Author: ipgocorp

TAMPA, FL – Preferred Apartment Communities announced that it acquired a recently constructed 296-unit Class A multifamily community in Tampa, Florida named Broadstone Citrus Village.

“We believe this is a high quality, Class A community in a dynamic location,” said John A. Williams, the Chairman and Chief Executive Officer for PAC. Mr. Williams added, “The addition of Citrus Village to our portfolio demonstrates our continued focus on acquiring newly constructed and accretive Class A multifamily communities in strong submarkets.”

Broadstone Citrus Village is a contemporary apartment community consisting of 1, 2, and 3 bedroom apartment homes with all the comforts and conveniences traditionally found in the most established neighborhoods. In addition to the graceful architecture and beautifully refined residences, Broadstone Citrus Village offers a world class collection of amenities and an enviable resort lifestyle – all in the heart of Citrus Park.

PAC financed the acquisition by assuming the existing first mortgage loan from New York Life Insurance Company, with an outstanding principal balance of approximately $30.25 million that has a maturity date of May 1, 2023, and a fixed interest rate of 3.65% per annum. There are no loan guaranties provided by PAC or its operating partnership.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our business strategy, they may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.

RALEIGH, NC – Officials of The Preiss Company (TPCO), ranked the nation’s fifth largest, privately-held, student housing owner-operator, announced the continuation of its robust growth plan with its first two joint venture acquisitions of 2017, the 760-bedroom GrandMarc at University Village (proximate to The University of California, Riverside), and the 416-bedroom Gateway at Huntsville (near Sam Houston State University).

Both purpose-built, student-housing properties were acquired in separate joint ventures for undisclosed amounts from different private investment groups. TPCO will operate the facilities, as well as oversee renovations and upgrades.

“These acquisitions reflect our continued drive for nationwide expansion,” said Donna Preiss, founder and CEO, The Preiss Company. “Our portfolio has more than doubled in size to more than 50 properties over the past five years. Both of these complexes reflect the profile we seek: quality assets near large universities that are experiencing rapid enrollment growth. In addition, we see opportunities to enhance these properties with upgrades and installation of our proprietary, student-focused management systems.

“This is our second student housing complex in California and our seventh in Texas,” she commented. “Both campuses are new to our portfolio, and the outlook is quite positive for continued enrollment development and strong student housing demand at these schools. We also expect to achieve economies of scale in operations at both properties.”

GrandMarc at University Village

The GrandMarc at University Village is located on nearly 12 acres at 3549 Iowa Ave., about five minutes from the UC Riverside campus and across the street from the University Village retail center. The complex consists of six, four-story stucco buildings. Suite configurations include one-, two- and three-bedroom layouts, each with its own separate bedroom and bath. Each fully furnished suite includes a patio or balcony, full-sized washer and dryer combos, laminate countertops and a full kitchen appliance package.

The upscale, gated property is one of only five purpose-built facilities serving UC Riverside and features a resort-style swimming pool and spa, outdoor grilling station and basketball court. A recently renovated club house offers study and meeting rooms, game room with billiards and table tennis, theater room, 24-hour fitness center and tanning beds. A UC Riverside Point-to-Point Shuttle and Riverside Transit Agency Trolley Stop at the property provides convenient transportation. Preiss will install cutting-edge technology improvements, including installing the highest rated WiFi speed and program improvements that make online leasing and rental payments easier and faster, as well as enhancing social media connectivity.

TPCO is in the initial phase of reviewing opportunities to further enhance the property’s exterior and interior spaces. The company also has implemented its proprietary management system that focuses on its student residents’ needs.

Gateway at Huntsville

The 160-unit student housing complex, comprising 416-bedrooms/bathrooms, is located at 5050 Sam Houston Avenue. Situated on an approximate 12-acre site, the property features six, four-story buildings, a swimming pool and basketball and volleyball courts.

TPCO will manage and oversee an extensive renovation of the property. The refurbishment program will commence this spring and includes upgrading more than half the units with new flooring, microwaves and furniture. All bedrooms will receive new mattresses, kitchen sinks and desk chairs. The clubhouse will be updated with new computer and fitness rooms and refreshed with new decor.

Technology will receive major attention with the installation of state-of-the-art, property-wide WiFi, as well as programs to enhance online leasing, online rental payments and social media capabilities. Extensive enhancements will be completed to the exterior, such as roof replacement, new HVAC units, patio furniture, grilling station, painting and landscaping. Located approximately one mile from campus, TPCO also will upgrade the Gateway at Huntsville’s shuttle and provide complementary service to and from campus.

“The acquisition market remains quite attractive. We are looking selectively at development opportunities, especially in markets with high barriers to new competition,” Preiss said. “Historically attractive financing with the potential for improved operating returns continues to attract considerable interest from both existing and new investment groups with whom we are working. An extensive national acquisition pipeline, along with development opportunities, point to a strong, upbeat 2017 for our company. It is difficult to project when deals will come to market and be consummated, but based on our current activity, the first half of 2017 is shaping up to be quite active.”

JACKSONVILLE, FL – Robbins Electra, a national multifamily owner-operator with a large portfolio of apartment communities across the Southeastern U.S, has announced the acquisitions of three multifamily properties in Georgia and Florida: Marbella Place, located in Stockbridge, Ga.; Vue at Baymeadows, located in Jacksonville, Fla.; and Palm Trace, located in Jacksonville, Fla. Robbins Electra’s portfolio now includes more than 22,400 apartment units totaling over $2.5 billion in value.

“Our investment team continues to pursue strategic value-add investments in the southeastern U.S., where job and population growth supports attractive risk-adjusted returns in the multifamily space,” said Joe Lubeck, CEO of Robbins Electra. “These three acquisitions exemplify this approach, with which we have had a 25-year track record of success.”

Marbella Place (formerly known as Cameron Landing) is a 368-unit apartment community located in the Atlanta suburbs composed of one-, two- and three-bedroom apartments with average monthly rents of approximately $831. Community amenities include a clubhouse, pool, fitness center, business center, garages and gated entry. Robbins Electra will invest just under $2 million in upgrades to the property, including renovations to kitchens, floors and lighting, and the addition of a washer and dryer in every unit. The property is located at 3470 Mount Zion Road and is currently 93% occupied.

The Vue at Baymeadows (formerly known as Grand Isles at Baymeadows) is a 352-unit apartment complex located in Jacksonville composed of one- and two-bedroom apartments with average monthly rents of approximately $779. Located at 8335 Freedom Crossing Trail, the community amenities include a swimming pool, dog park, fitness center, business center and clubhouse. The property will undergo a $2.2 million renovation to upgrade interiors, including new lighting and plumbing fixtures, and the addition of a washer and dryer to each unit. Exterior enhancements will include landscaping, clubhouse and pool area upgrades, as well as plank flooring in common areas. The property is currently 96% occupied.

Palm Trace (formerly known as Fountain Oaks), a 160-unit apartment complex located in Jacksonville, is made up of one- and two-bedroom apartments with average monthly rents of $700. Amenities include a clubhouse, business center, swimming pool and dog park. Robbins Electra will carry out a property renovation to improve plumbing fixtures and lighting, along with enhancements to kitchens and window treatments.  Located at 6870 103rd Street, the community is currently 95% occupied.

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. 

DENVER, CO – The Praedium Group, a New York City-based national real estate investment firm, announced the acquisition of two multifamily properties in the Denver market, Helios Apartments in Englewood, CO and Centennial Park Apartments in Aurora, CO.

Helios is a 258-unit multifamily property centrally located in the Denver Tech Center, the largest employment center in metropolitan Denver. Less than one-mile from the Belleview Light Rail Station, the property offers residents convenient access to the Belleview Promenade as well as many other notable retail outlets and restaurants. Constructed in 2015, the asset consists of one, five-story building with one- and two-bedroom units ranging in size from 642 square feet to 1,367 square feet. The community features a pool with landscaped sun-decks, an outdoor living area with a fireplace, gas barbecue grills, a dog run, and a state-of-the-art fitness center. Apartments offer 9′ and 10′ ceilings, wood-vinyl plank flooring, washers and dryers, granite counters, stainless and black appliances, and gourmet kitchens with islands. Select units offer private patios and balconies.

Centennial Park, built in 2001, contains 216 one-, two-, and three-bedroom units ranging in size from 685 square feet to 1,230 square feet. Units boast 9′ ceilings, crown moldings, private balconies or patios, walk-in closets, and full size washer/dryers. The property also offers a recently renovated clubhouse with an outdoor resort-style swimming pool, grilling station, fitness center, business center, and lounge area with a gourmet kitchen and billiards. Centennial Park is centrally located in Denver South, the largest employment hub in Denver with over 20,000 companies and more than 200,000 employees. Centennial Park’s superior location along the Piney Creek Trail, which connects to the Cherry Creek Trail, provides residents with excellent access to the surrounding area of Arapahoe County. Nearby amenities include the Denver Tech Center, Greenwood Plaza, Inverness Business Park, and Meridian International Business Center, with Fortune 500 companies like Arrow Electronics, Liberty Media and EchoStar.

The net migration into Denver has been amongst the strongest in the nation over the past 5 years. Since January 2013, 27 companies have announced headquarter relocations and/or facilities expansions in the region. Recent expansions and relocations in the area include TopGolf International, which opened a 65,000 square-foot facility in Centennial in February 2016, and the 578-acre Anschutz Medical Campus and Fitzsimmons Innovation Campus, a $5.2 billion project expected to bring 43,000 new employees just 15 minutes from Helios.

“Both properties were built to a very high standard and are located in the coveted Denver South Metro area which contains a diverse employer base. The Denver Tech Center Business Corridor currently has over 1.2 million square feet of office space either under construction or in the planning stage,” said Peter Calatozzo, Managing Director for The Praedium Group. “With Denver’s expansion of its mass transit system, both assets will also benefit from 122 miles of rail along six new lines,” added Calatozzo.

RICHARDSON, TX – RealPage announced its agreement to acquire Lease Rent Options (LRO) and related assets from The Rainmaker Group for $300 million in cash. LRO is a revenue management solution that empowers optimized pricing for over 1.5 million apartments. LRO, coupled with the recent acquisition of Axiometrics, expands RealPage’s suite of solutions for precision data analytics and asset optimization for the rental housing industry.

According to RealPage, the acquisition will better position RealPage to penetrate an emerging global market opportunity to optimize operational and transactional yields for rental housing assets; Expand the company’s real-time lease transaction data, which is expected to improve optimization of new and renewal prices for rental housing leases; Provide additional data science talent and data modeling tools that allow for better harvesting and placement of capital in the rental housing industry.

The industry is ripe for adoption: RealPage estimates that less than 10% of owners and operators of the 45 million rental housing properties in the U.S. currently utilize data-driven pricing science. International markets are believed to possess an even lower rate of adoption for asset optimization software and data analytic solutions.

Adds 500,000 new units opening up cross selling opportunities for other products and services offered by RealPage.

Steve Winn, Chairman and CEO of RealPage stated, “With many apartment markets softening around the U.S., now is the right time to bring together the best data-science talent, a comprehensive lease-transaction database, and RealPage’s powerful suite of pricing, demand and credit optimization tools into one comprehensive platform. Price optimization creates real opportunity to increase asset values and yields from the nearly $3.0 trillion of apartment stock in the U.S. that turns over at approximately $150 billion per year. As revenue management becomes more broadly accepted, we expect our combined platform to drive accelerated, sustained revenue growth in our Asset Optimization product family over the long-term. We believe we have all of the components necessary to offer solutions that bring efficiency and precision to the apartment real estate sector which has historically lacked the solutions available in other investment classes.”

Bryan Hill, CFO and Treasurer of RealPage added, “The acquisition of LRO fits within our capital allocation strategy of generating the highest risk-adjusted returns for our shareholders. We expect the acquisition to be immediately accretive to our adjusted EBITDA margin, contributing to our ongoing objective to expand adjusted EBITDA margin approximately 200 basis points per year. The transaction will be financed through an expanded debt arrangement with our current bank syndicate.”

The completion of the acquisition remains subject to certain standard conditions, and is expected to close during the second quarter of 2017. The acquisition purchase price of approximately $300 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. For the year ended December 31, 2016, the LRO business possessed revenue and EBITDA of $35.6 million and $10 million, respectively. Integration work is expected to be completed in 2018 and RealPage expects to achieve incremental revenue and expense synergies that will be accretive to its long term revenue growth objectives and Adjusted EBITDA margin expansion.

Bruce Barfield, CEO and Founder, and Tammy Farley, COO and Founder, are expected to remain with The Rainmaker Group to run the gaming and hospitality division, but have agreed to work closely with RealPage during a transition period immediately after the acquisition is closed.

KELLER, TX – Olympus Property and Artemis Real Estate Partners are proud to announce the closing acquisition of their 4th multi-family joint venture, the Keller Portfolio. These three Class A properties consist of 679 units in the upscale city of Keller, a Dallas-Fort Worth suburb.

The Stoneleigh Companies originally developed these three properties, which Olympus Property and Artemis purchased from Stoneleigh. These three Keller properties have been rebranded as Olympus Town Center, Olympus Stone Glen, and Olympus Waterford effective immediately.

Due to scarcity of land, rising construction costs and increasing restrictions on multifamily development in Keller and surrounding communities, the premier Keller / Southlake submarket offers residents a family friendly community with premier schools, easy airport access, and a central location between both Dallas and Fort Worth.

“As a former Keller resident, I can truly tell you it’s a phenomenal place to live and these three properties are in prime locations in Keller,” said Anthony Wonderly, Principal of Olympus.

The Keller / Southlake submarket features a plethora of nearby job drivers, including the nearby regional economic powerhouse known as Alliance Texas, a master-planned development spanning 18,000 acres, employs 44,000 people.  Nearby these properties in Westlake are the corporate campuses of Schwab, Deloitte and Fidelity employing an additional 2,500 people.

“Keller is a strong rental market with the Portfolio representing some of the best locations and highest quality assets in the submarket.  The Portfolio is ideally positioned to offer residents seeking top schools, great amenities and proximity to employment centers a variety of options across the three properties,” said Liah Chin, Vice President at Artemis.

NEW YORK, NY – Jonathan Rose Companies is purchasing Forest City Realty Trust’s Affordable Housing Business, including 48 affordable housing communities in seven states, totaling nearly 8,500 units, Forest City Capital, an MAP designated FHA Lender and Forest City’s affordable housing property management group. The deal is valued at over $500 million. The acquisition will bring Jonathan Rose Companies’ total unit count over 15,000 nationwide and expand its operations to 15 states and the District of Columbia.

The properties, management company and mortgage company will be rebranded with the Rose Communities name. The management company will be renamed Rose Community Management, building on Forest City’s reputation for quality management, adding Rose’s focus on green buildings and communities of opportunity. The properties acquired range from the company’s traditional areas of focus from California to Connecticut, while adding new states to the portfolio including Ohio and Michigan.

The finance company will become Rose Community Capital, with the goal of expanding Forest City Capital’s 47-year history of providing FHA loans to clients’ affordable and mixed income residential projects in the Midwest and the Northeast. Rose plans on expanding its geographic footprint and volume.

The transactions are scheduled to close throughout the first and second quarter of 2017. The management company and Forest City Capital are scheduled to be transferred on March 1, 2017. The acquisitions have been approved by Forest City’s board and the closings, which require HUD approvals, will continue through the spring of 2017.

To this major expansion, Jonathan Rose Companies is adding a Cleveland office to its national footprint, where it is retaining Forest City’s property management team consisting of 45 people, as well as their entire field staff for the portfolio of over 200 people.

“Jonathan Rose Companies was selected to purchase this portfolio because of its long reputation of preserving, renovating and re-positioning affordable housing, and Forest City Realty Trust’s ongoing relationship with the firm’s principals,” said Michael Daly, Chief Operating Officer of Jonathan Rose Companies, who played a key role in the deal and previously was a Forest City executive.

A majority of the buildings were constructed in the late 70’s and early 80’s as part of the Forest City Dillon Program, and consist of pre-fabricated concrete mid-rise structures that are in excellent condition.

Jonathan Rose Companies’ goal is to take each of the properties through the Enterprise Green Community Program, which includes capital improvements aimed at achieving measurable reductions of energy and water use and climate impact. Jonathan Rose Companies will also increase social programming at each asset to improve the lives of its residents.

“Jonathan Rose Companies has long been a leader in the greening of affordable housing. We are now pleased to add to this the goal of systemically advancing the social, health and educational outcomes of our residents,” said Jonathan F.P. Rose, president and CEO of Jonathan Rose Companies.

This transaction furthers Jonathan Rose Companies’ commitment to investing, preserving and greening affordable housing for its investment platform nationally. The addition of the management company and finance company expands our ability to meets our goals and mission.

NEW YORK, NY – Mortgage rates moved up slightly from one week ago, with the benchmark 30-year fixed mortgage rate nosing higher to 4.31 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 increased to 4.30 percent and the average 15-year fixed mortgage rate inched higher to 3.49 percent. Adjustable mortgage rates also moved up, with the 5-year ARM rising to 3.48 percent and the 10-year ARM returning to 3.87 percent.  

Mortgage rates had moved lower for a few days as skepticism in financial markets about fiscal policy changes began to grow. But that all changed following President Trump’s speech before a joint session of Congress, with the fervor for lower taxes, less regulation and more infrastructure spending renewed. Both bond yields and mortgage rates moved higher, with mortgage rates more than erasing the declines seen in the preceding week. Mortgage rates are closely related to yields on long-term government bonds.

At the current average 30-year fixed mortgage rate of 4.31 percent, the monthly payment for a $200,000 loan is $990.92.

SURVEY RESULTS

30-year fixed: 4.31% — up from 4.29% last week (avg. points: 0.27)
15-year fixed: 3.49% — up from 3.48% last week (avg. points: 0.23)
5/1 ARM: 3.48% — up from 3.45% 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 majority of panelists, 70 percent, expect mortgage rates to keep climbing, while 30 percent predict that mortgage rates will remain more or less unchanged in the coming week. None of this week’s respondents expect a decline in mortgage rates over the next week.

(RECAP: Local government representatives, nonprofit leaders, and mortgage and banking industry representatives will be among those presenting workshops and exhibits at the seventh annual Northern Virginia Housing Expo for renters and prospective home buyers. The expo is hosted by Fairfax-based nonprofit AHOME Foundation in cooperation with the Virginia Housing Development Authority (VHDA); Arlington, Fairfax and Loudoun counties; the cities of Alexandria and Falls Church; and the Town of Herndon. Numerous organizations sponsor the expo, including VHDA and the Northern Virginia Association of Realtors.)

(RECAP: A new form of proposed zoning has some in Charlottesville on edge, worried that it could be used to force out poorer residents. Nearly 200 people attended an information session last week at the Jefferson School African American Heritage Center to learn about form-based code, a different type of zoning ordinance that focuses on a building’s size and style instead of its use. In 2012, about 3,000 people were living in the city’s Strategic Investment Area, with a median household income of $28,309. The current median income for the city is $84,100, according to the Virginia Housing Development Authority.)