Author: ipgocorp

SAN ANTONIO, TX – MBP Capital, Inc., a multifamily investment firm, headquartered in Denver, Colorado with offices in Dallas, Texas, recently announced the acquisition of Honey Hill Apartments, a 346-unit multifamily asset in the highly sought after “Medical District” in San Antonio, Texas. 

MBP has hired Catalyst Multifamily of Dallas, Texas, to handle the day to day property management responsibilities.  Chris Ross, Mike Miller, Will Carouth, and Cody Courtney of Berkadia San Antonio, represented the Seller of Honey Hill.

The Honey Hill property is a true “value add” opportunity which will involve $3M worth of capital improvements in the first 12-18 months, and will include full interior renovations, full exterior paint, new patio and balcony fencing, outdoor amenities, clubhouse remodel, and extensive landscaping upgrades among other things. The new ownership group will look to raise rents by nearly 30% from the current averages. Honey Hill had never been previously sold and will be rebranded upon completion of the capital projects.

MBP Capital finished 2016 with over $55M worth of transactions in Q4, which consisted of three acquisitions and one disposition.  In addition to Honey Hill, MBP Capital, in an off market transaction, purchased Bradfield Place, a 96-unit property, located in Garland, Texas. They also purchased Riverbend Village, a 201-unit, located in Arlington, Texas. Dirk Goris and Danny Baker of CBRE Dallas, represented the Seller of Riverbend.

The sole disposition in 2016 was The Monterey Apartments (FKA Kirkwood Park) a 160-unit property located in Irving, Texas.  MBP nearly doubled the value of the asset within the 24 months of ownership.  

MBP Capital is national multifamily investment firm that focuses on the Texas and Colorado multifamily markets. Mike Phillips, President; Cathy Finn, Vice-president; and, Ryan Heddleston, Director of Brokerage & Acquisitions. 

ORLANDO, FL – November was a busy month for Florida’s housing market, with more sales, more new listings, rising median prices and fewer all-cash transactions, according to the latest housing data released by Florida Realtors®. Single-family home sales totaled 19,763, up 12.8 percent from November 2015, while townhouse-condo sales totaled 7,794, up 4.1 percent compared to a year ago.

“Continued low inventory of homes for sale remains the biggest challenge to sales growth in many areas across Florida,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “While sellers are seeing the benefits of a market where prices have consistently been on the rise, it also presents a dilemma for those who may want to purchase a ‘move-up’ home and a challenge for first-time buyers.”

Home sellers continued to get more of their original asking price at the closing table in November: Sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $220,000, up 10 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in November was $162,000, up 8 percent over the year-ago figure.

In November, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 60th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in October 2016 was $233,700, up 5.9 percent from the previous year; the national median existing condo price was $220,300. In California, the statewide median sales price for single-family existing homes in September was $513,520; in Massachusetts, it was $354,000; in Maryland, it was $274,797; and in New York, it was $230,500.

Closed sales data reflected fewer short sales and cash-only sales in November: Short sales for single-family homes declined 33.2 percent while short sales for townhouse-condo properties dropped 43.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“November’s data showed some nice gains,” said Florida Realtors® Chief Economist Brad O’Connor. “One possible contributor to the uptick in sales is the end of the election season. It’s not uncommon for prospective buyers of second-homes or investment properties to wait for the election results to come in before pulling the trigger on a late-year home purchase – and this is particularly the case in presidential election years.

The expectation that the Federal Reserve would be raising short-term interest rates in December also likely played a part in the November data, O’Connor noted.

“The Fed had been telegraphing this rate increase for several months and then it actually took place,” he said. “While not directly impacted, mortgage rates are expected to eventually respond to this increase, and many buyers likely felt the need to lock into a historically low rate while they had the chance.”

Inventory dipped to a 4.1-months’ supply in November for single-family homes and was at a 6.1-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.77 percent in November 2016, down from the 3.94 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

DENVER, CO – Griffis/Blessing will end 2016 with the acquisition of 454 multifamily units in metro Denver, closing two deals totaling $85.3 million. The Village at North Hills Apartments in Northglenn was purchased on December 16th, and Deer Crest Apartments in Broomfield was acquired on December 22nd.

The Village at North Hills is a 168-unit, multifamily community located approximately 12 miles north of downtown Denver. Built in 1999, North Hills is comprised of one-bedroom and two-bedroom apartment homes, averaging 894 square feet, with spacious living areas and in-unit washer & dryers, while select units offer mountain views and fireplaces. The community provides residents with a swimming pool, fitness center, clubhouse and barbecue grills.

Built in 1984, Deer Crest Apartments is a 286-unit, garden-style community on 14 acres, midway between Boulder and Denver on US Highway 36. The community has one-bedroom and two-bedroom floor plans, averaging 883 square feet. Residents enjoy a number of amenities, including a bark park, seasonal pool and spa, fitness area and private patios/balconies. Select apartments also have detached garages and skylights.

“Both communities are in excellent locations, offering residents prime access to top-rated schools, retail venues and outdoor activities.  The communities are also in close proximity to future light rail lines which appeals to renters and will create an increase in demand,” says Gary Winegar, President of Investment Services at Griffis/Blessing.

Winegar also states, “Both communities offer strong opportunities for our value-add strategies, such as unit interior improvements, which will include plank flooring and new appliances. We also plan to update the pool areas with a more resort-style atmosphere and upgrade the fitness areas and equipment. These improvements will allow us to increase rents but still keep them below new product in the area.”

William J. Hybl, Jr., President and COO of Griffis/Blessing, says, “We have a proven track record for not only controlling costs with our on-staff, Class A general contractor to oversee capital renovations, but also for streamlining on-site management and operations, while improving the overall resident experience.

The Village at North Hills closed at $30.3 million with the assistance of listing broker, CBRE. Deer Crest was purchased for $55 million with ARA Newmark serving as the listing broker. The mortgages for both properties were arranged by Brady O’Donnell with CBRE.

Headquartered in Colorado Springs with additional offices in Denver, Griffis/Blessing, Inc., currently manages over four million square feet of commercial space and more than 9,600 apartment units. The company has provided award-winning property management and real estate investment services since 1985.

TEMPE, AZ – Wood Partners, a national real estate leader based out of Atlanta, Georgia, announced the sale of Alta Tempe, a 296-unit multifamily community in Tempe, Arizona. The community went on the market in August of this year and sold for $67.9 million.

Located 12 miles East of downtown Phoenix, Alta Tempe is situated in the growing Tempe community and offers easy access to the Phoenix airport and Central City. The complex is located at 1260 E University Drive at Dorsey Lane.

“The success of Alta Tempe is a testament to the continued strength of the real estate market in Arizona and the need for housing in easily accessible, transit-oriented locations,” said Todd Taylor, development director for Wood Partners in Arizona and Colorado. “Alta Tempe is an example of a unique and beautiful asset that has been highly popular due to its ideal location in the booming Phoenix suburbs and, at the time of sale, was nearly 96 percent leased.”

Wood Partners built the property in early 2015, with first move-ins in April 2015. The Class A complex features an 8,000 square-foot clubhouse with a vertical garden and observation deck, a resort-style pool with private cabanas, an outdoor fire pit, cyber café, and 24-hour fitness center. The units boast granite countertops, stainless steel appliances, high-tech NEST thermostats, and 10-foot ceilings in some homes.

Wood Partners is a national real estate company that acquires, develops, constructs and property manages high density and mixed-use communities. It ranks consistently among the top five multifamily developers in the country. Through quality construction, responsible land development and intelligent design, our communities reflect the aesthetic and social fabric of the community and provide a luxurious living experience at a fair price. The company has been involved in the acquisition and development of more than 53,000 homes with a combined value of more than $8.3 billion nationwide.

ATLANTA, GA – Crown Bay Group, along with its partners, announced the closing on their purchase of Flint River Crossing in Jonesboro, in Atlanta’s Southern Crescent Region. This property has strong demand drivers resulting from its strategic I-75 South Corridor location, the Airport, South Atlanta, and the burgeoning Clayton County office industrial district. The property is well positioned near shopping and restaurants.

The garden style apartments are situated on Flint River Rd. Having park-like mature grounds and a beautiful swimming pool, this is a very well kept community which has recently had extensive capital expenditure which Crown bay will continue, by upgrading unit interiors and addressing the property’s other needs. Crown Bay’s portfolio managers Provence Real Estate will be managing the property, and they are sure to make it an even greater place to live, offering great service to its tenants as usual.

This is Crown Bay Group’s fifth Atlanta acquisition, with more deals in the pipeline carrying right through to the New Year.

“I am still very bullish on the Atlanta area. I think we may see a little slowdown in the unprecedented 7% rent growth of the last couple of years, but with development, job growth, and an increasing population going on here, there is still great opportunity in this market, probably not ending this cycle until 2019,” says Steve Firestone, Managing Partner and CEO of Crown Bay Group.

The Atlanta Market, including its sub markets, have been experiencing an unprecedented high growth period which should carry on for the foreseeable future.

“This is another great acquisition for our investors,” says Steve Firestone. “Our focus is on buying at the right price, and adding value, and at the same time offering great service to our tenants.”

SAN ANTONIO, TX – Lowe Enterprises Investors, in joint venture with an investment client, has acquired the 208-unit Sunrise Canyon apartment community at 501 Sunrise Canyon Drive in Universal City, a northeastern suburb of San Antonio, Texas.

Built in 2005, the nine building, gated community offers one, two, and three-bedroom units all with spacious balcony or patio, as well as a clubhouse, resort style pool, fitness center, business center, outdoor kitchen with grilling area and a dog park. Unit interiors feature high ceilings, upgraded appliances and finishes, walk in closets, wood style flooring and ceiling fans. The majority of the units also have a washer and dryer. While many units have been lightly renovated, LEI plans to continue and enhance property improvements including upgrades to unit lighting, flooring and fixtures as well as renovations to the clubhouse, pool and parking area.

“Sunrise Canyon is solid-performing multifamily property located just 10 miles from the heart of metro San Antonio and the major transit corridor to Austin, a primary path of growth in the area,” said Andy Sands, managing director of LEI. “The strong local economy combined with convenient access to downtown, and an excellent school system, make the area attractive to both families and young professionals.”

Universal City is a highly desirable Northeast San Antonio submarket with Randolph Air Force Base, Randall Brooks Federal Credit Union and Rackspace among the leading area employers. Sunrise Canyon residents enjoy convenient access to abundant retail, dining and entertainment options including a major master planned retail center offering 1.2 million square feet of retailers and restaurants.

LEI’s acquisition team was led by John Gaghan. United Apartment Group has been retained to provide property management services. CBRE represented the seller, KKR. Berkadia provided financing services.

The transaction is the latest in LEI’s active expansion of its multifamily investment portfolio in select markets across the country. LEI continues to seek multifamily and commercial acquisition and development opportunities nationwide.

NEW YORK, NY – Mortgage rates climbed for the eighth consecutive week, with the benchmark 30-year fixed mortgage rate zooming to the highest level since September 2014 at 4.31 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed similarly climbed to 4.36 percent, and the average 15-year fixed mortgage rate hit 3.56 percent, the highest in more than 2-1/2-years. Adjustable mortgage rates followed suit in hitting multi-year highs, with the 5-year ARM ascending to 3.56 percent and the 7-year ARM bounding higher to 3.80 percent.

Mortgage rates extended a streak of increases that began in late October but took off in earnest after Election Day. This week saw another big jump after expectations for three Fed interest rates hikes in 2017 – rather than two – were revealed at last week’s FOMC meeting. Mortgage rates continue to be driven higher by the consensus forecast of tax cuts and fiscal stimulus that spur faster economic growth and higher inflation in 2017. With investors acting on what appears to be a truly best case scenario, the odds of market volatility and recalibration are growing should the reality not match up to those lofty expectations.

At the current average 30-year fixed mortgage rate of 4.31 percent, the monthly payment for a $200,000 loan is $990.92.

SURVEY RESULTS

30-year fixed: 4.31% — up from 4.18% last week (avg. points: 0.24)
15-year fixed: 3.56% — up from 3.42% last week (avg. points: 0.21)
5/1 ARM: 3.56% — up from 3.45% last week (avg. points: 0.36)

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. The panelists don’t expect changes in mortgage rates over the coming week, with 70 percent voting this way. Just 30 percent forecast continued increases while none indicated that mortgage rates would drop in the next week.

(RECAP: As its first Richmond development wraps up in Northside, a Washington, D.C.-based developer is moving forward with plans for its next residential project – the second of its trio of projects with the Richmond Redevelopment and Housing Authority.
Community Preservation and Development Corp., which this week started moving residents into its Highland Park Senior Apartments, a rehab of the old Highland Park Public School, will go before the city planning commission in January to request a revision to its plans for a mixed-use, mixed-income development in Jackson Ward.
The $32 million project is already approved for 182 apartments, 72 of which would be designated for replacement housing for residents of RRHA’s Frederick A. Fay Towers. While that number for replacement housing would not change, CPDC is seeking to increase the number of apartments to 194. The remaining 122 apartments would be a mix of affordable housing and market-rate rents. CPDC plans to finish the Highland Park apartments by the end of January. Funding for that project, totaling $11.4 million and involving low-income housing tax credits and state and federal historic credits, came from several sources.)

SEATTLE, WA – Alliance Residential Company is expanding its signature Broadstone development concept to Seattle’s historic First Hill neighborhood with two new projects – Broadstone Saxton and Broadstone Lexington.

The eight-story, 325-unit Broadstone Saxton and the seven-story, 75-unit Broadstone Lexington recently began construction, sitting directly across James Street from one another at the Terry Avenue intersection. The two luxury properties join Alliance’s other Seattle Broadstone communities in the Capitol Hill, Queen Anne and West Seattle neighborhoods.

“Broadstone Saxton and Broadstone Lexington will be designed in an enduring style that honors the historic character of the First Hill neighborhood,” said Jeremiah Jolicoeur, Alliance’s Managing Director for the Northwest region. “Residents will find a new standard of living with high-quality amenities, sophisticated shared living spaces and a vibrant social environment, all within steps of world-class medical and research institutions. Both of these communities offer the distinct advantage of being centrally located near the rapidly expanding and high-paying employment neighborhoods of First Hill, downtown and South Lake Union.”

Broadstone Lexington is a modern boutique building with strong historic character located at 1050 James Street. With expected completion in late 2017, Lexington’s luxury boutique community features an expansive rooftop deck, a club room and a game room, along with a variety of common living spaces to facilitate a social community within this active urban area.

Broadstone Saxton, located at 1001 James Street, is scheduled to be completed in early 2018 and will feature a contemporary design to mirror the way First Hill continues to evolve as a neighborhood. Ideal for the sophisticated, social and active resident, Saxton offers a distinct garden courtyard with a strong ‘living room’ and ‘front porch’ connection to Terry Avenue green street along with 7,000 square feet of on-site retail space, a hotel-like lobby, expansive roof deck, 24/7 fitness center and more.

Both communities will feature studio, one- and two-bedroom apartment homes. Broadstone Saxton will also offer two-bedroom townhomes.

AUSTIN, TX – Bluerock Residential Growth REIT announced that it has acquired the 324-unit, multifamily Deerfield Apartments in Austin, Texas. The Company acquired the property through a joint venture for a total purchase price of approximately $48.9 million, or roughly $151,000 per residential unit.

The acquisition is projected to yield a stabilized pro forma cap rate of approximately 6.5% on execution of the Company’s Value-Add upgrade strategy. This compares favorably to estimated market cap rates of 4.75% – 5.25% for comparable assets.

BRG invested 92.5% of the venture’s equity requirement, or approximately $15.3 million, with an affiliate of F&B Capital investing the balance for a 7.5% stake in the venture. The transaction was further capitalized with a senior loan in the amount of approximately $34.8 million.

Deerfield, which was built in 2001, features one-, two- and three-bedroom units averaging nearly 950 square feet. The property features a large clubhouse as well as a resort style two-tier swimming pool, poolside grill/lounge, 24-hour fitness center, and a fully equipped residential lounge.

Deerfield benefits from its proximity to I-35 and US Route 1, which provide easy access to downtown Austin.  As the largest employment node in the area, Austin topped the “Fastest-Growing U.S. City” list from 2010 to 2014 and again in 2016. Job growth in Austin is three times the national average, with much of that momentum fueled by the relocation and expansion of tech companies, including Apple, GM, Google, Accenture and Oracle. The Austin market is expected to add more than 11,000 tech jobs over the next five years.

“We are very optimistic about the upside potential for Deerfield. Our ability to purchase the property at a favorable cost basis, coupled with strong demand and ample room for value-add improvement, gives us good reason to expect that the property will be a strong performer and a solid contributor to the REIT,” said Ramin Kamfar, Chairman and CEO of BRG.