Author: ipgocorp

PHOENIX, AZ – Alliance Residential Company, the nation’s largest multifamily developer and seventh largest multifamily manager, is bringing five new luxury communities with more than 1,300 new units to prospective residents across the Valley.

Headquartered in Phoenix since 2000, Alliance has a major development and management presence in the area with over 42 communities in various neighborhoods including Phoenix, Scottsdale, Tempe, Chandler and Gilbert. All of the new metro-Phoenix apartment properties are Alliance’s signature Broadstone communities, built in desirable neighborhoods and offering an exclusive lifestyle and extraordinary amenities.  Since 2013, Alliance has developed or is currently developing 10 communities (more than 2,670 units) throughout the Valley.

“The Metro Phoenix area has proven to be a thriving business environment which continues to support development of Class A residential communities,” said Ian Swiergol, managing director for Alliance Residential Company. “Residents are attracted to properties with finishes and amenities that match or mirror the high-end nature of their locations. Alliance has been part of this growing and vibrant metro area for many years and adding these new communities cements our commitment to developing best-in-class properties in the region,” Swiergol said.

The recently opened Broadstone Fashion Center is a 335-unit community offering high-style apartments in Chandler’s Fashion District. Located at 555 S. Galleria Way, within walking distance of Chandler Fashion Center, Broadstone Fashion Center is a stylish icon in Chandler where living meets laidback luxury. Studio, one- and two bedroom apartments ranging from 669 square feet to 1,306 square feet are currently available for rent from $1,000 $1,950. Resident amenities include social gaming and technology lounges, decked-out fitness spaces, a sparkling pool with shaded cabanas, and a private pet park. Known as “The Silicon Desert,” Chandler is one of the fastest growing high-technology cities in the west and Broadstone Fashion Center is in the thick of it all.

Broadstone Arts District, which is now open for pre-leasing, is Alliance Residential’s latest downtown Phoenix luxury apartment community. The 280-unit community located in the heart of the dynamic Arts District connects downtown to historic neighborhoods including Garfield, Evans Churchill, F.Q. Story, Willo, Roosevelt, Historic Roosevelt and Grand Avenue. Located at 222 E. McDowell Road adjacent to the Phoenix Theatre and Phoenix Art Museum, Broadstone Arts District is a sensory living experience where art, design and culture come together. The studio, one- and two-bedroom apartments and penthouse options are available from 606 square feet to 1,148 square feet with rents ranging from $1,200 to $2,950. Community amenities include the two-story Gala Room with an upscale chef’s kitchen, a social and gallery flex space known as the Canvas @ Broadstone and the Art Promenade that is equipped with a sprawling gaming area and outdoor dining spaces. Residents are next door to the Phoenix Art Museum, walking distance to Roosevelt Row and steps from the light rail.

Broadstone Roosevelt is a 316-unit community located at 330 E. Roosevelt in downtown Phoenix. Currently under construction, the community will offer residents studio, one-, two- and three-bedroom apartments, as well as brownstones when it opens for pre-leasing in the fall of 2017.  Situated in the notable Roosevelt Row district which has become nationally known for its arts and cultural events, galleries, live music and award-winning restaurants, Broadstone Roosevelt will continue this community spirit and house retail and restaurant space connected to its lobby, open to residents and the public.

Broadstone Gilbert Heritage, a 256-unit community located at 230 E. Civic Center Drive, is currently under construction in downtown Gilbert and will open for pre-leasing in the summer of 2017. Broadstone Gilbert Heritage will offer carriage, one-, two and three-bedroom apartments and is situated adjacent to the Gilbert Civic Center and Gilbert Town Hall and is bordered by the emerging Downtown Gilbert Heritage District, filled with cultural attractions, restaurants, shops and parks.

Broadstone Lakeside will offer studio, one-, two- and three-bedroom apartments ranging from 624 to 1,875 square feet. Located at 500 W. 1st Street, the 150-unit community in the heart of Tempe is within walking distance of Tempe Town Lake and offers a light rail stop less than a half-mile way, giving residents easy access to Arizona State University and downtown Phoenix. The community is being designed to serve the growing urban employee demographic that occupies the millions of new Class A office space recently developed along Tempe Town Lake.  This community is currently under construction and will be open for pre-leasing near the end of 2017.

DALLAS, TX – Balfour Beatty Campus Solutions, a leading developer and operator of infrastructure projects for the college and university market, along with Dallas-based developer Wynne/Jackson and lead equity partner Star America, announced they have reached financial close on the second phase of a mixed-use project for The University of Texas at Dallas.

In this phase, the development team will expand on the Northside Phase 1 development, delivering an additional 275 housing units and more than 6,600 square feet of retail space valued at $67M as part of a Public-Private Partnership.

Located on more than 12 acres adjacent to Northside Phase 1, which opened in 2016, the Phase 2 project will include mid-rise apartments and townhomes that will add 900 beds, as well as additional shops, restaurants and entertainment venues to serve the nearly 27,000 students, faculty, staff and young professionals of the University and the greater Richardson, Texas area. The community will also include spaces for small gatherings, as well as a fitness facility, programmed courtyard amenity with a resort-style pool and generous patio areas located in a park-like environment.

The project is being developed in partnership with Dallas-based residential and commercial developer Wynne/Jackson and New York-based infrastructure developer Star America. Andres Construction, also Dallas-based, will lead the overall design/build team, featuring Architecture Demarest as the lead design firm.

“Northside 2 is the next phase of what we envision to be a transit-oriented development that encourages a live, work, study and play environment for students, faculty, staff and the community,” said Dr. Calvin D. Jamison, vice president for administration at UT Dallas. “When this project is completed, we will have more than 7,000 students living on or near campus, and this phase will offer enhanced housing and retail opportunities to support our growing campus and community.”

Construction of the project has commenced and will be delivered in August 2018 in preparation for the 2018-2019 academic year. Upon completion, the housing will be operated by Balfour Beatty Communities. The development team has secured a 61-year ground lease with the University to develop the project which will be 100 percent financed through developer equity and conventional construction financing provided through First United Bank.

“We are quite pleased to continue our relationship with The University of Texas at Dallas and support their growth with new and expanded infrastructure,” said Bob Shepko, president of Balfour Beatty Campus Solutions. “The first phase of the Northside project has been very well-received by the students, faculty, administration and community, and we look forward to building on this success with Phase 2.”

MCLEAN, VA – Freddie Mac announced that the company delivered record financial support for the multifamily market in 2016 for targeted affordable housing, smaller multifamily properties, green housing, and seniors housing.

“These results underscore our commitment to serve every corner of the multifamily market, particularly those where the needs of renters are the greatest due to increasing rents and utility expenses and declining affordability,” said David Brickman, executive vice president of Freddie Mac Multifamily. “Looking ahead, we will continue to work with the industry to develop innovative ways to support affordable rental housing and improve energy efficiency.”

Freddie Mac Multifamily 2016 Mission Lending Highlights

Specifically, Freddie Mac Multifamily financed the following record-setting volumes in 2016:

More than $6.3 billion in targeted affordable housing loans, of which over $2.4 billion was for multifamily bond credit enhancements, and other guaranteed transactions.

Nearly $4.5 billion in small balance loans.

Almost $3.3 billion in Freddie Mac Multifamily Green Advantage(SM) loans for energy- and water-saving improvements in older workforce housing.

Just over $3.2 billion in seniors housing loans (including seniors apartments).

Freddie Mac also financed more than $1.0 billion in manufactured housing community loans, matching the volume it set in 2015.

In total, Freddie Mac financed a record total of $56.8 billion in loan purchases and bond guarantees in 2016, with nearly 90 percent of the homes financed affordable to low- to moderate-income renters who earn 100 percent or less of their area median income.

Freddie Mac Securitizes Record Volume, Transferring Risk to Third Parties

“We can provide continuous financing for affordable rental housing in a safe and sound manner because we transfer the vast majority of credit risk to private investors,” said Brickman. “We continue to build on the success of our proven K-Deals by developing innovative new risk-transfer vehicles that further enable us to serve our customers, protect taxpayers, and fulfill our mission to America’s renters.”

Last year, Freddie Mac issued a record $51.2 billion in K Certificates and SB Certificates plus an additional $1.0 billion in 55-Day Participation Certificates and Q Certificates.

Reflecting the strong credit performance of its multifamily business, Freddie Mac also reported credit losses of only 0.1 basis points in 2016 and a delinquency rate of only 3 basis points as of December 31, 2016. The delinquency rate is based on the unpaid principal balance of multifamily loans that are two or more monthly payments past due or in the process of foreclosure.

Freddie Mac Multifamily is the nation’s multifamily housing finance leader. Nearly 90 percent of the rental homes we fund are affordable to families with low to moderate incomes. Our mission is to provide liquidity, stability and affordability to America’s rental housing market, especially for underserved renters and communities.

SAN DIEGO, CA – Swinerton Builders and Trammell Crow Residential celebrated the topping out of the Alexan San Diego project. The project topped out at a final height of 220 feet, which includes a 19-story Type 1 apartment tower, a four-story Type V low-rise, with three levels of underground parking.

In all, the Alexan San Diego will feature 313 apartments with many upscale amenities, including an 18th Floor pool and spa overlooking the San Diego skyline and Pacific Ocean.

The project is expected to have first occupancy in the fourth quarter of 2017 and is located on the corner of 14th and K streets in the East Village neighborhood of downtown San Diego, one block away from the San Diego Public Library and just three blocks away from Petco Park.

The scope of construction work also includes rehabilitation of the historic Mexican Presbyterian Church on site. Swinerton has completed phase one of the relocation and will begin phase two and rehabilitation of the building early this spring.

Many partners joined Swinerton’s topping out celebration, which included an appreciation barbeque and raffle. Architect Bert Shear from Joseph Wong Design Associates attended, as well as many engineering firms, including DCI Engineering. Nearly all of the subcontractors celebrated as well, such as A&D, Baker, Burner, Sherwood, Surecraft, International Iron, JR Concrete, Atlas Mechanical, and Swinerton’s drywall group.

SILICON VALLEY, CA – Ten-X, the nation’s leading online real estate marketplace, released its latest U.S. Apartment Market Outlook, including the top five ‘Buy’ and ‘Sell’ markets for multifamily real estate assets.

The long-term forecast reveals the sector remains strong after years of booming growth, but may now be primed for a slowdown after far surpassing its prior cyclical peak.

The forecast indicates Sacramento, Calif., Las Vegas, Atlanta, Phoenix and Dallas are the top markets in which investors should consider buying multifamily assets. These regions are being fueled by robust local economies, with a steady influx of new jobs attracting residents still eager to forgo home ownership for the opportunity to rent in a large metropolis. 

San Francisco, New York City, San Jose, Calif., Miami and Milwaukee are the top markets where Ten-X Research estimates market conditions might cause multifamily investors to consider selling their properties. These cities have generally been at the forefront of the massive shift toward urban centers over the last decade, and are now coping with rising vacancies and flattening rents as new supply continues flooding the market.

The Ten-X Research report notes that a record 260,000 completions were reported in 2016, with another roughly 250,000 expected to arrive this year. While absorption remains strong, this massive infusion of supply will drive vacancies as high as 5.6 percent over the course of 2017 before climbing above 6 percent during a modeled cyclical downturn beginning in 2019.

The mild uptick has already begun to slow rent growth, as evidenced by a 0.7 percent seasonally adjusted increase in the third quarter – the slowest quarterly gain since 2013. Ten-X Research predicts rents will continue to grow by roughly 3 percent per year until 2018, before leveling off to roughly 1 percent gains in the two-year modeled downturn.

Ten-X also notes that home ownership, which has been declining sharply for years, has begun to show signs of stabilization. While demand for apartments should remain largely unaffected, absorption rates could slow should the trend begin to gain steam. Overall economic indicators, including steady employment growth and rising wages, may provide a boost to the market by pushing millennials saddled with student debt out of their parents’ homes and into the rental market.

“For years, the multifamily sector has been reveling in the spoils of a massive cultural shift toward urbanization and falling home ownership. As Americans continue to move to certain major cities in droves, developers have responded by making huge investments in those areas, flooding the market with new apartments,” said Ten-X Chief Economist Peter Muoio. “While many larger metros appear to have reached a critical mass of supply and are now seeing fundamentals begin to cool, a strong economy and more limited development continue to make multifamily an attractive bet for investors across the country.”

Effective rents were up 3.8 percent year-over-year in the third quarter, further extending their all-time peak, while strong absorption pushed nationwide vacancies down slightly to 4.3 percent. Cap rates showed a slight increase of 10 bps over the second quarter, moving to 4.9 percent.

Overall deal volume in the sector totaled $36.9 billion during the third quarter – an 8.1 percent increase from the same period in 2015.

SEATTLE, WA – Champion Real Estate Company announced the acquisition of Union Bay Apartments, a 73-unit multifamily apartment community with 2,976 square feet of commercial space in South Lake Union. The property was purchased by an affiliate of Champion for $24m and is located in a prime submarket of the core Seattle metro area.

The property was built in 1994 and has been family-owned for 23 years. It consists of generously-sized studio, one, and two bedroom units that cater to the various demographic groups in the area. The building also has one of the largest usable roof decks in South Lake Union with views of the Space Needle and Lake Union.

“The acquisition of Union Bay Apartments is consistent with Champion’s simple mission to own and develop in “A” locations where people want to live,” states Parker Champion, Senior Vice President. “South Lake Union has transformed into a critical economic engine for the Pacific Northwest and more recently the housing, daily needs, and lifestyle retail have followed the jobs.”

South Lake Union is a fast-growing technology and bioscience hub to companies like Amazon, Dropbox, Google, Facebook, WeWork, the Paul Allen Brain Institute, Fred Hutch Cancer Research, and Zymogenetics. With an influx of young professionals earning substantial incomes into the South Lake Union area, Union Bay Apartments is in a prime renter’s market.

Champion plans to unlock additional value by installing professional local management and providing residents with an upgraded, luxury lifestyle and living choice.

“South Lake Union is a true Live, Work, Play submarket,” states Parker. “With Union Bay Apartments, Champion has planted its flag in the Seattle market and we are looking to further expand our footprint there immediately.”

Champion Real Estate Company was founded in 1987 by nationally recognized investor, developer and CEO, Bob Champion. Based in Los Angeles, Champion’s strategy is to acquire infill properties in “A” locations within markets that are core, core adjacent, or gentrifying to core, and implement value accretive improvements.

(RECAP: An hour after Donald Trump took the oath of office last month, his administration caught the attention of the real estate industry when it abruptly suspended a planned cut in Federal Housing Administration mortgage-insurance premiums. The Department of Housing and Urban Development cited the need for further analysis to protect taxpayers in halting the policy that would have saved FHA-borrowers as much as $1,000 or more a year.)

(RECAP: The White House is considering a top official at Fannie Mae to head the Consumer Financial Protection Bureau, according to two people familiar with the discussion.)

(RECAP: Single women are the most popular users of FHA-backed loans within the Millennial population, a phenomenon that left experts at Ellie Mae citing several potential causes.)

SEATTLE, WA – Security Properties purchased Beaumont Grand, a 267-unit, Class B multifamily property located in Lakewood, WA for $35,200,000. The property was originally developed in 1995 and consists of 23 two and three story residential buildings spread out over more than 11 acres.

Geographically, the city of Lakewood is situated just 9 miles south of Tacoma and less than two miles east of the Puget Sound. The property’s strategic location also affords residents convenient access to two of the area’s largest employers. Joint Base Lewis-McChord, the largest military base on the west coast, is located ~15 minutes south and supports a total of 66,000 jobs. Additionally, the 800-bed Western State Hospital employs roughly 2,100 and is located less than one mile west of the property.

Lakewood is a submarket that has strong job drivers, but very limited supply. Since 2002 only two properties, totaling 306 units, have been built in the area with no planned future apartment developments. This, combined with the significant rent growth currently being experienced in Seattle’s first ring, is pushing people out of the core into markets like Lakewood where the rents are much more affordable.

One of the property’s most unique features is its large units. At an average of 939 square feet, Beaumont’s floor plans are by far the largest in its competitive set. Additionally, Beaumont Grand is one of only two gated communities in the area creating a higher-end feel.

Beaumont Grand represents a value-add investment with moderate interior and exterior renovation characteristics.   Security Properties plans to renovate all units. The new spec will include black appliances, cabinet doors with modern pulls, upgraded lighting, paint and baseboard along with flooring.

In order to effectively reposition the asset, the current business plan also includes capital focused on the modernization of resident common areas and amenity spaces. Additional major projects include a roof replacement and full exterior paint.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “this was a basis buy for us in a submarket with zero supply.  We believe in JBLM long term and like opportunities where we can come in significantly below replacement cost.  With a low basis and value-add upside, we expect this acquisition to outperform the overall market and create value for our investors.”

The property will be managed by Security Properties-affiliate Madrona Ridge Residential