Author: ipgocorp

GREENSBORO, NC – Bell Partners Inc., one of the nation’s leading apartment investment and management companies, announced that it has completed its second and final close of Bell Apartment Fund VI, LLC.  The Fund was materially oversubscribed and closed at its fund size limit with $600 million of total equity commitments.  With debt leverage, the Fund has the capacity to acquire over $1.7 billion in apartment investments.

Bell Apartment Fund VI is a fully discretionary, value-add fund that invests in high-quality, well-located multifamily properties across the United States and leverages Bell’s extensive operating platform to enhance cash flow through value-add activities.  The Fund’s investor base is comprised of institutional investors from across the globe and accredited high-net-worth individuals. CBRE Capital Advisors acted as placement agent for select U.S. investor capital commitments.

Jon Bell, CEO of Bell Partners Inc., said: “We are grateful to our investors for their commitment to our most recent value-add fund and are very pleased with the reception that Fund VI received from both domestic and international investors.  The extremely positive investor response demonstrates a high level of confidence in Bell’s strategy, management team, and vertically integrated operating platform, as well as the recognition of our strong track record.   We are confident that this investment opportunity will generate attractive current income and provide strong total returns for our investors.”

With the recent opening of Bell’s San Francisco office, Bell continues the expansion of its investing capabilities and is well positioned to acquire apartment investments within its national footprint.  Fund VI seeks to invest in multifamily properties in targeted major metropolitan areas across the U.S. with healthy fundamentals.  Through renovation, enhanced operations and investing in transitioning locations, Fund VI seeks to add value and produce superior risk adjusted returns.  In addition to Bell’s series of value-add apartment funds, Bell also invests in stabilized, core apartments through a $1 billion separate account with a German real estate special fund managed by HANSAINVEST.   The venture is focused on acquiring stabilized core multifamily properties located across its major markets in the U.S.

During 2016, Bell completed nearly $1.3 billion in total apartment transactions.  Since 2002, Bell has completed over $12 billion of apartment transactions on behalf of its investors.   Bell Partners was recently ranked by Preqin Global Real Estate Report for the third year in a row as one of the top performing, most consistent real estate fund managers.

PHOENIX, AZ – Pure Multi-Family REIT announced the successful closing of the previously announced multi-family apartment community Pinnacle at Union Hills, located in the North Phoenix, Arizona, for a purchase price of $47.5 million.

Pinnacle is a 264-unit, institutional quality asset, with an average unit-size of 1,019 square feet. Pinnacle is situated in a strong North Phoenix location that borders the future Arizona Biomedical Corridor and the prestigious North Scottsdale submarket.

Approximately 77% of the units have been upgraded with an interior renovation package that includes stainless steel appliances, Corian countertops and wood-plank vinyl flooring. Pinnacle features two resort-style swimming pools, a 24-hour fitness centre, a stand-alone leasing office and a Wi-Fi café.

Pure Multi-Family funded the purchase of Pinnacle with proceeds from the recent equity offering, which closed on April 7, 2017. Pure Multi-Family intends to place new first mortgage financing on the Pinnacle in due course.

Stephen Evans, Pure Multi-Family’s CEO, stated, “We are excited to add another high-quality stable asset to our portfolio. With this acquisition, we now have three multi-family properties in the Phoenix area, and look to further expand our footprint in this strong and growing market.”

Upon completion of the acquisition of the Pinnacle, Pure Multi-Family’s portfolio consists of 19 multi-family properties comprising an aggregate of 6,209 residential units, situated on 328 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.

VIRGINIA BEACH, VA – Kettler, one of greater Washington, D.C.’s leading real estate development and property management companies, announced the opening of Sparrows Point, a 300-unit townhome and apartment community in Virginia Beach, Virginia. 

The newly renovated Sparrows Point community offers one, two, and three-bedroom homes featuring espresso cabinetry, stainless steel appliances, plank flooring, washers and dryers in select units as well as high-quality lighting fixtures.

In addition to the interior upgrades, Sparrows Point has completed exterior community upgrades to include new siding on the buildings, a new outdoor resident lounge equipped with welcoming furniture, grills and a kid-friendly splash pad. Residents of Sparrows Point will also enjoy an upgraded laundry room that includes a lounge and state-of-the-art package storage area.

Rental price ranges for the community are approximately $900-$1,225 per month for the one-, two- and three-bedroom apartments and townhomes.

KETTLER and KETTLER Management are owners, operators, and developers of apartments, condominiums, and mixed-use projects in the Washington, D.C. metropolitan area and throughout the mid-Atlantic region. KETTLER Management successfully manages 31,000+ apartments for KETTLER and 3rd party clients in the Northeast, Mid-Atlantic, Southeast and Texas, and offers a full range of services to corporate and institutional real estate owners.

IRVING, TX – Dallas Metro’s Las Colinas submarket is embarking on the next chapter of its success story. Jefferson Eastshore, a 286-home Class A luxury apartment community has closed financing and started construction, according to experts at JPI, a leader in the development of Class A multi-family housing.

The community will feature modern amenities such as conditioned corridors, a rooftop terrace overlooking Lake Carolyn, urban mud rooms, private yards, separate showers, and quartz countertops and is expected to be begin initial occupancy in fall of 2018.

“Las Colinas continues to outperform the Dallas Metro submarket,” said Matt Brendel, senior vice president and development partner at JPI. “With its access to the best lifestyle amenities the submarket has to offer, we predict Jefferson Eastshore will be extremely successful.”

The community sits on Lake Carolyn, just a block away from the Irving Music Factory and Water Street, scheduled to open later this year. Current residents and newcomers to the area will be attracted to Jefferson Eastshore’s innovative apartment amenities along with life in close proximity to Las Colinas’s modern live/work/play offerings, including:

Direct promenade access to Lake Carolyn

Resort-style pool overlooking the lake

State-of-the-art fitness center and Yoga studio

Walking distance to the Irving Convention Center DART station

“Las Colinas is JPI’s home and we are proud that our investment in the area has contributed to the area’s success,” added Brendel. “We know firsthand that Jefferson Eastshore residents will enjoy the best of Las Colinas living.”

JPI is a national developer, builder and investment manager of Class A multifamily assets across the U.S., and is the most active multifamily developer in DFW with 3,874 apartment homes under construction. Headquartered in Irving, Texas, JPI also has offices in California, Arizona and New York.

NEW YORK, NY – Care Investment Trust, a real estate investment company exclusively focused on the seniors housing sector, expanded its relationship with Inspirit Senior Living with the acquisition of two properties in Pennsylvania for $13,000,000.

The communities, located in the boroughs of Macungie and Palmerton, will be rebranded as, “The Willow, an Inspirit Senior Living Community” and “The Palmerton, an Inspirit Senior Living Community,” respectively. The properties were built between 2002 and 2003, have a total of 111 units, and were approximately 90% occupied at closing.

Care and Inspirit intend to spend approximately $850,000 to refurbish the communities with the goal of increasing efficiencies and enhancing the resident experience. Affiliates of Inspirit will operate and manage the communities.

Salvatore (Torey) Riso, President and Chief Executive Officer of Care, remarked, “I am very pleased that Dave McHarg and the Inspirit team have decided to grow their portfolio through a continuing partnership with Care Investment Trust. A hallmark of Care’s strategy is to first partner with best-in-class operators like Inspirit and then to expand these relationships when the opportunity presents itself. We are particularly excited about this transaction and we are confident Inspirit will further enhance the lives of the residents and staff at the communities.”

Dave McHarg, Chief Executive Officer of Inspirit, said, “The Palmerton and The Willow are important parts of the fabric of their respective towns. Inspirit is honored to be their new operators, and we look forward to working closely with the local teams to transform the newest properties in Inspirit’s growing network into even better communities for Lehigh Valley’s seniors.”

Inspirit currently operates and manages four properties in TN, VA, and PA, and is pursuing other opportunities to add to its growing portfolio.

TEMPE, AZ – Institutional Property Advisors (IPA) closed the sale of Onnix, a 659-unit apartment property in Tempe, Arizona. The $77,050,000 sales price equates to $116,920 per unit.

“The physical improvements made to Onnix, its excellent location and tremendous scale place the property in an enviable position within the competitive landscape of Tempe,” says Cliff David, senior managing director. “New ownership has the opportunity to resume implementing the apartment interior renovation program in an effort to generate additional monthly rent premiums.”

David and Steve Gebing, senior managing director, represented the institutional seller and procured the buyer, Bridge Investment Group.

The property is located off the northwest corner of Broadway Road and McClintock Drive at 1440 and 1500 East Broadway Road in Tempe, one mile from a Valley Metro light rail station. Arizona State University and downtown Tempe are also nearby.

Developed in 1984, Onnix is composed of two phases, 375-unit Onnix West and 284-unit Onnix East. The property underwent a programmatic renovation in 2006-2007 that included condo-quality interior finishes at Onnix West. The common area amenities received extensive upgrades in 2014 with the ground-up construction of the leasing center and clubhouse, and fitness center.

NEW YORK, NY – Maplewood Senior Living and Omega Healthcare Investors, celebrated the groundbreaking of their highly anticipated, premier luxury senior living development, Inspīr | Manhattan, located at 1802 Second Avenue. The announcement was made by Gregory D. Smith, President and Chief Executive Officer of Maplewood Senior Living.

The building is set to rise in one of NYC’s most affluent neighborhoods, the Upper East Side, where Second Avenue meets 93rd Street. The senior living community will be a 23-story, 212,000-square-foot mid-rise featuring 215 units of assisted living, enhanced care and memory care. It will be one of the first ground-up projects of this scale in the city in more than two decades.

The New York property also marks the launch of the Inspīr brand. This international brand was developed to offer a luxurious option for seniors looking to join a senior residence. Given the city’s rich history as a global leader in real estate, New York is a perfect fit for the upscale brand to make its debut.

The modern community will offer diverse and bountiful features and amenities, including beautiful gardens, an indoor heated swimming pool, a luxury salon and spa, a state-of-the art entertainment movie theatre, a library, and luxurious common areas for engagement and socialization opportunities. There will be a variety of high-end dining venues, all of which will include farm-to-table dining for discerning seniors.

“New York City offers a rich environment for seniors who wish to continue an active lifestyle with connections to family, social networks and the many culturally diverse opportunities the city has to offer including theatre, opera and museums,” said Gregory D. Smith. “We are designing a truly unique community that not only offers access to the city, but to incredible private spaces with beautiful finishes and well-appointed apartments, all set in an oasis of boutique-style luxury.”

Taylor Pickett, CEO and President of Omega Healthcare Investors added, “We are very excited about what the Maplewood team is bringing to Manhattan. Inspīr | Manhattan represents our 14th investment with Maplewood and our first in New York City. Greg Smith and his entire team have built their business on combining the highest level of quality care and service amenities with innovative and contemporary design. The Inspīr project reflects all of the best elements of what Maplewood does exceptionally well combined with a design and sophistication level that we are confident the Manhattan market will value and embrace.”

Maplewood Senior Living selected Handel Architects of New York to design the residence. Its sophisticated design will be centered on the use of natural light, as well as access to nature. The abundant use of light and nature is meant to infuse positivity and invigorate the spirit. Some of these features will include floor-to-ceiling windows, a 16th floor sky park, terraces and enclosed gardens.

“We are thrilled to partner with Maplewood Senior Living to design this modern residential space where seniors can enjoy healthy and active lives,” said Frank Fusaro, Partner, Handel Architects. “Our vision is of a building that has a simple elegance in its order, a building that’s derived from how it is made and what is essential, with spaces that foster community and promote health and wellness through an abundance of natural light and nature.”

T.G. Nickel & Associates of New York is serving as the construction manager for the development. The total project cost will be $270 million, including land costs. Inspīr | Manhattan is slated to open in 2019.

NEW YORK, NY – Mortgage rates were little changed this week, as the benchmark 30-year fixed mortgage rate inched lower and remains at the lowest level in seven months according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has a rate of 4.02 percent, the lowest since November 16, 2016, and an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed nosed up to 4.00 percent, and the average 15-year fixed mortgage rate settled at 3.25 percent. Adjustable mortgage rates were mixed, with the 3-year ARM slipping to 3.48 percent while the 7-year ARM climbed to 3.60 percent.  

Despite another interest rate hike by the Federal Reserve, mortgage rates are hovering at the lowest point since mid-November and are little changed from where they were 18 months ago when the Fed started boosting interest rates. The common theme then, as now, has been a slow growth economy with low inflation. This week brought additional evidence of low inflation and the recent softening has garnered the attention of the Fed, who noted in their statement that they are “monitoring inflation developments closely.” Mortgage rates are closely related to yields on long-term government bonds, which appeal to investors any time uncertainty, or low inflation, is in the air.

At the current average 30-year fixed mortgage rate of 4.02 percent, the monthly payment for a $200,000 loan is $957.14.

SURVEY RESULTS

30-year fixed: 4.02% — down from 4.04% last week (avg. points: 0.24)
15-year fixed: 3.25% — up from 3.24% last week (avg. points: 0.21)
5/1 ARM: 3.41% — up from 3.40% last week (avg. points: 0.30)

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. The majority of the panelists, 60 percent, expect mortgage rates to remain more or less unchanged in the coming week while 30 percent predict further declines. Just 10 percent forecast a rebound in mortgage rates over the course of the next week.

BIRMINGHAM, AL – KIRCO and KIRCO MANIX announced that they recently broke ground on the newest independent and assisted living community in Birmingham, Ala., called The Bluffs at Greystone.

Working together with Phoenix Senior Living and EDT, Inc., KIRCO said The Bluffs at Greystone will be a senior living community that will provide both independent and assisted living. In addition, it will be designed to include memory care units in the future.

“We are pleased to partner with Phoenix Senior Living and EDT, Inc. on The Bluffs at Greystone,” said Brandon Lesniak, senior vice president of Senior Living for KIRCO. “This marks our entry into the senior living sector in the state of Alabama, where we can apply our four decades of development and construction experience to help create optimal living environments for seniors.”

“We are people serving people and we know when it comes to a loved one, everything matters.  The community, the environment, the care, the programs and our teams represent that core belief at every Phoenix Senior Living community and we live those philosophies each day,” said Jesse Marinko, CEO and founder of Phoenix Senior Living. “We are excited to serve seniors, their families and the local community and look forward to a strong partnership with the city of Birmingham.”

The state-of-the-art facility will include 132 units and is slated to open in July 2018. Amenities will include: indoor pool; wellness center; industry leading dining experience; beauty salon; yoga studio; and demonstration kitchen for social and family gatherings with residents.

According to Lesniak, KIRCO and KIRCO MANIX design and build independent living, assisted living, and memory care facilities that nurture and inspire senior residents and their families. For each senior living project, KIRCO and KIRCO MANIX select a specialized team that understands the unique needs of seniors in each market to help capture the local dynamic, including architecture, interior design, culture and climate.

PHOENIX, AZ – Funds managed by Ares Management and TruAmerica Multifamily announced the acquisition of Broadstone Gateway, a 240-unit family community in the Phoenix, AZ metro area. The transaction was valued at $30.75 million.

Broadstone Gateway is located at 1700 North 103rd Avenue in Avondale, 20 miles west of downtown Phoenix.  Built in 2004, the pet-friendly, gated community features a mix of one-, two- and three-bedroom open concept living spaces.   Amenities include a resort-inspired swimming pool and spa with poolside cabanas, fitness center, community barbecues, bocce ball court and playground.  

This is the second investment for the Ares-TruAmerica joint venture, which in November acquired a 1,402-unit multifamily portfolio in Baltimore, MD for $236 million. 

“The acquisition of Broadstone Gateway is consistent with our strategy of investing in multifamily properties that have repositioning potential and where our expertise can add meaningful value,” said Howard Huang, Partner in the Ares Real Estate Group. “We look forward to continuing to partner with TruAmerica on assets that can benefit from our collaboration and where we can enhance the quality of rental properties in desirable markets.” 

The partnership will immediately execute a multimillion-dollar capital improvement program. Changes to the unit interiors will include new faux-stainless steel appliances, quartz kitchen and bathroom countertops, wood-style flooring, and new lighting and plumbing fixtures. Significant improvements will also be made to the pool area, clubhouse and fitness center, along with new signage and landscaping to enhance the curb appeal of the property. 

The property benefits from its location at the northwestern corner of Loop 101 and Interstate 10, providing easy access to all major employment centers in the Phoenix metro area.  

“Avondale is an example of the first ring suburban submarket in which we typically invest and can add meaningful value,” said Noah Hochman, Senior Managing Director of Capital Markets for TruAmerica Multifamily.  “We look for areas with great schools and a transportation infrastructure in place that allows residents to easily commute to jobs in the region.”

With approximately $10 billion in assets under management across equity and debt strategies as of March 31, 2017, the Ares Real Estate Group has a significant presence in the multifamily sector. Over the past decade, Ares’ U.S. equity value-add strategy has invested in over 31,000 units across its most recent funds.

With the acquisition of Broadstone Gateway, TruAmerica adds 240-units to the 1,567 units it already owns in the greater Phoenix area.  TruAmerica specializes on acquiring and renovating Class B multifamily properties to create affordable quality rental housing for middle-income families.

Steve Gebing and Cliff David, Senior Managing Directors in the Phoenix office of Institutional Property Advisors represented both parties in the transaction.