Author: ipgocorp

ATLANTA, GA – The Trillist Companies, a leading developer of the most innovative residential and mixed-use properties in the United States, has welcomed the first residents moving into YOO on the Park.  The highly anticipated 25-story luxury multifamily property rising above Piedmont Park in the heart of Midtown Atlanta was unveiled this past week.  YOO on the Park offers a full spectrum of luxury lifestyle services and amenities to its residents.  

The announcement was made by Scott L. Leventhal and Joseph Kavana, co-founders of The Trillist Companies.

The pre-leasing of the property has been positive, with significant demand from residents seeking higher-quality finishes as can be found in YOO on the Park’s offering.  Specifically, there has been strong demand for the penthouse units which are now nearly leased.  In addition to YOO on the Park’s penthouse units, demand for the property’s varying unit types, including its studios, one-bedroom and two-bedroom units, has also been positive; with several options remaining available for prospective residents.

The prominent location adjacent to Piedmont Park appeals to residents with discerning taste seeking luxury lifestyle in the urban core. Property highlights include striking interiors and finishes designed by the world-renowned YOO Design Studio, with world-class amenities, stunning city and park views, spacious floor plans and terraces.  The community’s design is unlike any other in the marketplace.  As Atlanta’s only internationally-branded, lifestyle community, YOO on the Park offers a whimsical sense of place, an inviting and playful atmosphere and top-of-the-line finishes.

“We are pleased to welcome our first residents moving into YOO on the Park as the finishing touches are completed, such as the completion of the common areas and the landscaping paths and one of the largest living Green Walls in the nation covering the parking façade,” said Leventhal.  “Additionally, we are planning a number of events surrounding the grand opening over the next few months.  YOO on the Park offers the highest level of luxury living to residents, with resort-style amenities and lifestyle-relevant services.”

“Midtown Atlanta has a quality of life virtually unmatched in the Southeast, from diverse dining to the finest in arts and cultural experiences,” said Midtown Alliance president and CEO Kevin Green. “YOO on the Park brings a distinctive new offering to Midtown that will further contribute to the vibrancy of this community.  We are excited to welcome YOO on the Park and its residents.”

Featuring a complete network of transportation choices, a colorful street scene and a mix of commercial and residential spaces, Midtown Atlanta was one of only five neighborhoods nationally to be named to the American Planning Association’s (APA) 2016 list of “Great Places in America.”

“The completion of YOO on the Park marks a significant milestone for us and a prominent addition to our growing portfolio,” added Joseph Kavana. “We are creating unique communities and lifestyle destinations that offer a perfect fusion of urban life and world class amenities. YOO on the Park is the first YOO designed property developed by Trillist Companies to be completed in the US and will soon be joined by Metropica One, designed by YOO, the first of eight residential towers rising within a 65- acre master planned development in South Florida.”

CHICAGO, IL – Waterton announced the acquisition of an 81-unit rental community formerly known as Madison Aberdeen Place in Chicago’s West Loop. Located at 20 N. Aberdeen St., the property has been rebranded as The Aberdeen West Loop following Waterton’s acquisition.

Once an industrial area, the West Loop has emerged as one of the most popular neighborhoods in Chicago, boasting award-winning restaurants and new retail, office, hotel and residential developments. The Aberdeen is positioned in the heart of this fast-growing neighborhood, less than two blocks from Randolph Street’s Restaurant Row. The area continues to attract high-profile employers that are moving all or part of their operations to the city, some from adjacent suburbs. 1KFulton, home to Google’s Midwest headquarters, is less than a half-mile from The Aberdeen, while McDonald’s future global headquarters, scheduled to open in 2018, is one block north of the community.

“This is a great opportunity for Waterton to make its mark on one of Chicago’s most sought-after neighborhoods,” said Mark Stern, senior vice president of acquisitions at Waterton. “With world-class restaurants steps from the community’s front door and the rapid influx of jobs only adding to the area’s appeal, The Aberdeen’s location could not be better.”

Apartments at the four-building community include a mix of studio, one-, two- and three-bedroom floor plans. All units feature 10- to 11-foot ceilings, bamboo hardwood flooring throughout all bedrooms and living areas, and modern kitchens with solid wood cabinetry, granite countertops and stainless steel appliances. In addition, each apartment includes spacious closets, in-unit laundry and private patio or balcony. Attached heated garage parking is also available.

“Waterton plans to make minor cosmetic changes to each of the four lobby areas and hallways,” said Stern. “We also look forward to leasing the two ground-floor retail spaces that are currently occupied by the former owner, who developed the property in 2014.”

In addition to offering convenient access to nearby shops and restaurants, The Aberdeen is along the CTA’s No. 20 Madison bus route, three blocks from the Pink and Green lines, and within walking distance of Metra lines at both the Ogilvie Transportation Center and Union Station.

The Aberdeen marks Waterton’s first multifamily acquisition in 2017. The firm owns and man ages four other rental communities in the Chicago area comprising nearly 3,250 units.

IRVINE, CA – HCP announced that it has completed the sale of a portfolio of 64 triple-net assets leased to Brookdale Senior Living  to affiliates of Blackstone Real Estate Partners VIII L.P. at the previously announced aggregate sales price of $1.125 billion. 

“This transaction represents another significant step toward executing on our strategic priorities of reducing Brookdale concentration, improving lease coverage, and strengthening our balance sheet and credit profile,” said Tom Herzog, Chief Executive Officer of HCP.  “We value our relationships with Brookdale and Blackstone, and look forward to continuing to work with them.”

HCP expects to record a gain of approximately $165 million on the sale of the 64 triple-net assets and intends to use the proceeds primarily to pay down debt and for general corporate purposes.

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio diversified across multiple sectors, led by senior housing, life science and medical office.

NEW YORK, NY – Mortgage rates were only slightly changed this week, with the benchmark 30-year fixed mortgage rate inching higher to 4.30 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.26 discount and origination points.

The larger jumbo 30-year fixed also nosed higher, to 4.23 percent, while the average 15-year fixed mortgage rate held steady at 3.49 percent. Adjustable mortgage rates were also subdued, with the 7-year ARM holding at 3.68 percent and the 10-year ARM slipping to 3.85 percent.   

Mortgage rates were in a holding pattern, along with seemingly everyone and everything else as legislative gridlock in Washington reasserted itself. Skepticism in financial markets has increased about the ability for meaningful tax reform or infrastructure spending to materialize in the near term, holding bond yields and mortgage rates in check. Mortgage rates are closely related to yields on long-term government bonds. But the continued trend of solid economic data could begin to offset this and push mortgage rates higher in the week ahead.

At the current average 30-year fixed mortgage rate of 4.30 percent, the monthly payment for a $200,000 loan is $989.74.

SURVEY RESULTS

30-year fixed: 4.30% — up from 4.29% last week (avg. points: 0.26)

15-year fixed: 3.49% — unchanged from last week (avg. points: 0.22)

5/1 ARM: 3.49% — up from 3.44% 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. The majority of panelists, 64 percent, expect mortgage rates to remain more or less unchanged in the coming week. The remainder are evenly split, with 18 percent predicting an increase and 18 percent forecasting a decline in mortgage rates over the next week.

(RECAP: In a bitterly partisan Congress, two senators are making a rare push across party lines to solve a persistent riddle with huge implications for the U.S. housing market: What to do with Fannie Mae and Freddie Mac? Aides to Tennessee Republican Bob Corker and Virginia Democrat Mark Warner have begun meeting with industry groups and former government officials to discuss ideas, according to people familiar with the matter.)

WASHINGTON, DC – The NHP Foundation (“NHPF”), a national not-for-profit dedicated to preserving and creating sustainable, service-enriched multifamily housing, announced that it has acquired Takoma Place Apartments.  The $16 million transaction cost was made possible through a $13.7 million commitment from DHCD (Dept. of Housing and Community Development). Bridge financing was provided by Citibank, LISC (Local Initiatives Support Corporation) and the seller.

Located in Brightwood, in NW DC, which is a gentrifying neighborhood with little affordable housing, Takoma Place is across the street from the former Walter Reed Hospital and consists of 105 units in seven buildings. The residence is a Year 15 Low Income Housing Tax Credit (LIHTC) property with 95% of units priced for residents earning 60% of AMI (Area Media Income) or less.

“Acquiring multi-family properties via TOPA (the Tenant Opportunity to Purchase Act) continues to be a long-term goal for NHPF,” said Neal Drobenare, NHPF SVP of Acquisitions. “And to do so with Takoma Place, a property that has such tremendous potential, helps our residents take part in a successful public-private partnership with proven, tangible benefits.”

The NHP Foundation has partnered on three previous TOPA projects in the DC area, Parkchester, Benning Hts., and Anacostia Gardens, which are all thriving.  Of the current Takoma Place purchase, Elliot Hampton, President of Takoma Place Tenant Association, Inc. said, “It’s been a long time coming, and we had endured a lot of hardship before we put together our TOPA partnership with NHPF for renovation of this property.  We appreciate DC DHCD for helping to make this happen and know that these developments will make Takoma Place Apartments an affordable, comfortable place for all residents into the future.”

Currently the property, constructed in 1953, is in poor condition with systemic problems such as outdated plumbing and electrical system and has not seen a major rehabilitation for 15 years. The units are slated for upgrades which will include new kitchens, bathrooms, flooring, HVAC, roofs, a new community center, landscaping upgrades, storm water management system, six fully accessible units for those with disabilities, remediation of hazardous materials, upgraded site lighting, and new windows.

“DHCD is pleased to have partnered on the Takoma Place acquisition which will provide local residents with access to increased high-quality affordable housing options,” said Polly Donaldson, Director of DHCD. “We take pride in being able to use the District’s Housing Production Trust Fund to put together the financing needed to realize the vision for this project.”

“Takoma Place is a great example of the kinds of partnerships that are needed to preserve affordable housing,” said Ramon Jacobson, LISC. “NHPF is part of a bright future in this neighborhood through its preservation of housing for seniors and families, and homeless veterans.”

NHPF plans on investing $90-100,000 per unit in rehabilitation which will begin in the first quarter of 2018.

NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P CoreLogic Case-Shiller Indices, the leading measure of U.S. home prices. Data released for January 2017 shows that home prices continued their rise across the country over the last 12 months.

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.9% annual gain in January, up from 5.7% last month and setting a 31-month high. The 10-City Composite posted a 5.1% annual increase, up from 4.8% the previous month. The 20-City Composite reported a year-over-year gain of 5.7%, up from 5.5% in December.

Seattle, Portland, and Denver reported the highest year-over-year gains among the 20 cities over each of the last 12 months. In January, Seattle led the way with an 11.3% year-over-year price increase, followed by Portland with 9.7%, and Denver with a 9.2% increase. Twelve cities reported greater price increases in the year ending January 2017 versus the year ending December 2016.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.2% in January. The 10-City Composite posted a 0.3% increase and the 20-City Composite reported a 0.2% increase in January. After seasonal adjustment, the National Index recorded a 0.6% month-over-month increase, while both the 10-City and 20-City Composites each reported a 0.9% month-over-month increase. Thirteen of 20 cities reported increases in January before seasonal adjustment; after seasonal adjustment, 19 cities saw prices rise.

“Housing and home prices continue on a generally positive upward trend,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The recent action by the Federal Reserve raising the target for the Fed funds rate by a quarter percentage point is expected to add less than a quarter percentage point to mortgage rates in the near future. Given the market’s current strength and the economy, the small increase in interest rates isn’t expected to dampen home buying. If we see three or four additional increases this year, rising mortgage rates could become concern.

“While prices vary month-to-month and across the country, the national price trend has been positive since the first quarter of 2012. In February, the inventory of homes in the market represented 3.7 months of sales, lower than the long-term average of six months. Tight supplies and rising prices may be deterring some people from trading up to a larger house, further aggravating supplies because fewer people are selling their homes. The prices also hurt affordability as higher prices and mortgage rates shrink the number of households that can afford to buy at current price levels. At some point, this process will force prices to level off and decline – however we don’t appear to be there yet.”

CHAPEL HILL, NC – Berkshire Group announced the purchase of Alexan Chapel Hill in Chapel Hill, North Carolina, from a joint venture between Trammell Crow Residential and East West Properties. The 265-unit property, which features 13,560 square feet of retail space, will be renamed Berkshire Chapel Hill.

Berkshire Chapel Hill is located just 3.5 miles from the UNC campus and UNC hospital and is within walking distance of local restaurants, shopping and entertainment. The apartment community is also serviced by several local bus routes.

“Chapel Hill is an ideal location for those that work in the Raleigh/Durham area and prefer to live somewhere with easy access to the city, major employers great dining and a variety of shopping options,” noted Michael Krupp, Vice President, Portfolio Manager, Berkshire Group. “The acquisition of Berkshire Chapel Hill is an excellent example of our strategy of choosing boutique-style communities with high-end finishes and amenities in prime locations.”

Berkshire Chapel Hill features an outdoor lounge with a fire pit, a saltwater swimming pool with an entertainment area, bike repair and storage lockers, and a pet salon and grooming station. Apartment homes feature chef-inspired kitchens with designer cabinetry and tile backsplashes, stainless steel appliances, electronic keyless entry and oversized windows.

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.

BIRMINGHAM, AL – Preferred Apartment Communities announced the acquisition of a newly-constructed 312-unit Class A multifamily community in Birmingham, Alabama, known as Retreat at Greystone.  

“This property is a well-located, premier, high-quality multifamily asset, the acquisition of which reflects our continued strategy to have the youngest portfolio of Class A apartments in the REIT space,” said John A. Williams, the Chairman and Chief Executive Officer for PAC.  

PAC financed the acquisition using its newly closed Revolving Credit Facility with Freddie Mac and KeyBank (the “Facility”).  The Facility provides for aggregate borrowings of up to $200 million, subject to increasing the Facility to $300 million in KeyBank’s sole discretion. 

The Facility has a five-year term and a floating interest rate that is dependent on both the type of property financed under the Facility and the amount of leverage utilized. 

In addition, there will be no loan guaranties provided by PAC or its operating partnership and no property mortgages originated under the Facility will be cross-collateralized.  For the acquisition of Retreat at Greystone, PAC borrowed $35.2 million on the Facility at a floating interest rate 185 basis points above 30-day LIBOR.  

PAC intends to refinance its loan on the property and has submitted its loan application and locked the interest rate with KeyBank to provide a seven-year term, non-recourse first mortgage loan at a fixed rate of 4.31% per annum.

ATHENS, GA – AH Capital, a leading investor in residential and multifamily property, announced that is has closed the $21.7 million sale of University Oaks, a 500-unit multifamily asset within walking distance of the University of Georgia in Athens, GA.

The 36-acre, off-campus student housing community is located on the main thoroughfare leading to the university and is surrounded by some of the best commercial and retail developments in Athens. The property was sold — in an off-market, all-cash deal — to Asia Capital Real Estate, a private investment firm with offices in the U.S. and Singapore. Robert Stickel of Cushman and Wakefield represented AH Capital.

The company acquired the distressed and underperforming property in December 2012. Through careful improvements and on-site leasing and management by Sycamore Property Management, a division of AH Capital, the property’s occupancy increased to 93%. “This is a well occupied, cash flowing asset with tremendous upside potential,” said Daniel Alexander, founder and owner of AH Capital. “Our buyer was excited about the opportunity to purchase this property, which offers large economies of scale as well as potential future redevelopment in a premier submarket,” he added.

AH Capital plans to continue expanding and upgrading its multifamily real estate presence, primarily through apartment, condo and townhome acquisitions, throughout Metro Atlanta and the Southeast.

Founded in 2010, AH Capital is a leading investor in residential and multifamily property whose national reach includes operations in Los Angeles and Atlanta. To date, the firm has successfully redeveloped some $71M of distressed residential assets in some of the hardest hit foreclosure markets in Los Angeles and more than $160M of distressed multifamily assets in Atlanta where it currently owns and operates a portfolio in excess of 2,400 units.