Author: ipgocorp

(RECAP: Large U.S. banks raised their own risks by pushing down lending standards for a fourth consecutive year in 2016, one of the top federal banking regulators said on Tuesday. The banks loosened underwriting standards mostly in direct consumer loans, conventional home equity, commercial real estate loans, and residential mortgages, the Office of the Comptroller of the Currency (OCC) found in its annual survey. The office saw double-digit increases in the percentage of banks that eased underwriting practices in those products since 2015 and said many banks want to continue lowering the standards. Looking at 90 percent of the debt in the federal banking system, equal to $5.2 trillion, the OCC found that banks are easing standards because of competition from other banks and nonfinancial firms, their appetite for risk is expanding, and they are seeking to make more loans.)

LOS ANGELES, CA – TruAmerica Multifamily has sold four apartment communities located in the Seattle and San Francisco Bay Area markets for $275 million, capping an active fourth quarter in which the Los Angeles-based investment firm closed on transactions totaling $675 million.

The four apartment communities with a combined 1,047 units were among TruAmerica’s first investments after industry veteran Robert Hart founded the firm with The Guardian Life Insurance Company of America in 2013. Proceeds from the four separate dispositions exceeded investor targets and averaged double-digit cash-on-cash returns over three-year hold periods adding to TruAmerica’s already impressive track record for its investors.

In November 2015, TruAmerica exited its first investment, a 564-unit apartment community in Denver, CO, after meeting its five-year investment objectives in just 18 months.

TruAmerica has earned a reputation as one of the most active multifamily investors in the United States, building a $6.3 billion portfolio in less than three years from inception.  The institutional investment community has taken notice that TruAmerica can skillfully assemble a portfolio of apartment communities and expertly execute a value-add business plan, according to TruAmerica CEO and founder Robert Hart.

“With more than 31,000 apartment units under management, the process of opportunistically exiting investments to deliver strong risk-adjusted returns to investors, and concurrently identify new value-add opportunities, must be disciplined, patient and precise,” said Hart.  “Our team has done a masterful job of building a portfolio of strategically located assets in key growth markets throughout the United States.  Through our vertically integrated platform that also includes in-house construction and asset management, we have been able to reposition these underperforming assets through thoughtful renovation and improved operations.   With these timely dispositions, we now have been able to put points on the board and deliver impressive returns to our investors in the form of durable cash-flow yield and asset appreciation.”

“Our circle of partners continues to expand, along with their interest in investing with us on more opportunities,” stated, Robert LoCascio, Managing Director of Guardian’s Real Estate Investment Group. “This is testimony not just to the continuing viability of the sector as an investment class, but to Bob and his team’s experience as an operating partner and expertise to implement a well thought-out business plan.”

The following assets were recently sold by TruAmerica:

Arcadia Luxury Townhomes, a 309-unit property in Federal Way, WA to a private multifamily investment firm; The Vineyards, a 170-unit property in Gilroy, CA to ABL Properties; Avenel Apartments, a 168-unit community in San Jose, CA to Pacific Urban Residential; and Carriages at Fairwood Downs, a 400-unit townhome community in Renton, WA to Sequoia Equities.

TruAmerica Multifamily also remained an active buyer in the fourth quarter, acquiring more than 2,500 units in three separate markets in transactions totaling more than $400 million.    The acquisitions included a 1,402-unit, six-property multifamily portfolio in suburban Baltimore, MD, for $236 million, TruAmerica’s second significant investment on the East Coast.  It also marked TruAmerica’s first joint venture with publicly traded Ares Management (ARES). 

ORLANDO, FL – RealtyShares announced that its community of investors has raised $2.25 million to recapitalize and fund the renovation of Avesta Bridgewater, a 344-unit apartment community in Orlando, Florida.

The deal is sponsored by Avesta Communities, a vertically-integrated multifamily owner-operator specializing in apartments serving the middle-income renter. They recently acquired the property below its appraised value and plan to perform renovations that will allow it to compete with higher end properties in the local market.

“We are excited to partner with RealtyShares in our first crowdfunding project,” said Andre Gonzalez of Avesta. “We think crowdfunding is an industry with significant long-term growth potential, and Avesta is committed to growing our base of capital partners through this new vertical. RealtyShares’ ability to serve as the intermediary between sponsors and investors maximizes efficiency, and allows Avesta to focus on adding value to our communities and capital partners.”

Per Avesta, the newest acquisition will be a sizable addition to their 1,000+ unit Orlando portfolio, located in one of the largest and fastest growing metropolitan areas in America. Avesta Communities report acquiring 12,000 apartments worth nearly $1 billion across Florida and Texas since the company was founded in 2010.

“With the flexibility to raise minor, non-controlling equity interest in deals like Bridgewater, RealtyShares demonstrates value to deal sponsors looking to supplement their capital relationships,” said Bryan Schultz, Vice President of Equity Investments at RealtyShares. “In addition, it creates value for the private investment community by providing access to deals that are typically reserved for institutional investors. It’s a pleasure to be able to offer an opportunity to invest with a partner as established as Avesta.”

To date, the RealtyShares network of investors has funded upwards of $200 million across more than 400 investment opportunities on the platform, funding residential and commercial projects in 31 states.

HOUSTON, TX – The NHP Foundation, the national affordable housing not-for-profit, welcomed city and state officials to an event showcasing renovations to-date at Cleme Manor Apartments, the largest multi-family housing community in the historic Greater Fifth Ward neighborhood in Houston. The NHP Foundation received $40.9 million in funding to put toward rehabilitating the 284-unit apartment complex which it acquired in 2014 via a public-private financial partnership with PNC Bank N.A., BBVA Compass, the U.S. Department of Housing and Urban Development (HUD), the National Affordable Housing Trust, the Texas Department of Housing and Community Affairs and the City of Houston.

Originally constructed in 1970, Cleme Manor Apartments sits immediately south of Finnegan Park and the Finnegan Park Community Center. The property features 25 two-story buildings with capacity for approximately 1,400 residents. NHPF is undertaking a massive rehabilitation of the property – which has not seen a comprehensive renovation in over 20 years – including: the installation of new drywall, Energy Star appliances, doors, higher efficiency HVAC units and water heaters, windows, water savings improvements, and more. In addition, construction of a new play area, tot lot, and renovation of the office, community space and laundry facilities are underway.  

One of Houston’s most improved areas, the Greater Fifth Ward Finnegan Park neighborhood has been earmarked for $35 million in streetscape improvement, multifamily construction, single family rehabilitation and renovation of the Community Center. Cleme Manor Apartments is an integral part of the revitalization of the community. In 2014, the acquisition and planned rehabilitation of Cleme Manor played a major role in keeping officials from closing nearby Henderson Elementary, ensuring neighborhood children could attend a school close to home.

“This project supports my goal of building complete communities where residents can find good jobs, safe and attractive homes, and all of the amenities necessary for a great quality of life,” said Houston Mayor Sylvester Turner. “The Greater Fifth Ward is one our most historic neighborhoods.  Restoring health to this traditionally underserved area will have a tremendous impact on the people living there.”

“Cleme Manor is a one-of-a-kind opportunity for NHPF,” said NHPF’s President and CEO Richard Burns. “Because of its scale, unique needs and the impending aesthetic changes and updates to the neighborhood, Cleme Manor has provided NHPF with an unusually robust chance to ‘get in on the ground-floor’ and play an essential part in the early stages of an exciting neighborhood revitalization. We are excited and grateful to have this opportunity to deliver a sustainably improved living environment for the residents of Cleme Manor Apartments and additional high-quality affordable housing for the city of Houston.”

In addition to Mayor Turner, other officials and guests expected to attend include Tom McCasland, Director, Housing & Community Development Department, Houston; Congresswoman Sheila Jackson Lee; Dr. Edward Pringle, Director, Houston U.S. Housing & Urban Development (HUD) Office; Betty Gregory, Texas Organizing Project (TOP) Harris County Leadership Board;  Kathy Blueford-Daniels, President, Greater Fifth Ward, Super Neighborhood #55; Mark Montgomery, CEO, BBVA Compass, Houston; Grant Murray, Representative from U.S. Senator Ted Cruz’s office, as well as additional city, state and community leaders. 

NEWPORT BEACH, CA – Community Development Partners announced that Rocky Hill Veterans Housing has closed on its construction financing, with construction about to get underway.  The $21-million project, located at 582 Rocky Hill Rd in Vacaville, CA will provide much-needed housing for chronically homeless veterans, and low-income veterans and families.  As one of the only new affordable developments targeting veterans in Solano County, this project will expand regional housing opportunities for those with few affordable options.

Rocky Hill will consist of 39 new, high-quality permanent rental homes for people earning 15% to 60% of the Area Median Income.  Twenty-nine units will be reserved solely for veterans, with the remainder having a veteran preference.  Eleven of the veterans’ units will have Project-Based rental assistance through the VASH program and will serve as Permanent Supportive Housing (PSH).  PSH is a solution for homelessness that combines housing, rental assistance and onsite supportive services.  The VASH program couples VA Case Management Services with HUD Sec-8 Rental Assistance.  The innovative project’s structural system is comprised of modified steel shipping containers, which is stronger than typical wood framing.  The project is designed to achieve LEED Gold certification, and is scheduled for completion in December 2017.

“Rocky Hill was designed to strengthen the community by offering amenities such as community gardens, a central zócalo, and art installations visible from the street,” says Kyle Paine, President of Community Development Partners, the project’s developer.  “The goal is to promote interaction among residents and the surrounding neighborhood.  A resident services coordinator will work with community partners to strengthen the neighborhood.”

The project’s financial partners include: Citibank, National Equity Fund, Veterans Housing and Homelessness Prevention (VHHP) program, City of Vacaville, and California Statewide Communities Development Authority.  Supportive Services provided by CAN-B, the Veterans Administration and LifeSTEPS.  Property management provided by Solari Enterprises, construction by Precision General Commercial Contractors, and shipping containers by GrowthPoint Structures.  Vacaville Community Housing is the non-profit partner and Integrity Housing is the Co-General partner.

(RECAP: For the past year, Housing Virginia has been conducting an assessment of the needs and gaps in affordable housing in rural Virginia. Launched with a pre-conference session at the 2015 Governor’s Housing Conference, this initiative involved online surveys, regional face-to-face input meetings with housing providers around the state, and an analysis of Census data in each region. Housing Virginia convened over 50 rural housing and service providers for a final input session at this year’s Governor’s Housing Conference. These policy recommendations, as well as a library of best practices and resources, will go into the final report.)

(RECAP: A senior living community coming to the Charlottesville area in 2018 will provide independent and assisted living options for its residents — and scores of jobs for local workers. The facility also will offer programs and specialized care for those with Alzheimer’s disease or dementia. The Blake at Charlottesville is set to start construction early next year, which will be done by Quality Senior Living and Blake Management Group. The local facility will be off West Rio Road in Albemarle County able to accommodate 110 to 115 residents.)

SAN ANTONIO, TX – San Francisco area based Praxis Capital announced that it has acquired the 209-unit Villas de Sendero Apartments in San Antonio, Texas. With offices in California and Texas, Praxis has plans to acquire several more properties in the major Texas metros.

Using the conservative underwriting and extensive due diligence for which Praxis is known, the firm performed an exhaustive search before seizing this high potential opportunity. “This value-add play is ideal for this point in the real estate and economic cycles, offering an excellent margin of safety” says Brian Burke, President of Praxis Capital. “We’ve had tremendous success employing similar strategies with other Texas properties and this property holds promise for excellent cash flow with upside potential. We foresee this as a very desirable property for both our residents and investors.”

Villas de Sendero, a 209-unit Class B property, benefits from an infill location in northwest San Antonio. The property is located within the Westover Hills area, the city’s second largest employment corridor (employment base of 210,000) and host to a myriad of corporate regional headquarters, call centers, government buildings, and hospitality destinations. Major employers include Wells Fargo, Nationwide, JP Morgan, Microsoft, QVC Network, NSA, SeaWorld, and the Hyatt Hill Country Resort and Golf Courses.

Situated on over 10 acres, the 17-building Villas de Sendero Apartments has a mix of one, two and three bedroom units, ranging from 400 to 1050 square feet. Praxis plans to continue renovating and upgrading the property, providing a highly desirable residential alternative in a thriving community.

Praxis Capital is a real estate private equity investment firm focused on value-add multifamily properties in US growth markets. Our core group brings over 100 years of combined real estate experience with over $1 Billion in transactional experience, with more than $100 million AUM. “Enjoying a proven, successful track record, we were able to raise the capital for this acquisition very quickly,” according to Bob Dreher, SVP/Investor Relations, “with more than half of that coming from repeat investors. This acquisition has allowed us to finish 2016 with over $50 million in new acquisitions.”

BROOKLYN, NY – Bentall Kennedy announced the acquisition of The Addison, an urban high-rise multifamily property in Brooklyn, New York on behalf Multi-Employer Property Trust (MEPT) and its affiliates.

The Addison, located at the convergence of the established Boerum Hill neighborhood and rapidly evolving Downtown Brooklyn, was delivered in 2011 and consists of 271 apartment units in two high-rise towers as well as 6,600 sf of ground floor retail, and a 109-space below-grade parking garage. The property has a direct entrance to the Hoyt-Schermerhorn MTA station on the ground floor, which is three subway stops from Fulton Street, Downtown Manhattan’s main transportation node, and a 20-minute ride to Midtown Manhattan.

“The New York City market continues to be one of the most dynamic and best performing markets in the country, especially in the multifamily asset class. Downtown Brooklyn is experiencing an influx of renters attracted to its proximity to Manhattan as well as the rapidly evolving dining, shopping, and entertainment amenities in Brooklyn,” said Kevin Rivest, Senior Vice President, Transactions at Bentall Kennedy. Along with the broader New York City economy, Brooklyn is expected to see continued job and population growth as the office market expands in Downtown Brooklyn as well as several other locations throughout the Borough.

“This acquisition aligns with the core strategy of MEPT, which is to invest in primary, knowledge-based markets throughout the US,” stated David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy. “Investing in urban, transit-served locations within these major markets remains a key strategic objective of the Fund. With this acquisition, MEPT’s total investment in the greater New York market exceeds $1.5 billion in gross asset value.”

The Addison is well-positioned to capture the significant long-term upside of the continued evolution of the submarket due in part to its central location on Schermerhorn Street, the traditional border between Boerum Hill and Downtown Brooklyn. Boerum Hill’s high quality of life and neighborhood vibe continue to transform areas north of its traditional border on Schermerhorn Street. In comparison, Downtown Brooklyn, a traditionally “9-to-5” office district, is undergoing a rapid transformation led by numerous large-scale, mixed-use developments.

(RECAP: The holiday season is a time to be thankful for what we have and for the loved ones in our lives. I want to extend the thankfulness to another topic near and dear to me: the mortgage industry. That’s right. We’ve come a long way from the housing recession of the mid-2000s. We now have a housing market that’s stable and better protected from a crash because of how we underwrite applications and offer home loans. Today, the mortgage industry has changed for the better. Here are five reasons we should be thankful. 4 First-time buyers have options. There are loan programs to help first-time homebuyers through VHDA. 5 Grants are available, too. There are grants available for first-time buyers in Virginia through VHDA and the different municipalities in Hampton Roads.)