Author: ipgocorp

(RECAP: A complex and controversial redevelopment project including a new school, park, fire station, affordable-housing building and two residential-retail high-rises in the western Rosslyn neighborhood won final approval from the Arlington County Board on Saturday.)

TAMPA, FL – Independence Realty Trust announced the acquisition of an apartment community located in Tampa, Florida for a purchase price of $29.75 million. IRT used available cash and its line of credit to acquire the community.

Located in Tampa, Florida the 216 unit apartment community was constructed in 1985 and was extensively renovated in 2016.

Situated in the Northdale neighborhood of Tampa and more specifically in the Dale Mabry retail corridor, the community benefits from its close proximity to retail, highly rated schools and easy access to Tampa’s major highways.

The property contains one and two bedroom units with an average unit size of 925 square feet. As of February 22, 2017, the occupancy of the property was 93% and had an average effective rent per occupied unit of $1,192 ($1.29/sf) for the three months ending January 31, 2017.

“This acquisition represents our commitment to improve the quality of the portfolio as we divest of our class C communities and reinvest into Class B communities that are in well located, mature neighborhoods with limited competition from new construction,” said Scott Schaeffer, Chairman and CEO of IRT.

Independence Realty Trust is an internally-managed real estate investment trust that seeks to own well-located apartment properties in geographic submarkets that it believes support strong occupancy and the potential for growth in rental rates.

TEMPE, AZ – Preferred Apartment Communities announced the acquisition of a 225-unit, 640-bed student housing community located near Arizona State University in Tempe, Arizona. 

PAC acquired this asset through its wholly-owned subsidiary Preferred Campus Communities.   

“We believe this property is a premier, well located student housing asset, providing residents with immediate access to the Arizona State campus.  We feel the modern features, including a computer lab, two interior court yards, a 24-hour fitness center, and other student-centered amenities are extremely attractive to the resident base,” said Paul Cullen, PAC’s Chief Marketing Officer and Chief Executive Officer of PCC.

PCC financed the acquisition using its newly closed Revolving Credit Facility with Freddie Mac and KeyBank.  The Facility provides for aggregate borrowings of up to a maximum amount of $200 million, subject to increase to $300 million in KeyBank’s sole discretion, has a five year term, and a floating interest rate that is dependent on the type of property in the Facility and the leverage level of each individual asset. 

For this acquisition, PAC borrowed $37.5 million on the Facility at a floating interest rate 220 basis points above 30-day LIBOR for a term of five years.  There are no loan guaranties provided by PAC and no properties acquired under the Facility will be cross-collateralized.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.

REDWOOD CITY, CA – Apartment Investment and Management Company (Aimco), City Councilmember Janet Borgens and members of the Redwood City, San Mateo County Chamber of Commerce celebrated the grand opening of Indigo Apartment Homes in Redwood City. Aimco, the owner and manager of Indigo, acquired the community for $320 million and partnered with developer PAULS Corporation.

“We are thrilled to mark the grand opening of Indigo and its expansion of Aimco’s investment in the Bay area,” said Aimco Chief Investment Officer John Bezzant. “We are pleased to share this event with representatives of Redwood City who have welcomed us enthusiastically. Our Indigo residents take advantage of their outstanding location close to public transportation, major employers and a host of recreational opportunities within walking distance, and enjoy all of the comforts of upscale apartment living.”

“We appreciate Aimco’s investment in Redwood City and we welcome Indigo to this thriving neighborhood,” said Councilmember Borgens. “Our City continues to experience a renaissance and Aimco is playing a part in enhancing its economic vitality.”

Indigo is a ten-story luxury community of 463 well-appointed apartment homes featuring high ceilings, hardwood flooring, oversized windows, contemporary kitchens with designer hardwood cabinetry with several apartments accented by private patios or balconies. Indigo also offers 44 impeccably outfitted penthouse level units with exclusive 10th floor access, designer kitchens, top-flight finishes and spectacular views.

Indigo’s premier location within downtown Redwood City is approximately 25 miles southeast of San Francisco and on the northern edge of Silicon Valley, with easy access to both via CalTrain and adjoining freeways.  Downtown Redwood City serves as a focal point of the larger surrounding residential community, with a thriving restaurant, entertainment, and cultural scene, as well as a growing community of technology related jobs.

Indigo offers residents extensive onsite amenities including an 18,000 square foot sundeck with a saltwater swimming pool, outdoor workout space and spa with an adjacent indoor fitness center including a yoga and spin studio.  Social gathering spaces include an open air cabana lounge with a fireplace and an outdoor theater.

The first residents moved into their new homes in July and the community is currently 80 percent leased.

NEW YORK, NY – Extell Development Company announced another sales achievement for its record-selling condominium tower, ONE57. In the last six months, the landmark building – with the most expensive condominium sale in New York City history – achieved over $169 million in sales, including the last full floor residence and eight residences from the recently unveiled One Collection.

“ONE57 set the bar for luxury living in Manhattan and is the first completed super-tall on 57th Street.  All remaining residences are available for immediate occupancy,” said Anna Zarro, Senior Vice President of Residential Sales for Extell Marketing Group. “It is the only building on 57th Street that offers hotel services and it continues to attract buyers seeking a one-of-a-kind luxury living experience.”

The 12 sales total over 34,600 square feet within the 90-story tower. Details of the sales include: eight residences from the One Collection, including five two-bedroom residences, two three-bedroom and a one-bedroom residence with a home office. The residences from the One Collection are available as turnkey and fully furnished. Also sold were four of the tower residences, including the last full floor residence, two half-floor residences and a three-bedroom. The residences were sold to both domestic and international buyers interested in the building for its location, soaring Central Park and Manhattan skyline views, unparalleled amenities and luxury services from the five-star Park Hyatt New York hotel.

Envisioned by a team of world-class talent, ONE57 is an architectural masterpiece, located at 157 West 57th Street in the heart of the famed Plaza District and across from historic Carnegie Hall, the 1,004-foot tower was designed by Christian de Portzamparc with interiors by New York-based Danish designer Thomas Juul-Hansen. 

Poised above the award-winning Park Hyatt New York hotel, all ONE57 residents have full access to the Park Hyatt’s five-star amenities and hotel services. Additional residential amenities include a 24-hour doorman and concierge, screening and performance space, on-site parking, triple-height indoor swimming pool and custom Jacuzzi, library, dining room, catering kitchen, and private fitness center. The Park Hyatt New York is the North American flagship for the Park Hyatt brand, offering 210 guestrooms and Park Hyatt’s uniquely personalized service. The Park Hyatt was recently named the top hotel in New York City by U.S. News and World Report.

HOUSTON, TX – The Carter, one of Houston’s newest luxury living communities, is holding a ribbon cutting ceremony, alongside the Greater Houston Partnership and the Montrose District. With residences on floors 1-18 available for immediate move in and penthouses coming soon, StreetLights Residential celebrates the grand opening of the 20-story tower located at 4 Chelsea Blvd.

The Carter is designed for those who desire a lifestyle of refined comfort in the center of Houston’s Museum District. The community offers easy access to local restaurants, retail shops and several museums including The Museum of Fine Arts, Houston. Full of architectural details, refined finishes and five-star amenities, The Carter is only a short distance from Hermann Park, Midtown, Downtown, the Texas Medical Center and Rice University. 

“Our design-driven philosophy led us to create a traditional and sophisticated environment for The Carter with a modern attitude, taking inspiration from the Montrose neighborhood and surrounding areas of the Museum District,” said StreetLights CEO Doug Chesnut. “Our intent was to construct a building that interacts with the community and the street. We are pleased with the final product and believe that our residents will appreciate the amenities and lifestyle The Carter has to offer.”

The Carter’s 305 residences include a variety of one-, two- and three-bedroom apartment homes, along with four townhomes and five penthouses. Residences range in size from 723 square feet for a one-bedroom to 3,329 square feet for the largest penthouse. Each spacious floor plan comes complete with 10-foot ceilings, granite countertops and backsplashes, custom cabinetry, hardwood flooring, gourmet prep islands and stainless steel appliances.

The community, which is managed by Lincoln Property Company, offers boutique hotel amenities including an exquisitely designed resident bar, fire place seating overlooking the pool courtyard, 24-hour concierge service and an expansive fitness center. The second level offers a conference center and pet washing room with blow dryers. The Carter also provides valet service, a pet park, private garages and private storage units. Additionally, residents can take advantage of the 19th level penthouse lounge which includes a billiards room, card table and an entertainment area.

The architecture was designed by GDA Architects and the landscape was designed by Lynda Tycher & Associates. Interior design was a collaboration of StreetLights Residential and 5G Studio and SLR Texas Construction served as the general contractor.

StreetLights Residential specializes in new urbanist apartment homes and mixed-use developments. StreetLights has numerous urban infill projects throughout the country with more than 9,400 multifamily units completed, in progress or projected in 11 cities across six states.

MIAMI, FL – Belay Investment Group acquired a 49% interest in five multi-family communities assembled by Eagle Property Capital Investments and simultaneously, entered into a programmatic joint venture (Belay-EPC PJV) to acquire and reposition up to $269 million of multifamily properties, primarily in select, high density submarkets in Florida and Texas.

Belay-EPC PJV will target Class B & C properties of 150+ units with clear path to value creation, through repositioning strategies including both capital and operational improvements, and optionality around an institutional exit. The niche strategy positions apartment communities to capitalize on the need for quality workforce housing in high growth markets, catering to middle income renters and capturing the significant growth of the middle income segment of the Hispanic population, the fastest growing demographic in the U.S. Hispanic households have a high propensity to rent and are projected to account for more than half of the growth in renter households through 2023.

EPC, headed by co-founders Gerardo Mahuad and Rodrigo Conesa, is the sponsor of EPC Multi-family Partners III (EPC Fund III), which holds a 51% interest in the acquired portfolio and will co-invest alongside the Belay-EPC PJV for future acquisitions.

Vidalta Property Management, wholly owned by the EPC and its senior management team, will manage the properties and execute the value-enhancement strategies.

Belay’s investment in Belay-EPC PJV comes from Belay Partnership Ventures II, which is anchored by a $200 million commitment from a U.S. public pension fund and is targeting $500 million of equity. For over 10 years, the management team has pursued value-added real estate strategies in major U.S. markets through collaborative investment programs designed to ensure unique access to compelling investment opportunities while identifying, and supporting the growth and evolution of, high caliber operating partners.

“We are very excited about our venture with EPC to pursue a strategy that so clearly capitalizes on one of the strongest demographic trends in the U.S., the growth of the Hispanic middle class,” said Barry Chase, Managing Principal of Belay. “EPC’s tremendous success driving value across their portfolio is a testament to Gerardo and Rodrigo’s commitment to their cultural heritage and recognition that when families take pride in their community, they respond accordingly and recruit their friends and extended family as neighbors,” added Suzanne West, also a Managing Principal of Belay.

“Our partnership with Belay marks a significant point in the evolution of our firm. It will uniquely position EPC as a leader in our business segment. We will draw on Belay’s industry-leading expertise and best business practices to enhance and strengthen our investment management platform,” said Gerardo Mahuad, Managing Principal of EPC. “We are delighted to have partnered with Belay and to benefit from Belay’s superior industry knowledge and business insight. Their collaboration in our venture will prove essential in the execution of our business plan,” added Rodrigo Conesa, Managing Principal of EPC.

SANTA FE, NM – A $500,000 Affordable Housing Program (AHP) grant from New Mexico Bank & Trust and the Federal Home Loan Bank of Dallas (FHLB Dallas) will help fund a $15 million renovation project at Pasa Tiempo, a 121-unit apartment community in Santa Fe, New Mexico, for senior citizens.

Pasa Tiempo (Spanish for “pass the time”) will receive significant upgrades, thanks in part to the grant. The renovation project will include new energy-efficient heating and cooling systems, kitchens and bathrooms. Additional upgrades will include new fixtures, trim and doors.

The grant was awarded to Santa Fe Civic Housing Authority (SFCHA), a community-based organization that is spearheading the project. This grant is one of three AHP grants awarded to SFCHA. Last year, the organization was awarded a $500,000 AHP grant for Villa Hermosa, another apartment community for seniors, as well as Village in the Bosque in nearby Bernalillo, New Mexico.

“The upgrades will allow the senior residents to age in place more comfortably,” said SFCHA Executive Director Ed Romero. “Without the AHP grant, this project would not have been possible.”

Pasa Tiempo is comprised of six courtyard buildings containing 115 one-bedroom and six two-bedroom units. The project will be constructed in accordance with Leadership in Energy and Environmental Design (LEED) green building standards and will also feature a rooftop photovoltaic system, which will use the sun to generate some of the building’s energy.

Rehabilitation will begin in May 2017 and will be completed in early 2019.

“New Mexico Bank & Trust is proud to facilitate projects that help the senior community,” said New Mexico Bank & Trust Regional President Max Myers. “Through our partnership with FHLB Dallas, we are able to make Santa Fe a better place to live for seniors.”

FHLB Dallas annually returns 10 percent of its profits in the form of AHP grants to the communities served by its member institutions, like New Mexico Bank & Trust. AHP grants fund a variety of projects, including home rehabilitation and modifications for low-income, elderly and special-needs residents; down payment and closing cost assistance for qualified first-time homebuyers; and the construction of low-income, multifamily rental communities and single-family homes.

“The AHP provides valuable gap funding so projects such as Pasa Tiempo can be completed,” said Greg Hettrick, first vice president and director of Community Investment at FHLB Dallas. “Thanks to our partnership with New Mexico Bank & Trust, the residents of Pasa Tiempo will enjoy a higher quality of life.”

AUBURN, AL – EdR, one of the nation’s largest developers, owners and managers of high quality collegiate housing communities, announced it acquired 319 Bragg, serving Auburn University in Auburn, Alabama.

Built in 2014, 319 Bragg includes 305 beds pedestrian to the Auburn campus in a mix of two, three, four, and five-bedroom floor plans. This highly amenitized community features a study lounge with individual study rooms, access gates, covered parking, 24 hour fitness center with locker rooms, resort style pool with cabanas and dog park.

“This community ranks among the finest in the Auburn market and strengthens our presence in the Southeast,” said EdR president Tom Trubiana. “We are excited to have this community as a part of our portfolio.”

Established in 1856, Auburn University has an enrollment of 28,290 which is up 11.4 percent since 2010. It has earned land-grant, sea-grant and space-grant research designations. It is regularly among the top 50 in U.S. News and World Report’s annual public university rankings. Its programs in architecture, pharmacy, veterinary science, engineering, forestry and business are recognized as some of the best in the country.

EdR is one of America’s largest owners, developers and managers of collegiate housing. EdR is a self-administered and self-managed real estate investment trust that owns or manages 88 communities with more than 45,800 beds serving 55 universities in 25 states.

NEW YORK, NY – Investcorp, a leading provider and manager of alternative investment products, announced that its U.S.-based real estate arm has invested in three multifamily housing properties in New York, California, and Nevada for a total purchase price of nearly $400 million. All three properties are located in markets which benefit from robust fundamentals in the multifamily space.

Mohammed Alardhi, Executive Chairman of Investcorp stated, “As we look to the next phase of growth for Investcorp, we have great confidence that the U.S. is a place where our investments will continue to serve our global client base well, as we believe the U.S. economy is poised for significant growth. We have a long history of investments in the U.S., and our $1.2 billion investment in residential properties in the past 18 months demonstrates our belief that the U.S. real estate market provides high-quality investments that will generate steady returns in the years to come.”

“During the past 18 months we have continued to invest actively in the residential space, having purchased a diverse portfolio of well-leased multifamily and student housing assets”, said Herb Myers a Managing Director in Real Estate Investment at Investcorp.  “We believe that the outlook for the multifamily and student housing sectors remains strong and these investments generate attractive annual yields in a low-yielding global environment.

Atlantic Point is a 795 unit, Class A, 115 acre multifamily housing property located in Bellport, New York, which is located within the Nassau County-Suffolk County Metro Division. Suffolk County is one of the tightest multifamily housing markets in the U.S. with a vacancy rate of 2.9%. Given the high cost of land and strict zoning regulations which makes it difficult to build, the area has seen minimal new development since the 1990s. This has led to a favorable supply / demand imbalance in the overall market. The region is home to Brookhaven National Lab, Stony Brook University, Brookhaven Memorial Hospital and Stony Brook University Hospital.

The Highlands is a 556 unit, Class B, garden-style multifamily housing unit in Grand Terrace, California, in the Riverside-San Bernardino MSA. In this area, the multifamily market leads the nation in rent growth, having logged 5.1% in rent growth in 2016.  Market-wide vacancy is projected to average 2.4% over the next five years.

Villas at Green Valley is a 609 unit, Class B, garden-style multifamily housing property located in Henderson, Nevada, in the Las Vegas MSA. The metro Las Vegas economy has rebounded strongly since the 2008/2009 downturn. As a result of factors like no state income tax, a low cost of living, and a favorable climate, population growth has exceeded 50% since 2000. Further, over the next five years, the metro area is projected to lead the nation in population, employment and real Gross Metropolitan Product (GMP) growth, all of which are expected to be solid drivers for multifamily demand.