Author: ipgocorp

LOS ANGELES, CA – Belmont Village Senior Living reached a construction milestone with the “topping out” of its twenty-seventh community at 24141 Ventura Blvd. in Calabasas, California. Contractor W.E. O’Neil completed the concrete structure of the three-story building with the final roof placement and celebrated the milestone on May 15.

“This is an exciting achievement and we’re pleased to be celebrating again with W.E. O’Neil,” said Belmont Village Founder and CEO Patricia Will. “As developers and operators, we stay with our buildings and we’re very careful about the quality we provide for our residents. W.E. O’Neil has a proven reputation. We’ve worked together on several of our communities and the results have always been outstanding.”  

Belmont Village, founded in 1997, is an integrated developer, owner and operator of high end seniors housing. Since its inception, the company has developed and still operates 25 senior living communities in seven states and Mexico City. In addition to the Calabasas site, Belmont Village has five projects under construction in California, Chicago, Texas and Florida. This will be the company’s seventh community in Greater Los Angeles. Each Belmont Village is built to purpose and licensed throughout the building to provide a blended model of care that offers flexibility for residents if needs change, and allows couples with varying health or cognitive needs to stay together.

“Everything we do has an underlying therapeutic goal to support our residents’ health and wellness so that they can continue to enjoy engaging, purposeful lives,” said Will. “How we build and license our communities, the research that goes into our programs, how we staff and train – it’s all part of the same goal and we give thought to every detail.”

The 105,872-square-foot Mediterranean style property will open in spring of 2018 with 140 residences featuring one-bedroom and studio apartments for Assisted Living and Memory Care. Architects Van Tilburg, Banvard & Soderbergh designed the building. Features include a professionally managed fitness center, heated saltwater pool, full service salon and exterior courtyards with outdoor dining patios and gardens by landscape architect Pacific Coast Land Design.  

DALLAS, TX – Preferred Apartment Communities announced the sale of Enclave at Vista Ridge, a Class A multifamily community located in Dallas, Texas.

PAC sold the property for gross aggregate disposition proceeds of approximately $44.0 million. The property achieved an average annualized return of approximately 15.6%.

“The attractive return on the sale of Enclave, a property constructed in 2003 and purchased by PAC just over two and a half years ago, demonstrates our ability to effectively recognize significant value in our acquisition program and provides us the opportunity to redeploy the sale proceeds into well-located, newly constructed and high-quality multifamily communities in our core markets,” said John A. Williams, the Chairman and Chief Executive Officer for PAC.

Enclave at Vista Ridge Apartment Homes is located in Lewisville, Texas a suburb of Dallas. Features include gourmet kitchens, 9- foot ceilings with crown molding, walk-in closets and garden tubs. A resort-style pool and spa with poolside cabanas, state-of-the-art fitness center, community business center with library and cyber café and part of the amenity package. Enclave at Vista Ridge is just a short drive from various shopping, dining and entertainment opportunities.

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, it may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and 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. 

ST. LOUIS, MO – American Healthcare Investors and Griffin Capital Company, LLC, the co-sponsors of Griffin-American Healthcare REIT IV, Inc., announced that the REIT has acquired the 229-unit SW Illinois Senior Housing Portfolio located in the Greater St. Louis Metropolitan Area cities of Columbia, Millstadt, Red Bud and Waterloo, Illinois.

The five-building SW Illinois Senior Housing Portfolio totals approximately 190,000 square feet of independent and assisted living space. The portfolio is 100 percent private pay and operated by an affiliate of Compass Senior Living, LLC under a 15-year absolute net lease with two 10-year renewal options and annual rent escalators of 5.5 percent after the first year and 2.5 percent thereafter. With the inclusion of SW Illinois Senior Housing Portfolio, Compass Senior Living owns and/or operates 19 senior housing communities in Arizona, California, Illinois, New Mexico, Oregon and Wisconsin.

“The purchase of SW Illinois Senior Housing Portfolio adds greater geographic and asset diversification to the growing portfolio of Griffin-American Healthcare REIT IV with well-performing senior housing facilities leased to an experienced operator under a long-term absolute net lease,” said Stefan Oh, executive vice president of acquisitions for American Healthcare Investors and Griffin-American Healthcare REIT IV.

SW Illinois Senior Housing Portfolio was acquired from A&M Property Holding, LLC, an unaffiliated third party represented by Jeff Binder and Patrick Byrne of Senior Living Investment Brokerage. Griffin-American Healthcare REIT IV financed the acquisition using cash on hand and borrowings under its revolving line of credit with Bank of America, N.A. and KeyBank, National Association.

Griffin-American Healthcare REIT IV purchased its first property in June 2016 and has since acquired a portfolio of 21 medical office buildings and senior housing facilities for an aggregate contract purchase price of approximately $261 million.

PHOENIX, AZ – Security Properties and Pacific Life Insurance Company purchased Andante Apartments, a 576-unit multifamily property built in 2000 and located in Phoenix, AZ, for $85,250,000. Security Properties now owns a total of five assets in the Phoenix marketplace.

Andante is located within the highly desired Phoenix suburb of Ahwatukee. Located in the valley’s southeast corner, Ahwatukee is best characterized by its affluent demographic, low crime rate, strong school district and close proximity to employment corridors. Additionally, the suburb’s unique location at the foothills of the 16,000 acre South Mountain Park provides residents a convenient escape to over 50 miles of hiking, biking and horseback riding trails.  Onsite, residents enjoy access to multiple retail centers including Lakeside Plaza, just one mile west with Trader Joes, Safeway and Fry’s as well as the Ahwatukee Foothill Towne Center one mile to the north and anchored by Target, Best Buy and Home Depot.

Ahwatukee is adjacent to the Chandler submarket, home to the largest concentration of technology jobs in the entire state. The corridor includes approximately 25,000 jobs including: Intel (11,400 jobs), Wells Fargo (5,100 jobs with a planned expansion to 12,000 jobs), Bank of America (3,900 jobs), Freescale Semiconductor (3,000 jobs), PayPal (1,900 jobs) and Microchip (1,600 jobs). Additionally, Intel recently announced it is investing ~$7B to complete a state-of-the-art semiconductor production facility at its Ocotillo Campus, which is located approximately 12 minutes southeast of Andante and expected to add over 3,000 new jobs. 

The business plan is to renovate the clubhouse to offer top of the market amenities.  The interiors will also be updated to a final scope that includes lowering the bar top and installing new hard surface countertops, appliances, flooring, paint, lighting fixtures and plumbing fixtures.  The renovated units will still be priced materially below new construction rents providing a great value proposition for the area.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “Ahwatukee has been a target submarket for us for years.  With excellent schools and demographics, plus proximity to high-paying jobs, all of the fundamentals were in place at Andante for us to implement our value-add reposition program.”

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.

 

LOS ANGELES, CA – Berkshire Group announced the purchase of Met Lofts in Los Angeles, California. The 266-unit luxury multifamily property is located in the South Park neighborhood of downtown Los Angeles and features over 8,500 square feet of ground floor retail space.

This was the second purchase in the Los Angeles market by the company in the last year.

“The acquisition of Met Lofts follows on the heels of Berkshire’s purchase of the iconic One Santa Fe mixed-use project in downtown LA’s Arts District and is further evidence of our strong belief in the continued emergence of downtown Los Angeles as one of the most vibrant urban cores in the U.S.,” noted Eric Schrumpf, Senior Vice President, Multifamily Acquisitions, Berkshire Group. “We continue to seek more opportunities for additional investment throughout primary submarkets in Southern California.”

Met Lofts features an open air courtyard and a lap pool, open-air gym, yoga deck and an outdoor entertainment area with a movie projector. Other amenities include a Game Lounge, BBQ/Cabana area and two separate resident lounge areas.

The apartment homes feature stainless steel kitchen appliances, granite countertops, European-style cabinets and built-in closet organizers. The retail space is completely occupied by the high-end restaurant Broken Spanish and wine bar/restaurant concept BottleRock.

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.

PHOENIX, AZ – Pure Multi-Family REIT announced that it has entered into an agreement to acquire Pinnacle at Union Hills, a multi-family apartment community, located in Phoenix, Arizona, for a purchase price of $47.5 million.

Developed by Trammel Crowe Residential in 1997, Pinnacle at Union Hills is a 264 unit, institutional quality asset, with an average unit size of 1,019 square feet.

Pinnacle is located 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, stand-alone leasing office and Wi-Fi café.

Stephen Evans, Pure Multi-Family’s CEO, stated, “We have been monitoring the Phoenix market for an extended period and are very pleased to be expanding our footprint with this institutional quality property located in north Phoenix, close to a strong and diverse employment centre, that already hosts the offices of several international corporations.”

The acquisition is subject to the satisfaction of customary conditions precedent and is expected to close in mid-June, 2017. Pure Multi-Family intends to fund the acquisition of Pinnacle with proceeds from the recent equity offering, which closed on April 7, 2017.

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

FRANKLIN, MA – Wood Partners, a national leader in real estate development and acquisition, announced that pre-leasing has begun at The Westerly at Forge Park. The 280-unit community is located off of West Central Street in Franklin, Massachusetts.

The new community was developed with a state-of-the-art fitness center, clubhouse and pool, dog park and a playground for young families to utilize. Centrally situated within walking distance of the Forge Park/495 MBTA Commuter Rail station, its location is within close reach of the employment corridor along Highway 495 and a short distance from the picturesque Franklin State Forest.

“We created The Westerly knowing that Franklin is an outstanding community and one where we could fill a need for what residents are currently seeking,” said Jim Lambert, Wood Partners’ Development Director for the Boston area. “Thanks to its stellar location and design, this community features all the elements residents prioritize in a home, and it fits perfectly within our larger portfolio.” 

Residences at The Westerly are spacious, with large kitchens, quartz countertops, frameless cabinets, plank flooring, and stainless steel appliances. The living areas incorporate expansive windows, large walk-in closets, and carpeted flooring. The finish packages have 9′ ceilings.

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 currently owns more than 70 properties with a combined total of over 20,000 units.

NEW YORK, NY – Mortgage rates continued to fall this week, with the benchmark 30-year fixed mortgage rate sinking to 4.13 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The larger jumbo 30-year fixed slid to 4.06 percent, and the average 15-year fixed mortgage rate dropped to 3.32 percent. Adjustable mortgage rates were mostly on the decline as well, with the 5-year ARM holding steady at 3.42 percent and the 7-year ARM dropping to 3.58 percent.

Mortgage rates posted only slight declines this week, but it was enough to set fresh 6-month lows. Geopolitical and terrorism concerns, coupled with the distraction of a White House scandal that threatens to delay any growth-boosting policy initiatives have all kept a lid on mortgage rates. But with the Federal Reserve positioned to raise interest rates further and laying the groundwork for eventually decreasing the size of their balance sheet, there are potential upward pressures on mortgage rates in the months ahead. The Fed continues to pledge ‘gradual’ action, both with regard to interest rates and normalizing their balance sheet. Further, with the backdrop of still sluggish economic growth, the likelihood of a sudden spike in rates has low odds.

At the current average 30-year fixed mortgage rate of 4.15 percent, the monthly payment for a $200,000 loan is $969.88.

SURVEY RESULTS

30-year fixed: 4.13% — down from 4.15% last week (avg. points: 0.23)

15-year fixed: 3.32% — down from 3.35% last week (avg. points: 0.20)

5/1 ARM: 3.42% — unchanged from 3.42% last week (avg. points: 0.28)

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, predict that mortgage rates will stay more or less unchanged over the next week.  Only 10 percent of experts see the decline in mortgage rates continuing while 30 percent expect mortgage rates to rise over the next week.

(RECAP: Fannie Mae has made some revisions to its popular Green Financing program to improve the processing of green mortgage loans. On Monday May 22nd, it issued a modified standard Guidance Form 4099 and 4099.H that updates the scope and format of the High Performance Building (HPB) Report, which is a requirement of Fannie Mae’s Green Rewards Program.)

(RECAP: Could condos financed with low-down-payment government-backed mortgages stage a surprise comeback under the Trump administration, which generally seeks to reduce federal involvement in housing?)