Author: ipgocorp

BLOOMINGTON, IN – FM Capital announces the recent acquisition of an off-market five property 408-bed Student Housing portfolio adjacent to Indiana University’s main campus and downtown Bloomington.

Indiana University is currently experiencing record-high enrollment with strong growth over the past five years.

This further extends FM Capital’s Student Housing portfolio into the Midwest region and increases their total bed count, in currently owned assets, to over 2,000 beds.

“The high-barrier to entry and less crowded buyer pool for Student Housing continues to fuel our strategy,” says Eli Bobker, FM Capital’s Director of Business Development. “We are excited to expand our portfolio in the Bloomington market with these three residential walk-up properties located near the university’s football stadium and two luxury high-end mid-rise developments downtown.”

FM Capital plans to upgrade the properties and build a fully integrated social community with high-quality student-life experiences. This vision includes improved amenities such as advanced roommate matching, high-speed internet, spacious lounge and study areas, business-class printing options, events, job fairs, and full concierge services accessed through a mobile app.

FM Capital’s sourcing network, unique funding model, and dedicated management approach provides a competitive advantage in the Student Housing market. FM Capital is actively seeking and pursuing additional large-scale Student Housing commercial real estate investment opportunities. FM Capital is targeting newer vintage assets which offer affordable living options and are conveniently located near schools with increasing enrollment.

SAN FRANCISCO, CA – San Francisco-based private real estate investment firm Hamilton Zanze (HZ) marked a record year in 2016, reaching over $500 million in acquisitions, the firm’s best year yet. The milestone comes as HZ celebrates its 15th year in business and over $2.8 billion in acquisitions since its inception. Hamilton Zanze owns and manages 85 multifamily properties in 10 states including Arizona, Colorado, Georgia, Idaho, New Mexico, Nevada, Oregon, Texas and Washington.

Last year also marked Hamilton Zanze’s expanding footprint outside of the Southwest, with the purchase of a three-property investment in the Atlanta area, the firm’s first investment in the state of Georgia. The purchase signifies a continued confidence in multifamily investments as well as the firm’s focus on investing in communities where the economy is strong, employment is growing, and apartment demand is steadily increasing.

“We are committed to the long-term growth of our businesses on an incremental approach, which is how we have gotten where we are with HZ,” said Tony Zanze, COO and co-founder. “By expanding into new markets, we are setting the stage for a very long-term horizon in which we continue to seek and make investments in properties we understand and believe in, and provide for our investors’ financial security.”

Multifamily investments remain a solid option for investors as U.S. homeownership rates continue to fall. Per the U.S. Census Bureau, the percentage of Americans who own their homes declined to 63.7% in the fourth quarter, well below the record low of 65%. Millennials are deferring home-buying and starting families; instead, more are opting to remain in the family home or rent, citing affordability, student debt and convenience. And, as 75 million Baby Boomers are set to retire, the attractiveness of multifamily rental communities, including 55+ retirement communities, will continue to rise.

“Hamilton Zanze is positioned and structured for long-term growth and prosperity,” stated Mark Hamilton, CEO and co-founder. “We are always looking ahead at new programs and anticipating the future as different sources of capital come and go. We want to make sure our growth is thoughtful with higher quality and larger properties, offering more stable performance going forward.”

PORT ORCHARD, WA – A newly formed joint venture of New Standard Equities (NSE) and an affiliate of Brixton Capital has acquired Arbor Terrace, a 276-unit multifamily community in Port Orchard, WA, from Sea 1800 Sydney Avenue, LP in a transaction valued at $38.15 million.   

Arbor Terrace is the second acquisition in the immediate area in less than two months and third in Kitsap County in the past year for NSE, a Los Angeles, CA-based real estate investment and management company, noted CEO and founder Edward Ring.

“We love the value-creation opportunity at Arbor Terrace,” said Ring.  “When we initially looked at this asset we immediately saw a tremendous potential to improve the property’s cash flow through renovation.  Given that the US Navy is such a huge economic driver in the County, we became even more excited about the prospects for continued long-term growth in this submarket.”

NSE’s $3 million repositioning budget includes a full renovation of the asset’s 1995-vintage unit interiors, and improving the fitness center, leasing facility and general curb appeal of the property.

Arbor Terrace complements NSE’s recent $13.25 million value-add acquisition of the 120-unit Village Fair apartments in Bremerton, WA from a private seller. NSE plans to invest an additional $1.8 million to bring Village Fair, a 1984 vintage asset, up to modern standards.  The two assets, in combination with Sea Glass Village, a 182-unit community the firm purchased in March of 2016, brings NSE’s asset base in Kitsap County to 578 units, at a total cost basis of more than $65 million.

Andrew Kirsh, co-founder and head of the real estate practice at Los Angeles-based law firm, Sklar Kirsh LLP, represented the buyer in this transaction, and was instrumental in bringing together NSE and Brixton Capital Group.  “The market volatility following the election created a challenging atmosphere which seriously threatened the deal,” said Kirsh.   “I was happy to be in a position to bring the two groups together to launch an important new joint venture, not just for this transaction, but for other value add opportunities that will benefit both firms in the future,” he said. 

The acquisition was leveraged with a $30.15 million loan from Freddie Mac, which was arranged by CBRE’s Capital Markets Group led by Vice Chairman Brian Eisendrath.

NEW YORK, NY – Mortgage rates pulled back this week, with the benchmark 30-year fixed mortgage rate retreating to 4.29 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.29 discount and origination points.

The larger jumbo 30-year fixed fell to 4.28 percent, while the average 15-year fixed mortgage rate eased to 3.48 percent. Adjustable mortgage rates also moved lower, with the 5-year ARM sinking to 3.45 percent and the 7-year ARM dropping to 3.68 percent.

Mortgage rates continue yo-yoing up and down within a narrow range. In the past month, the benchmark 30-year fixed mortgage rate has remained within a range of just one-twelfth of a percentage point. Mortgage rates have been moving up and down as the focus shifts between improving economic data and the unknowns of forthcoming fiscal policy. This week mortgage rates moved lower amid uncertainty about the specifics of expected government stimulus and legislative changes. Mortgage rates are closely related to yields on long-term government bonds.    

At the current average 30-year fixed mortgage rate of 4.29 percent, the monthly payment for a $200,000 loan is $988.57.

SURVEY RESULTS

30-year fixed: 4.29% — down from 4.35% last week (avg. points: 0.29)
15-year fixed: 3.48% — down from 3.51% last week (avg. points: 0.22)
5/1 ARM: 3.45% — down from 3.51% 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. Half of the panelists don’t expect mortgage rates to change in the coming week, while one-third forecast a rebound. Just 17 percent predict further declines in mortgage rates in the next seven days.

(RECAP: Fairfax County supervisors on Feb. 14 unanimously approved a rezoning and final development plan that will allow Capital Automotive Real Estate Services (aka CARS LLC) to build Dominion Square West, a 1.7-million-square-foot development along Spring Hill Road in the north end of Tysons. The elongated, 7.63-acre property stretches west from Leesburg Pike near the Spring Hill Station on Metro’s Silver Line. The developer will construct six buildings, including a pair of up-to-400-foot-tall office buildings, which would be located near the Metro station; 90,000 square feet of retail space; and two multi-family residential towers with up to 1,150 units, 20 percent of which will be affordable housing.)

(RECAP: Arlington County Board Chair Jay Fisette will not seek re-election this year, capping two decades of service on the Board. Fisette, who first took office in 1998, is currently the longest-serving Board member. In a phone interview today, he said he has been weighing for months whether to run for another term.)

(RECAP: The recent decision by Fannie Mae to backstop nearly $1 billion in debt issued by Blackstone Inc., a private company that buys single-family rental homes, was “bad policy,” according to Lawrence Yun, chief economist for the National Association of Realtors. The Realtors have expressed concern about the growing popularity of investor-owned homes for rent in past months. One of the housing market’s biggest hurdles recently has been the lack of available supply for purchase. That means not just fewer choices for buyers, but higher prices as well.)

(RECAP: Now that the MBA has announced its proposed fix for Fannie Mae and Freddie Mac, industry experts are offering various opinions concerning the future of the GSEs. Although the full version of the MBA’s “GSE Reform Principles and Guardrails,” prepared by the MBA’s Task Force for a Future Secondary Mortgage Market, will not be available until April, the association recently offered some highlights of what the future end state should be built upon. Among the principles are the following: preserving the 30-year, fixed-rate, single-family mortgage; maintaining a deep, liquid to-be-announced market for conventional single-family loans; an explicit government guarantee of eligible MBS-backed mortgages; addressing the availability of affordable housing; and equitable, transparent and direct access to secondary market programs for lenders of all sizes and business models.)

(RECAP: The City of Falls Church is proud to announce the seventh annual Northern Virginia Housing Expo on March 18 at Sterling’s Dominion High School in Loudoun County, Virginia. The event is hosted by Fairfax-based nonprofit AHOME Foundation in cooperation with the City of Falls Church and other municipalities across Northern Virginia. Anyone looking for an affordable place to live in Northern Virginia should plan to attend the event, which will showcase both home ownership and rental opportunities and resources throughout the area.)

IRVINE, CA – Sanderson J. Ray Development announced ground breaking on The Westerly, a new Class-A luxury apartment development located on the southwest corner of Main St. and Jamboree Rd. in Irvine, California. The development marks Sanderson J. Ray’s first large-scale luxury apartment complex.

The Westerly is located on a 5-acre high profile parcel in the Irvine Business Complex.

The completed project will include 388 modern luxury apartment units with a rooftop deck lounge and access to private community pools. Some of the features include a rooftop sunning pool, outdoor lounges, and a private resident’s lounge with full bar. The gated building features a tree-lined entry featuring upscale landscaping and countless styled retreats.

Timothy R. Hawthorne, Founder and Principal of Hawk Holdings, a Newport Beach-based real estate advisory firm, acted as the capital advisor to Sanderson J. Ray Development on the overall transaction structure. Hawk was also responsible for securing the equity partner. The capitalization structure met Sanderson J. Ray Development’s objective in holding a legacy asset long term. The construction and permanent financing was provided through Quadrant Real Estate Advisors.

“We are extremely excited to develop such a unique residential project in the market,” commented Michael Ray of Sanderson J. Ray Development. “Tim Hawthorne was an instrumental partner in getting the project capitalized and funded successfully.”

Dallas Texas-based Streetlights Residential is general contractor and co-developer with Sanderson J. Ray Development. StreetLights Residential was founded as a design-driven, vertically integrated development firm with a focus on multifamily apartment homes and mixed used developments.

Architects Orange was the chief architect on the project. Construction on the site officially began in November of 2016 and the project completion is estimated for January of 2019.