Author: ipgocorp

IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its CoreLogic Home Price Index (HPI) and HPI Forecast for February 2017 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased year over year by 7 percent in February 2017 compared with February 2016 and increased month over month by 1 percent in February 2017 compared with January 2017, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from February 2017 to February 2018, and on a month-over-month basis home prices are expected to increase by 0.4 percent from February 2017 to March 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The rise in housing costs has been largest for lower-tier-priced homes. For example, from December to February in Seattle, the CoreLogic Home Price Index rose 12 percent and our single-family rent index rose 6 percent for all price tiers compared with the same period a year earlier. However, when looking at only lower-cost homes in Seattle, the price increase was 13 percent and the rent increase was 7 percent.”

“Home prices continue to grow at a torrid pace so far in 2017, and these gains are likely to continue well into the future,” said Frank Martell, president and CEO of CoreLogic. “Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics—high demand, stronger employment, lean supplies and affordability—that will continue to play out in the coming years. The CoreLogic Home Price Index is projecting an additional 5 percent rise in home prices nationally over the next 12 months.”

LOS ANGELES, CA – As millennials continue to move in droves to urban centers, there is increased demand for housing solutions designed to meet their diverse set of needs, says David Senden, principal and board of directors, KTGY Architecture + Planning. “In most urban markets, there is a limited supply of rental units appropriate for a single person with a starting salary budget. This disparity of supply and demand has driven rental prices up to a point where many young adults are spending more on their housing expenses than is typically recommended,” notes Senden. “Young renters in New York, Boston and San Francisco, for example, can easily spend 50 percent or more of their gross salary on rent. Those who choose to pay unsustainably high rents to live the lifestyle they desire may then sacrifice potential savings or risk accruing increased personal debt. Others may have to live in unsafe areas or in substandard conditions.”

Many developers are addressing these issues by decreasing the size of studio apartments in their recent developments. As unit square footages decrease, rents tend to follow. “Over the last 10 years, the average size of a studio apartment has decreased 18 percent, from 614 square feet to 504 square feet. This trend is also linked to the recent rise of the Micro-Unit: super-small studios popping up in urban areas around the nation and abroad,” Senden said.

While decreasing the size of the units is one solution for maintaining affordable rents, not all renters want to live in a tiny apartment by themselves. “The millennial generation thrives on the social interaction of internet sites like Instagram, Snapchat and Facebook, and by hanging out with groups of friends at coffee shops, breweries and food halls. KTGY’s Macro-Unit is a new community living solution that integrates a connection to a greater social network by combining the modest rent associated with small square footage per resident, with the social interaction of shared common living spaces,” said Senden.

By minimizing the square footage of the private bedrooms and bathrooms, a larger space can be devoted to the common kitchen and living areas, says Senden. “A variety of seating configurations have been incorporated into the living area to serve multiple people or groups of people engaging in smaller conversations. The lounge seating area in the living room connects through a glass roll-up garage-style door to the large outdoor balcony, expanding the area of the living space. The kitchen provides duplicate appliances to better serve all 11 residents. Two refrigerators, two dishwashers, two microwaves and two ovens make simultaneous cooking projects possible. Booth and bar seating with built-in charging stations are designed for eating and socializing, as well as providing a location for residents to work from home,” Senden stated.

Young adults have been renting large houses and dividing the spaces with their friends to make the rent affordable for many years. According to Senden, the Macro-Unit takes that concept a step further to create a more formalized design solution. “With a variety of management and leasing options and flexibility in the building design, the Macro-Unit can be adapted to the specific needs of a site and target demographic. In keeping with the great diversity of today’s young urban professional community, residential housing solutions intended to serve this community must strive for equally varied housing solutions. The Macro-Unit aspires to contribute to that diversity,” Senden said.

IRVINE, CA – The Bascom Group has acquired Villas at Tustin Apartments, a 406-unit infill apartment community located in the heart of Orange County, California. The $94.0 million sale ($231,527/unit) closed on March 28, 2017. 

Sean Deasy and Ryan Fitzpatrick of HFF were the listing brokers for the sale. Charles Halladay and Jamie Kline of HFF arranged the $66.5 million loan with California Bank & Trust. 

Villas at Tustin was constructed in 1972 and is located at 2414 N. Tustin Avenue, Santa Ana, California.  Chad Sanderson, Senior Principal for Bascom states “Villas at Tustin is one of the best investment opportunities we have seen in Orange County. Villas is in a great location with easy access to the 55, 22, 91, and 5 freeways. This is extremely attractive to potential tenants. We are excited to modernize Villas at Tustin’s interiors and exteriors to allow the property to compete with newly-constructed Class A properties.” 

Villas at Tustin marks Bascom’s 21st multifamily property closed in Orange County and its 166th multifamily property closed in California. Over the past twelve months Bascom has acquired $1.3 billion in multifamily properties throughout the United States. 

Villas at Tustin is conveniently located near major employment centers in Orange, Tustin, Irvine, and Anaheim. Several notable companies house regional offices or are headquartered in the South Coast Metro, including Xerox, T-Mobile, and CoreLogic. Villas at Tustin is minutes from major retail centers, including Tustin Marketplace, The District at Tustin Legacy, and South Coast Plaza, which offer a combined 5.3 million square feet of retail space. 

Lee Nguyen, Senior Vice President of Bascom, comments “The South Coast Metro continues to be a strong draw to younger generations of tenants. To appeal to this group, we plan to give a modern update to Villas at Tustin’s unit interiors and property amenities. Villas at Tustin presents a strong value-add opportunity in a location we are very excited about.” 

ATLANTA, GA – Robbins Electra, one of the fastest-growing multifamily owner-operators in the Southeastern U.S., has announced its third Atlanta-area acquisition in 2017:  Oakley Park, a 240-unit apartment community located in Fairburn, Ga. It will be renovated and rebranded as “The Parke at Oakley.” 

During the first quarter of 2017, Robbins Electra acquired two other Atlanta-area properties, Marbella Place in Stockbridge and Bella Vista in Lithonia. It has plans to acquire two more multifamily communities in the Atlanta metro area in the months ahead, bringing Atlanta holdings to over 2,500 apartments.  

Robbins Electra’s national portfolio consists of over 23,000 apartments totaling over $2.5 billion in value.

“There is strong demand from renters for garden-style apartments in suburban Atlanta,” said Joe Lubeck, CEO of Robbins Electra. “The Parke at Oakley offers residents the kind of space, comfort and amenities that they would not be able to afford elsewhere. We look forward to expanding our presence throughout Atlanta and announcing additional acquisitions later this year.”

The Parke at Oakley features one-, two- and three-bedroom units in three-story garden-style buildings, with average monthly rents of approximately $900. The community is designed to accommodate any lifestyle with its five-star amenities, including a resort-style swimming pool, clubhouse, business center, fitness center, and dog park.

Located at 5474 Oakley Industrial Blvd., the community is set on the edge of Atlanta’s cityscape and close to dining, entertainment and shopping destinations. The property is currently 94% occupied.

As part of its value-add initiative, Robbins Electra plans to implement improvements to the community’s interior and exterior by adding granite countertops, upgraded appliances, plank flooring in common areas, and amenity upgrades.

Robbins Electra is national multifamily owner-operator specializing in multifamily acquisition, repositioning and property management.  It owns and operates properties in Georgia, Florida, Maryland, North Carolina, Texas and Virginia. 

ATLANTA, GA – A recent and unanimous approval by the Atlanta City Council of the final $40 million of the Housing Opportunity Bond activates an affordable housing collaboration amongst formidable forces—The Atlanta Housing Authority (AHA), the City of Atlanta and Invest Atlanta.

The approval to issue $40 million in Housing Opportunity Bonds (HOB) will help to fund important initiatives including homeowner renovations, multifamily developer loans, down payment assistance, nonprofit development loans and land assemblage for affordable and workforce housing development.

“The 2017 housing opportunity bond program is especially important as it directly addresses the crisis-level, shrinking affordable housing inventory and options for Atlanta’s working families,” states Catherine Buell, president and CEO of Atlanta Housing Authority. “Leveraging the unique capabilities of AHA to facilitate this transaction made the decision to support a no-brainer.”

The Atlanta Housing Authority’s Atlanta Housing Opportunity Inc., a designated housing corporation and borrower of the funds, serves as the program manager and will contract with Invest Atlanta for program implementation. The City of Atlanta will make the debt service payments on the bonds.

The bond issue is scheduled to close in May and funds will be available early summer.

The Housing Authority of the City of Atlanta, Georgia (AHA) is the largest housing authority in Georgia and one of the largest in the nation. AHA provides and facilitates affordable housing resources for nearly 22,000 low-income households comprised of approximately 50,000 people.

WILLIAMSBURG, VA – Preferred Apartment Communities announced the acquisition of Founders Village, a newly-constructed 247-unit Class A multifamily community in Williamsburg, Virginia.

“The opportunity to acquire this well-located and attractive community came through a real estate loan investment that PAC made for the development of the community over three years ago,” said Jeff Sherman, PAC’s Executive Vice President and Director of Multifamily Investments. 

Leonard A. Silverstein, PAC’s President and Chief Operating Officer added, “The acquisition of Founders Village further demonstrates the success of our unique real estate loan investment program, which continues to create a tremendous pipeline of new Class A multifamily communities.”

PAC acquired this community through a wholly-owned subsidiary and financed the acquisition utilizing a portion of the proceeds from a 1031 exchange transaction sale earlier in the quarter and a first mortgage loan from Berkadia Commercial Mortgage LLC, which intends to assign the loan to Freddie Mac within 60 days. 

The first mortgage loan is approximately $31.6 million, bears interest at a fixed rate of 4.31% per annum, matures March 31, 2027 and amortizes based on a 30-year schedule.  There are no loan guaranties provided by PAC or its operating partnership.

DEKALB, IL – Security Properties recapitalized University Village, a three-phase 534-unit multifamily property in DeKalb, IL. University Village is a garden-style community comprised of both townhouses and apartments, and is a mixture of project-based Section 8 housing as well as income restricted units at 60% of area median income.

The property was originally developed in the 1970s and 80s utilizing various financing incentives offered by the U.S. Department of Housing and Urban Development and the Illinois Housing Development Authority. Two of the three phases also participated in the Low Income Housing Preservation and Resident Homeownership Act in 1995.

In June 2016, Security Properties received an allocation of 4% Low Income Housing Tax Credits, which facilitated the current recapitalization. That allocation was paired with an issuance of tax-exempt bonds by IHDA and 223(f) HUD-insured permanent financing sourced by Pillar Finance, a division of SunTrust Bank, with PNC Real Estate partnering with Security Properties as the tax credit equity investor.

“The revitalization of University Village is a complex undertaking that combines the restructuring of numerous regulatory agreements, layering of multiple sources of financing, and renovation of an entire apartment community for current and future residents. The Security Properties team was unrelenting in pursuing everything needed to get this deal done,” said Peter Nichol, Managing Director within the Pillar Division of SunTrust Bank which provided the FHA-insured loan for the project.

This transaction will allow for a significant rehabilitation of the property, which will occur over the next 12 months. The rehabilitation will upgrade the unit kitchens and bathrooms, provide significant exterior and site improvements including modifications related to ADA accessibility, as well as an expansion of the existing community center to include a resident resource and activity area.

“The preservation of University Village is the centerpiece of this transaction,” states Bryon Gongaware, Managing Director of Affordable Housing at Security Properties. “Being able to substantially rehabilitate the property while preserving critical affordable housing for the long-term is a win for everyone involved. We are excited for the transformation at the property, which will be to the benefit of the residents and the community as a whole.”

Evergreen Real Estate Services, which assumed on-site property management in May 2016, will be instrumental in orchestrating operational efficiencies while effectively communicating with residents and the community.

Steve TeSelle, Director of Affordable Housing at Security Properties said “From the residents and community members involved in the process, to IHDA and HUD tapping into their various financing platforms, this is a great example of stakeholders working together for a very positive result.”

YORBA LINDA, CA – Long known as “The Land of Gracious Living,” Yorba Linda now enjoys a new level of luxury rentals at The Bryant at Yorba Linda Apartment Homes. The first California project by Philadelphia-based Resource Residential (a second is Point Bonita in Chula Vista), the 400-unit community is undergoing a multimillion-dollar makeover, and will offer completely updated residences amid a bevy of amenities to suit modern lifestyles.

The transformed complex was named in recognition of one of the city’s founding families, in particular the successful businesswoman and horticulturalist Susanna Bixby Bryant. She took over her family’s Rancho Santa Ana property (which earlier was one of the area’s largest cattle ranches a former land grant named for the Santa Ana River on its border), developed a strong agricultural business and was particularly known for establishing the renowned, 200-acre Rancho Santa Ana Botanic Garden dedicated to better understanding native California plants.

The family’s mark is found throughout the area: Camino de Bryant leads to the apartment access road, children from the area attend Bryant Elementary School, and the Susanna Bixby Bryant Museum and Botanic Garden is a short walk away.

“This area enjoys a unique history thanks to the Bixby-Bryant family and their rich history with the land, and sets the stage for our own interpretation of ‘gracious living,'” said Christopher Badger, the community’s asset manager. “We are leasing renovated apartments now and are excited to complete the majority of the update by May 1.”

The soon-to-be-completed community facilities feature a state-of-the-art fitness center and yoga studio, Resident Lounge including gaming and TV viewing areas. Residents can socialize or shop online in the Resident iLounge, or enjoy vacation inspired pools with outdoor kitchen, fire pit and cabanas.

The one- and two-bedroom apartments offer sleek and modern designer-inspired interiors incorporate custom flat-panel walnut cabinets, stainless steel appliance packages including a built-in microwave, modern quartz countertops, subway tile backsplashes, gray washed, wood-style flooring, and brushed nickel hardware and lighting packages. Rental rates start at $1,875 for a one-bedroom and at $2,500 for a two-bedroom.

The community is served by the award-winning Placentia-Yorba Linda Unified School District, including nearby Bryant Elementary School. Enjoy easy access to the Disneyland Parks, Honda Center, Angel Stadium, The Outlets at Orange, Brea Mall, Savi Ranch Shopping Center and the 91/71freeways, among other attractions.

The nearby Susanna Bixby Bryant Museum and Botanic Garden (expected to reopen in May after a water leak) includes her former home and a small demonstration garden. Having moved to Claremont, the main garden still thrives as the largest botanic garden dedicated to California native plants.

JACKSONVILLE, FL – Capital Square 1031 announced that the firm recently completed its fourth acquisition in seven months financed with a loan originated by Walker & Dunlop to be assigned to Fannie Mae with the purchase of Alexander Pointe Apartments.

Alexander Pointe Apartments is a Class B, garden-style community with 232 apartment homes located in the Jacksonville, Florida suburb of Orange Park.

Totaling more than $57 million, the four Fannie Mae acquisition loans were originated by Andrew Tapley, managing director, and Alexandra Huffman, assistant vice president, of Walker & Dunlop, one of the largest agency lenders in the United States, and the No. 1 Fannie Mae Green lender in 2016. The group of loans include favorable fixed interest rates for 10-year loan terms starting at 3.44 percent.

The Alexander Pointe acquisition loan was arranged using Fannie Mae Multifamily’s Green Rewards program, which features a lower interest rate, the potential for additional loan proceeds and an energy and water audit report designed to help finance property improvements resulting in reduced water or energy consumption.

“Alexander Pointe is our fourth loan with Walker & Dunlop, one of the largest Delegated Underwriting and Servicing (DUS®) lenders for Fannie Mae, and the first one in our growing multifamily portfolio to benefit from the Green Rewards program,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “The green program is advantageous to all parties, resulting in a lower interest rate on the loan, reduced water and energy usage at the property, and lower utility costs for our tenants.”

In addition to the Alexander Pointe acquisition, Walker & Dunlop originated the loans Capital Square used to acquire The Canopy Apartments in San Antonio, Crossroads Apartments in Phoenix, and Maple Springs Apartment Homes in Richmond, Virginia.

SAN RAMON, CA – SummerHill Housing Group, the umbrella organization for SummerHill Homes, an award-winning residential builder, and SummerHill Apartment Communities, an apartment, mixed-use infill rental housing developer, announced today its plans to develop 994 residential units in the 65+/-Lawrence Station Area Plan in Santa Clara, California. Located on nearly 27 acres bounded by Lawrence Expressway, Central Expressway and Kifer Road, SummerHill has named this exciting new development Nuevo.

Nuevo will be Santa Clara’s largest master-planned housing development since Rivermark. Nuevo will consist of 457 for-sale residential units including six for-sale live/work units, 537 apartments, and approximately 40,000 square feet of neighborhood retail and restaurants. The company has started the demolition of the aging light industrial facilities located on site and expects to commence grading for the apartments this summer.

“We are thrilled to be moving forward with this master-plan development,” said Robert Freed, President and CEO, SummerHill Housing Group. “We have been working with the city of Santa Clara for over three years and have assembled land from seven different landowners.”

“The City is excited to see SummerHill beginning construction in the Lawrence Station Area,” said Santa Clara Mayor, Lisa M. Gillmor. “Their development is the first of many that will bring the vision for the area to life. With a mix of residential and commercial uses, parkland and pedestrian-friendly development, all within close proximity to the Lawrence Caltrain Station, SummerHill’s groundbreaking will officially kick-off the transformation of this area into a vibrant and livable neighborhood.” 

SummerHill will offer a wide spectrum of housing types, from condominiums and apartments to townhomes and detached homes. “Given the scale of this new master-plan community, with expansive parks, neighborhood-serving retail, and a short walk to Caltrain, we anticipate that we will see many young professionals, singles and couples that are looking for a home close to their jobs and close to transit that connects them to Santa Clara and beyond,” said Freed. “With our single-level condominiums, we also expect to attract move-down buyers looking to downsize and remain in Santa Clara.”

SummerHill’s Nuevo community will include:  41 E-Homes, 176 TownFlats, 114 E-Towns, 120 condos, six live/work units, and 537 apartment homes of which 98 will be affordable apartment homes.

“We worked with an incredibly creative architect team to bring this exciting Nuevo community to life. Two of our most unique housing forms, the E-Homes and E-Towns, were created by Woodley Architectural Group,” said Katia Kamangar, Executive Vice President / Managing Director for SummerHill Housing Group. “These plans were designed to deliver higher-density for-sale housing with outdoor living translated into luxurious rooftop decks, which is very desired by the market.”

Future residents of Nuevo will enjoy over three acres of fully-improved public parks, a community garden, an approximately 4,000-square-foot community center, a dog park, bike share facilities and many other amenities such as movies in the park, tot lot with children’s play equipment, turf areas for yoga/soccer, picnic tables, basketball/sport court, bike paths throughout community, bike share pods, outdoor reading rooms, neighborhood-serving retail, and EV charging capability. Amenities for residents of the apartment homes include pools outdoor BBQ areas, club rooms, fitness centers, business centers, pet grooming facilities, and bike storage/repair facilities.

Woodley Architectural Group of Santa Ana, California is the designer of the 155 E-Homes and E-Towns. KTGY Architecture + Planning of Oakland, California is the designer of the 537-unit apartment community, 120 condominium units, and the six live/work units. SDG Architects of Brentwood, California is the designer of the 176-TownFlat units. HMH Engineers of San Jose, California is the engineer for the project and the landscape architect is R3 Studios of Oakland, California.

Once the demolition and grading have been completed, SummerHill expects to start construction on the for-sale residential models and the apartment community in September 2017, and complete the apartments in late 2019, and the buildout of the for-sale community in 2022.

In addition to the 994-unit Nuevo development, SummerHill Homes is currently under construction on new residential communities in the San Francisco Bay Area in Moraga, Los Gatos, Mountain View, Saratoga, Fremont, Pleasanton, and Redwood City for a total portfolio of 6,170+ residential homes. 

In addition, SummerHill Apartment Communities has seven new apartment communities in California in various stages of planning and construction: 268 new residential units featuring a mix of apartments and condominiums in Burlingame; 694 residential units and 36,500 square feet of retail space near Milpitas BART Station; a proposed 211-unit apartment community in Mountain View; a 105-unit apartment community in Pasadena; and a proposed 255-unit apartment community in Carlsbad for a total portfolio of 4,315 apartment units. Currently, SummerHill is leasing 481 on Mathilda, a 105-unit apartment community in Sunnyvale; Villas on the Boulevard, a 186-unit apartment in Santa Clara; and Origin, a 153-unit apartment community in Seattle, Washington.

SummerHill Housing Group combines the expertise and market strength of the highly respected development firms San Ramon, Calif.-based SummerHill Homes and SummerHill Apartment Communities. SummerHill Homes specializes in mid- to high-end homes, and is nationally recognized for customizing development plans to accommodate a site’s special characteristics. SummerHill Apartment Communities has a long track record of developing award-winning apartment and mixed-use infill rental housing communities. Both firms specialize in the San Francisco Bay Area and Southern California.