Author: ipgocorp

VERNON HILLS, IL – Inland Real Estate Acquisitions announced that it negotiated and helped close the purchase of The Commons at Town Center, an 85-unit multifamily property located in Vernon Hills, Illinois, a suburb located 35 miles north of Chicago.

Joe Cosenza, vice chairman of The Inland Real Estate Group, Inc. and president of Inland Real Estate Acquisitions, Inc., facilitated the transaction, with assistance from Brett Smith, assistant vice president associate counsel of The Inland Real Estate Group, Inc., on behalf of Inland Residential Properties Trust, Inc

Located at 1255 Town Center Road, near the intersection of Milwaukee Avenue and Half Day Road, the property is situated on 2.37 acres and was constructed in 2010. The Commons at Town Center consists of a six-story building featuring 30 one-bedroom, 50 two-bedroom and 5 three-bedroom units with two below-ground parking garages, providing a total of 99 garage parking spaces. The property also features 31 additional outdoor parking spaces and community amenities including a fitness center and resident lounge. Each unit includes granite countertops, stainless steel appliances, nine-foot ceilings, full-size washers and dryers and private terraces.

In addition, the property features an extended first floor format with 10,609-square-feet of retail space occupied by five tenants, including Sam Martirano Salon & Spa, Hawthorn Dental Associates, Eight Piece Rolls, Design Studio Jewelry, LLC and Giuseppe’s Pizza Restaurant. There are also 42 outdoor designated retail parking spaces on the property.

“The Commons at Town Center’s prime location in this affluent northern suburb of Chicago provides residents with walkable access to transportation and shopping as well as a choice of several highly rated schools,” said Cosenza. “With more than 152,000 residents within a five-mile radius, the property is easily accessed from a major interstate and provides a unique retail destination for consumers, making it a prime example of the type of multifamily acquisitions we continue to seek out.”

DURHAM, NC – Ginkgo Residential announced the acquisition, through its investment affiliate, of Willowdaile Apartments located in Durham, North Carolina, which transaction closed May 11, 2017.

The approximately 16.51-acre property is comprised of 201 one, two, and three-bedroom garden style apartments, and features a swimming pool, laundry facility and leasing office.

Willowdaile is located just 4 miles from the center of Duke University’s campus and 5 miles from downtown Durham. It is also located less than 2 miles from Croasdaile Apartments, which Ginkgo purchased in mid-2016.

“Ginkgo Residential is excited to expand our presence in the Durham market. With the addition of Willowdaile Apartments, Ginkgo now has 473 units in close proximity of Duke University and downtown Durham. Willowdaile is also an excellent fit with Ginkgo’s focus on workforce housing. We are very pleased to have the opportunity to add Willowdaile to our portfolio,” states Philip Payne, CEO of Ginkgo Residential.

Ginkgo Residential is an industry leader focused on combining our core business of providing reasonably priced, high quality workforce housing with energy efficient programs that are environmentally sensitive. Ginkgo Residential is a significant operator of apartment communities located primarily in the Southeast region of the United States.

ORLANDO, FL – Florida’s housing market reported more closed sales, higher median prices and more pending sales during the first quarter of 2017, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 60,733 in 1Q 2017, up 5.1 percent over the 1Q 2016 figure.

“During the first three months of 2017, traditional sales of single-family homes and condo-townhouses rose in Florida,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “In another positive sign, pending sales for single-family homes rose 1.8 percent year-over-year, while condo-townhouse pending sales rose 4.8 percent. Distressed property sales continued to drop – which underscores solid stability in the state’s housing market.

“Buyer demand continues to increase, yet the inventory of homes for sale remains tight in many local markets. That’s putting upward pressure on median prices and sometimes results in multiple offers. By working closely with a Realtor who knows local market conditions and trends, consumers have an expert in their corner whether selling or looking to find their dream home.”

The statewide median sales price for single-family existing homes in 1Q 2017 was $226,000, up 10.7 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $167,000, up 9.2 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 26,351 during 1Q 2017, up 7.6 percent compared to 1Q 2016. The closed sales data reflected fewer short sales – and rising traditional sales – over the three-month period: Short sales for condo-townhouse properties declined 38.8 percent while short sales for single-family homes dropped 36.3 percent. Meanwhile, traditional sales for condo-townhouse units rose 16 percent and traditional sales for single-family homes increased 15.1 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“A shortage of both new and existing homes for sale throughout much of the state continues to drive the Florida housing market narrative in 2017,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “New listings of existing single-family homes in the first quarter were only up one percent relative to the same quarter last year, while the number of closed sales increased by over five percent, thanks in large part to a record-breaking March.

“Homes are also selling faster this year. Half of the single-family homes which sold so far in 2017 went under contract in 50 days or less, which is nearly a 6 percent drop from the 53-day figure reported at this point last year. Based on these figures, it’s not altogether surprising that the current supply of single-family homes for resale is down by about 5 percent, year-over-year. The rate of new construction in Florida, meanwhile, is increasing but is still well below its historical norms, so relief is not on the immediate horizon.”

In 1Q 2017, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 50 days for single-family homes and 55 days for condo-townhouse properties.

Inventory was at a 4.1-months’ supply in the first quarter for single-family homes and at a 6.3-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.17 percent for 1Q 2017, significantly higher than the 3.74 percent average recorded during the same quarter a year earlier.

To see the full statewide housing activity reports go to Florida Realtors Media Center.

WASHINGTON, DC – The strongest quarterly sales pace in exactly a decade put significant downward pressure on inventory levels and caused price growth to further accelerate during the first three months of 2017, according to the latest quarterly report by the National Association of Realtors. Metro home prices have now accelerated for three consecutive quarters.

The national median existing single-family home price in the first quarter was $232,100, which is up 6.9 percent from the first quarter of 2016 ($217,200) and the fastest growth since the second quarter of 2015 (8.2 percent). The median price during the fourth quarter of 2016 increased 5.9 percent from the fourth quarter of 2015.  

Single-family home prices last quarter increased in 85 percent of measured markets, with 152 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in the first quarter compared with the first quarter of 2016. Twenty-five areas (14 percent) recorded lower median prices from a year earlier.

Lawrence Yun, NAR chief economist, says continual supply shortages ignited faster price appreciation across the country in the first quarter. “Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” he said. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in almost two years.”

Added Yun, “Several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction. This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes.”

Thirty metro areas in the first quarter (17 percent) experienced double-digit increases (unchanged from the fourth quarter of 2016). Overall, there were slightly fewer rising markets in the first quarter compared to the fourth quarter of 2016, when price gains were recorded in 89 percent of metro areas. 

Total existing-home sales, including single family and condos, climbed 1.4 percent to a seasonally adjusted annual rate of 5.62 million in the first quarter (highest since first quarter of 2007 at 5.66 million) from 5.55 million in the fourth quarter of 2016, and are 5.0 percent higher than the 5.36 million pace during the first quarter of 2016.

At the end of the first quarter, there were 1.83 million existing homes available for sale2, which was 6.6 percent below the 1.96 million homes for sale at the end of the first quarter in 2016. The average supply during the first quarter was 3.7 months – down from 4.2 months in the first quarter of last year.

Despite a rise in the national family median income ($71,201), the combination of higher mortgage rates and home prices slightly weakened affordability compared to a year ago. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $52,251, a 10 percent down payment would require an income of $49,501, and $44,001 would be needed for a 20 percent down payment.

“Last quarter’s robust pace of sales was especially impressive considering the affordability sting buyers experienced from higher prices and mortgage rates,” said Yun. “High demand is poised to continue heading into the summer as long as job gains continue. However, many metro areas need to see a significant rise in new and existing inventory to meet this demand and cool down price growth.”

The five most expensive housing markets in the first quarter were the San Jose, California, metro area, where the median existing single-family price was $1,070,000; San Francisco, $815,000; Anaheim-Santa Ana, California, $750,000; urban Honolulu, $746,000; and San Diego, $564,000.

The five lowest-cost metro areas in the first quarter were Youngstown-Warren-Boardman, Ohio, $79,200; Cumberland, Maryland, $81,800; Decatur, Illinois, $86,100; Elmira, New York, $90,000; and Binghamton, New York, $91,200.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $218,600 in the first quarter, up 7.1 percent from the first quarter of 2016 ($204,200). Eighty-five percent of metro areas showed gains in their median condo price from a year ago.

Regional Breakdown

Total existing-home sales in the Northeast declined 2.2 percent in the first quarter but are 4.2 percent above the first quarter of 2016. The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.        

In the Midwest, existing-home sales dipped 4.3 percent in the first quarter but are 1.6 percent above a year ago. The median existing single-family home price in the Midwest increased 5.7 percent to $176,600 in the first quarter from the same quarter a year ago.

Existing-home sales in the South jumped 5.8 percent in the first quarter and are 5.8 percent higher than the first quarter of 2016. The median existing single-family home price in the South was $209,000 in the first quarter, 8.8 percent above a year earlier.

In the West, existing-home sales rose 1.6 percent in the first quarter and are 7.4 percent above a year ago. The median existing single-family home price in the West increased 8.4 percent to $342,500 in the first quarter from the first quarter of 2016.

The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries.

ORLANDO, FL – Wood Partners, a national leader in real estate development and acquisition, announced that it has broken ground on a luxury residential community in Orlando, Florida. Located at the intersection of Grande Lakes Boulevard and Central Florida Parkway, the 314-unit community will offer residents easy access to some of the best that Orlando has to offer.

“Alta Grande is located at the confluence of Orlando’s Tourism Corridor and its largest suburban office submarket,” said Bryan Borland, Wood Partners’ Director of North Florida. “Strategically, the site’s proximity to some of the area’s most desirable attractions and dynamic employers, including Orlando’s only Fortune 500 company headquarters, Darden Restaurants, and its largest luxury hotel complex, the JW Marriott/Ritz Carlton – Grande Lakes, made very clear sense for us.”

The community will feature an abundance of indoor and outdoor recreation areas, including a resort style, zero-entry pool with outdoor kitchen, cabanas and hammock garden. Other amenities include a Zen garden, bocce court, putting green and a large fenced dog park with a dog washing station. In addition, residents will also have access to a substantial fitness center with an adjoining yoga/spin room, as well as a club and game room on the premises.

“This community has been designed to appeal directly to our target, an increasingly discerning renter who seeks the convenience of apartment living without sacrificing the lifestyle amenities and sense of community afforded by a more traditional single-family residential neighborhood,” added Borland.

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 70 properties with a combined total of 20,000 units.

NEW YORK, NY – Clipper Realty, an owner and operator of multifamily residential and commercial properties in the New York metropolitan area, announced that it has closed on the purchase of 107 Columbia Heights, a 161-unit apartment community located in the Historic District of Brooklyn Heights New York, for $87.5 million, or $596 per square foot.

“We are pleased to have completed our first acquisition since our initial public offering in February. We believe 107 Columbia Heights, an irreplaceable asset in the vibrant Brooklyn Heights submarket, presents an attractive opportunity for us to grow rents and create value through repositioning,” stated David Bistricer, Co-Chairman and Chief Executive Officer.

The property is located near The Promenade, and offers convenient access to various subway and bus lines. The acquisition was financed with a new $59 million secured mortgage loan that carries interest at LIBOR plus 3.85% through its maturity in August 2020, with the remainder funded by cash on hand.

Clipper Realty is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with an initial portfolio in Manhattan and Brooklyn.

POOLER, GA – Shepherd Health and Cobalt Seniors have broken ground on Shepherd Living at Savannah Quarters and Pooler Physical Therapy near the intersection of I-16 and Pooler Parkway. The 124-resident development is the first in Georgia for the Shepherd and Cobalt partnership, and will span 10 acres with two single-story buildings totaling 86,000 square feet.

“This is a great day for the City of Pooler,” said Pooler Mayor Mike Lamb. “Shepherd Living at Savannah Quarters is the premier senior community in the Coastal Empire and will not only benefit our 55 and older residents, but be an economic boon for our entire area.” The project will create approximately 200 jobs throughout the construction period and, once completed, approximately 65+ additional jobs for permanent operations.

Residents will enjoy a host of amenities, including gourmet farm-to-table food, fine wine storage, a full-service salon, a greenhouse and numerous gardening opportunities, private kitchens, animal therapy, extensive walking trails and landscaping throughout the large grounds, and even a tavern.  The wellness lifestyle at Shepherd Living at Savannah Quarters also includes daily classes ranging from meditation and gentle yoga to aerobics and circuit training. Certain amenities, such as the spa, wellness center and classes, will be open to members of the public age 55 and older. Others, such as the restaurant and many social activities, are open to those of all ages.

Shepherd Health co-Founder and CEO Christine Menedis explains, “We have created a new breed of community. Thoughtfully designing our projects to engage the entire regional population, we look at the lifestyles of an area and understand how we can serve to enhance them and simultaneously create continuity for seniors. It’s one of the many reasons Pooler and the broader Savannah region is such a natural fit for us. The area shares many of our core values, such as family, community, a rich food, art, and wellness culture, as well as a sense of history and a desire to give back and engage with neighbors.”

Pooler Physical Therapy will provide on-site services to Shepherd Living at Savannah Quarters residents, as well as serving the needs of the broader community of all ages. In addition to working with local physicians and practices, Pooler Physical Therapy will engage with business to provide direct-contracted, on-site care for their employees. “SEDA (Savannah Economic Development Authority) and the local chambers of commerce have been very welcoming and we look forward to exploring new and unique ways to serve their local members,” says Erik de Vries, Principal and President of Cobalt Medical Development.

Shepherd Living at Savannah Quarters expects to begin pre-leasing activities in November 2017.

MINNEAPOLIS, MN – LMC, a leader in apartment development and operations, announced the topping off of NordHaus, a luxury mixed-use apartment community located in the charismatic northeastern portion of the city.

The 20-story community features 280 apartment homes, including 12 penthouses, and 22,000 square feet of ground-floor retail and destination restaurant space. Now that the development has reached its highest point of construction, the LMC team is focusing on completing the building exteriors and preparing apartment interiors for first move-ins, anticipated for August.

“The process with this development was very unique, and we believe the backstory of the site will give NordHaus plenty of character,” said Jon Fletcher, senior development manager for LMC. “After working closely with the city, county and state to prepare the land for development, we’re ecstatic to have reached this development milestone and to begin building our initial resident base. We believe NordHaus will offer an unmatched living experience in the area.”

Located at 315 1st Ave. Northeast, the site has a storied history. In 1955, Superior Plating relocated to the site for a variety of plating uses, eventually closing in 2012. The plating factory, which manufactured parts for commercial, aerospace and military use, was demolished in the spring of 2014. The site was initially developed in 1891 as a car barn used by the Minneapolis Rapid Transit Street Railyard Company and used to repair streetcars.

The community’s Scandinavian-inspired design, which mixes a European style with North Woods character, will complement modern-day Northeast Minneapolis, which is defined by its creative, artistic residents and businesses. Located across the Mississippi River from downtown Minneapolis, the locale often is referred to as “Nordeast” to pay tribute to the area’s northern and eastern European immigrants.

The neighborhood features an eclectic mix of locally owned establishments within walking distance, including several craft beer pubs, the Yoga Sol studio, Gorkha Palace, the Red Stag Supperclub and The Herbivorous Butcher vegan restaurant. Residents also will be able to walk to the abundant green space and paths along the Mississippi River. The site also is situated less than two miles from Interstate 35W, which provides connectivity to the major employment centers throughout the metropolitan area.

NordHaus consists of 1- and 2-bedroom apartments, exclusive penthouse homes, and includes 390 parking spaces. In addition to featuring best-in-market, Scandinavian-inspired finishes, the community features a variety of first-class amenities. Residents will enjoy a one-acre rooftop amenity area, multiple dog play areas, several bicycle lounges, package concierge services, work-from-home suites, a swimming pool, hot tub and hobby room.

WALTHAM, MA – Benchmark Senior Living announced the addition of New Pond Village in Walpole, Mass., to its growing portfolio of senior living communities. Acquired in partnership with Farallon Capital Management, from BH Brightview New Pond Village, the community becomes the fourth continuing care retirement community and the 54th location for Benchmark, the largest provider of senior housing in the Northeast.

“We are delighted to embrace the New Pond Village community of residents and families,” says Tom Grape, Benchmark Chairman and CEO, “and we are especially happy to welcome the experienced 120-member team of leaders and associates – many of whom have been at New Pond Village for years – into the Benchmark family.”

Residents at New Pond Village can choose from among 167 independent living apartments. Other amenities include a dining plan with chef-prepared meals, 24-hour concierge service and scheduled transportation with drivers on duty daily. New Pond Village also offers 32 supportive care apartments and services designed for individuals looking for assistance with some of the basic activities of daily living.

“We are excited to blend the high standards maintained by New Pond Village with Benchmark’s 20 years of operational expertise,” says Allison Melahouris, Benchmark Senior Vice President of Quality Resident Services. “Most valued is our common commitment to being ‘truly present’ for our residents, families and fellow associates. Families choose Benchmark because they have confidence in our experience, and they stay because of the experiences they have in our communities where our mission is to Elevate Human Connection. New Pond Village remains committed to the compassionate care its residents and families have come to expect over the years.”

NEW YORK, NY – After barely moving in the past 3 weeks, mortgage rates moved slightly higher this week, with the benchmark 30-year fixed mortgage rate now 4.22 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.27 discount and origination points.

The larger jumbo 30-year fixed nosed higher to 4.16 percent, and the average 15-year fixed mortgage rate rose to 3.44 percent. Adjustable mortgage rates moved upward as well, with the 5-year ARM reverting to where it had been two weeks ago at 3.48 percent and the 10-year ARM climbing to 3.86 percent, the highest since late March.  

A strong jobs report, which showed 211,000 new jobs added for April and the unemployment rate at a 10-year low of 4.4 percent, underscored the Federal Reserve’s belief that the economic weakness at the beginning of the year was only temporary and pointed toward further interest rate hikes in the months ahead. Between the tightening job market, inflation that is moving up, and the Fed’s inclination toward raising interest rates again – perhaps as soon as their next meeting in June – there was enough impetus to lift mortgage rates. But even then, mortgage rates are back to levels seen as recently as one month ago. The placid movement in financial markets is having much the safe effect on mortgage rates, with mortgage rates fluctuating less than one-tenth of a percentage point since the beginning of April.

At the current average 30-year fixed mortgage rate of 4.22 percent, the monthly payment for a $200,000 loan is $980.37.

SURVEY RESULTS
30-year fixed: 4.22% — up from 4.18% last week (avg. points: 0.27)
15-year fixed: 3.44% — up from 3.39% last week (avg. points: 0.18)
5/1 ARM: 3.48% — up from 3.46% last week (avg. points: 0.29)

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. This week the panelists are split, with 45 percent forecasting further increases and 45 percent expecting mortgage rates to remain more or less unchanged over the next week. Just 9 percent predict a decline in mortgage rates in the next seven days.