Author: ipgocorp

CHARLESTON, SC – Armada Hoffler Properties announced that the Company has teamed with Spandrel Development Partners to develop and build $100 million of new purpose-built student apartments in downtown Charleston, South Carolina. The Company will serve as both majority partner and general contractor in the new joint venture.

The Charleston peninsula is home to over 20,000 students and current enrollment at the College of Charleston alone approaches 12,000 students. With two assets featuring a variety of amenities and price points, the Company expects to deliver over 600 new beds within one mile of the College of Charleston in time for the fall 2019 semester.

With these two projects, Armada Hoffler Properties will be the largest private developer of student apartments in Charleston. The Company expects to break ground later this year.

“With its high barrier-to-entry and net market deficit of over 5,000 beds, new student housing product in downtown Charleston fits perfectly into our development and investment strategy,” said Louis S. Haddad, President and Chief Executive Officer. “We look forward to meeting the needs of the underserved student population on the peninsula and are excited to once again team with a partner who has the local expertise to quickly entitle prime sites in one of our target markets.”

Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic and Southeastern United States.

PORTLAND, OR – National Health Investors announced it has purchased a 102-unit assisted living/memory care facility in Portland, Oregon for $26.2 million and has leased the facility back to Prestige Senior Living.

This facility was added to the existing Prestige master lease that is comprised of 3 skilled nursing facilities and 1 assisted living facility and has a remaining term of 12 years. The new investment has an initial cash yield of 7% plus annual fixed escalators.

The acquisition was funded by a draw on NHI’s revolving credit facility.

Eric Mendelsohn, CEO and President of NHI, stated, “We are very pleased to expand our business relationship with Prestige Senior Living, a company that is dedicated to the care of seniors in both assisted living and skilled nursing.”

National Health Investors is a real estate investment trust specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI’s portfolio consists of independent, assisted and memory care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.

NEW YORK, NY – Mortgage rates increased for a third consecutive week, with the benchmark 30-year fixed mortgage rate rising to 4.44 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.28 discount and origination points.

The larger jumbo 30-year fixed climbed to 4.43 percent and the average 15-year fixed mortgage rate stepped up to 3.64 percent. Adjustable mortgage rates also moved up, with the 5-year ARM jumping to 3.60 percent and the 7-year ARM to 3.81 percent.

Mortgage rates spiked higher leading into this week’s Federal Reserve meeting, climbing for the third week in a row and the fourth time in the past five, rising to multi-year highs. The benchmark 30-year fixed mortgage rate hit the highest level since April 2014 and it was a similar story across the range of mortgage products. But with a Fed rate hike now in the books and a recent decline in oil prices below the $50 per barrel threshold, this marks two factors that can take edge off inflation increases. That is comforting to long-term bond investors and potentially good news for mortgage rates. Indeed, this was the reaction in the hours immediately following the Fed rate hike, with yields on long-term bonds sliding about one-tenth of a percentage point.

At the current average 30-year fixed mortgage rate of 4.44 percent, the monthly payment for a $200,000 loan is $1006.25.

SURVEY RESULTS

30-year fixed: 4.44% — up from 4.38% last week (avg. points: 0.28)
15-year fixed: 3.64% — up from 3.57% last week (avg. points: 0.24)
5/1 ARM: 3.60% — up from 3.57% 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 panelists are fairly evenly divided this week, with 36 percent expecting mortgage rates to continue falling and an equal 36 percent forecasting that mortgage rates will remain more or less unchanged over the coming week. The remaining 28 percent of respondents predict mortgage rates will resume their climb during the next seven days.

(RECAP: Risky mortgages are making up a larger share of new home loans, raising worries that defaults could spike and stymie the housing recovery, according to a USA Today report. The trend in riskier loans seems to be concentrated in mortgages insured by the FHA, according to USA Today.)

(RECAP: AvalonBay Communities, Inc. (AVB) – a trusted name in multifamily housing, headquartered in Arlington, Virginia – announced today its contribution of $35,000 to the Arlington Partnership for Affordable Housing (APAH). Since 2015, including this latest donation, the Company has contributed $85,000 to support APAH’s mission of helping lower income families secure affordable housing in Arlington.)

KING OF PRUSSIA, PA – Morgan Properties, a real estate investment and management company, announced that it has acquired a $247 million, six property portfolio consisting of 1,979 units located in Windsor Mill, Maryland from Harbor Group International. The acquisition, called the Rolling Road Portfolio, includes Crosswinds at Rolling Road, Diamond Ridge, Glens at Rolling Road, Granite Run, Rolling Wind, and Stratton Meadows.

The acquisition comes on the heels of five other recent transactions closed by Morgan Properties. This brings the company’s total multifamily investment during the last year to over $800 million and 6,300 units.

Morgan Properties’ other recent transactions include:

Bishop’s View, a 200-unit apartment community located in Cherry Hill, New Jersey

The Star Portfolio, a 2,826-unit apartment portfolio spanning Maryland, Pennsylvania, North Carolina, and South Carolina

Avery Park, a 606-unit apartment community located in Silver Spring, Maryland

Grand Pointe, a 325-unit apartment community located in Columbia, Maryland

Henson Creek, a 450-unit apartment community located in Temple Hills, Maryland

Morgan Properties has acquired 21 apartment communities and 6,300 units this year and has closed on all the deals it has been awarded. To support these assets, the company has hired 140 new employees.

“Morgan Properties is one of the nation’s largest and fastest growing multifamily owners and operators. Our recent growth is attributable to our ability to deploy capital, gain scale and quickly leverage off our operational efficiencies to achieve high occupancy and resident satisfaction,” says Jonathan Morgan, President of Morgan Properties JV Management.

Since its inception in 2011, Morgan Properties JV has been one of the most active investors in the Mid-Atlantic and Northeast Region, and has acquired more than $2 billion of multifamily investments and 17,000 units. The Company has a proven track record of creating value for its equity investors through value-add repositioning, rehabilitation, and professional management expertise.

Morgan adds, “We intend to continue growing by acquiring class B, multifamily assets in infill, high-barrier markets where our operational expertise can quickly add value for our investors and residents. We have the capital to move quickly to acquire sizable multifamily portfolios in major MSAs nationwide.”

Morgan Properties intends to acquire $1 billion in real estate assets in 2017. The Company will invest $60 million in value-add renovations to reposition recently acquired properties. Amenities will include premium kitchen and bath upgrades, as well as the addition of fitness centers, resident lounges, dog parks, playgrounds, grilling areas, and exterior fitness stations.

AMES, IA – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, announced it has started construction on a community pedestrian to Iowa State University in a joint venture with developer, River Caddis Development. Opus Design Build, L.L.C. is the design-builder and Opus AE Group, L.L.C. is the architect and structural engineer of record for the 320,000-square-foot mixed-use development.

The community will add 537 pedestrian-to-campus beds in a mix of studio, one, two, three and four-bedroom floor plans to the EdR portfolio. EdR will be 70 percent owner and manager of the $51.9 million development which is targeting a summer 2018 delivery.

“Iowa State is a top-tier university that is experiencing steady growth,” said EdR chief executive officer Randy Churchey. “With a pedestrian-to-campus location and outstanding amenity offering, this community will be another important asset in the EdR portfolio.”

Located on the corner of 2700 Lincoln Way, the 6-story project is designed to enhance the vitality of the site and the vision of the Campustown Revitalization by enriching the Lincoln Way, Sheldon Avenue and Hyland Avenue pedestrian experience and providing a gateway into Campustown.

“This location is directly across the street from Iowa State University in the heart of downtown Ames, Iowa,” said River Caddis president Kevin McGraw. “We have gone to great lengths to collaborate with the City of Ames to design an aesthetically pleasing, long-term sustainable development, and believe we have accomplished that goal. Teaming up with an industry leader, such as EdR, makes this project that much better and partnering with Opus has proven to be an excellent choice for us as they are very good at working together in a team effort.”

The project will feature 157 apartment units and 7,500 square feet of ground level retail space. The apartments will also feature luxury amenities including two outdoor resident amenity decks, an outdoor hot tub, club room, fitness center, study rooms, leasing lounge and residential parking. Additionally, residents will enjoy in-unit washers and dryers and WiFi throughout the community.

“We’re excited to design and build another best in class student housing option for the Iowa State area and to continue building off the success we’ve seen with other recent student housing project in the area,” said Jeff Smith, vice president, Opus Design Build, L.L.C. “Student housing continues to be in high demand in Ames, and we’re pleased to be working with River Caddis and EdR to continue filling that need and add value to the surrounding community where this project will be a great fit.”

HOUSTON, TX – Portico Property Management, a property management firm headquartered in Houston, and Crossbeam Capital, a multifamily real estate investment firm with offices in Houston, Denver and Dallas, have launched a joint venture that will house more than 6,200 multifamily units across six states.

Additionally, the companies will merge back-end operations and support services that will create ease of use for investors and clients. The property management portion of the joint venture will operate under the Portico brand in the company’s Dallas and Houston offices. 

The units are located in Texas, Colorado, Illinois, North Carolina, Pennsylvania and Washington D.C.

With 173 employees and combined operations led by Portico’s President, Darren Williams, the two firms now provide an extraordinary portfolio of multifamily communities with support services tailored specifically for investors and clients.

“Portico and Crossbeam share a mutual commitment to customer service and at the community level, we have the best teams in the country,” said Williams. “We are confident our joint venture will add value to our clients and associates and ultimately make us an even stronger company.”

“This venture with Portico allows us to expand our platform and services among our clients and strengthen our overall service level,” said Ted Kerr, managing partner of Crossbeam Capital. “We have a strong track record of delivering exceptional results to our investors and this partnership allows us to provide an even better strategy for performance.”

Portico offers expertise in management services, construction management, renovation, due diligence, acquisition and disposition services.

Crossbeam offers a vertically-integrated multifamily investment firm specializing in value add investment and development strategies. Its expertise includes investment management, acquisitions and dispositions, and asset management services.

“We’re excited about this joint venture. Crossbeam’s culture meshes very well with Portico’s and we share a common vision: a focus on exceptional customer service,” Williams added.

Founded in 2011 by Darren Williams, Portico Property Management began with the simple premise to build a great and enduring management company. Portico hires only the best talent and values integrity, friendliness, accountability and results above all else. At Portico, today’s client is more important than tomorrow’s. In addition to property management, Portico offers asset management, due diligence, pre-acquisition analysis, renovation analysis and management, and disposition services.

Crossbeam Capital is a leading multifamily real estate firm focused on identifying strategic investment opportunities and successfully building value through a unique vertically-integrated management platform. With offices in Houston, Denver and Dallas, the firm serves multiple metro markets nationwide in the role of investment advisor, asset manager, developer and property operator. The firm manages multiple investment vehicles for top-tier institutional clients that have included many large insurance, pension, sovereign wealth funds, and family offices. Led by a senior management team with deep experience in the real estate industry, Crossbeam has completed over $1.5 billion in multifamily transaction activity in the last five years.

SALT LAKE CITY, UT – Since its inception in 2012, Restore Utah and Goldman Sachs Urban Investment Group have revitalized low and moderate-income neighborhoods by transforming vacant or neglected properties hard hit by the financial crisis into quality affordable rental homes for low-income families. 

On February 17, 2017, Goldman Sachs increased its equity commitment to Restore Utah’s Multifamily Acquisition Fund to $24 million, enabling Restore Utah to significantly increase its acquisitions and improve affordable housing throughout the Wasatch Front. 

Restore Utah has also recently acquired The 500, a 109-unit apartment community in South Salt Lake.

Over the past five years, Restore Utah and Goldman Sachs have invested over $140 million to acquire and renovate over 500 single-family homes and six multifamily properties totaling over 370 units while also creating jobs in a sector that has suffered significant job loss.  Over 84% of the homes are focused on serving low and moderate-income communities and residents.   

The 500 is a 109-unit community that offers large two bedroom apartment and townhome units conveniently proximate to downtown in South Salt Lake. Amenities at The 500 include a swimming pool, playground, large private patios and covered parking. Restore Utah plans to enhance the community through interior renovations and a common area overhaul that will include a dog park and gathering pavilion.

“We are pleased with this further investment from Goldman Sachs and the acquisition of The 500. We are optimistic regarding the Salt Lake market with the fastest growing state population in the nation, strong job growth and low unemployment. Salt Lake City is ranked 7th nationally for the best place for Business and Careers,” said Jim Schulte, President at Restore Utah. “Goldman Sachs’s investments over the past two years have enabled us to acquire six multifamily communities in the past 18 months consisting of over 370 units focused along the Wasatch Front.  Restore Utah seeks to acquire 200 to 300 more units in 2017 to help revitalize existing apartment buildings and neighborhoods.”

“Deepening this partnership with Restore Utah is part of Goldman Sachs’s commitment to making meaningful investments in the cities where we live and work,” says Margaret Anadu, Goldman Sachs Managing Director and head of the Urban Investment Group.  “This partnership exemplifies an innovative solution to addressing the affordable housing need in the local market.”

TAMPA, FL – Watercrest Senior Living Group gathered with city officials, development, construction, and design partners to celebrate the ceremonial groundbreaking of Market Street Memory Care Residences in Tampa, Florida. The 64-unit all memory care community will open to residents in January 2018, offering exceptional amenities, diverse culinary experiences, innovative training and world-class care for seniors living with Alzheimer’s and dementia.

Market Street Memory Care Residences are artfully designed memory care communities envisioned by Market Street co-owner Marc Vorkapich, CEO and principal of parent company, Watercrest Senior Living Group. Through an operationally driven design and experienced approach to memory care, Market Street Communities connect the hearts and minds of residents by stimulating their senses with the goal of re-experiencing memories.

“Market Street Memory Care Residences offer a refreshing alternative to traditional senior memory care; our state-of-the-art communities, unparalleled service, and personalized enrichment programming enhance life experiences for our residents, families and caregivers,” says Marc Vorkapich, Principal and CEO of Watercrest Senior Living Group. “We are excited to introduce our Market Street concept to the Tampa Bay area and positively impact this dynamic community through job creation and valuable community partnerships.”

Architected by LifeBuilt Architecture, Market Street Memory Care Residences Tampa will feature an inviting and purposeful design, including spacious accommodations, abundant natural lighting, internal courtyards with lush gardens, circular walkways, and visual cueing. This specialized care community boasts extraordinary central gathering spaces in Market Plaza, an active, “outdoor” streetscape complete with Newsstand, Art Gallery, Bakery, Salon and Spa, and Post Office caringly designed to welcome family and friends.

All Market Street associates are Nationally Certified Dementia Care Practitioners and their unique memory care programming includes Personal Life Silhouettes, Music & Memory, Memories in the Making, For the Love of Color, multi-sensory culinary and gardening experiences, as well as personal well-being activities.

Walker and Company began construction last November on the 46,000 square foot memory care community located at 833 East Lake Road North in Tarpon Springs. Centrally located between Trinity, Clearwater and Tampa, this unique location offers seniors one of Florida’s most abundant qualities of life.

Watercrest Senior Living Group, owner of Market Street, specializes in the development and operations management of assisted living and memory care communities. With multiple senior living projects across the southeast, Watercrest Senior Living Group principals, Marc Vorkapich, CEO and Joan Williams, CFO, are setting new standards of quality for seniors and their families in the development of upscale senior living communities.