properties. Broadshore is specifically targeting multifamily properties that will benefit from improved management and capital investments.
Victoria at Orange Park is an example of a value-add multifamily investment that meets the criteria for our new joint venture. Broadshore s team applied its expertise in multifamily investments, built over more than 30 years of investing in markets across the United States, to identify, evaluate and secure this opportunity, said Brad Howe, co-CEO, Broadshore, a national real estate investment and advisory company.
Victoria at Orange Park offers 280 units, configured as one- and two-bedroom floorplans, in 13 low-rise buildings set across 20 acres of manicured open space with abundant amenities including a resort-style pool and clubhouse. Broadshore plans a program of capital improvements to update individual residences as well as communal spaces. Built in 1986, the property has undergone periodic renovations, which the joint venture will build on, advancing unit improvements such as new appliances, flooring and fixtures, along with screening in porches, to bring them up to today s modern standards and align with the demands in the community. Further, the property s amenities and common areas will be refreshed with updates to the fitness center, opening of a business center, new furniture and fixtures for outdoor and indoor gathering spots, as well as investment in property infrastructure.
Located at 1710 Wells Road, Victoria at Orange Park has high visibility on this busy commercial corridor and provides residents easy access to the area s mix of retail and restaurants and the Orange Park Mall. The property also is convenient to major area thoroughfares connecting to downtown and the airport.
We are aware that many transactions in today s turbulent market have either been cancelled or put on hold. The fact that we are proceeding with this acquisition speaks to the strong conviction we have about the market and this opportunity, as well as the integrity of our firm and our focus on honoring our commitments, stated Howe.

LOS ANGELES, CA – The Michaels Organization, a national leader in residential real estate, will soon break ground on the third phase of new housing at Jordan Downs, after successfully achieving a financial closing. Located in the Watts neighborhood of Los Angeles, this is the latest milestone in a comprehensive redevelopment of the city’s largest public housing community by the Housing Authority of the City of Los Angeles and its private sector partners, Michaels and BRIDGE Housing.
The $58 million Phase S3 development will provide 92 new apartments, affordable to households earning between 30% and 80% of the Area’s Median Income (AMI). Previous milestones in the redevelopment effort that began in 2012 include the first two residential developments by BRIDGE and Michaels, the extension of Century Boulevard, and the opening of new neighborhood retail, including a full service grocery store. The master plan also calls for significant new green space throughout the Watts neighborhood.
“The unprecedented collaborative efforts of HACLA, residents, community stakeholders, and our financial partners, along with the strong leadership of political officials at the local, state, and federal level continue to drive exciting milestones in the transformation of Jordan Downs,” said Kecia Boulware, Michaels’ Vice President of Development. “We are incredibly grateful to be able to keep moving forward, even during this most difficult time for California and our nation.”
When the redevelopment is fully complete, Jordan Downs will be transformed into an urban village, with the original 700 WWII-era units of public housing replaced by more than 1,400 new homes for new and existing residents, as well as new commercial and retail spaces, a new community center, and over nine acres of open green space.
The apartments in Phase S3 will be offered in a variety of floor plans, featuring one, two, three and four-bedrooms, and will feature sustainable finishes and energy-efficient appliances. The development will be LEED certified with a target of LEED Gold. In addition, the apartment building will have solar PV designed to offset all the common area and central hot water heating for the development.
Financing for Phase S3 includes equity from Berkadia’s purchase of 9 percent Federal Low-Income Housing Tax Credits and permanent loans through Freddie Mac, the State of California’s Affordable Housing and Sustainable Communities program, and the Housing Authority of the City of Los Angeles. The project’s State of California funding includes discounted transit passes for residents and a job training partnership to help leverage the impact of the project for neighborhood career advancement.
Jordan Downs Phase S3 will incorporate rental subsidies through Project-Based Section 8 contracts and the Rental Assistance Demonstration (RAD) program. The building will reserve 17 apartments to be fully accessible to residents with physical disabilities and hearing or visual impairments.
Development Team members also include Walton Construction, which is serving as the general contractor, FSY Architects serving as design lead and architect of record; Partner Energy as the sustainability lead; and Breen Engineering as lead engineer for civil and off-site improvements. Michaels Management will serve as the property manager, once construction is completed approximately 21 months from now.