Author: ipgocorp

OAK BROOK, IL – Inland Real Estate Acquisitions announced that it negotiated and helped close the purchase of Conifer Creek Apartments, a 480-unit multifamily property located in Aurora, Colorado, an eastern suburb of Denver. Matt Tice, senior vice president of Inland Real Estate Acquisitions, Inc., facilitated the transaction, with assistance from Brett Smith, assistant vice president associate counsel of The Inland Real Estate Group, Inc., on behalf of an Inland affiliate.

Located on two parcels at 2205 South Racine Way and 12775 East Pacific Drive, the property is situated on nearly 20 acres and was recently partially renovated in 2011 and 2017. Conifer Creek Apartments consists of 53 three-story buildings featuring 140 one-bedroom and 340 two-bedroom units with 518 attached garage spaces. Each unit includes a wood-burning fireplace, energy-efficient appliances, nine-foot vaulted ceilings, a full-size washer and dryer and an oversized balcony or patio. The property also features community amenities including a newly constructed clubhouse with WiFi, two outdoor resort-style swimming pools, two spas, a fitness center, a bicycle/jogging path, barbecue grills, a business center and pet-friendly amenities.

“Conifer Creek Apartment’s prime location in this highly desirable suburb provides residents with convenient access to transportation as well as a choice of several highly rated schools,” said Tice. “With nearly 440,000 residents within a five-mile radius, the property is easily accessed from a major interstate and provides the opportunity for additional value-add renovations, making it a prime example of the type of multifamily acquisitions we continue to seek out.”

As of July 11, 2017, the property was 96 percent occupied and 99 percent pre-leased.

To date, Inland Real Estate Acquisitions has facilitated more than $44 billion of purchases including apartments, single-tenant properties, medical office buildings and retail properties.

LONGMONT, CO – VerraWest, a brand-new 276-unit apartment residence community, is bringing high-end living to southwest Longmont. It recently has kicked-off leasing, offering a wonderful mix of city life and the great outdoors to its future residents, and unique features such as a dog wash, bike repair shop, swimming pool with fire pit, and fitness center.

VerraWest offers new, 662 to 1,320 square-foot apartments with one-, two- or three-bedroom floor plans. Lifestyle amenities include pool, spa, sun deck, well-equipped fitness center, and clubhouse with TV lounge.

VerraWest welcomes pets and features a dog park and pet washing station. Optional covered parking and garages are available, as well as on-site storage space. Residents rest assured knowing there is 24-hour, on-call maintenance.

There is plenty of breathing room on the 14-acre property, with an abundance of open, grassy spaces, a community garden, and beautiful Rocky Mountain views. Residents enjoy easy access to trail systems that connect the VerraWest community with neighborhood open space, parks, and trails.

Living at VerraWest puts residents within reach of some of Colorado’s top employers and the top-rated schools in the St. Vrain Valley School District. With easy access to Highway 119, VerraWest residents can get to Boulder, or I-25 for points north or south, in 15 minutes.

VerraWest was developed by Longmont-based Actis, LLC. “With VerraWest, we’ve taken design features, services and modern amenities that you’d typically find in urban areas, and integrated them into this beautiful setting in a way that supports the southwest Longmont lifestyle,” notes Actis CEO, Richard Groves.

ATLANTA, GA –  Preferred Apartment Communities announced the refinancing in the second quarter of 2017 of two Class A multifamily communities: Stone Creek Apartments located in Houston, Texas and Grandeville at Avalon Park located in Orlando, Florida.

PAC refinanced Stone Creek utilizing a non-recourse first mortgage HUD loan originated by PGIM Real Estate Finance.  The new loan package is approximately $20.6 million, bears interest at a fixed rate of 3.47% per annum, matures in July of 2052 and amortizes based on a 35-year schedule. 

PAC refinanced Avalon Park utilizing a non-recourse first mortgage loan from Freddie Mac originated by PGIM Real Estate Finance.  The new loan package is approximately $67.4 million, bears interest at a fixed rate of 3.98% per annum, matures in July of 2024 and amortizes based on a 30-year schedule.

“The refinancing of Stone Creek demonstrates PAC’s ability to create value in our assets and refinance them accretively.  The Stone Creek transaction allows PAC to pull out almost $3.0 million in additional loan proceeds while lowering the total borrowing cost by over 1.25%.  We can then reinvest the additional proceeds generated to help provide us with further opportunities to acquire well-located, newly constructed and high-quality multifamily communities in our core markets,” said John Isakson, Executive Vice President and Chief Capital Officer for PAC. “

Mr. Isakson added, “The refinancing of our loan at Avalon enables the Company to mitigate its interest rate risk resulting from our previous floating-rate loan and lock in a stable and low fixed interest rate.”

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, they enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

NEW YORK, NY – After three weeks of consecutive increases, mortgage rates reversed course this week.  The benchmark 30-year fixed mortgage rate slipped to 4.13 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.28 discount and origination points.

The larger jumbo 30-year fixed inched up slightly to 4.11 percent, while the average 15-year fixed mortgage rate slipped to 3.33 percent. Adjustable mortgage rates saw decreases also, with the 5-year ARM dipping to 3.54 percent and the 10-year ARM creeping lower to 3.96 percent.  

Mortgage rates took a breather this week after rising 3 straight weeks previously. With news from the Mortgage Bankers Association that rising rates had scared off borrowers, plunging applications 7.4 percent last week, a reprieve is good news for homebuyers and refinancers. Mortgage shoppers should also take some comfort from Federal Reserve Chair Janet Yellen’s assurances in her testimony on Capitol Hill Wednesday that inflation is moving at a moderate pace and that the key federal funds rate “is likely to remain below levels that prevailed in previous decades.”

At the current average 30-year fixed mortgage rate of 4.13 percent, the monthly payment for a $200,000 loan is $969.88.

SURVEY RESULTS

30-year fixed: 4.13% — down from 4.16% last week (avg. points: 0.24)

15-year fixed: 3.33% — up from 3.37% last week (avg. points: 0.28)

5/1 ARM: 3.54% — up from 3.58% last week (avg. points: 0.33)

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. This week, 32 percent of the panelists believe mortgage rates will rise over the next week or so; 42 percent think rates will fall; and 42percent believe rates will remain relatively unchanged in the coming week.

BALTIMORE, MD – Lowe Enterprises Investors (LEI), in joint venture with a foreign investment client, has acquired Jefferson Square at Washington Hill, a 304-unit urban infill apartment development with 20,000 square feet of street retail in East Baltimore. Located at 101 N. Wolfe St., the property is across the street from the vast Johns Hopkins University Hospital and medical campus and in the heart of the rapidly growing neighborhood.

“This premier property has an unparalleled location at the front door to the Johns Hopkins campus with its more than 20,000 employees. In addition, it is adjacent to The Science & Technology Park, a 31-acre corporate research campus,” said Brad Howe, co-CEO of LEI. “It provides not only the most convenient location for employees and students but also top-tier, modern residences, offering the most sought after on-site amenities.”

Jefferson Square at Washington Hill, completed in 2015, features mid-rise buildings that create street activity with both ground floor retail and some street-facing residences. The units are configured as studios, one- and two-bedrooms and served by ample on-site parking with a five-story structure for residents, a one-story garage for retail and numerous surface spots.

The units are designed with contemporary finishes such as flat panel cabinetry, granite counters with tile backsplash, stainless steel appliances and kitchen islands and full-size washer and dryer. Residences also offer patios, balconies or front stoops creating an outdoor connection and capturing natural light. Abundant common areas and community spaces include an expansive clubroom with a variety of games, theater room, conference room, business center, fitness center and yoga space. Outdoor areas are equally diverse with a lounge-like seating area and fountain, serenity courtyard with fireplace, resort-style pool and outdoor grilling areas.

Retail space at Jefferson Square at Washington Hill provides residents and the neighborhood with community-serving retail and dining including CVS drugstore, BB&T bank, Urban BBQ and Ledo Pizza.

“There are many factors that make this a compelling investment. It’s new construction in an exceptional location walking distance to the area’s major employer and situated in a neighborhood that is continuing to grow and thrive,” noted Howe.

Jefferson Apartment Group will continue as manager of the apartments. LEI was represented in the transaction by John Gaghan and JLL represented the seller.

DALLAS, TX – Pure Multi-Family REIT announced the successful closing of the previously announced multi-family apartment community located in Dallas, Texas, for a purchase price of $48.8 million.

On closing, the property will be rebranded as PURE at La Villita (“La Villita”).

La Villita is a luxury Class A apartment community in the prestigious master-planned community of Las Colinas, a Dallas suburb, which includes the headquarters of many Fortune 500 companies.

Completed in 2007, La Villita is a luxury Class A, 306-unit, garden-style apartment community that has been maintained to institutional-owner standards.

Pure Multi-Family funded the purchase of La Villita with proceeds from the equity offering, which closed on April 7, 2017 and new first mortgage financing. The new first mortgage financing is in the amount of US$24.4 million, and bears a fixed interest rate of 3.81% per annum for a term of 15 years.

Stephen Evans, Pure Multi-Family’s CEO, stated, “We are excited to add this luxury garden-style apartment community to our Dallas portfolio. The property’s desirable location coupled with its luxurious amenities package make it a sought-after residence. La Villita is located in the high-demand Las Colinas submarket, which features employment centres, restaurants, outdoor recreation and convenient access to the DFW airport.”

Upon completion of the acquisition of La Villita, Pure Multi-Family’s portfolio consists of 20 multi-family properties comprising an aggregate of 6,515 residential units, situated on 340 acres of land.

Pure Multi-Family is a Canadian based, publically traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi-family real estate assets.

LOS ANGELES, CA – International award-winning KTGY Architecture + Planning announced today the firm’s Los Angeles office has completed its sixth year of teaching and mentoring students attending Bell High School in the City of Bell, Calif. Through the ACE (Architecture-Construction-Engineering) Mentor Program Los Angeles, volunteer mentors and staff from KTGY’s Los Angeles office provide Bell High School ACE students with bi-weekly hands-on learning activities and classes relating to the field of design-build to educate, mentor and inspire these students throughout the school year.

In addition to supporting the ACE Mentor program, KTGY gives an annual monetary donation to the ACE Mentor program, which provides scholarship money for ACE Mentor program graduates. According to Manny Gonzalez, FAIA, managing principal of KTGY’s Los Angeles office, “KTGY’s ACE mentors and volunteers plan, coordinate and deliver a substantive bi-weekly program that educates 20 Bell High School students annually about the design and construction industry.”

KTGY Project Manager Anabel Martinez,has been involved in the ACE Mentor Program for nearly 14 years and was selected as the ACE Mentor Los Angeles “Architect Mentor of the Year” in the past for her mentorship, team leader activity, and dedication to the growth and impact of ACE Mentor Los Angeles at Bell High School.

Martinez is the liaison for KTGY’s ACE Mentor volunteer staff members and Maria Setaro, project associate, has served as the team leader in charge of planning and coordinating mentor activities and lessons. She has been assisted by Fernanda Frisby, senior designer; Jose Cerezo, senior job captain; Arthur Zohrabians, project associate; and Liz Vento, project associate. Oliver Inauen, project manager, has been involved with the West Los Angeles ACE Mentoring Team.

“At KTGY, we are grateful for the opportunity to work with the students at Bell High School,” said Martinez. “Introducing them to career possibilities in the construction and design industry sparks their excitement and this is contagious! Some of our students are the first in their family to attend college or trade school. The ACE Mentor program is a great example of how doors can open when you share your life with young people.”

Setaro adds, “One of the many things I look forward to is the interaction with our students. We get inspired and motivated with their energy and creativity to develop design activities. We also strongly promote team collaboration and mentorship to the students. These two are very applicable not only in the classroom but in a real-world setting. Greater achievements can be accomplished when you support, contribute, and elevate your team; and both KTGY and ACE are great examples of cultivating team player attitudes.”

Last year, KTGY volunteers and the Bell High School Ace Mentor program students toured the landmark Wilshire Grand Tower that was under construction at the time in downtown Los Angeles. “The students learned about the site complexities and limitations of building this 73-story high-rise, which will be the tallest building west of the Mississippi, and is designed to sway up to eight feet in each direction during an earthquake,” said Martinez. “Everyone’s favorite part of the tour was taking the construction elevator up to the 65th floor and enjoying the amazing views of Los Angeles.”

The group also visited the Frank Gehry exhibit at the Los Angeles County Museum of Art (LACMA).  Martinez said, “Several of our students had never been previously to LACMA or even to an art museum. These kinds of activities serve to inspire and spark the imagination.”

The ACE Mentor team will launch the new 2017-2018 program in September. For more information about ACE Mentor Program, see www.acementor.org

Celebrating 25 years, KTGY Architecture + Planning is an international award-winning full-service architecture and planning firm delivering innovation, artistry and attention to detail across multiple offices and studios, ensuring that clients and communities get the best the firm has to offer no matter the building type or location.

ORLANDO, FL – Emma Capital Investments announced the acquisition of a 408 unit garden-style community, The Adelaide Apartments (formerly named Advenir at Broadwater), located at 6677 Tangelwood Bay Drive, Orlando, 32821. This is Emma Capital’s first investment in Orlando and its 22nd acquisition in the U.S., adding to Emma Capital’s total portfolio to date of approximately 5,500 apartment units.

The Adelaide Apartments were built in 1987 and contain 408 residential units in 22 two-storey buildings. The Property offers 4 different floor plans made up of 136 One-bedroom units and 272 Two-bedroom units, averaging 817 square feet per unit. The Property boasts a well-maintained community in which residents enjoy a relaxing, comfortable lifestyle with beautiful landscaping and an attractive amenity package. Specifically, the community features two resort-style swimming pools, an outdoor summer kitchen, a grill station, numerous picnic/BBQ areas, car cleaning station, a children’s playground, dog park, racquetball court, fitness centre with both machines and free weights and in-suite washer and dryer in every unit.

The community is located in the South Orange County/Lake Buena Vista submarket of Orlando, Florida. The Property is well-positioned along International Drive, a major street which generates excellent visibility, and is proximal to numerous employment areas, amenities and transportation nodes, providing connectivity throughout Central Florida. The Property is within ten (10) miles of approximately 130,000 jobs – including jobs with major employers such as Sea World Orlando, Walt Disney World, Universal Resort Orlando Lockheed Martin, the Orange County Convention Center, Darden Restaurants, Westgate Resorts, and Rosen Hotels.

“We are extremely excited about this acquisition,” stated founding Partner and Co-Owner Haya Zilberboim. “The strength of the Orlando market and the strong amenity package of the Property provides Emma Capital with the opportunity to immediately focus on rent growth initiatives such as income-boosting unit interior upgrades.”

“We are enthusiastic about our expansion into the Orlando market,” added Partner and Co-Owner Oz Cohen. We continue to execute on our growth strategy with quality assets in strong markets.” We intend to expand our presence in our current markets as well as continue to continue our expansion to other Southeast submarkets such as Nashville and Tampa.”

“The submarket has achieved strong rent growth over the past number of years and is forecast to continue to grow through 2020”, added Brian Rakowski, Emma Capital’s Asset Manager for the Florida Market. “Moreover, the submarket is relatively affluent and its population is expected to rise by approximately 11% by 2020. We believe that such demographics present strong opportunities for Emma Capital.”

DALLAS, TX – BRT Apartments announced it acquired, through a joint venture in which it has a 50% equity interest, Mercer Crossing, a 509 unit Class A multi-family property centrally located in the Farmers Branch area of Dallas-Fort Worth, Texas for $85.7 million, including $55.2 million of mortgage debt obtained in connection with the acquisition. The debt carries an interest rate of 4.22%, is interest only for five years and matures in 2028.

BRT acquired, through a joint venture in which it has a 58% equity interest, a 44 acre land parcel in the Bells Bluff area of Nashville, Tennessee, for $5.3 million. The venture contemplates developing a 402 unit Class A multi-family property at this site for an estimated $73 million, which will be funded in part by an estimated $47.4 million of construction financing.

The construction financing, which will be advanced as construction progresses, matures in 2022 and bears interest at the rate of one month LIBOR plus 285 basis points. BRT has agreed to contribute up to $15 million of equity to this venture, of which $4.8 million has been contributed to date.

Jeffrey A. Gould, President and Chief Executive Officer commented, “We continue to identify high quality sun-belt multi-family properties to acquire and are pleased to add Mercer Crossing in Dallas, Texas and a new development opportunity in Nashville, Tennessee to the portfolio. Mercer Crossing, which was built in two phases from 2014 to 2016 and the Bells Bluff development will reduce the average age of our portfolio and improve its quality. Both are off market transactions, which we believe came to BRT as a result of the strong reputation we have in the market as a creative and well-capitalized partner.”

Mr. Gould continued, “These two acquisitions bring our total 2017 capital deployed to $71.7 million. We are confident in our abilities to continue to find accretive acquisitions and enhancing the cash flow stream of our growing portfolio.”

BRT Apartments is a REIT trading on the New York Stock Exchange (NYSE: BRT) that is focused on investing directly and through joint ventures acquiring existing multifamily properties, and to a limited extent ground up development of multifamily apartments.

SEATTLE, WA – Renewing a lease instead of moving to a new apartment can mean major savings for renters. Those who moved in the past year paid an average of $3,946 more in 2015 on rent than renters who stayed in the same unit for the past five or more years, according to a new Zillow analysis of 2015 rent data from the U.S. Census American Community Survey (the most recent data available).

While rents increased across the country, market rate rents – those that are advertised for new renters – increased more than rents did for tenants who renewed leases. The annual market rate increase in rent from 2014 to 2015 was 5.6 percent, compared to a 3.6 percent increase for renewed leases.

The U.S. faces a rental affordability crisis, as rents have skyrocketed in recent years, while incomes have remained largely flat. Zillow’s research shows that when rents are rising rapidly, renters can save a good chunk of money by renewing a lease, rather than moving and starting a new one. Renters can use these savings for a down payment, which most renters say is the greatest barrier to buying a home.

There are 43 million renter households across the country, about 4 million more than there were five years ago. The majority of recent household formation happened on the renter side instead of the homeowner side, in part due to millennials reaching the age to move out but not having enough savings to buy a home. Young adults are also renting longer than ever before buying.

“Renters have a decision to make almost every year – do they stay in the same place, or should they look for a new unit?” said Zillow Chief Economist Dr. Svenja Gudell. “With the country in the middle of an affordability crisis, it’s important for renters to understand how much they can save if they renew their lease instead of finding a new rental. Nationally, rental rates have slowed and the savings from renewing are not as significant for renters today. However, in some of the hottest rental markets, where rents are still rising aggressively, continually renewing a lease can mean saving thousands of dollars.”

In Boston in particular, it paid off for renters to stay in the same place instead of moving every year. Boston renters saved up to 86 percent by staying in the same rental for five or more years, which translated to $8,979 in annual rent payments. They also faced the biggest difference between annual market rate rent increases – 10.5 percent – and rent increases for renewing – 4.3 percent.

Renters in Las Vegas had the smallest financial incentive to stay in the same unit. Renters who have lived in the same unit for five or more years paid on average $842 less per year than renters who moved the year before.