Author: ipgocorp

SEATTLE, WA – Security Properties purchased Bordeaux Apartments, a 124-unit multifamily property built in 1989 and located in Bothell, WA for $26,000,000. Security Properties now owns a total of 17 assets in the Seattle marketplace.

The property is located at the northern end of Bothell, WA near Martha Lake. Being minutes from the I-5/I-405 interchange, Bordeaux offers residents convenient access to all three of the region’s largest employment centers with Seattle and Bellevue both 20 miles south while Everett is just 10 miles north.  

Martha Lake is home to approximately 17,000 residents with an average household income of approximately $93k/year. The property’s unique central location provides easy access to numerous job centers and outstanding access to area retail. Ten minutes southwest of Bordeaux is Alderwood Mall, a 1.3 million square foot regional shopping center. Alderwood hosts a total of 166 retailers, including Apple, H&M, Nordstrom, and REI. Additionally, Mill Creek Town Center is just five minutes northeast of the property and offers more than 80 retail stores, boutiques, restaurants, and services, including three grocery stores.

The business plan is a moderate value-add.  Common areas will all be updated and all deferred maintenance will be repaired. Security Properties intends to modestly renovate the 96 original units. The renovated spec will include black appliances, cabinet doors / painted boxes, flooring, lighting and plumbing fixtures, baseboard, sprayed countertops, door hardware, interior paint, mirror surrounds, blinds, and curved shower rods.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “Bordeaux offered us an asset priced significantly below replacement cost in an area with convenient access to both jobs and retail.  Bordeaux has value-add potential we will unlock with our renovation program and enhanced management.  As the Seattle MSA continues to grow, we expect this location to thrive resulting in excellent returns for our investors.”

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

LOUISVILLE, CO – H2 Capital, a privately-held multifamily real estate investment firm based in Louisville, CO, continues to grow its portfolio with the company’s first set of out-of-state acquisitions. H2 recently closed on 302 units in Virginia in a $20.6MM off-market transaction, consisting of 120 units in Richmond (Laurel Pines Apartments) and 182 units in Roanoke (Frontier Apartments). These two deals come on the heels of H2’s first acquisition, a 280-unit apartment community in Fort Collins, Colo. (The Argyle at Willow Springs Apartments), which closed in late 2016 for $50,250,000.

“While attending law school at the University of Richmond from 2003-2006, I began to understand the strength of the local Virginia economies and the housing value Virginia residents receive relative to other U.S. markets. We are thrilled to close on our first acquisitions in Virginia and look forward to growing our presence in the Mid-Atlantic Region,” said Chris Geer, one of the founding partners of H2. “Both of these properties are well-built and represent a meaningful housing solution to our target demographic.”

The 109,000sf Laurel Pines Apartments, built in 1988, consists of eleven buildings and a clubhouse, and is currently 98% occupied. The transaction closed March 10, 2017, for a price of $10,558,000, or $87,983 per unit, and H2 intends to spend about $3,100 per unit on cosmetic improvements to the units and common areas. The buyer took out a new Fannie Mae mortgage as part of their acquisition of Laurel Pines at roughly 78% LTV.

The 138,400sf Frontier Apartments, built in 1972, consists of sixteen buildings and a clubhouse, and is currently 94% occupied. The transaction closed March 3, 2017, for a price of $10,000,000, or about $54,945 per unit. The new buyer assumed an existing Fannie Mae mortgage and took out a small supplemental Fannie Mae loan as part of their acquisition of Frontier, for a combined LTV of 76%. Pinnacle Property Management has been awarded the management contract for both of these Virginia deals.

The 258,528sf Argyle property, built in 1999, consists of fifteen buildings and a clubhouse, and is currently 95% occupied. The transaction closed September 28, 2016, for a price of $51,250,000, or $183,036 per unit, and H2 intends to spend approximately $6,250 per unit on cosmetic improvements to the units and an extensive $300,000 clubhouse, pool area and common area renovation. The buyer took out a new Freddie Mac mortgage as part of their acquisition of The Argyle at roughly 72% LTV. Mission Rock Residential has been awarded the management contract.

H2 Capital was formed in 2016 by three veteran real estate principals: Chris Geer, Eric Mallon and Terry Simone. Collectively, they have been involved in the ownership, acquisition, asset management and property management of approximately 20,000 multifamily units representing over $1B in aggregate value, and have proven their ability to identify and unlock asset value by instituting capital improvement programs and best management practices.

“H2 has been a long time in the making, and a natural evolution of all of our careers,” said Mallon. “Before H2, Chris and I were both operators turned investors and found that we were pursuing many of the same deals. We thought that we’d be more formidable by joining forces, and partnering with Terry is really the icing on the cake. Terry brings a tremendous wealth of operational knowledge and industry contacts that are invaluable to our growth.”

MASON, OH – Senior Lifestyle Corporation, an industry-leading owner, operator and developer of senior living communities, announced its newest planned community, The Sheridan at Mason, slated to open for residents in the fall of 2017. Developed by CA Senior Living, the senior housing investment and development division of Chicago-based CA Ventures, in partnership with Wanxiang America RE Group, the highly-amenitized community will offer customized care surrounded by vibrant landscaped outdoor spaces near Mason’s dynamic restaurant and retail center.

The Sheridan at Mason is located at 5373 Merten Drive and is currently accepting reservations for 101 studio, one- and two-bedroom apartment homes, which include assisted living and memory care units ranging in size from 300 to 1000 square feet. A welcome center on the property is now open where interested potential residents can learn more about the community and its amenities.

“The Sheridan at Mason combines our innovative memory care options with upscale amenities and a unique design, which makes for a warm and inviting experience,” said Stuart Solomon, executive director of The Sheridan at Mason. “We offer a range of social activities, comfortable spaces and real-time updates for families to stay in the loop with their loved ones. Our holistic approach to care allows us to meet the needs of each resident.”

The Sheridan at Mason will include a full suite of luxury services and amenities, including chef-prepared meals, a bistro dining and gathering spot, a bar and grand parlor, as well as best-in-class memory care and 24-hour access to licensed care staff. Conveniently located near the Deerfield Towne Center, it is easily accessible from the Mason Montgomery Road and Interstate 71. The Sheridan at Mason is also in proximity to renowned Cincinnati restaurants and shopping favorites.

In addition to providing a broad spectrum of assisted living and memory care accommodations to meet the housing needs of the growing senior population in the greater Cincinnati area, The Sheridan at Mason will create approximately 90 permanent new jobs in the community.

Diamond Charter Membership is currently available to potential residents and offers a variety of benefits, including first selection of apartment homes, exclusive pricing that will not increase for at least the first year, a private four-course dinner party hosted by the executive chef, and more.

NEW YORK, NY – With a flurry of news breaking in Washington, mortgage rates moved to the downside with the benchmark 30-year fixed mortgage rate falling to a five-month low of 4.15 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.

The larger jumbo 30-year fixed slid to 4.08 percent, and the average 15-year fixed mortgage rate dropped to 3.35 percent. Adjustable mortgage rates were on the decline as well, with the 5-year ARM sinking to 3.42 percent and the 7-year ARM reverting to where it had been two weeks ago at 3.62 percent.

There’s nothing like a good old fashioned political crisis to make investors nervous and bring mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds, which have been in high demand amid the turmoil in Washington. While the White House scandal was the catalyst for a measurable drop in the past couple days, mortgage rates had already moved a bit lower thanks to a slower than expected rise in consumer prices. Another factor helping keep long-term yields, and mortgage rates by extension, in check is that the Federal Reserve seems poised to raise short-term interest rates as soon as June. An increase in short-term rates can be seen as good news by long-term bond investors as it keeps the inflation genie in the bottle.

At the current average 30-year fixed mortgage rate of 4.15 percent, the monthly payment for a $200,000 loan is $972.21.

SURVEY RESULTS

30-year fixed: 4.15% — down from 4.22% last week (avg. points: 0.25)
15-year fixed: 3.35% — down from 3.44% last week (avg. points: 0.21)
5/1 ARM: 3.42% — down from 3.48% 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, 58 percent, see the decline in mortgage rates continuing while 42 percent expect mortgage rates to remain more or less unchanged over the next week. Interestingly, none of this week’s respondents predict a rebound in mortgage rates in the next seven days.

(RECAP: The Better Housing Coalition broke ground on its $9.2 million development in the Union Hill neighborhood of East Richmond, Va. The BHC began its process of converting the former Citadel of Hope, a Colonial property built in 1923, into affordable apartments for working families.)

(RECAP: A former West End office building converted to apartments three years ago has a buyer on the hook, while at the same time a lender has threatened it with foreclosure. The Argon Apartments building at 3805 Cutshaw Ave. is under contract to be sold, said principal Chris Harrison of Bethesda, Maryland-based C.A. Harrison Cos., which redeveloped the building into 66 apartments in 2014 with financing assistance from the Virginia Housing Development Authority.)

(RECAP: About 120 activists, advocates and officials met in Arlington County and urged one another to think creatively about how to build less expensively in limited space, and to find new supporters among the business, law enforcement and education sectors to help persuade local and state governments to devote money to affordable housing.)

FORT WORTH, TX – With a commitment to honor the history of the Garvey-Viehl-Kelley Residence, San Antonio-based Embrey Partners has broken ground on the Kelley at Samuels Ave, a 10-acre, 353-unit, Class A multifamily community in Fort Worth, Texas. As part of the Kelley at Samuels Ave development, Embrey Partners is restoring the original 1884 Queen Anne home, a recorded Texas Historic Landmark, which will showcase its beauty as the property’s on-site leasing office.

The Garvey Residence on Samuels Avenue is arguably one of the finest Victorian era homes still standing in Fort Worth, located on property that has witnessed the birth and growth of the city from its earliest days. Rumor is that a young Ginger Rogers practiced dance routines in its parlor.

“This beautiful home is too important in the history of Fort Worth to allow it to continue to deteriorate,” said John Kirk, Embrey’s executive vice president of development. “We are excited to bring back such a rare jewel from its current state of abandonment and to have it be an integral part of our overall project.” 

In addition to restoring the Garvey Residence, Embrey will be donating and assisting with the relocation of the historic Talbott-Wall house located on the property to a lot nearby on Samuels Avenue. Embrey has worked extensively with Historic Fort Worth, Texas Historic Commission and the US Army Corps of Engineers to help preserve this part of Fort Worth history.

“Embrey has exemplified how developers and preservationists can work together,” said Jerre Tracy, executive director, Historic Fort Worth, Inc.

The Kelley will be adjacent to the original house and will feature spectacularly stunning views of the Fort Worth skyline, adjacent Trinity River and the future Trinity River Vision project, according to Kirk. “The view will be hard to replicate anywhere else in the city,” he said. Located in what was once one of Fort Worth’s wealthiest areas, the property is in a re-emerging core neighborhood along the path of growth.

Embrey’s plans feature both luxury apartments and townhomes with attached garages with an urban farmhouse architectural theme designed to complement the original structures from the area. The community will incorporate a dedicated amenity building featuring a business lounge, game room and upscale fitness center with a spin room, on demand workout zone and yoga courtyard.  Extensive outdoor amenities will include an infinity-edge pool with expansive views of downtown, a community biergarten, multiple dog parks and a pet washing station. The one- and two-bedroom, upscale apartments will average 914-square-feet and include attached garages, private backyards and surface parking. Occupancy is slated for Spring 2018.

TULSA, OK – NAPA Ventures an Austin, TX based multifamily and commercial real estate investment company co-founded by Shravan Parsi and Glenn Gonzales, announces the acquisition of Prescott Woods Apartments.

Prescott Woods Apartments is the latest investment made by the real estate investment firm. The property is composed of 256-units, leasing office, and multiple amenities located off the banks of the Arkansas River.

We have a strong footprint in multiple Texas markets,” said Shravan Parsi, Co-CEO of NAPA. “It was time for us (NAPA) to expand our portfolio into another state and another strong market.”

NAPA’s business plan is to renovate the exterior and interior of its properties to increase profitability and provide a great living experience for its residents. These updates include a makeover of landscaping, pool decks, parking lots, exterior paint and upgrading both the leasing office and business center. Interior unit renovations include: upgrades to countertops, cabinets, floors, and trendsetting black appliances.

“We plan to breathe some life into this property.” Parsi said, “Prescott Woods immediate submarket is in the process of revitalization and NAPA wants to be a part of that.”

With the closing of this property, NAPA is set to close one property in Dallas, TX by mid-June 2017 and a portfolio in Corpus Christi, TX in July 2017.

NAPA has a strong pipeline of Multifamily & CRE deals with planned off-market acquisitions in all the major markets of Texas.

CHICAGO, IL – CIM Group announced that it has acquired two newly-constructed buildings at 1643 North Milwaukee Avenue, a mixed-use residential, office, and retail building completed in 2016, and 1237 North Milwaukee Avenue, a mixed-use residential and retail building that just received a Certificate of Occupancy. The buildings are conveniently located in Wicker Park in the Near North Side area of Chicago.

The two buildings consist of a total of 96 apartment units, six of which are affordable, approximately 23,000 square feet of street level retail along North Milwaukee Avenue, and approximately 17,400 square feet of creative office space in 1643 North Milwaukee.

1643 North Milwaukee is located two blocks from the Damen stop on the L’s Blue line, with direct access to both downtown Chicago and O’Hare International Airport. Directly across from 1237 North Milwaukee is the Division stop on the L’s Blue Line, one stop closer to the Loop from the Damen stop for a short commute into downtown, Fulton Market and the West Loop.

In recent years, Wicker Park has transformed to become a hub of culture and entertainment within Chicago as well as home to new residential units served by an array of retailers ranging from boutiques to daily needs providers and services, with a host of dining options including popular bars, restaurants and quick-serve food outlets.

“CIM’s community-focused approach to urban investing and our various investment strategies have allowed us to build a diverse real estate portfolio in Chicago, which includes ground-up development, stabilized buildings, marquee assets as well as other community-serving properties encompassing a range of property types in both well-established neighborhoods and transitional areas like Wicker Park,” said Avi Shemesh, Principal and Co-Founder of CIM Group.

CIM identified the Chicago area more than a decade ago as a community that possesses the attributes that fit its investment strategy. The acquisition of these two properties continues the firm’s investment program in Chicago. CIM Group currently has approximately 3.4 million square feet of properties in the city including the Tribune Tower, Block Thirty Seven, Marquee at Block 37, 440 South La Salle, 1001 S State, 625 N Michigan, 1550 N Clark, and 1326 S Michigan, which is currently under development.