Author: ipgocorp

CHICAGO, IL – A partnership of Oxford Capital Group and Quadrum Global announce that it has secured a $170-million loan to facilitate the construction of Essex on the Park, a new 56-story, 479-unit luxury apartment building at 808 South Michigan Avenue. As part of the project, the adjacent Essex Inn at 800 South Michigan Avenue, a historic, 254-room independent hotel, will be expanded to 271 rooms, comprehensively repositioned and upgraded into the Hotel Essex, a luxury lifestyle hotel, starting in late 2018, before reopening in 2019 — concurrent with the grand opening of Essex on the Park.

“We have long been believers in the desirability and irreplaceability of Michigan Avenue real estate in Chicago. This is particularly true of real estate directly on the park and the lakefront, where residents have beautiful and unencumbered views and open space in perpetuity. We are also believers in the continued and growing attractiveness of ‘walk to work and walk to play’ downtown living for people across the demographic spectrum. We’re excited to get started,” says John W. Rutledge, founder, president and CEO of Oxford Capital Group, LLC, the Chicago-based, national developer, sponsor and manager.

Oleg Pavlov, founder and CEO of Quadrum Global, a global development, investment and management firm, stated: “We are very pleased with the terms of this highly competitive institutional financing that our joint team has been able to obtain for this large-scale mixed-use project. To us, this underscores the continued strength of Chicago’s Downtown market, the city’s vibrant economy, as well as Essex’s unique location and the strength of sponsorship.”

Jordan Ray, Ari Hirt, Steven Buchwald and Jamie Matheny of Mission Capital Advisors advised ownership and ran point in sourcing the financing from a global investment bank.

“It’s extremely challenging for developers to secure non-recourse construction financing in the current lending environment, particularly for transactions of this size, but we had the privilege of working on a very well-conceived project with marquee sponsorship and a fantastic location,” Ray said. “This is a complex, large-scale hotel and apartment project in a highly-competitive market. Despite the size and complexity, we were able to generate interest from multiple lenders who were willing to provide full-stack financing on a non-recourse basis.”

Essex on the Park’s rental residences will have high-end finishes including 9-10′ ceilings, quartz countertops, stainless steel appliances, and in-unit washer/dryers.  Amenities will include a multi-story “winter garden” with indoor pool, hot tub, and multiple indoor-outdoor spaces, including outdoor grills/kitchens, cabanas, fire pits, and sliding walls with striking views overlooking Grant Park and Lake Michigan. Residents will also enjoy a billiard/game room, business center and conference room, expansive state-of-the-art fitness center, yoga / fitness-on-demand room, club room, exhibition kitchen, bike storage, and four floors of onsite parking. The property will also feature the unique offering of in-building access to a chef-driven three-meal restaurant as well as a bi-level “sky bar” and a night life venue overlooking the park and lake, SX, showcasing fully retractable walls.

The apartments will consist of a wide array of unit-types including a mix of studios, convertibles, and one-, two-, and three-bedroom units. The top two residential floors of the building will include four extraordinary penthouse duplexes featuring elegant finishes, gourmet kitchen, large master suite, private outdoor space, and spectacular views of the Lake Michigan, Grant Park, and the Chicago skyline. 

Essex residents will benefit from being a part of a mixed-use complex, including a high-design lifestyle hotel leveraging Oxford’s distinctive approach to hospitality management – featuring high-touch, customer-friendly service while seamlessly integrating unique programming and leading edge technology.

Oxford and Quadrum each have significant experience with high-profile development projects in Chicago and across the country. The two developers recently collaborated to create the award-winning Godfrey Chicago, a 221-key luxury lifestyle hotel that includes the largest indoor/outdoor hotel rooftop lounge in the city. They are also in pre-development of an adaptive-reuse office to hotel conversion project at 168 North Michigan Avenue. 

Essex on the Park and the redevelopment of the Essex Inn are the 15th and 16th Oxford developments in the Chicagoland area. Recent noted Oxford-led local projects include The Godfrey, The Langham, LondonHouse, Hotel Felix, Hotel Cass, and Hyatt Chicago Magnificent Mile (formerly The Wyndham Chicago).  

MIAMI, FL – MORGAN, a leader in upscale multifamily development, construction and property management, has started leasing Pearl Dadeland in Miami, its latest premium Pearl community. The eight-story, 412-unit project is a joint venture between MORGAN and Invesco. Construction financing was provided by JPMorgan Chase.

Pearl Dadeland, at 7440 N. Kendall Dr., is located on three acres in the heart of the Dadeland Triangle across Kendall Dr. from the upscale Dadeland Mall and adjacent to a Publix grocery store. The community’s units average 841 square feet with a mix of studios, one, two and three bedrooms. The sleek, sophisticated interiors feature chef inspired kitchens with stainless steel appliances, quartz countertops, under-mount sinks, and under-cabinet lighting.

Other premium Pearl amenities include luxurious bathrooms with oval soaking tubs, glass-enclosed showers and tile floors throughout the bathroom, living and dining areas; walk-in closets; full-size washers and dryers; Nest thermostats; USB charging ports; electronic key entry system; and private balconies. Select apartments have 11-foot ceilings, island kitchens with breakfast bar, double sinks in the master bath, and a desk alcove.

High-end community amenities include an innovative fitness studio with state-of-the-art workout equipment, a yoga room, TRX wall and Peloton Cycles; a resort-style swimming pool with private cabanas, TVs and grilling stations; a WiFi-enabled club house with a theater and gaming room; and a 4,000-square-foot park containing an oversized dog park. Residents of Pearl Dadeland can enjoy views of the Miami skyline from the rooftop amenity deck.

“MORGAN’s Pearl properties represent some of the most luxurious apartment communities on the market today,” said MORGAN Regional Vice President Evan Schlecker. “Pearl Dadeland is no exception, offering an array of lifestyle enhancing amenities with a contemporary Miami aesthetic. MORGAN always strives to build communities that deliver on the Pearl brand’s premium promise, while also capturing the essence of the surrounding neighborhood. We believe Pearl Dadeland does just that.”

MORGAN has another community, Midtown 29, under construction in Miami’s Wynwood/Midtown neighborhood and will break ground in January on a community in the Flagler Village neighborhood of Ft. Lauderdale.

KANSAS CITY, MO – The Community Development Trust (“CDT”), a national investor in affordable housing, has announced a new $1.8 million equity investment in Kensington Heights Apartments, a nine-story, 126-unit affordable housing apartment building in Kansas City, Mo., that serves low-income senior citizens and people with disabilities.

CDT acquired the property through a joint venture with Cleveland-based The Millennia Companies (“Millennia”), a developer and management company that manages over 20,000 units of affordable housing throughout the Midwest, Southeast and Mid-Atlantic regions. Millennia owns and manages three other affordable housing properties in the Kansas City area.

The transaction is CDT’s first equity investment in Missouri and its first acquisition with Millennia. Through their joint venture, CDT and Millennia will complete $580,000 of capital improvements that will ensure Kensington Heights Apartments is maintained as high-quality affordable housing for elderly and disabled residents. These improvements will include renovating all of the community areas in the 36-year-old building as well as installing new high-efficiency boilers.

“We are delighted to partner with Millennia, a group that we believe is well-aligned with our double-bottom-line philosophy here at CDT,” said Brian Dowling, Senior Vice President of Community Investments at CDT. “Millennia is perennially recognized as among the nation’s best-performing affordable housing developers, and we look forward to pursuing more acquisitions with them in 2017.”

Kensington Heights Apartments is conveniently located near Interstate 70 and U.S. Highway 40, and is approximately ten minutes from downtown Kansas City. The complex serves residents who earn 60 percent of the area median income and benefits from a full-time service coordinator who helps residents access and navigate essential support services.

“Our mission is to provide the highest quality of standards in the management, operation and development of affordable and market rate rental housing, thereby striving to enrich the quality of life for our residents,” said The Millennia Companies President and CEO Frank T. Sinito. “Teaming up with CDT to help preserve affordable housing in the Kansas City metro area reflects our commitment to serving low-income residents and the community’s most vulnerable citizens.”

In 2014, the Joint Center for Housing Studies of Harvard University calculated that 44 percent of renters in the Kansas City metro area, or approximately 126,000 renter households, were cost burdened. That designation means the households spend more than 30 percent of their income on housing costs. The report also shows 22 percent of those households were severely cost burdened, spending more than half of their income on housing costs.

Local government and civic leaders in Kansas City have embarked on an ambitious plan in 2017 toward taking meaningful actions that will address significant disparities in housing needs and access to opportunity.

“We applaud CDT and Millennia for their efforts to better serve our residents,” said Kansas City Third District Councilman Jermaine Reed, who represents constituents in the Kensington Heights building. “Their accomplishment is a ‘win-win’ for everyone, by improving housing and providing residents with the peace of mind that their apartments will remain affordable for generations to come.”

(RECAP: Consumer credit reporting agencies Transunion and Equifax will settle with the CFPB for a total of $23.1 million for allegedly deceiving consumers about the value of their credit scores. The CFPB also alleges that Transunion and Equifax deceived consumers into enrolling in subscription programs with false advertising about the cost of the programs. The agencies are also being ordered to truthfully represent their credit scores, obtain consumers’ informed consent for program enrollment and allow consumers to cancel products and services easily. The CFPB says its enforcement actions were taken under the Dodd-Frank Act’s prohibition of unfair, deceptive or abusive acts or practices.)

(RECAP: Loudoun County is facing a shortfall of more than 18,000 housing units needed to sustain its economic growth, according to a new housing needs assessment prepared by George Mason University’s Center for Regional Analysis and housing needs analysis firm Lisa Sturtevant & Associates. The report projects Loudoun will have a demand for 66,600 new housing units between now and 2040, but is prepared to add only 48,910 in that time frame. Loudoun County is facing a shortfall of more than 18,000 housing units needed to sustain its economic growth, according to a new housing needs assessment prepared by George Mason University’s Center for Regional Analysis and housing needs analysis firm Lisa Sturtevant & Associates. Over time, the housing affordability challenges are not expected to improve for many households in Loudoun County, and for many at the lowest income levels, the challenges will be exacerbated not only in Loudoun County, but throughout the region. The report said Loudoun County can do its part to accommodate lower-income working households and seniors and others on fixed incomes by helping to promote or incentive the development of housing affordable to these households.)

HOUSTON, TX – NexPoint Residential Trust announced the completion of the acquisition of a 924-unit apartment portfolio in Houston, Texas. NexPoint Residential Trust, through its operating partnership, NexPoint Residential Trust Operating Partnership, L.P., acquired a two-property portfolio in Houston, Texas for approximately $108 million.

The properties, Old Farm Apartment Homes, a 734-unit apartment property built in 1998, and Stone Creek at Old Farm Apartments, a 190-unit apartment property built in 1999 (the “H2 Portfolio”), are situated on 35.1 acres of contiguous land surrounded by some of Houston’s most affluent single family neighborhoods and three major regional employment centers (Uptown, Westchase and Medical City).

The H2 Portfolio acquisition was structured as a reverse 1031 exchange to facilitate the Company’s continued plan to recycle capital from dispositions of assets from non-core markets into well-located, “covered-land” assets in longer-term target markets.

The Company funded the purchase price with borrowings of approximately $108 million under its credit facilities with KeyBank National Association and Freddie Mac. In connection with the acquisition, the Company expanded its credit facility with Freddie Mac to $300.0 million under the previously disclosed terms of the credit agreement.

Following the completion of the reverse 1031 exchanges, management expects the H2 Portfolio’s loan-to-value ratio to stabilize at approximately 55%.

This is the Company’s first acquisition in Houston since its lone purchase in Houston in November 2014 and opportunistically expands NXRT’s footprint in the market to 1,164 units, bringing NXRT’s total portfolio to 39 properties consisting of 12,965 units in 10 markets as of January 3, 2017.

Management has published more information on the merits of the acquisition in an investor presentation at the Investor Relations section of the NXRT website at www.nexpointliving.com.

LAS VEGAS, NV – The Bascom Group acquired Pebble Cove Apartments, a 90-unit garden-style apartment community located in Las Vegas, for $9.1 million on December 22, 2016. Since 2013, Bascom and its affiliates have acquired twenty-nine multifamily properties in the Las Vegas market, totaling 9,167 units.

Patrick Sauter and Art Carll with NAI Vegas were the brokers for the sale. Erich Pryor and Tom Sherlock with Talonvest arranged the $8.46 million loan with TCF Bank.

Scott McClave, Senior Principal of Bascom, states: “Pebble Cove’s strategic infill location, close proximity to the new UNLV Medical School, Downtown Las Vegas, and the Las Vegas Strip were extremely attractive to us.”

Jason Hanna, Senior Vice President of Bascom, adds: “Pebble Cove has enormous untapped potential. We plan to enhance the property’s ample community spaces, modernize its interiors, and install institutional property management, all aimed at providing real value to current and future residents. We believe in the Las Vegas market and are excited to add Pebble Cove to our growing portfolio there.”

Pebble Cove was built in 1989 and consists of 7 two-story buildings situated on 4.13 acres. Rental offerings include 18% one-bedroom, 55% two-bedroom, and 27% three-bedroom floorplans. The community offers tenants a robust amenity package including a spacious pool and spa area, fitness center with sauna, a basketball court, a courtyard and barbecue area, a children’s playground, and a business center and clubhouse. The unit interiors are designed with open floorplans and modern finishes.

Bascom plans to implement an extensive renovation program to further enhance the interior finishes and build on the existing amenity package.

IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its CoreLogic Home Price Index and HPI Forecast for November 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased year over year by 7.1 percent in November 2016 compared with November 2015 and increased month over month by 1.1 percent in November 2016 compared with October 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from November 2016 to November 2017, and on a month-over-month basis home prices are expected to increase by 0.1 percent from November 2016 to December 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Last summer’s very low mortgage rates sparked demand, and with for-sale inventories low, the result has been a pickup in home-price growth,” said Dr. Frank Nothaft, chief economist for CoreLogic. “With mortgage rates higher today and expected to rise even further in 2017, our national Home Price Index is expected to slow to 4.7 percent year over year by November 2017.”

“Home prices continue to march higher, with home prices in 27 states above their pre-crisis peak levels,” said Anand Nallathambi, president and CEO of CoreLogic. “Nationally, the CoreLogic Home Price Index remains 4 percent below its April 2006 peak, but should surpass that peak by the end of 2017.”

Note: October data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

(RECAP: City addresses housing: The city lacks affordable housing, and housing for senior citizens, according to officials who started researching the issues in the past year. Williamsburg doesn’t have enough market-rate senior housing. Mayor Paul Freiling mentioned in the city’s Goals, Initiatives and Outcomes that the city will actively look for solutions to the issue over the next two years at the very least. Affordable housing can be hard to obtain for some of the area’s underemployed residents, many of whom have jobs with restaurants, hotels and tourism attractions. Rita Smith, the executive director at Williamsburg Area Faith in Action, said nearly every senior housing facility has too high a price tag for poor families, or a long waiting list. Finding available land and enticing developers into the area is one of many steps the city would need to take, and by placing the initiative into its goals for the next two years, the city has shown the issue is and will continue to be on its radar.)

(RECAP: Final figures won’t be released until Jan. 10, but the Northern Virginia real estate market appears likely to report its best sales year since before the recession hit. Average sales prices, however, could post their first decline – albeit a small one – for the first time in six years. With 11 of 12 months reported and just the December figures to go, a total of 20,070 properties have gone to closing across the local area, according to figures reported by the Northern Virginia Association of Realtors (NVAR). That’s up 5.3 percent from the 19,063 transactions during the first 11 months of 2015, and is just 239 sales below the overall total for the last calendar year. For the first 11 months of the year, the average sales price was reported at $555,389.)