Author: ipgocorp

CHICAGO, IL – A partnership comprised of CIM Group, Chicago-based Golub & Company and its partner, Chicago-based Avoda Group announced the acquisition of a half-acre development site located at the southwest corner of Clark Street and North Avenue on the city’s Near North Side, immediately adjacent to Lincoln Park.

Situated at the confluence of the Gold Coast, Old Town, and Lincoln Park neighborhoods, the site is one of the few remaining parcels nestled among historic and cultural buildings along Lincoln Park, and will feature the first noteworthy development overlooking the Park in nearly a decade.  The site is within walking distance to numerous dining and entertainment establishments, and cultural and educational institutions, making it an ideal location for a new luxury residential building.  A significant feature of this site are the views that are protected in all directions by the partnership’s ownership of adjacent air-rights and by neighboring low-rise historic buildings.

“There are very few sites on the Near North Side with immediate access to Lincoln Park and valuable protected views both of the Park and the lakefront, two irreplaceable neighborhood amenities,” said Michael Newman, President and CEO of Golub & Company.  “Our intention is to build an exceptional building that benefits from the abundance of light and views, and redefines this location.”

A previous proposal for the site had received conditional approvals for a luxury mid-rise condominium building from the Commission on Chicago Landmarks and from the Department of Planning and Development.

Mr. Newman commented, “We are working with the Chicago-based architecture firm Solomon Cordwell Buenz on a new design with updated floor plans, finishes and amenities that fit within the framework of the existing development program approvals.  We anticipate unveiling the new design this summer.”

The new ownership group has a long track record of building successful residential projects.  In Chicago, Golub & Company, a three-generation, family-run firm that has built thousands of luxury, multi-family units locally, nationally and internationally, recently completed Moment in Streeterville, and with CIM Group, one of Chicago’s most active real estate investors and developers, 1001 South State in the South Loop.  CIM Group also recently developed Marquee at Block 37 in the Loop. 

Avoda Group’s ownership has been involved in over $3 billion of development and acquisition activity, and the firm recently developed several luxury residential projects on Chicago’s Near North Side.

(RECAP: Over the next 10 years, Good Shepherd Housing and Family Services would like to add 150 units to the number it offers to clients struggling to find affordable housing in Fairfax County. That goal triples the Mount Vernon-based nonprofit’s current rate of expansion in residence acquisition.)

(RECAP: Habitat for Humanity of Northern Virginia has marked its third groundbreaking and home build in Lee District’s Groveton Heights neighborhood. Also in attendance were the future Habitat NOVA homeowners and Rev. Jon Smoot, Executive Director for Habitat NOVA, to welcome and thank the volunteers.)

(RECAP: The government regulator responsible for overseeing Fannie Mae and Freddie Mac will testify before the Senate Banking Committee next week as Republicans prepare to attempt the massive undertaking of overhauling the U.S. housing finance market.)

(RECAP: Last week, Fannie Mae unveiled three new programs to help aid current homeowners and future homebuyers who are blocked from eligibility and financing by the burden of student debt. Here’s an outline of what each new solution does and how it can help.)

FORT LAUDERDALE, FL – Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided a $65.0 million construction loan to finance completion of the Riva condominium development in Fort Lauderdale, FL.

Riva is a riverfront luxury residential project located within a mile of Fort Lauderdale Beach and offering 100 residential units with four distinct unit types, an expansive club deck, extensive amenities, and ample parking. Riva is currently 55% presold, largely to local buyers from Broward County and other domestic purchasers. Construction is 65% complete and expected to finish in September.

Josh Zegen, Co-Founder and Managing Principal of MRC, made the announcement. “Riva is a beautifully designed and well-located condominium development with outstanding amenities, and we’re pleased to provide the financing solution to help the sponsor complete and deliver the project,” Zegen said. “The property’s sales performance to date indicates success in attracting local buyers. In a market where many South Florida condominiums are reliant on cross-border customers, the ability to tap into a domestic customer base made Riva a more attractive financing prospect.”

Riva is located at 1180 North Federal Highway in Fort Lauderdale, on a site with 400 feet of frontage on the Middle River. Central elements of the building’s design and lifestyle are the 60-foot wide glass lobby with river views, and 40,000 square foot club deck on the fourth floor overlooking the river. The club deck space will incorporate several amenities, including a 7,000 square foot fitness center, 2,500 square foot club room, 1,500 square foot kitchen, private wine lockers, dog park, and full-size lap pool. 22 of the residential units will be sold with boat slips. Additional amenities include concierge and valet services. 

Of the 100 units, 40 will have water views, 32 will have views of Downtown Fort Lauderdale, and 28 will offer both water and Downtown views. Floorplans range in size from 1,538 to 8,788 square feet, with an average unit size of 2,402 square feet. All units will offer the finest luxury appointments. Riva also has a ground-floor commercial unit totaling 8,000 square feet that is expected to be sold for retail or restaurant use.

The sponsor is an experienced developer that has built over 2,000 residences in Florida with an aggregate value of $800 million.

TAMPA, FL – Campus Advantage, a leader in student housing, providing property management, consulting, acquisitions, and development services, announced it has closed on the sale of 42North, a 420 bed student housing property located near the University of South Florida campus, through its investment partnership with a large state pension fund.

Campus Advantage acquired 42North in 2014 and successfully executed on its value-add investment strategy, infusing capital to cure deferred maintenance. That, combined with an integrated marketing approach delivered by partner and industry specialist Catalyst, and the company’s proven operations expertise, enhanced the property’s overall appeal in the market. Since its acquisition 36 months ago, Campus Advantage increased Net Operating Income (NOI) by approximately 25.8%, or 5.9% annually compounded.

“Campus Advantage has a well-established track record of creating value by turning around, stabilizing, and optimizing struggling assets, building equity for our investment partners,” said Michael Orsak, Senior Vice President of Investments for Campus Advantage. “As we’ve experienced with other recent dispositions, our solid investment strategy, Students First residence life programming, and involvement in conducting renovations to 42North resulted in a significant increase in the property and community value, making the asset more profitable.”

Since 2007, Campus Advantage has acquired more than $1.25B in student housing assets through its partnerships, with round trips on more than $400M. This has resulted in Campus Advantage’s excellent investment return performance, which since the Company’s inception has exceeded both NCREIF Property Index (NPI) and PREA | IPD U.S. Property Fund Indexes.

“Because of our consistency in maintaining and operating each of our properties to the highest standard, we are able to create an environment that our residents love, resulting in maximum occupancy, rental rate growth and returning resident ratios,” said Mike Peter, President and CEO of Campus Advantage. “Clients know that when you partner with us, you’ll get a great return on investment and we look forward to continuing to provide our proven, value-add expertise to the benefit of future clients and partners.”

This is Campus Advantage’s second successful property disposition within the past month following its recent announcement of the sale of On50, also located near the University of South Florida campus. The company is recycling investment capital gains to support opportunities in tier one markets.

TORRANCE, CA – The Bascom Group has acquired Harvard Villa Apartments, a 64-unit infill apartment community located in the desirable South Bay Los Angeles city of Torrance, California. The $14.0 million sale ($218,750/unit) closed on April 27, 2017. Hooman Emanuel of Emanuel Real Estate Group represented the buyer. Erich Pryor, Eric Snyder, and Thomas Sherlock with Talonvest Capital arranged the $11.45 million loan from TCF National Bank. James D’Argenio and Chang Liu sourced and managed the acquisition for Bascom.

Harvard Villa is less than five miles from the Pacific Ocean and located near several interstates that provide outstanding local and regional access, including Interstate 405, 110, 710, 105, and Pacific Coast Highway. Significant employers within a 30-minute commute from Harvard Villa include Honda North America, Boeing Satellite Systems, Raytheon, AT&T Entertainment Group, Harbor-UCLA Medical Center, Xerox, Mattel, and the Port of Los Angeles. Toyota’s former 110-acre corporate campus, located a block from Harvard Villa, is currently being marketed for sale. Several major technology and automotive companies have been pursuing the site, including Amazon, Tesla, and Space X.

James D’Argenio, Senior Principal with Bascom, comments “Harvard Villa was a rare off-market acquisition opportunity with tremendous operational and physical upside.  The seller was a long-term, private owner. Bringing in professional third party management will boost resident services immediately.  We are excited about the area’s potential for job creation and revitalization when Toyota’s campus is sold, redeveloped, and occupied with a new user.”

Harvard Villa marks Bascom’s 37th multifamily property closed in Los Angeles County and its 167th multifamily property closed in California. Over the past 12 months Bascom has acquired $1.3 billion in multifamily properties throughout the United States. 

Lee Nguyen, Senior Vice President of Bascom, comments “The South Bay region continues to be a strong draw to younger generations of tenants. To appeal to this group, we plan to give a modern update to the unit interiors and property exterior.  Harvard Villa presents a strong value-add opportunity in a location we are very excited about.” 

NEW YORK, NY – Mortgage rates were little changed leading up to Wednesday’s Federal Reserve announcement, with the benchmark 30-year fixed mortgage rate inching lower to 4.18 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.22 discount and origination points.

The larger jumbo 30-year fixed was unchanged at 4.14 percent and the average 15-year fixed mortgage rate slipped to 3.39 percent. Adjustable mortgage rates were slightly lower, with the 5-year ARM dipping to 3.46 percent and the 7-year ARM retreating to 3.62 percent.  

While mortgage rates were little changed in the days leading up to the Fed meeting, they are actually one quarter percentage point lower now than when the Fed hiked interest rates at their last meeting in March. Weakness in first quarter economic growth and geopolitical concerns surrounding North Korea, Syria, and an election in France all contributed to bringing mortgage rates lower. But with the Fed’s glass-half-full economic outlook, dismissing the economic sluggishness at the beginning of the year as temporary, it is evident that the Fed remains inclined to continue raising interest rates. Mortgage rates are likely to trend higher through the balance of 2017 as interest rates rise, but as we’ve seen recently, there are likely to be plenty of ups and downs as economic sentiment swings back and forth.  

At the current average 30-year fixed mortgage rate of 4.18 percent, the monthly payment for a $200,000 loan is $975.70.

SURVEY RESULTS

30-year fixed: 4.18% — down from 4.19% last week (avg. points: 0.22)

15-year fixed: 3.39% — down from 3.43% last week (avg. points: 0.21)

5/1 ARM: 3.46% — down from 3.48% 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 panelists don’t see much change in the coming week, with 70 percent expecting mortgage rates to remain more or less unchanged. A mere one-in-five forecast an increase and only 10 percent predict further declines in mortgage rates in the week ahead.

SAVANNAH, GA – Olympus Property continues to expand in the Southeast with the acquisition of Carrington Square in Savannah, Georgia. The community will undergo a name change effective immediately to Olympus Carrington. 

Olympus Carrington at Savannah Quarters is the first apartment community to be added to Olympus Property’s seventh fund, WW Olympus Property VII, LLC. The fund will provide a geographically diverse blend of several multifamily assets throughout the United States to provide investors stabilized cash flow over time. The fund is looking to add two more properties currently under contract within the next month.

“Efficiently managed multifamily real estate provides one of the most tax effective dividend investments for long term investors,” said Braden Barr, Senior Investment Officer at Olympus Property.

Olympus Carrington is a 288-unit Class “A” apartment community completed in 2007. Located within the highly desirable submarket of Savannah Quarters, the upscale community includes the exclusive Savannah Quarters Country Club featuring a Greg Norman Signature golf course. 

Olympus Carrington will offer residents immediate access to high-end retail, shopping, and dining as well as proximity to major job drivers, including the Gulf Stream headquarters. The completed Savannah Quarters project will feature four hotels surrounding a resort-style water recreation area, office space and a main street retail component. Plans for an amphitheater space and a Publix grocery store on Blue Moon Crossing are also underway.

“Olympus Carrington is in the epicenter of one of the most desirable submarkets in Savannah offering proximity to shopping, dining, employment, downtown Savannah, and the airport,” said Ruyi Li, Senior Acquisitions Manager at Olympus Property. 

Featured community amenities include a Resort-Style Swimming Pool, Modern Club House and Leasing Center, Gated Access Entry, State-of-the-Art Fitness Facility, Community Playground, Detached Garages, Outdoor Entertainment Area, Picnic Areas with Gas Grills, Pet Walk Stations, and Spacious Sundecks.