Author: ipgocorp

WASHINGTON, DC – Besyata Investment Group and The Scharf Group, both NY-based single family offices, have acquired Arbor Vista in Washington D.C. metro for a purchase price of $90 million.

Besyata and Scharf Group have been on a winning streak of successful acquisitions, only a few months ago closing on a $74 million 1,033-unit Multifamily Portfolio in Atlanta and Louisville.

BH Management, Besyata’s long-standing partner and leading property manager of 70,000 apartments in 23 states, will oversee the day-to-day property management and leasing.

Arbor Vista, Sienna Creek, and Sienna Gardens, together a 675-unit 1960-vintage garden style multifamily apartment complex in Adelphi, M.D., offers superior amenities, including a pool, playgrounds, community, fitness and business centers, laundry, and soccer field.

The community benefits from a convenient inside-the-beltway location within a few-minute drive from major roadways I-495 and I-95, allowing for an easy commute to downtown D.C., University of Maryland, The Mall at Prince George’s, and throughout the entire metro area.

The metro area has a diverse economy with strengths in core sectors, including professional and business services, education and health services, and agencies supporting the federal government. The submarket has an established hub of large employers, including University System of Maryland, FDA, Joint Base Andrews Naval Air Facility, IRS, Census Bureau, UPS, and NASA.

With the continued population growth and low unemployment, the submarket has a strong demand for class B units.

Besyata and Scharf Group plan to add value to the communities by creative modernization of the amenities and gradual unit renovations. The property will benefit from strong market fundamentals and organic rent growth. Besyata believes that investing in value-add class B multifamily transactions in well-positioned class B suburbia presents a prime opportunity to generate attractive risk-adjusted returns in the multifamily space.

JACKSONVILLE, FL – Resource Apartment REIT, a non-traded real estate investment trust sponsored by Resource Real Estate, completed the purchase of Bay Club Apartments.

Built in 1990, the 220-unit community features numerous amenities, including a resort-style pool, a fitness center, a business center, and a clubhouse. Each spacious apartment includes a private garage.

Located in the heart of Jacksonville’s desirable Southside/Bay Meadows area, the community is just 12 miles from downtown Jacksonville and 15 miles from the Atlantic Coast beaches. It is close to several major employment centers such as the Deerwood Park Office Campus, Bank of America/Merrill Lynch Campus, and St. Vincent’s Medical Center Southside. The community is conveniently situated within ten minutes of major retail options including the Southside Square Shopping Center, Avenues Mall, and the St. Johns Town Center Mall.

The REIT’s Chief Executive Officer, Alan Feldman, said that the acquisition represents an exciting opportunity to gain exposure to the vibrant Jacksonville market.

“We are excited to acquire a great community in a great city. We like Jacksonville’s solid real estate fundamentals and its growth potential. Bay Club Apartments is a sought-after apartment community in a desirable location.”

Jacksonville is the largest city in Florida and has a diverse economy and an attractive quality of life. In the last two years, the Jacksonville area has created almost 40,000 new jobs and, in March 2017, Moody’s Economy.com ranked it in the top quarter of all domestic urban areas for economic diversity.

SEATTLE, WA – Rising rents in the nation’s booming urban areas are creating crisis levels of homelessness that will continue or even accelerate as rents rise, Zillow research has found. The connection between homelessness and increasing rents is especially strong in places that are already facing rapidly growing homeless populations: New York, Los Angeles, Washington, D.C. and Seattle.

A five percent increase in New York rents over the next year would force almost 3,000 more people into homelessness, according to a new analysis from Zillow. In Los Angeles, the homeless population would grow by roughly 2,000, and Seattle would see its homeless population increase by nearly 260. While the connection between the rising cost of housing and homelessness is generally accepted, Zillow’s statistical analysis is the first to forecast for each city how many people will be pushed into homelessness as rents increase over time.

Relying solely on the number of homeless people counted during a one-night survey is an imperfect method. Previous research has found that as few as 59 percent of unsheltered homeless people are included in a given countii. Weather, the number of volunteers and even the count methodology can change from year to year, affecting the accuracy of the count. This new research predicts the total number of people experiencing homelessness, expanding on the counted number.

Rents are at record highs across the country, and income growth did not keep pace as rents grew, making paying the rent increasingly unaffordable. Seattle and Portland, Ore. have declared states of emergency in response to the number of people experiencing homelessness. The median rent payment in Los Angeles requires 49 percent of the typical household income, leaving little opportunity to save in case of an unexpected medical bill, or loss of a job – events which could push a family into homelessness.

“We’ve seen so much pressure in rental housing markets that it’s created a rental affordability crisis that has spilled over into a homelessness crisis at lower income levels,” said Zillow Senior Economist Dr. Skylar Olsen. “Often, the rental demand in these markets isn’t being met with a sufficient supply. There are several cities grappling with this problem, but there is no one-size-fits-all solution for everyone. This report puts a number on the link between rising rents and homelessness, highlighting the very real human impact that rent increases are having across the country.”

Homelessness rates in New York, Los Angeles, Washington, D.C. and Seattle increased by at least four percent between 2011 and 2016, and these cities have a strong relationship between rising rents and growing homeless populations. Philadelphia, Chicago, Minneapolis, Detroit, and Pittsburgh also show a significant connection between rising rents and homelessness rates.

Not all markets in this analysis have a strong relationship between rents and the number of people experiencing homelessness, indicating that they have found a way to interrupt the trend. Even as rents have risen in Houston and Tampa, for example, the homeless population in each city fell. Other cities where the homelessness rates also fell include Chicago, Phoenix, St. Louis, San Diego, Portland, Detroit, Baltimore, Atlanta, Charlotte, and Riverside.

SMYRNA, GA – Wood Partners, a national leader in real estate development, announced the grand opening of Alta at Jonquil, a 266-unit luxury apartment community in Smyrna, Georgia.

Developed as a part of the Jonquil Plaza — minutes from Cumberland and the Galleria area — Alta at Jonquil has convenient access to 1-75, I-85, I-20 and is approximately 20 minutes from Hartsfield Jackson International Airport.

Next door to Publix, and walking distance to numerous restaurants, and specialty retail stores, the community was developed for residents who currently work in Atlanta, and are drawn by the desire of living in a walkable neighborhood with a small-town feel.

“Alta at Jonquil is a unique community in the Atlanta MSA offering all of the modern conveniences of in-town living but with a small town vibe,” said Bennett Sands, Development Director for Wood Partners in Georgia. “The neighborhood restaurants and pubs offer local charm, the Battery (Home of the Atlanta Braves) offers a world-class entertainment destination, and the location offers convenient access to the best office markets in the City.”

Alta at Jonquil features forward-thinking, convenience-driven community amenities, including an outdoor biergarten with seating and dining areas, outdoor fireplace and grills, a luxurious pet spa, a resort-style saline pool, and a 24-hour health and fitness studio.

Wood Partners is a national real estate development company that acquires, develops, constructs and property manages high density and mixed-use communities. It ranks consistently among the top five multifamily developers in the country. The company has been involved in the acquisition and development of more than 67,000 homes with a combined capitalization of more than $11.0 billion nationwide. The company currently owns more than 70 properties with a combined total of over 20,000 units.

NEW YORK, NY – Mortgage rates moved lower once again this week, with the benchmark 30-year fixed mortgage rate dipping to 4.04 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.26 discount and origination points.

The larger jumbo 30-year fixed retreated to 4.05 percent, and the average 15-year fixed mortgage rate dipped to 3.28 percent. Adjustable mortgage rates were mostly lower, with the 5-year ARM pulling back to 3.48 percent and the 7-year ARM settling at 3.66 percent.

Mortgage rates declined modestly this week, but for the fourth week in a row, bringing rates back to mid-June levels. Much like the lack of volatility in the financial markets, we’re seeing only subtle movements in mortgage rates. The average 30-year fixed mortgage rates has been in a range of just one-seventh of a percentage point since mid-May. The movement toward lower rates seen this week came as the latest economic data reveal weakness in manufacturing, personal income, personal spending, construction spending, durable goods sales, and inflation. The lack of volatility may prove short-lived however as deadlines to raise the debt ceiling and avert a government shutdown both loom in the next two months. The further we get into a game of chicken on both of these, the more likely investors are to get nervous and financial markets get turbulent.

At the current average 30-year fixed mortgage rate of 4.04 percent, the monthly payment for a $200,000 loan is $959.45.

SURVEY RESULTS

30-year fixed: 4.04% — down from 4.09% last week (avg. points: 0.26)
15-year fixed: 3.28% — down from 3.31% last week (avg. points: 0.24)
5/1 ARM: 3.48% — down from 3.50% last week (avg. points: 0.34)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Half of the panelists expect mortgage rates to remain more or less unchanged. The remainder are divided, with 30 percent forecasting an increase in mortgage rates over the next week and 20 percent predicting a decline.

ATLANTA, GA – JLL Income Property Trust, an institutionally managed, daily valued perpetual life REIT announced the acquisition of The Reserve at Johns Creek Walk, a highly amenitized 210-unit apartment complex located in the affluent Atlanta suburb of Johns Creek, which has been ranked ‘3rd Best City to Live in the United States’ by USA Today. The purchase price was approximately $47 million.

Atlanta is recognized as the economic engine of the Southeast with a population that is expected to grow by seven percent over the next five years. The Atlanta metro area ranks second out of 147 cities in LaSalle’s Regional Economic Growth Index due to a robust job and population growth outlook creating an upside for apartment demand. New apartment supply in Atlanta’s suburbs has averaged just one percent of existing stock since 2014, approximately half of the net absorption rate. This has led to growth in average annual apartment rents of over seven percent for the past three years.

The Johns Creek suburb of Atlanta features a wealthy, well-educated demographic, ranking as the 13th highest earning city in the country and one of the 10 richest in Georgia. Housing values ($421,000) and household incomes ($144,000) are nearly double Atlanta’s average. The highly desirable school system has attained LaSalle’s Gold Level ranking with a high school that is rated #2 in Georgia by Niche and #11 in Georgia by U.S. News (top two percent).

“The Reserve at Johns Creek furthers our apartment acquisition strategy of identifying suburban locations within highly rated school districts with attractive demographics and significant barriers to entry,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “This investment brings our aggregate apartment allocation to nearly $650 million, with over 2,500 total units and represents 27 percent of the value of the overall JLL Income Property Trust portfolio.”

The apartment complex is strategically situated equidistant to Georgia 400 and I-85, at the center of of Atlanta’s high-growth technology and information sectors. It is adjacent to a master-planned Technology Park with upwards of 10,000 new jobs, and is proximate to significant walkable retail spaces including six restaurants. The complex features craftsman-style architecture and a full complement of modern tenant driven amenities.

JLL Income Property Trust is an institutionally managed, daily valued perpetual life real estate investment trust (REIT) that gives investors access to a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world’s leading real estate services firms.

CLEVELAND, OH – BGLREA announced the financial closing for the acquisition, rehabilitation and construction of Quay 55, a luxury apartment complex located on the near east side of Downtown Cleveland, Ohio for its client, The Landmark Companies. The project capitalization included senior acquisition financing provided by Prime Finance, with whom BGL worked closely with Pinnacle Financial Group to secure, and a preferred equity investment from Tryperion Partners. 

Quay 55 (formally known as the Nicholson Terminal & Dock Company of Michigan) is one of the first and only waterfront luxury apartment developments in downtown Cleveland. Built in 1929, this iconic building was once a facility of many trades and is rich with decades of history. Its original use was for off-loading and a trans-shipment point for a variety of raw materials, industrial goods and manufactured products.  The property was repurposed in 2003 to 138 luxury apartment units. The Landmark Companies intends to convert an entire floor of unused interior parking garage space to accommodate another 29 apartment units bringing the total to 167 units.

Bob Rains, Co-Founder and Managing Partner of The Landmark Companies, commented, “BGL’s access to national capital markets and expertise in the needs of debt and equity investors was crucial in our acquisition of the property. They bring professionalism and competence to the table along with the ability to see a transaction through to the close. Working with the entire BGL team was a business like and learning experience.”

Led by Co-Founders Robert Rains and John J. Carney, The Landmark Companies develops, owns and manages residential and commercial real estate. Their portfolio includes apartment buildings, new construction in existing warehouse buildings and renovation of historic buildings in downtown Cleveland, Ohio and Indianapolis, Indiana. The Landmark Companies has developed over $210 million in projects that have created first-class residences and revitalized street-level retail in urban areas. This has been essential to the repopulation of downtown Cleveland’s neighborhoods.

Prime Finance is a private commercial real estate finance company with discretionary capital which directly originates mortgage, mezzanine and preferred equity financing and also acquires performing, sub-performing and distressed debt.  Prime Finance is a balance sheet lender with offices located in New York, Chicago and San Francisco.  Tryperion Partners, LLC is a Los Angeles-based real estate investment manager focused on value-add office, retail, hospitality, and multifamily investments in Midwestern and Western U.S. markets, with two fully discretionary value-add real estate funds totaling more than $100 million in committed capital. 

CORPUS CHRISTI, TX – NAPA Ventures, an Austin, TX based multifamily and commercial real estate investment company co-founded by Shravan Parsi and Glenn Gonzales, announces the acquisition of Yardarm Apartments.

Yardarm is the latest investment made by the real estate investment firm. The property is composed of 150-units, a leasing office, and multiple amenities located conveniently off the interstate 37.  

Yardarm Apartments is the first property of a two-property portfolio that NAPA company will close in Corpus Christi in Q3.

“We have already put another property (The Shores) under contract in Corpus that we are seeking capital on,” said Shravan Parsi, Co-CEO of NAPA. “This is a direct reflection of our knowledge in the market and the massive economic growth that is coming down the pipeline.”

Parsi expects to see large growth in the market due to ExxonMobil Corp’s building of the world’s largest ethylene cracker plant ($12 billion project), construction of a new bridge ($1 billion project), and the construction of a level two trauma wing at Christus Spohn Hospital.

NAPA’s business plan is to renovate the exterior of buildings and interior units of Yardarm and The Shores to increase profitability and provide a great living experience for its residents. These updates include a makeover of landscaping, pool decks, parking lots, exterior paint and upgrading both the leasing office and business center. Interior unit renovations include: upgrades to countertops, cabinets, floors, and trendsetting black appliances.

“We plan to breathe some life into this property,” said Glenn Gonzales, Co-CEO of NAPA. “Yardarm and its immediate submarket is in the process of extreme growth and NAPA wants to be a part of that.”

INDIANAPOLIS, IN – Covenant Capital Group, a value-add investment manager with an exclusive focus on the acquisition and renovation of apartment communities, has acquired Columns of Castleton, a multifamily property with 398-units located at 7615 Ivywood Drive in Indianapolis, Indiana.

Covenant purchased the property on July 31st, 2017 for $30.25 million, reflecting a per-unit price of $76,005.

“We’re pleased to invest again in the Indianapolis market with the acquisition of the Columns of Castleton,” said Govan D. White, managing partner and co-founder of Covenant Capital Group. “We believe this property has a strategically valuable location that’s well positioned for the City’s continued growth. We’re proud to invest significantly in it to ensure it continues as a vibrant apartment destination in the community for decades to come.”

Located in the employment-rich northeast side of Indianapolis, the property is conveniently situated near one of the city’s most critical interchanges, Interstate-69 and Interstate-465, providing immediate access to a wealth of employment and the densest collection of shopping and amenities in the state.

Covenant plans to invest over $4.7 million to modernize the property to better serve the demands of renters in its neighborhood. In addition to renovating the apartment interiors and amenities, Covenant will implement a green program by installing energy efficient appliances, low-flow kitchen and bathroom fixtures, as well as LED lighting throughout the site.

These investments will serve to increase the building’s sustainable features, lowering energy costs for residents, and to extend the life of the community, which was built in two phases in 1969 and 1974.

Covenant Capital Group, formed in 2001, focuses on transforming and repositioning properties into premier institutional quality assets. Covenant has over $1 billion in real estate assets under management and controls over 9,250 apartment units.

VERO BEACH, FL – Watercrest Senior Living Group and Providence One Partners gathered with city officials, development, construction, and design partners to celebrate the groundbreaking of Sage Park Assisted Living and Memory Care in Kissimmee, Florida. Watercrest Senior Living Group, the co-owner and operator of the 106,882 square foot, 128 unit senior living community will welcome residents to Sage Park in the fall of 2018.

“We celebrate this development milestone and our collaboration with Providence One Partners in bringing the seniors and families of Kissimmee an upscale senior living environment providing unparalleled service, innovative training and world-class care,” says Marc Vorkapich, Principal and CEO of Watercrest Senior Living Group.

Sage Park Assisted Living and Memory Care will feature 104 assisted living and 24 memory care apartments with gracious accommodations and upscale amenities in a thoughtfully planned senior living community. Ideally located in Kissimmee’s Osceola Corporate Center, the neighboring area offers diverse workspaces, residential neighborhoods, and plentiful retail and entertainment centers.

Watercrest Senior Living prides itself on providing state-of-the-art wellness programs, savory dining and extraordinary care, all tailored to individual resident preferences. All Watercrest memory care associates are Nationally Certified Dementia Specialists and their comprehensive programming focuses on innovative lifestyle approaches, including personal life silhouettes, multi-sensory enhancements, Memories in the Making, and Music and Memory programs.

“Sage Park is specifically designed for seniors seeking a superior living experience unmatched in the area to date,” says Michelle Pierce, COO of Providence One Partners. “We anticipate this community will reflect the excitement and smart growth happening in Osceola County.”

This is the fourth senior living project for Providence One Partners, the developer and co-owner of Sage Park Assisted Living and Memory Care.