Author: ipgocorp

SANTA MONICA, CA — Vista Investment Group has acquired an 80-unit apartment community in San Diego and a 50-unit apartment complex in Los Angeles in separate transactions totaling $27.5 million.

In a transaction valued at $18.97 million, Vista acquired La Mesa Palms, a multifamily community at 4300 Echo Court in La Mesa, 12 miles east of Downtown San Diego.  The transaction marks the Los Angeles-based real estate investment firm’s entry into the San Diego market.  The seller was a private family investor that had owned the property for more than 40 years.

The garden-style apartment complex consists of 20 four-plex buildings with spacious two- and three-bedroom units that average 1,100 sf. The property was 92.5 percent occupied at the time of closing.

“San Diego is one of the most fundamentally sound multifamily markets in the nation and we have been waiting for the right opportunity to enter the market,” said Vista President Jonathan Barach.  “The La Mesa/Spring Valley submarket is one of the more affordable rental submarkets in the region with great school districts, good freeway and mass transit options, and easy access to major employment centers. We will continue to seek well-located multifamily assets with strong upside potential in the $10 – $50-million range as we look to establish scale in San Diego.”

Vista will implement a multimillion capital improvement program that will begin with upgrading the buildings’ exteriors and grounds, as well as the interior renovation of vacant units. Unit upgrades will include quartz countertops, vinyl wood plank flooring, and stainless steel appliances. Other units will be renovated as turnover permits, according to Barach.

HFF Director Hunter Combs, led the team that marketed the asset and represented both parties in the transaction.

Vista also acquired The Ashmont, a five-story reinforced brick apartment building at 908 S. Hobart Boulevard in Los Angeles’ Koreatown District.  Built in 1928, the building boasts a mix of single and one-bedroom units, a garden and a large laundry facility.  The transaction also included an adjacent 9,029-square-foot fully entitled land parcel that is currently being used as a 33-car gated parking lot for the apartment complex.

Vista plans to give the complex a total facelift to improve its curb appeal and rent potential. Plans call for immediate upgrades to major building systems, exterior and common areas, landscaping, and unit interiors as turnover allows.  Unit improvements will include refinished and polished original hardwood floors, exposed brick accent walls, new shaker cabinets, quartz countertops, stainless steel appliances, and modern bathroom fixtures.

The Ashmont adds to Vista’s existing Koreatown portfolio of five multifamily properties totaling 240 units. Vista also owns 375 units in neighborhoods immediately surrounding Koreatown. The building was approximately 90 percent occupied at the time of closing. 

WELLINGTON, FL – The Bainbridge Companies, a leading owner, developer and manager of luxury multifamily communities in the eastern U.S., announced that its management portfolio now exceeds 20,000 units.

The company, which develops, builds, acquires and repositions high-end residential and commercial properties, was founded in 1997, and now manages approximately 23,000 apartment homes with another 2,000 currently under development.

“We develop and manage the highest quality living experiences featuring the latest innovations in technology, communication and architecture in the popular markets our communities serve,” said Seth Kalinsky, president of property management for Bainbridge. “The 23,000-unit milestone not only validates our strategic direction, but also proves that the demand for quality amenities, finishes and living experiences continues to thrive. The relationships that we’ve created and fostered over the years have made this milestone possible. Through great partners and the steady in-house development of new communities, we’ve been able to achieve this important accomplishment.”

Bainbridge has developed, acquired and managed apartment communities in some of the best markets in Southeast and Central Florida, the Carolinas, New York, the Mid-Atlantic and Washington, D.C. Among the company’s most recent development completions and starts include Bainbridge 3200 (228 units, Suffolk, VA), Bainbridge Jefferson Place (228 units, Frederick, MD), Bainbridge Shady Grove Metro (417 units, Rockville, MD), Bainbridge Coral Springs (250 units, Coral Springs, FL) and Bainbridge Brandon (450 units, Brandon, FL).  

According to Kalinsky, strong executive leadership also has been one of the most important foundations of the company’s growth. “It really starts with our corporate leadership. From our CEO, Richard Schechter, on down, our executives are industry experts. To have them in-house and to be able to do everything – from management to construction to asset management – makes us more nimble than other companies.  It’s been a competitive strength as we’ve grown.”

As Bainbridge’s portfolio has expanded over the years, the company has made it a point for its leadership team to maintain a hands-on approach with its portfolio.

“As we grew, it was challenging to make sure we didn’t get so big that we weren’t able to be detail-oriented in our operations,” Kalinsky said. “Every employee adds value to our company, our ROI and our customers.  We’ve had the bench strength to grow our company but we wanted to do it in a way where we don’t lose our personal touch.”

Although the majority of its portfolio is located in Mid-Atlantic and Florida markets, Bainbridge has begun its expansion into additional markets along the East Coast and the Carolinas. Its Bainbridge Signature Communities will deliver Class A communities to urban core markets, providing exceptional living environments for residents.

PHILADELPHIA, PA – Houston-based real estate developer, Hanover Company, has now become the newest kid on the block with Hanover North Broad, its latest luxury residential apartment building soon to open at the corner of North Broad and Callowhill.

Hanover North Broad boasts many unique features to the metro Philly leasing market including approximately 17,000 sq. feet of retail space alongside its residential quarters. Hanover’s latest luxury residence seeks to revitalize the metro Philly neighborhood with its signature design and amenities, along with its perfect proximity to the SEPTA, downtown parks, and cultural landmarks in the area.

Two former surface parking lots on Broad and Callowhill Streets just north of City Hall have now been revamped as two luxury residential apartment buildings. The buildings sit directly across from each other and include 339 studio, one-, and two-bedroom apartments. The east building contains a residential clubhouse, another unique feature to the urban leasing landscape in the area.

Hanover’s Adam Harbin says, “We are excited to bring Hanover to Center City. We believe the project will be well received, as there is pent-up demand for luxury rental housing in the Fairmount neighborhood. The ability to walk to Center City’s growing employment centers, including both Comcast Towers, and the cultural attractions of the Museum District and Fairmount Park, give Hanover North Broad a uniquely compelling location, and the product will be among the best in the City.”

Center City is experiencing a renaissance of residential properties to the area unseen since the early 19th century, mainly due to the city’s public works and revitalization of its streetscape, along with restored theaters and newly opened restaurants and cafes in the neighborhood. Hanover North Broad will be the latest to transform the historic Philadelphia neighborhood with its mixed use development by offering exclusive features and conveniences that include the following: Residents’ clubhouse which houses a private gym, lounge, and media room; Landscaped courtyards with outdoor grills and dining areas; Designer kitchens featuring stainless steel appliances and granite countertops; and Luxury finishes such as frameless cabinetry, expansive windows, and 9’6” soaring ceilings (one corner unit contains 16’ ceilings.)

Hanover Company, located in Houston, Texas, stands among the most active private real estate companies in the United States, specializing in the development of high quality multi-family residential properties across the nation. With over thirty years’ experience and an award-winning portfolio of residential high-rise, mid-rise, mixed-use and suburban projects, Hanover is focused on nationwide strategic growth through careful planning of its development pipeline and synergistic partnerships.

SCOTTSDALE, AZ – A new joint venture among funds managed by the real estate group of Ares Management and Kaplan Management Company announced the acquisition of a prime residential development site in Scottsdale, Arizona.

The 8.8-acre development, to be known as the District at the Quarter, will consist of 612 for-rent residential units and 7,000 square feet of commercial space upon completion. The project is located adjacent to the Scottsdale Quarter, a 1.2 million square-foot mixed-use lifestyle center featuring more than 80 high-end retailers, and is proximate to Kierland Commons, an open-air lifestyle center containing 700,000 square feet of specialty retail, office and residential uses. The project will be built in two phases, with the first phase (comprising 332 residential units) anticipated to open in 2018.

“The District at the Quarter is located in one of the strongest for-rent markets in Phoenix, and presents the opportunity to drive significant value by creating a best-in-class living experience for residents. This positions the project as a strong addition to our opportunistic real estate strategy, which focuses on development and redevelopment opportunities in primary U.S. markets,” said Jay Glaubach, Managing Director in the Ares Real Estate Group. “This project also marks the beginning of a strong partnership with Kaplan, a proven developer and owner with a long track record of building high-quality multifamily projects.”

“The District at the Quarter represents an outstanding location and is a welcome addition to our development portfolio,” said Geoff Simpson, CFO of Kaplan Management Company. “It also represents Kaplan’s second development in Phoenix and its first with Ares Management, a partner we look forward to working with closely for many years.”

CLARKSBURG, MD – Lennar is breaking ground on its first Innovative Living community, Clarksburg Square, with a Grand Opening event planned for Saturday, January 21, 2017. As Maryland’s only Solar Standard community, the highly anticipated opening will showcase the home automation and energy saving technologies that are built right into the urban-inspired townhomes at Clarksburg Square.

The event will give prospects a sneak peek at the community’s decorated townhome model, The Cambridge, and to be the first to test out Lennar’s Innovative Living home automation system, included with the purchase of each home at Clarksburg Square.

“This Grand Opening is particularly exciting, as every detail was thoughtfully considered when designing Clarksburg Square for our homeowners,” says Lennar Maryland Division President, Ryan Houck. “From the latest in urban, contemporary townhome designs to Lennar’s Innovative Living and solar technologies, Clarksburg Square truly is the total package.”

The urban-inspired townhome community features 2-car garages, open floorplans, designer finishes, gourmet kitchens, grand owners’ suites and more. Planned amenities will include a swimming pool, and solar clubhouse, fitness center, ampitheatre, to name a few. With a sought-after location in Montgomery County, Clarksburg Square is just two miles from I-270 and the Clarksburg Premium Outlets.

Lennar is one of the nation’s largest builders of quality homes for all generations. The Company builds first time, move-up and active adult communities under the Lennar brand name. Universal American Mortgage Company and North American Title provide mortgage financing, title insurance and closing services for both buyers of the Company’s homes and others. Lennar’s Multifamily segment is a nationwide developer of high-quality multifamily rental properties.

KING OF PRUSSIA, PA – Houston-based real estate developer, Hanover Company, has brought its signature designer residential apartment homes to the flourishing King of Prussia district. Hanover Valley Forge, Hanover’s latest luxury residence, is located at 300 Village Drive and offers residents unique amenities and premium convenience with direct access to the brand new King of Prussia Town Center, a pedestrian-friendly outdoor shopping and dining village.

Hanover Valley Forge residents are able to take advantage of their walking distance to King of Prussia Town Center, which features 300,000 square feet of retail space occupied by grocery giant Wegmans, as well as LA Fitness, REI, Ulta, and a host of dining establishments, including Davio’s, Paladar, Founding Farmers, and City Works. Hanover Valley Forge also benefits from its close proximity to the iconic King of Prussia Mall, the largest shopping mall on the East Coast.

Hanover’s Adam Harbin says the company chose the King of Prussia site because “it presents the rare opportunity to deliver Hanover-caliber product in a submarket that is virtually devoid of it, despite having many demand drivers, including robust demographics and a convenient nexus to transportation, employment, and entertainment options.”

King of Prussia is currently experiencing a wave of new residents to the area due to its exceptional access to employment, retail, dining and recreational opportunities within the suburban Philadelphia region. Hanover Valley Forge offers spacious studio, one, and two-bedroom apartments with exclusive features that include the following:

Expansive residents’ clubhouse with 24-hour gym plus yoga and TRX room, cyber lounge, and private media room; Landscaped courtyards with pool and outdoor grills and dining areas; Designer kitchens featuring stainless steel appliances and granite countertops; and Luxury finishes such as frameless cabinetry, expansive windows, granite slab and quartz countertops, and 9’ soaring ceilings.

Hanover Company, located in Houston, Texas, stands among the most active private real estate companies in the United States, specializing in the development of high quality multi-family residential properties across the nation. With over thirty years experience and an award-winning portfolio of residential high-rise, mid-rise, mixed-use and suburban projects, Hanover is focused on nationwide strategic growth through careful planning of its development pipeline and synergistic partnerships.

FONTANA, CA – The Bascom Group has acquired Laurel Tree, a 36-unit apartment community located at 17923 Arrow Boulevard, Fontana, California for $5,250,000.  The sale represents a price of $145,833 per unit or $160.71 per square foot.  Marcus & Millichap represented both the buyer and seller in the transaction.

Manufacturer’s Bank provided the new loan.  James D’Argenio sourced and managed the transaction for Bascom.

Built in 1989 and sitting on more than two-and-a-half acres, Laurel Tree offers residents a low-density living community, a central Inland Empire location, and easy access to key employment centers. The property’s unit mix is dominated by spacious three bedroom units, offering a single-family type floorplan unique to this submarket. Laurel is set to take advantage of accelerated population growth in the Inland Empire as rising prices and rents in Los Angeles and Orange County force residents to look elsewhere for more affordable housing.

The Redlands-Fontana-High Desert submarket has developed into a growing economic hub, with a strong medical base, world-class transportation and logistics centers, and industries such as construction, leisure, and hospitality experiencing substantial year-over-year growth. The site of the former Rialto Airport, a short distance from Laurel Tree, is being redeveloped into a 1,500-acre master-planned mixed-use community. The new development will include 107 acres of mostly for-sale housing, 352 acres of public space, and 991 acres of retail, office, and industrial development.

Fontana’s apartment market continues to strengthen as average rents have increased for six consecutive years to $1,303, or a 39% increase. Despite a $316 average rent increase over the previous 12 months, occupancy remains high at 97.4%, making the city one of the tightest rental submarkets in Southern California. Even so, the Inland Empire’s stock of multifamily units increased by just 1.4% over the past year, as single-family construction accounted for 75% of new residential development. This favorable development pipeline limits direct competition and creates an attractive environment for Bascom’s repositioning of Laurel Tree.

James, Senior Principal for Bascom, adds “With 80% three bedroom units onsite, Laurel Tree is well positioned to attract young professionals and families seeking quality, rental housing. With companies like Amazon, Niagara Water, and Monster taking millions of square feet of commercial space within a short drive of the property, job growth will drive housing demand and increase pressure on existing rental stock.”

SCOTTSDALE, AZ – MG Properties Group, a private San Diego-based real estate investor and operator, announced the acquisition of Scottsdale Horizon Apartments in Scottsdale, Arizona.

Built in 1986, the apartments feature one and two-bedroom floorplans with full size washers and dryers, 9-foot ceilings and 22-foot vaulted ceiling in select units. 93% of the units have been renovated with upgraded appliances, cabinets, flooring, and granite countertops in the kitchens. Community amenities include two pools and spas, fitness center, outdoor lounge and barbeque areas. The property is in coveted North Scottsdale and provides convenient access to the 101 Freeway and Scottsdale Airpark, the second largest employment submarket in Metro Phoenix. 

The property was purchased for $51,000,000.  The sellers were represented by Executive Vice President John P. Cunningham and Senior Vice President Charles Steele of Jones Lang LaSalle. The acquisition was financed with a $33.2M Fannie Mae loan arranged by Robert Prouty at Key Bank.

According to Paul Kaseburg, Chief Investment Officer at MGPG, “Our ownership of similar properties in the Phoenix market provided us with operating efficiencies and strong market knowledge.  Scottsdale Horizon’s location in North Scottsdale provides access to high-quality jobs and excellent retail options. We are excited to add this property to our portfolio.”  

Scottsdale Horizon marks MG Properties Group’s 12th acquisition in 2016.  The twelve acquisitions totaled approximately 3,720 units and $560,000,000 in combined purchase price. The company is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon, and Washington.

LAS VEGAS, NV – Transcontinental Realty Investors announced its newest development project, The Abode Red Rock Apartments in Las Vegas, Nevada. The property is located within Las Vegas’s hottest residential submarket, called the “Southwest.”

The $59 Million project begins construction this month and is scheduled for completion July 2018.

Abode Red Rock Apartments is a 308 unit, Class A, Mid-Rise residential superstructure composed of 1 and 2 bedroom apartment units, indoor common areas, an internal parking structure, and amenity-rich, tastefully-landscaped courtyards and swimming pools. The property is prominently situated at the northwest corner of the intersection of S. Fort Apache Road and W. Hacienda Avenue, directly across from the sub-market’s leading power center, Tropicana Beltway Center.

The building’s stylish design provides multi-color roof tiles, a façade of warm Mediterranean colors, real and simulated stone, exterior gas lanterns, towers, columns, balconies, landscape, private courtyards and pedestrian zones with cobblestone sidewalks.

“We are continuously improving the experience in multifamily living. Our innovative Class A apartment homes reflect a modern, warm, and relaxed lifestyle. We call it Achieving Excellence. Our residents call it their Abode,” commented President and CEO, Daniel J. Moos.

Abode Properties is a subsidiary of Transcontinental Realty Investors (NYSE: TCI), a Dallas-based real estate investment company. Abode’s investment and strategic focus is to acquire, develop, and operate a portfolio of desirable multifamily residential properties.

CORVALLIS, OR – EdR, one of the nation’s largest developers, owners and managers of high quality collegiate housing communities, announced it acquired The Retreat at Corvallis, serving Oregon State University in Corvallis, Ore.                     

Built in 2015, The Retreat at Corvallis includes 1,016 beds pedestrian to the Oregon State campus in a mix of one, two, three, four- and five-bedroom floor plans in both traditional apartment configurations (60 percent) and cottages (40 percent).

“With 95 percent occupancy this year and a location pedestrian to campus, this community is a great complement to our top of class student housing portfolio,” said Tom Trubiana, EdR president. “When paired with our development at Boise State, this community significantly increases our footprint in the Northwest.”

Oregon State is just one of two universities in the country to hold land-grant, sea-grant, space-grant and sun-grant status. With a Fall 2016 enrollment of 30,354 students, the university has added more than 6,500 students to its rolls since 2010. The university has nationally recognized programs in Environmental Science and Engineering as well as Forestry and Agricultural Sciences.

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 87 communities with more than 45,400 beds serving 54 universities in 25 states. EdR is a member of the Russell 2000 Index, the S&P MidCap 400 and the Morgan Stanley REIT indices.