Author: ipgocorp

IRVINE, CA – International award-winning firm KTGY Architecture + Planning announced that KTGY’s designs and planning were recognized at the 2017 Gold Nugget Awards ceremony for the firm’s work on nine different residential developments. The awards honor the firm’s wide range of capabilities, excellence and innovation in addressing complex design/build issues in attached, detached, sustainable communities, mixed-use, transit-oriented developments and senior housing.

KTGY earned top honors in the prestigious Gold Nugget Awards design and planning competition for site planning and architecture for attached, detached and an innovative net-zero energy concept home that was on display at 2016 Greenbuild Conference in Los Angeles. KTGY’s awards totaled three Grand Gold Nugget Awards and eight Merit honors in the annual Gold Nugget competition.

Cleo at Playa Vista in Playa Vista, Calif., developed and built by Brookfield Residential and designed by KTGY Architecture + Planning, won a Gold Nugget Grand Award in the category of Best Multifamily Housing Community – 18-30 du/acre.

Regency at Summerlin in Las Vegas, Nev., developed and built by Toll Brothers, Inc. and designed by KTGY Architecture + Planning, received a Gold Nugget Grand Award in the category of Best Age Qualified Senior Living Community – For Sale/Rent. Also, Regency at Summerlin’s Wakefield Plan earned a Gold Nugget Merit Award in the category of Best Single Family Detached Home — 2,000 to 2499 sq. ft.

Wallis Ranch in Dublin, Calif., developed by Trumark Communities, won a Gold Nugget Grand Award in the category of Best Residential Housing Community of the Year – Masterplan. Wallis Ranch also earned a Gold Nugget Merit Award in the category of Best Residential Housing Community of the Year – Best Community Site Plan. Builders include D.R. Horton, Emerald Homes, KB Home, Pulte Homes, Taylor Morrison, Trumark Homes and Warmington Residential. Architects include Dahlin Group and KTGY Architecture + Planning.

777 Hamilton in Menlo Park, Calif., developed by Greenheart Land Company and designed by KTGY Architecture + Planning, received a Gold Nugget Merit Award in the category of Best Multifamily Housing Community – 18-30 du/acre. The builder is W.L. Butler Construction, Inc.

Fourth Street East in Oakland, Calif., developed by Carmel Partners and designed by KTGY Architecture + Planning, won a Gold Nugget Merit Award in the category of Best On the Boards Multifamily Community. The builder is CP Construction West, Inc.

The Crossings Assisted Living and Memory Care facility in Las Vegas, Nev., developed by The CALIDA Group and designed by KTGY Architecture + Planning, won a Gold Nugget Merit Award in the category of Best Senior Housing Community – On the Boards.

777 Middlefield in Mountain View, Calif., developed by Fortbay LLC and designed by KTGY Architecture + Planning, won a Gold Nugget Merit Award in the category of Best On the Boards Site Plan.

Heritage Square Senior Apartments in Pasadena, Calif., developed by BRIDGE Housing Corporation, received a Gold Nugget Merit Award in the category of Best Affordable Housing Community — 30 to 60 du/acre. The builder is Dreyfuss Construction. Steinberg Architects is the design architect. KTGY Architecture + Planning is the Executive Architect.

KB Home ProjeKt Concept Home in Los Angeles, Calif., developed and built by KB Home and designed by KTGY Architecture + Planning, won a Gold Nugget Merit Award in the category of Best Zero Net Energy Home Design.

The oldest and largest program of its kind—now in its 54th year—the Gold Nugget Awards program recognizes those who improve our communities through exceptional concepts in design, planning and development. The competition is open to builders, developers, architects and land planners with projects in the United States and all international countries.

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. KTGY’s architects and planners combine big picture opportunities, leading-edge sustainable practices and impeccable design standards to help create developments of enduring value. 

BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson announced that the company sold Rock Creek Landing, a wholly-owned 576-unit multifamily property in Kent, Washington, for $109 million. The cash proceeds of $73 million from this transaction were used to fund the previously announced acquisition of 90 East, an office campus in greater Bellevue.

“This sale demonstrates our ability to leverage our vertically integrated investment platform to identify undermanaged investments where we can create value through the execution of our asset management program,” said Shem Streeter, Managing Director of Kennedy Wilson Multifamily Investments. “With an abundance of older multifamily housing stock in our target markets, we look to continue replicating our value-add asset management strategy on new investment opportunities.”

Rock Creek Landing was acquired in 2014 for $58 million as part of a three-property 1,212-unit multifamily portfolio located across the southern submarkets of Seattle and acquired for $127 million. After acquisition, Kennedy Wilson invested an additional $6 million in completing its value-add asset management program, including upgrades to the leasing center, interior renovations, common area improvements, and other property enhancements.

During its ownership period, the net operating income of the property grew by 56% to $5.3 million. Through the disposition of Rock Creek Landing and the acquisition of 90 East, the company expects to add an incremental $7 million of annual recurring net operating income.

Kennedy Wilson maintains a large presence in the State of Washington with an ownership interest in 1.4 million commercial sq. ft. and over 9,700 multifamily units.

CORAL GABLES, FL – Berkshire Group announced the purchase of Aviva Coral Gables. The recently built 276-unit luxury apartment community will be renamed Berkshire Coral Gables. The property is located in the Miami market in Coral Gables, Florida, near the Shops at Merrick Park.

“Aviva Coral Gables represents Berkshire’s first acquisition in the Miami market and our continued commitment to Southeast Florida, following the purchase of Manor Lauderdale by the Sea last year,” noted Greg Collins, Vice President, Multifamily Acquisitions, Berkshire Group. “The property checks all the boxes for us. The Coral Gables submarket is internationally recognized and has some of the strongest demographics in the Miami metropolitan area. It is a true transit-oriented development located within walking distance to destination retail at the Shops at Merrick Park and the Douglas Road Metrorail Station, providing residents convenient access to downtown Miami and the Miami International Airport.”

Berkshire Coral Gables features a heated saltwater swimming pool and soaking spa, outdoor courtyard and kitchen with Viking gas grills, cyber café, dog spa/dog walk, and a sports lounge. Interior apartment features include condominium quality finishes including custom Italian soft-close cabinetry, quartz and granite countertops, stainless steel appliances, USB port outlets, full size washers and dryers, and spacious walk-in closets.

Berkshire Group is a real estate investment management company primarily known for its multifamily investment and operational experience. In addition to deploying capital through equity, debt and development in the multifamily arena, Berkshire invests in opportunistic ventures in other real estate sectors through its Venture Investments group.

DENVER, CO – Apartment Investment and Management Company announced that it acquired the 47% interest in the Palazzo joint venture owned by institutional investors advised by J.P. Morgan Asset Management for $451.5 million.

Aimco now owns 100% of the three Palazzo communities: Palazzo at Park La Brea, a 521-apartment home community; Palazzo East, a 611-apartment home community; and Villas at Park La Brea, a 250-apartment home community. The communities are well located in the mature Mid-Wilshire district of Los Angeles and benefit from their central location to employment centers—two miles from Beverly Hills, Hollywood and Century City, and six miles in opposite directions from both Downtown LA and Santa Monica.

“First, I want to thank J.P. Morgan for our highly successful partnership over the past decade. Second, we are glad of the opportunity to re-acquire 100% ownership of the three Palazzo properties. We know them well having contracted for their construction 15 years ago and having operated them ever since,” said Aimco Chairman and CEO Terry Considine.

“We appreciate the Mid-Wilshire submarket with its highly educated and high-income customers who value the proximity to transportation, job centers, and upscale retail, including The Grove, literally across the street…and where we can see clearly that future development is increasingly difficult. We expect to continue the operation of the properties and to redevelop each, over time and at the right time, to serve different and distinctive market segments.”

The acquisition was funded by taking title subject to existing allocable debt of $140.5 million and by payment of $311 million in cash proceeds funded with bank borrowings pending the sales of properties located in Rhode Island, Virginia, Maryland, and New Jersey. This leverage neutral paired trade transaction is expected to result in a 150 basis points higher free cash flow internal rate of return, to increase Aimco average monthly revenue per apartment home by $65, and to shift capital from submarkets with lower revenue growth prospects to a submarket with higher rent growth and higher margins.

IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its CoreLogic Home Price Index (HPI) and HPI Forecast for May 2017 which shows home prices are up strongly both year over year and month over month. Home prices nationally increased year over year by 6.6 percent from May 2016 to May 2017, and on a month-over-month basis, home prices increased by 1.2 percent in May 2017 compared with April 2017, according to the CoreLogic HPI.

Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 5.3 percent on a year-over-year basis from May 2017 to May 2018, and on a month-over-month basis home prices are expected to increase by 0.9 percent from May 2017 to June 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“The market remained robust with home sales and prices continuing to increase steadily in May,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventory across many markets. This tight inventory is also impacting the rental market where overall single-family rent inflation was 3.1 percent on a year-over-year basis in May of this year compared with May of last year. Rents in the affordable single-family rental segment (defined as properties with rents less than 75 percent of the regional median rent) increased 4.7 percent over the same time, well above the pace of overall inflation.”

“For current homeowners, the strong run-up in prices has boosted home equity and, in some cases, spending,” said Frank Martell, president and CEO of CoreLogic. “For renters and potential first-time homebuyers, it is not such a pretty picture. With price appreciation and rental inflation outstripping income growth, affordability is destined to become a bigger issue in most markets.”

PLANO, TX – Monogram Residential Trust, an owner, operator and developer of luxury apartment communities with a significant presence in select coastal markets, announced that it has entered into a definitive merger agreement to be acquired by a newly formed perpetual life fund, Greystar Growth and Income Fund, LP, led by Greystar Real Estate Partners and its initial founding capital partners, affiliates of APG Asset Management N.V., GIC, and Ivanhoé Cambridge, in a transaction valued at approximately $3.0 billion, including debt to be assumed or refinanced. 

Under the terms of the merger agreement, which was unanimously approved by Monogram’s Board of Directors, Monogram’s stockholders will receive $12.00 per share in cash.  This represents a premium of approximately 22% to Monogram’s unaffected closing stock price on July 3, 2017, the last trading day prior to the public announcement of the transaction.

The $3.0 billion aggregate transaction value includes Monogram’s share of its two institutional co-investment joint ventures with PGGM and NPS.  The PGGM joint venture will be restructured, and the joint venture interests held by NPS will be purchased by Greystar pursuant to a separate assignable purchase and sale agreement for approximately $0.5 billion, subject to certain adjustments at closing, including payment of the NPS joint venture’s share of debt to be assumed or refinanced in connection with the transaction.

“We are pleased to have reached this agreement, which maximizes value at a substantial premium to our existing share price,” said Alan Patton, Monogram’s Chairman of the Board of Directors. “We are confident that today’s announcement represents the best path forward for all of Monogram’s stockholders.”

“This landmark is the result of Monogram’s success at executing and delivering on strong operations, innovative development programs and investment strategies in conjunction with skillful market timing,” said Mark Alfieri, Monogram’s Chief Executive Officer, President and Chief Operating Officer.  “The interest we received from this sophisticated group of investors demonstrates that our targeted focus on building our portfolio with high quality Class A assets in select core markets has been recognized and our stockholders and joint venture partners are rewarded with this successful outcome.”

“We are excited to add Monogram’s high quality assets in some of the best markets in the country as the seed portfolio for Greystar Growth and Income Fund, LP, our flagship core-plus perpetual life vehicle,” said Bob Faith, the Founder, Chairman and Chief Executive Officer of Greystar.  “The collective strength and experience of our high-quality investment partners are second to none, and we look forward to completing this transaction and further expanding Greystar’s U.S. multifamily platform.”

The transaction, which is expected to close in the second half of 2017, is subject to approval by Monogram’s stockholders and other customary closing conditions.  The transaction is not contingent on receipt of financing by Greystar.  JPMorgan Chase Bank, N.A. has provided a commitment letter to Greystar Growth and Income Fund for $2.0 billion in debt financing for the transaction upon the terms and conditions set forth in such letter.  Following payment of the previously announced second quarter dividend on July 7, Monogram will not pay any dividends through the close of the transaction except as required to maintain its REIT status and any such dividend will be deducted from the purchase price.

Morgan Stanley & Co. LLC is serving as exclusive financial advisor and Goodwin Procter LLP is serving as legal advisor to Monogram.  J.P. Morgan Securities LLC is serving as exclusive financial advisor and Jones Day is serving as legal advisor to Greystar.  

NEW YORK, NY – The Praedium Group, a New York City-based national real estate investment firm, today announced the acquisition of Fox Hill Apartments in Austin, TX and Park Place at Maguire in Orlando, FL.  The two well-located multifamily communities comprise a total of 530 residences.

Fox Hill, built in 2010, consists of 288 one-, two-, and three-bedroom units ranging in size from 899 square feet to 1,313 square feet. Unit interiors include nine-foot ceilings, black or stainless steel appliances, granite countertops, faux wood flooring throughout the kitchen and living areas, large walk-in closets, garden tubs, washer/dryers or connections, and patios/balconies with storage. Community amenities include a swimming pool, conference center, business center, clubhouse with lounge area, outdoor playground, BBQ grills, electric car charging station, dog park, and walking path.

The Praedium Group plans to further enhance the resident experience at Fox Hill through a targeted capital improvement program, consisting of unit interior and common area renovations.

According to Peter Calatozzo, Managing Director of The Praedium Group, “Fox Hill is a high-quality property which provides us with the opportunity to capitalize on Austin’s steady population growth, educated workforce, and employment drivers.”

Austin ranked first among the fifty largest U.S. metros based on net migration as a percentage of total population from 2010-2014. Due to this large influx to the region, the Austin metro population has expanded by 37% over the past decade. Austin’s unemployment rate currently sits at 3.2% compared to the state of Texas at 4.8% and the nation at 4.7%. Forbes recently ranked Austin #1 for “America’s Fastest Growing Cities” and “Cities Most Likely to Prosper Over the Next Decade.” Tech employment in Austin has grown at triple the national pace over the past five years, fueled by a population where the percentage of people with a bachelor’s degree or higher exceeds the national average by over 30%.

Park Place at Maguire, built in 2016, consists of 242 one-, two-, and three-bedroom units ranging in size from 650 square feet to 1,273 square feet. Unit interiors feature nine-foot ceilings, granite counters in kitchen and bathrooms, sinks with brushed nickel hardware, 42-inch cherry wood cabinetry, stainless steel appliances, faux wood plank flooring in living areas, designer track and pendant lighting, and kitchen islands with plumbing and deep bowl stainless steel sinks. Community amenities include a swimming pool and expansive sundeck, 24-hour fitness center, 5,600-square-foot resident clubhouse with a wet bar and billiards lounge, business center, internet café with a coffee bar, children’s playground, car care center, summer kitchen with grills and a covered dining area, leash-free dog park, and controlled access gated entry.

Twenty nine percent of Orlando’s job growth has been from professional and health service jobs, the biggest driver in employment growth throughout the country. Orlando added 50,900 jobs in the year ended February 2017, an annual increase of 4.3% (over twice that of the national average). Orlando is expected to add another 171,000 jobs in the next 5 years, a 14.2% increase.

“Park Place is a high-quality asset in the Windermere/Ocoee submarket with barriers to entry and proximity to the town of Windermere,” said Chris Hughes, Principal of The Praedium Group. “We believe the property is well-positioned to benefit from the projected growth in Orlando in the coming years.”

“Orlando had an average annual employment growth rate of 4.3% over the past five years, compared to the U.S. average of 2.6%, ranking the MSA third amongst the top 50 metros,” added Lindsay Schuckman, associate of the Praedium Group.

IRVINE, CA – WNC, a national investor in real estate and community development initiatives, announced today it has closed WNC Institutional Tax Credit Fund 10 California Series 15, L.P. (CA 15), an $85 million institutional low-income housing tax credit (LIHTC) fund.

The fund will acquire eight properties in both suburban, urban and rural parts of California within the cities of Anaheim, Cathedral City, Lincoln, Los Angeles, Mission Viejo, Napa and San Luis Obispo. Combined, the properties will offer nearly 500 affordable housing units to seniors and families throughout the Golden State.

CA 15 is WNC’s 20th closed institutional fund focused on the development or rehabilitation of quality affordable housing in California, where demand far exceeds supply. Upon completion of all eight property acquisitions, WNC will have acquired more than 300 properties within California.

“For 15 consecutive years, WNC has successfully offered and closed a LIHTC fund focused solely on supporting the affordable housing stock within the state of California, which is particularly limited,” said WNC Executive Vice President and Chief Operating Officer Michael Gaber. “Amid ongoing dialogues between the Trump administration and Congress regarding potential tax reform, WNC overcame unique structuring challenges to close this fund, working together with its development and investment partners to provide quality affordable housing units throughout the state.”

CA Fund 15 includes six institutional investors, five of which have previously participated in WNC funds.

WNC, founded in 1971 and headquartered in Irvine, Calif., is a national investor in real estate and community development initiatives, as well as a leading investor in low-income housing tax credits (LIHTC). WNC has acquired more than $7 billion of assets totaling in excess of 1,225 properties in 45 states, Washington D.C. and the U.S. Virgin Islands.

NEW YORK, NY – Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its June 2017 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate climbed by its highest amount in more than five years last month. The delinquency rate for US commercial real estate loans in CMBS is now 5.75%, an increase of 28 basis points from May. The jump in June’s reading is the highest rate increase measured since March 2012. The June 2017 rate is now 115 basis points higher than the year-ago level.

“After months of marginal increases, the ‘wall of maturities’ finally took a meaningful toll on the CMBS delinquency rate,” said Manus Clancy, Senior Managing Director at Trepp. “June’s climb is well below the rate increases regularly seen in 2010, but the reading should still be anticipated to move somewhat higher through the rest of the summer as pre-crisis loans reach their maturity dates.”

A whopping $2.4 billion in CMBS loans became newly delinquent in June, with two-thirds of that total coming from notes that hit their balloon date and were not paid off. More than $400 million in loans were cured last month, which helped push delinquencies lower by 10 basis points. About $1.3 billion in CMBS loans that were previously delinquent were resolved with a loss or at par in June, and that pushed the rate down by 31 basis points.

Delinquency readings for all five major property types increased last month. June’s largest increase belonged to the multifamily sector, as that rate shot up 110 basis points to 3.92%. As a result, the multifamily segment is no longer the best performing major property type. The office delinquency rate jumped 21 basis points last month to 7.46%. Industrial delinquencies spiked 20 basis points to 7.57%.

For additional details, such as delinquency status and historical comparisons, download the June 2017 US CMBS Delinquency Report.

DALLAS, TX – Waterton, a U.S. real estate investor and operator, announced it has acquired South Side Flats, a 288-unit rental community at 1210 S. Lamar St. in the Cedars neighborhood of Dallas – immediately south of the city’s central business district.

Built in 2016, South Side Flats offers a mix of studio, one- and two-bedroom apartments in a highly accessible location, with a dedicated walkway to the Cedars DART station, which serves the Red and Blue lines. The Cedars neighborhood has seen many historic buildings revitalized and transformed into popular shops, restaurants and nightlife destinations in recent years. The neighborhood is also home to the Kay Bailey Hutchison Convention Center and Dallas Farmers Market.

“The property’s proximity to the central business district, which employs 140,000 people, makes South Side Flats an ideal location for young professionals,” said Matthew Masinter, senior vice president of acquisitions at Waterton. “The access to public transit and nearby expressways is also a big selling point, allowing residents to easily commute to any destination that isn’t within walking distance.”

South Side Flats consists of two four-story residential buildings connected by a five-story parking deck. The property offers numerous amenities such as a rooftop skyline lounge with fireplace and grill, courtyard with hand-painted artwork, outdoor swimming pool with sun deck, 24-hour fitness center with yoga studio, resident club room, and fully equipped business center. The property also features 1,788 square feet of ground-floor retail space.

Individual residences at South Side Flats currently feature modern kitchens with granite countertops, tile backsplashes and stainless steel appliances, as well as in-unit laundry and private patios or balconies. Smart home technology, which was installed in some units prior to Waterton’s acquisition, will be introduced by Waterton into the remaining apartments. This technology provides residents with keyless entry and the ability to control in‐unit lighting and temperature from their smartphones.

“Waterton is focused on enhancing the lifestyles of our residents through innovation” said Masinter. “We are constantly looking to leverage technology in order to add convenience and promote efficiency. Although South Side Flats is a newly constructed community, we view the installation of smart-home technology as a way to further elevate the residential experience while simultaneously helping South Side Flats compete with other newly constructed communities nearby.”

South Side Flats marks Waterton’s third multifamily acquisition in 2017. The firm owns and manages four other rental communities in Texas, including two in the Dallas-Fort Worth metropolitan area, totaling nearly 1,750 units.