Author: ipgocorp

RENTON, WA – Sequoia Equities announced the acquisition of The Carriages at Fairwood Downs, a 400-unit, apartment building in Renton, Washington. This marks the final piece of over $300MM in transactions beginning with the disposition of 556-units in Grand Terrace, CA in late-October and the purchases of Eddyline in Tualatin, OR and The Carriages via deferred tax exchange.  This is ninth acquisition for the firm in the Pacific Northwest and second in the Seattle-metro market since 2015.  The property was developed in 1986 and is comprised of 436,583 rentable square feet in 36, two and three-story residential buildings. 

The Carriages is located in the Fairwood neighborhood of Renton which is approximately 20 minutes from Bellevue’s central business district and relatively close to the I-405.  Situated on +/- 30 acres, the property was originally built as condominiums providing a low-density feel, an above average unit size of 1,093 sq. ft., and a 50% mix of townhomes. Property amenities include a nature trail, two pools, fitness facility, leasing center, and clubhouse. 

Sequoia will break ground on a $4+ million renovation in January to modernize the building’s apartment interiors and amenities.  Sequoia Equities’ General Partner and Vice-President of Acquisitions, Pat Reilly, explains, “The Carriages presents an excellent opportunity for our investors to yield a strong return as a result of value-added renovations.  Our plan is to reposition the building through interior improvements, as well as, amenity enhancements.”  Interior improvements will include high-function, low-maintenance features like open kitchen concepts, mudrooms, and wood-plank style flooring.  Amenity enhancements will include the addition of a theater, outdoor pavilion, resident lodge, and package lockers.  

The acquisition was facilitated by Jon Hallgrimson, Eli Hanacek, Frank Bosl and Josh McDonald of CBRE. Eli Hanacek of CBRE explains, “Resident and investor demand for well-located, low-density suburban communities in the Pacific Northwest continues to expand with limited new supply, and even more so, for assets such as Carriages, with large floor plans and further value-add upside. Sequoia’s renovation plans for Carriages are a perfect fit for resident preferences and will certainly generate great returns for all.”

BALTIMORE, MD – GMH Capital Partners announced the acquisition of H.B. Northway’s Varsity on Charles, a 328 bed off-campus housing community adjacent to Johns Hopkins University. GMH has rebranded the community as The Academy on Charles as part of the acquisition.

“This was an opportunity we had kept our eye on since deciding to re-enter the student housing space and our team did a fantastic job bringing it to fruition” stated Gary M. Holloway, Jr., president of GMH Capital Partners. “The Academy on Charles is the premier property in the Baltimore market. The property is located just steps away from Johns Hopkins University and is a great addition to the rest of our growing student housing portfolio.”

The Academy on Charles is located in Charles Village, adjacent to the Johns Hopkins University Homewood campus. This diverse neighborhood features a number of affluent homes owned by physicians and professors employed by Johns Hopkins. The Academy on Charles is perfectly situated in this historic area with a classically styled brick façade in a terraced vertical footprint. The property underwent a complete renovation by previous ownership in 2014 to become the premier asset for students of Johns Hopkins.

Through a programmatic joint venture with Principal Real Estate investors GMH has re-emerged as a prominent player in the Student Housing industry assembling some of the most iconic assets in the space. Previously, GMH’s College Park Communities division was the largest student housing company in the country, servicing nearly 70,000 beds across 29 states before its sale in 2008. GMH continue to focus on acquiring best in class Student Housing properties and conventional multifamily assets and will look to add existing assets to its portfolio in 2017. In addition to acquiring existing assets GMH will continue to focus on development opportunities.

“This was a great way for our team to bring 2016 to a close as we look forward to 2017 and acquiring or developing similar assets in key markets, “finalized Holloway.

DALLAS, TX – Inland Real Estate Acquisitions announced that it facilitated the acquisition of 7900 at Park Central Apartments, a 308-unit multifamily property centrally located in the Medical City area of Dallas. Matthew Tice, senior vice president of Inland Real Estate Acquisitions, Inc., facilitated the transaction on behalf of an Inland affiliate.

Located at 7900 Churchill Way, near the intersection of Interstate 75 and Interstate 635, the property is situated on more than six acres and was constructed in 1998. 7900 at Park Central consists of 14 four-story buildings featuring 99 one-bedroom, 151 two-bedroom and 58 three-bedroom units with an average size of 1,046 square feet, a clubhouse and two parking garages, providing a total of 600 garage parking spaces. Each unit includes granite countertops, stainless steel appliances, nine-foot ceilings, oversized walk-in closets and full size washers and dryers. The property offers residents a variety of community amenities, including a resort-style swimming pool, a lap pool, grilling area, fire pit with lounge seating, two landscaped courtyards, two state-of-the-art fitness centers, a lounge with a fully equipped kitchen and coffee bar, a game room with billiards, a dog park, a pet wash center and a business center.

“The property’s ideal, central location in Medical City, where more than 1,200 physicians are employed at the full-service adult and pediatric hospitals, emergency rooms, outpatient clinics and diagnostic centers, fills a housing need in a major employment area and made it a very attractive acquisition,” said Tice. “Additionally, the city recently announced plans to develop Dallas’ only Costco location across the street from 7900 at Park Central Apartments, providing convenient retail access for residents.”

As of the acquisition date, the property was approximately 95 percent leased.

To date, Inland Real Estate Acquisitions, Inc. has facilitated $44 billion of purchases including retail centers, single-tenant properties and a total of $4 billion in apartments.

LOS ANGELES, CA – The Turner Multifamily Impact Fund, a real estate investment fund managed by Turner Impact Capital that addresses the nation’s growing shortage of affordable workforce housing, has recently expanded its portfolio with the acquisition of three multifamily housing communities in the San Antonio and Atlanta metropolitan areas. The acquisitions expand the fund’s total portfolio to approximately 3,200 units of workforce housing.

The new acquisitions, all garden-style communities, are San Mateo, 252 units in Northeast San Antonio, 11 miles north of Downtown; The Grove, 276 units four miles west of San Antonio International Airport; and Sinclair, 320 units in Norcross, Georgia, northeast of downtown Atlanta.

Each acquisition advances the fund’s objective of acquiring, enriching and preserving critically needed rental housing for families who earn less than the area median income and live in densely populated, ethnically diverse urban communities. Residents include community-serving professionals such as teachers, police officers, health care workers, service workers and others who earn too much to qualify for subsidized housing, but not enough to afford higher-cost apartments or home ownership in areas near their workplaces.

The Turner Multifamily Impact Fund seeks to address the nation’s acute housing affordability crisis by preserving the workforce housing status of the properties it acquires and implementing property management improvements and resident-focused services that drive positive social and environmental impact – while generating strong risk-adjusted financial returns for leading private and institutional investors. These programs may include afterschool tutoring, community health and well-being services, and neighborhood watch programs.

The fund currently owns and manages nine multifamily properties, and is expected to eventually acquire and manage up to $1 billion in apartment communities throughout the country over the next two years. Other fund properties are located in or near Dallas, Austin, Las Vegas, Miami-Fort Lauderdale and Washington, D.C.

“Millions of community-serving employees, the backbone of our society, are burdened by rising rents and a worsening shortage of suitable housing, especially in urban communities,” said Bobby Turner, Principal and CEO of Turner Impact Capital. “The demand for quality workforce housing has never been higher. These new acquisitions will help ensure that the existing housing stock remains affordable in these densely populated markets, making a real difference in the San Antonio and Atlanta communities.”

San Mateo consists of 252 units in nine three-story buildings across 10.9 acres. Community amenities include a pool, a basketball court and a student/business center. The property is located within two miles of several public schools in the Northeast School District, less than eight miles to the Brooke Army Medical Center, and 12 miles from the USAA corporate campus.

The Grove consists of 276 units in 30 two- and three-story residential buildings on just over 11 acres. Amenities include two swimming pools, a clubhouse with a business lounge and fitness center, landscaped grounds and on-site laundry. The property is located in close proximity to multiple retail and recreational amenities, including HEB Alon Market, Barnes & Noble, Target and World Market, as well as Hardberger Park, a 311-acre park with hiking and biking trails, dog parks, picnic areas and children’s playgrounds.

Sinclair consists of 320 units in 32 two-story residential buildings and a clubhouse on nearly 29 acres. Amenities include a swimming pool, fitness center, two tennis courts, sports court with soccer nets and landscaped grounds. The property is less than a mile south of I-85, offering convenient access to several nearby employment hubs, including the Tucker Office Core, Central Perimeter/Pill Hill, Technology Park, and The Sugarloaf Office District.

“San Antonio and Atlanta are dense, high-demand areas with a strong workforce population in need of great housing options. In fact, some of our new acquisitions are located near charter school campuses built by our affiliate, the Turner-Agassi Charter School Facilities Fund,” said Gee Kim, President of Multifamily Housing Initiatives for Turner Impact Capital. “These attributes help us earn a market-rate investment return for investors and improve the communities through resident-focused services in education, health care and security.”

Earlier this year, Turner Impact Capital announced that celebrated actress and philanthropist Eva Longoria has joined forces with the firm as a partner and ambassador for the Turner Multifamily Impact Fund. In those roles, Longoria will help raise awareness about the critical need for workforce housing in the United States and help ensure that the fund is meeting the needs of residents in urban communities. Longoria, a native Texan, has long had close ties to the San Antonio community through the philanthropic work of the Eva Longoria Foundation.

VIERA, FL – Watercrest Senior Living Group proudly welcomes residents to the opening of the premier Market Street Memory Care Residence in Viera, Florida. The 44,000 square foot, 60-unit memory care community, built by Walker and Company, offers world-class care, multi-sensory programming, extraordinary culinary experiences, and unparalleled associate training honoring seniors and their families.

Designed, owned and operated by Watercrest Senior Living Group, Market Street Memory Care Communities connect the hearts and minds of residents by stimulating their senses with the purpose of re-experiencing memories. Market Street Memory Care Residence of Viera is an innovative and artfully designed memory care community envisioned by Market Street co-owner, Marc Vorkapich, and the first of three Market Street communities currently under development by Watercrest Senior Living Group.

“We celebrate this momentous occasion welcoming the first residents, families and associates to Market Street, with a collective focus to dramatically enhance the lives of seniors living with Alzheimer’s and dementia through innovation and exceptional standards of care,” says Marc Vorkapich, Principal and CEO of Watercrest Senior Living Group.

Market Street Memory Care Residence of Viera features an inviting and purposeful LifeBUILT design, including spacious accommodations, abundant natural lighting, internal courtyards with lush gardens, circular walkways, visual cueing and multiple social gathering places.

Market Plaza, a highlight and central gathering space for residents, boasts a timeless charm with fresh flowers, trees and an enticing streetscape, all surrounded by the calming sounds of nature. Residents delight in the comfort of familiar activities such as visiting the Post Office and Newsstand, browsing the Art Gallery, sampling fresh pastries at the Bakery, or visiting the Salon and Spa for special pampering.

“We are honored to open our doors at Market Street and initiate a profound impact on the lives of seniors and their families while creating common unity partnerships to benefit our neighbors, associates and the community of Viera,” says Stephanie Walsh, Executive Director of Market Street Memory Care Residence of Viera.

All Market Street associates receive world-class training in the field as Nationally Certified Dementia Care Practitioners and their cutting-edge memory care programming includes Personal Life Silhouettes, Music & Memory, Memories in the Making, For the Love of Color, multi-sensory culinary and gardening experiences, as well as personal well-being activities.

NEW YORK, NY – Mortgage rates inched higher, rising for a seventh consecutive week, with the benchmark 30-year fixed mortgage rate rising to 4.18 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.21 discount and origination points.

The larger jumbo 30-year fixed inched to 4.18 percent, while the average 15-year fixed mortgage rate climbed upward to 3.42 percent. Adjustable mortgage rates were mostly unchanged, with the 5-year ARM remaining at 3.45 percent and the 7-year ARM holding steady at 3.69 percent.

Mortgage rates continue to climb, reaching the highest levels since July 2015. While the run-up in mortgage rates was driven largely by the expectation of government stimulus and more government borrowing with the new administration, the Federal Reserve’s upward estimate of economic growth and projection of three interest rate hikes in the new year are continuing to drive mortgage rates upward. Inflation will be another variable to keep an eye on as any upside surprises would force the hand of the Fed into raising interest rates even faster.

At the current average 30-year fixed mortgage rate of 4.18 percent, the monthly payment for a $200,000 loan is $975.70.

SURVEY RESULTS

30-year fixed: 4.18% — up from 4.15% last week (avg. points: 0.21)
15-year fixed: 3.42% — up from 3.40% last week (avg. points: 0.19)
5/1 ARM: 3.45% — unchanged from 3.45% last week (avg. points: 0.30)

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 majority, 63, percent, forecast that rates will continue to rise in the coming week, while 13 percent expect rates to go down. The remaining experts, 25 percent, predict that rates will remain more or less unchanged over the next seven days.

(RECAP: HUD today announced it will require that housing counselors participating in HUD programs to be certified to offer counseling services to consumers. In order to become certified, housing counselors must pass a standardized written examination and work for a HUD-approved housing counseling agency. Though announced today, HUD’s final rule will take full effect three years following the release of the certification examination. To help counselors prepare for the exam, the Department is offering intensive training and study resources (in English and Spanish) to its counseling stakeholders. HUD is providing a wealth of resources to individuals seeking HUD certification including a practice test that will be available shortly and the actual certification test is expected to be published in the Spring of 2017.)

REDMOND, WA – Security Properties and Cigna Investment Management purchased Heights at Bear Creek, a 227-unit, Class A multifamily property located in Redmond, WA.  This was Security Properties’ second joint venture with Cigna Investment Management. 

The location is excellent as it has a low density, suburban feel, but also offers residents direct access into the city’s rapidly growing town center, less than 1 mile south of the property.  Redmond has one of the best “urban suburban” town centers in the region and it is a model that many other cities have tried to replicate.  With light rail coming in 2024, Redmond’s should continue to thrive.  Additionally, just ½ mile south of the property Avondale Way turns into SR-520, servicing Microsoft’s World Headquarters (35k employees) less than 10 minutes south as well as other major eastside employers such as Nintendo, Google and Tableau.

The site was originally developed in 1993 but was constructed with 9 foot ceilings, a unique detail for multifamily constructed during this time and a huge differentiator over many of the comps. This feature, combined with the large average unit size (1,091 Sq. Ft.) and high concentration of corner units (90%) make the asset ideally suited for Redmond’s family oriented demographic. 

The median listing home price in Redmond is nearly $700K and the average income within three miles of the subject is $109,000. The Heights is part of the Lake Washington School District, which is repeatedly ranked as one of the top districts in the state. 

The business plan is to renovate all of the units to a high-end spec as well as update the clubhouse and paint the exterior. 

Barrett Sigmund, Sr. Director at Security Properties, says, “Heights is rare in the market in that it has nine-foot ceilings, large units, and a low density setting.  By layering our rehab program unto the irreplaceable physical asset, we will have one of the best value propositions for renters in the Redmond market.”

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

GAITHERSBURG, MD – Hercules Living, a twenty year plus family-owned and operated regional multifamily developer headquartered in Virginia Beach, Virginia, has just completed construction of its newest tax credit apartment community called Crossings at Olde Towne.

The city of Gaithersburg is in the midst of a 25-year revitalization plan, turning Olde Towne into a pedestrian-friendly cultural hub to support a mix of successful businesses and residential communities. Olde Towne is being transformed into a destination area that draws out-of-towners, supports local dining, shopping, entertainment and sports activities.

Hercules Living’s contribution of the new 199 unit multifamily complex was five years in the making.  The project presented several challenges to the three entities – Hercules Living teamed with their development arm, RST Development, LLC, and construction arm, Triangle Construction, both of Rockville, MD., to tackle the 265,000-square-foot development.

Crossings at Olde Towne was designed specifically for the urban setting of the Olde Towne District. The location presented a challenge for the construction team as it backs directly on one side to an active railroad track. Noise emanating from rail traffic required the design and implementation of a particular sound barrier system to efficiently provide noise reduction. 12″ thick advanced absorption materials were used to create top-performance noise reduction along with the use of high-rated STC (Sound Transmission Class) windows to significantly reduce sound.

Through thoughtful design, construction management, and planning, Crossings at Olde Towne qualified and earned the prestigious ENERGY STAR 2.0™ rating. This designation indicates that building was designed and constructed to be at least 15% more energy-efficient than needed to meet code requirements.

“We couldn’t be more proud of the work we have accomplished and our contribution to the district with this high performing, multifamily building,” said Scott Copeland. “Adding quality, design-forward, affordable energy-efficient housing to the Olde Towne revitalization strengthens the district in attracting vibrant, engaged, community-oriented residents.”

Award-winning Hercules Living now owns and manages over 40 properties, including more than 8,000 apartments in seven states. The company’s portfolio includes a range of both market-rate and affordable properties completed as new construction, renovation, and adaptive reuse projects.

(RECAP: The FHFA today issued a final rule to implement the Duty to Serve provisions mandated by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. The statute requires Fannie Mae and Freddie Mac (the Enterprises) to serve three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing – by improving the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low-, and moderate-income families in these markets.)