Author: ipgocorp

SEATTLE, WA – Madrona Ridge Residential, an affiliate of Seattle-based Security Properties, is being fully integrated into Security Properties and rebranded as Security Properties Residential.  As part of this integration, Security Properties is also announcing that Mike Voorhees, formerly of Holland Residential and Holland Partner Group, has recently joined Security Properties Residential as President.

According to David Dufenhorst, CEO of Security Properties, “We are very fortunate to have found Mike Voorhees, who is clearly a cultural match for us, especially with his deep skills and experience.  We look forward to Mike’s leadership in growing our property management platform.”

As Security Properties Residential, the firm’s existing 426 employees will continue to provide exceptional residential management services for Security Properties residents, its high-net worth investors, and its institutional real estate partners and lenders.  Madrona Ridge was created in 2010, after a 15 year non-compete related to the sale by Security Properties of its prior management company expired.  Its purpose is to increase the value of its real estate holdings by more closely managing its assets.

Mike Voorhees, Managing Director and the new President of Security Properties Residential, stated: “I look forward to building on the talent, experience and systems that have allowed Security Properties Residential to reach the point where it is today and to help expand the platform to serve the needs of our residents, partners and investors.”

Operating throughout the Western U.S., Security Properties Residential is committed to delivering exceptional service to its apartment communities and their residents.  Services include property, construction and compliance management services that create positive living environments for residents and build value for investment clients.

Under this new organization, Security Properties Residential will have a unified brand and organization, and will be further integrated with the Security Properties platform to enhance coordination and risk management.

MARIETTA, GA – NexPoint Residential Trust announced the acquisition of a 708-unit apartment community in Marietta, Georgia. On June 30, 2017, NexPoint Residential Trust, through its operating partnership, NexPoint Residential Trust Operating Partnership, acquired the property, Rockledge – A Residential Resort, from an unaffiliated third-party for approximately $113.5 million.

Rockledge consists of 708 units situated on 78.1 acres of contiguous land within Atlanta’s second largest Class A Office submarket (Cumberland/Galleria), approximately one mile from the new Atlanta Braves stadium (Sun Trust Park), with direct access to the Chattahoochee River National Recreation Area.

Originally developed in three phases by Post Properties, Rockledge had average monthly rents of $1,153 and 93.6% physical occupancy at acquisition.

The Rockledge acquisition was structured as a reverse 1031 exchange to facilitate the Company’s continued plan to recycle capital in a tax efficient manner from dispositions of its rehabbed assets into well-located, “covered-land” assets with value-add potential in the Company’s core target markets.

The Company funded the purchase price with cash on hand, and borrowings of approximately $113.5 million under a bridge facility with KeyBank National Association, and a new first mortgage with the Federal Home Loan Mortgage Corporation, which the Company entered into, through NXRT OP, on June 30, 2017.

Following the completion of the reverse 1031 exchange, management expects the Rockledge loan-to-value ratio to stabilize at approximately 55%.

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States.

STONE MOUNTAIN, GA – Napali Capital, a leading strategic real estate investment company, announced the successful acquisition of Mountain Lake Apartments, a 284-unit apartment community in Stone Mountain, Georgia.

The multifamily property is located at 1401 N Hairston Road and consists of 22 two-story residential buildings on a 23.59-acre site. The community features a mix of 268 one-, two- and three-bedroom apartments with one to two bathrooms, ranging between 880 square feet and 1,305 square feet, and 16 three-bedroom, two-and-a-half bathroom townhomes averaging 1,468 square feet. 

The property is conveniently situated close to major thoroughfares including Stone Mountain Freeway/State Road 410 and Interstate 285. Mountain Lake Apartments is south of East Ponce Leon Avenue and approximately 8 miles from downtown Decatur. The location provides immediate access via I-20 and I-285 to hubs such as North Gwinnett, Perimeter Center and Hartsfield-Jackson International Airport. Mountain Lake Apartments is close to metropolitan Atlanta’s notable employers and attractions, including DeKalb Medical Center Hillandale, Tucker-Stone Mountain Industrial Park, Northlake retail and business district, Smoke Rise Country Club, and downtown and midtown Atlanta. 

Napali Capital’s acquisition of Mountain Lake Apartments is part of its long-term strategy to grow its portfolio and strengthen its focus on creating passive income streams for its investors.

Napali Capital’s research reveals rent growth in Stone Mountain over the past five years reached 22 percent. This statistic reflects that this market is catching up to similar nearby markets like Decatur at 35 percent rent growth and Norcross at 38 percent rent growth in the same period. Rising demand levels are due to strong job growth in the region. The 29-county Atlanta Metropolitan Statistical Area (MSA) added nearly 77,000 jobs between May 2015 and May 2016.

Co-founder and Managing Partner of Napali Capital, Thomas Black, MD, said: “We are thrilled to have closed this investment offering in Stone Mountain, Georgia. This offering will deliver solid double digit returns to our investors. We will begin immediately implementing our business plan, which will improve operating performance and grow rental income.”

DURHAM, NC – Independence Realty Trust announced it has completed three transactions in June 2017, aggregating $70.6 million, related to its ongoing capital recycling strategy.

IRT completed the acquisition of a 328-unit apartment community located in Durham, North Carolina for $42.95 million. Constructed in 2002, the community is located in the South Durham submarket; the fourth-fastest growing submarket by rent growth in the Raleigh-Durham MSA. As of May 31, 2017, the community was 95.2% occupied and for the three months ended May, 2017, had an average effective rent per occupied unit of $1,039.

IRT used net proceeds from recent dispositions and its line of credit to acquire the community. IRT previously managed this property on behalf of RAIT Financial Trust.

During June 2017, IRT sold two class C communities, a 200-unit community in Newport News, Virginia on June 1 and a 354-unit community in Indianapolis, Indiana on June 9, for a combined sale price of $27.6 million. IRT expects to recognize a gain of approximately $7.8 million associated with the sales in the quarter ending June 30, 2017. Both communities were classified as held for sale.

“These transactions underline our commitment to strengthening our portfolio composition by investing in well-located, middle-market communities in attractive non-gateway markets,” said Scott Schaeffer, Chairman and CEO of IRT. “This acquisition is a perfect fit with our investment thesis as it increases our scale in the Raleigh-Durham market, which continues to benefit from its proximity to prestigious universities, a thriving workforce, and world-class employers. The disposition of the two legacy class C communities is a key milestone in the efficient execution of our capital recycling strategy initiatives.”

Independence Realty Trust is a real estate investment trust that owns and operates 47 multifamily apartment properties, totaling 13,198 units, across non-gateway U.S. markets, including Louisville, Memphis, Atlanta and Raleigh. IRT’s investment strategy is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and key employment centers.

LAKEWOOD, CO – Marking the firm’s largest property acquisition to date, Gelt Inc., a Los Angeles-based real estate investment and asset management firm, has acquired a two-asset, 580-unit apartment portfolio for $107 million.

Located in Lakewood, CO, a thriving suburban market approximately eight miles west of downtown Denver, the adjacent properties include Ascend at Red Rocks, a 408-unit property, and Elevate at Red Rocks a 172-unit property.

“This transaction is Gelt’s largest since our inception in 2008 and we have now acquired more than 6,700 units valued in excess of $1 billion,” said Keith Wasserman, partner with Gelt. “We are thrilled with these milestones, but plan to keep moving forward by acquiring an additional $500 million over the next 12 months.” 

Ascend and Elevate are located just minutes from the Union Blvd/Federal Center area, which is the largest employment center in Lakewood. Anchored by the Denver Federal Center, this 1,000-acre area employs more than 13,000 people. Lakewood’s other economic drivers include the St. Anthony Medical Campus, Lakewood Tech Center, Red Rocks Community College, and the Colorado Mills Mall. Lakewood is Colorado’s fifth largest city with 149,000 residents.

Following are details on each property:

Ascend at Red Rocks: Built in 1981 and located at 13105 W. 2nd Place, the property is comprised of 408 units and is situated on 16.54 acres. The asset offers one-, two-, and three-bedroom units ranging from 850 square feet to 1,260 square feet. Community amenities include a 24-hour fitness center, heated swimming pool, recently renovated clubhouse, media and business center, volleyball court, BBQ grills, and laundry rooms.

Elevate at Red Rocks: Built in 2000 and located at 409 Zang Street, the property is comprised of 172 units and is situated on 9.57 acres. It offers one-, two- and three-bedroom units ranging from 673 square feet to 1,101 square feet. Community amenities include a 24-hour fitness center, heated swimming pool, recently renovated clubhouse, media and business center, volleyball court, BBQ grills, and laundry rooms.

“With one asset built in 2000 and the other built in 1981, we liked this stabilized portfolio’s blend of newer and older product which subsequently offers two different rental price points,” said Jeff Harris, COO with Gelt. “Buying two assets immediately adjacent to each other also allows us economies of scale on our expenses, not to mention building scale to our already existing Lakewood portfolio which now totals 980 units in three properties.” 

Harris noted that Gelt plans to add value by upgrading some of the units that weren’t already renovated by the previous ownership including the installation of vinyl plank flooring, stainless steel appliances, fixtures, and washer/dryers. At Elevate, Gelt will modernize the existing leasing office, clubhouse, and playground.  At Ascend, the gym will be updated, and a dog park, sports court, and a gazebo/lounge BBQ area will be added.

The seller of the portfolio was FPA Multifamily, a private equity real estate firm focused on the acquisition, renovation and management of both core plus and workforce housing apartment communities.  David Martin of Moran & Company brokered the transaction on behalf of both the buyer and the seller. The price per unit was just under $184,500.

Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. Since the company’s inception in 2008, Gelt has acquired more than 6,700 apartment homes valued in excess of $1 billion.

(RECAP: HUD today awarded more than $50 million in housing counseling grants to hundreds of national, regional and local organizations to help families and individuals with their housing needs and to prevent future foreclosures. HUD’s housing counseling grants and the additional funding they leverage will assist more than 1.4 million households find housing, make more informed housing choices, or keep their current homes.)

(RECAP: Bay Family Housing has been notified it will receive a large grant from the Virginia Housing Development Authority to help fund construction of 40 apartments for older adults in mid-Gloucester. Joshua Gemerek, senior vice president of Bay Family Housing, said June 26 that VHDA approved the local application for a $3.8 million competitive grant.)

(RECAP: A free class for first-time home buyers, developed by the Virginia Housing Development Authority, will be held from 5:30 to 9:30 p.m. on Tuesday, July 25 and Thursday, July 27 at the Habitat for Humanity of Gloucester-Mathews ReSTORE in the White Marsh Shopping Center.)

(RECAP: Between 2000 and 2017, an annual report by the city of Alexandria finds, the number of affordable housing units dropped by a whopping 90 percent — down from nearly 18,000 affordable rental units at the beginning of the decade to 1,749 now. That means less than six percent of Alexandria’s housing stock qualifies as affordable.)

BOYNTON BEACH, FL – TruAmerica Multifamily has made its third significant investment in Florida in the past 30 days with a $49 million acquisition of Ashley Lake Park, a 300-unit apartment community in Boynton Beach.

Ashley Lake Park features a mix of one-, two- and three-bedroom apartment homes built around a small lake on a low-density 13.2-acre site.   Amenities include a clubhouse with fitness center and internet café, two resort-style swimming pools, dog park and picnic areas.  Only a small percentage of the units have been renovated since the project was built in 1988, creating a tremendous value-add opportunity for TruAmerica, according to TruAmerica Director Matthew Ferrari who leads the East Coast acquisition team for the Los Angeles-based investment firm. 

“Ashley Lake Park represented an opportunity to acquire a very functional and well-maintained property with unrealized potential in a market with strong apartment fundamentals,” said Ferrari.   “Our plan is to completely renovate all unit interiors with upgraded appliances and finishes and make modest improvements to the pool, clubhouse and fitness center.  When completed, Ashley Park will be a first-to-rent property in a market where job growth is outpacing the inventory of new rental housing.”

In 2016, there were approximately 5.2 new jobs for every unit delivered in Palm Beach County, according to MPF Research.

The property benefits from its prime Boynton Beach location, which is midway between the major employment centers of West Palm Beach and Boca Raton, where employment growth over the last four years is nearly double the national average.

Mitch Clarfield of Berkeley Point Capital arranged the project financing through Freddie Mac’s “Green Rewards” program which provides guidelines on property specific initiatives to achieve energy and water savings.

TruAmerica made its first two investments in Florida earlier this month when it teamed with Investcorp to acquire a 708-unit, two-property apartment portfolio in Orlando, FL for $98 million.

“It has taken us a while to get here, but we are planning to be active investors in Florida and the Southeast and have several other deals in the pipeline,” said Ferrari.

The property was marketed for sale on behalf of the seller, a joint venture of Robbins Electra and LEM Capital by the ARA Newmark team of Vice Chairmen Richard Donnellan and Marc de Baptiste along with Executive Managing Directors Hampton Beebe and Avery Klann out of the Boca Raton office.

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 has been one of the country’s most active multifamily investors and manages a $6.7 billion portfolio of approximately 32,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah, Maryland and Florida.