Author: ipgocorp

ROSWELL, GA – Bluerock Residential Growth REIT announced that it has acquired the 320-unit, Class A+ multifamily City Walk Apartments in Roswell, Georgia. The Company acquired the property through a joint venture for a total purchase price of approximately $76.0 million, or roughly $237,000 per residential unit.

The acquisition is projected to yield a pro forma stabilized cap rate of approximately 5.75%. This compares favorably to estimated market cap rates of 4.75% – 5.25% for comparable assets.

BRG invested 98% of the venture’s equity requirement, or approximately $25.48 million, with an affiliate of the Carroll Organization investing the balance for a 2% stake in the venture. The transaction was further capitalized with a senior loan in the amount of approximately $51 million.

The property, which was built in 2015, features one- and two-bedroom units averaging nearly 900 square feet. Situated on nearly 11 acres, the property offers a large clubhouse and community amenities including a resort-style pool with tanning ledges, grilling area, covered outdoor seating, fitness center, club room complete with kitchen and billiards table, business center with Wi-Fi, and a newly constructed dog park.

City Walk is the only institutional multifamily asset built in Roswell in the last 15 years and benefits from its location in a historic district with high barriers to entry for additional new multifamily construction. It is strategically located within walking distance of the area’s vibrant downtown Historic Canton Street retail shopping and dining. The Company plans to improve cash flow at the property through enhanced property management and modest, value-add renovations to unit interiors.

“We are pleased to have been able to source this property by leveraging our relationships in the local market. City Walk is a strong performer in a supply-constrained submarket. We believe it will be a solid, steady contributor to the BRG portfolio now and well into the future,” said Ramin Kamfar, Chairman and CEO of BRG.

KENT, WA – Admiral Capital Group and Security Properties announced the successful sale of Waters Edge Apartments, a 304-unit multifamily property located in Kent, Washington, in the Seattle MSA.

Admiral and Security Properties acquired the apartment community in February 2015 through a joint venture. The investment provided an opportunity to purchase a well-located asset in the fourth largest manufacturing and distribution center market in the United States at a discount to replacement cost. 

During its ownership, the joint venture repositioned the property by curing deferred maintenance, enhancing the exterior and upgrading unit interiors. Select exterior improvements included re-siding the entire property, replacing wooden decks and installing a new playground amenity. Interior renovations included modernizing kitchen cabinets, appliances and flooring and renovating bathrooms. Overall, the upgrades repositioned the property to compete with higher quality assets with higher overall rents.

“Our strategy is to identify capital-deprived assets in markets with a supply and demand imbalance,” said Dan Bassichis, Co-Founder of Admiral Capital Group. “Waters Edge was an ideal fit and provided the opportunity for our partnership to invest the necessary capital to improve the property and experience for the residents and capture a share of the growing demand and rent growth in the submarket.”

“Waters Edge is representative of the opportunities we like to target. By executing an extensive renovation plan, including a complete re-side, the partnership was able to enhance the asset’s physical condition to accurately align with its submarket-leading location,” said Barrett Sigmund, Senior Director of Investments at Security Properties. 

“The investment in Waters Edge was the continuation of a long-term relationship with SPI,” said Jarett Kaplus, Principal at Admiral. “We continue to proactively seek additional value-add multifamily investments nationwide, including in the Pacific Northwest.”

Philip Assouad and Giovanni Napoli, commercial real estate brokers with Kidder Mathews, handled the Waters Edge sale.

The sale represents the ninth realization for Admiral in its first value-add real estate fund, Admiral Capital Real Estate Fund, L.P. (“ACRE I”). To date, Admiral has invested in 14 assets with an aggregate purchase price of over $370 million and continues to actively pursue value-add opportunities in top 25 MSA’s. 

DENVER, CO – Prescient, a fully integrated and patented design, engineering, manufacturing and installation solution for the construction industry, announced an ongoing partnership with Trammell Crow Residential (TCR) and the completion of two innovative apartment projects in Denver.

Alexan Uptown is Prescient’s tallest structure to date in Denver. The 12-story, 372-unit apartment building features more than 450,000 square feet of total building area and consists of eight stories of Prescient structure on top of a four-story concrete podium. The project, owned by Trammell Crow Residential, was contracted by Martines Palmeiro Construction, designed by Kephart Architects and engineered alongside Anchor Engineering.

“I first came to know Prescient four years ago and recognized they possessed a unique value proposition – a better way to design and build multi-unit buildings,” said Matthew Schildt, managing director of development at Trammell Crow Residential. “Prescient had developed a standardized structural system and design software that promised to expedite the process and deliver significant savings.”

TCR and Prescient’s second conjunctive apartment project, The Alexan Cherry Creek apartments, boasts 156,000 square feet of Prescient structure. The eight-story building includes 164 units. The project was completed in partnership with architect Shears Adkins Rockmore.

“To date, we have finished two projects with the Prescient structural system and have three more in planning for 2017 and 2018. By embracing Prescient’s technology and standardized approach to design and construction we are seeing compressed design and construction schedules and a better, more cost-effective result,” said Schildt.

“Working with Trammell Crow Residential on multiple projects has enabled our teams to fully utilize Prescient’s standardized design, engineering and construction platform. We’ve been able to optimize designs to work with our framing system, leading to significantly lower costs, better execution in the field and shorter construction schedules. Applying advanced design and construction technology to the construction process mitigates the typical risks associated with large multi-unit projects,” said John Vanker, founder of Prescient.

Prescient, which recently expanded its 12-acre, 120,000 square foot Arvada, Colorado, headquarters and manufacturing facility, is on track to complete 1.5 million square feet of projects during 2016. In February 2017, Prescient will begin production at its 10-acre site near Raleigh-Durham, North Carolina. The company is building a 135,000 square foot manufacturing facility to more efficiently service markets along the East Coast up and down the I-95 corridor from Maine to Miami and all markets east of the Mississippi River.

“Prescient is fast becoming the urban-infill solution of choice in Denver. Our partnership with Trammell Crow Residential has been the cornerstone of our growth in this city, and we’re thankful for that,” said Satyen Patel, chairman and CEO of Prescient.

(RECAP: 2,000 organizations and businesses are calling on the incoming Congress and Administration to prioritize the Low-Income Housing Tax Credit (Housing Credit) as they consider reforms to the nation’s tax code and investments in the nation’s infrastructure. The letter submitted on behalf of the ACTION Campaign urges policymakers to: 1) ensure that the Housing Credit and Housing Bonds are held up as positive examples of the power of the tax code to improve communities by maintaining their viability under tax reform; and 2) expand and strengthen the Housing Credit to increase the availability of safe and affordable housing and revitalize local economies. The House is currently working to draft comprehensive tax reform legislation based on the principles outlined in Speaker Paul Ryan’s tax reform blueprint, released this summer. The blueprint indicates that the majority of corporate tax expenditures may be eliminated in order to reduce corporate rates, and was silent on the Housing Credit and Housing Bonds.)

FRANKLIN, TN – Security Properties and an institutional investor purchased The Artessa Luxury Apartment Homes, a 250-unit Class A multifamily property located in the Cool Springs neighborhood of Franklin, TN for $57,500,000.

Sitting at nearly 90% occupancy, The Artessa is the newest multifamily asset in Cool Springs. The developer finished construction in January of 2016 and has steadily leased up the property. The property features high-end unit interiors and luxurious common areas. Security Properties intends to improve the common areas by adding an additional BBQ area, installing LED lighting, expanding the business center, adding a sports lounge, and executing on an array of other smaller projects.

The Artessa will be Security Properties’ third Nashville metro acquisition in 2016.

David Dufenhorst, CEO at Security Properties stated, “The Artessa is the latest reflection of our company’s continued commitment to the Nashville metro. We are seeking locations that will provide durable cash flow and strong yields. With the great Nashville economy largely driven by recession-resistant healthcare and education sectors, Williamson County having an extremely tight office market, and The Artessa having an advantageous competitive position in its submarket, we expect this acquisition to perform well over a long hold period. We anticipate strong job creation over the coming decade given The City of Franklin has over 6.5m square feet of office space and millions more under construction and planned. In fact, Williamson County led the nation in job growth as a percentage from Sept. 2014 to Sept. 2015 by increasing its employment base by 6.8%. We anticipate this trend to continue. Most recently, the greater Nashville metro grew its labor force by 5.2% over the 12-month period ending Sept. 2016, according to the Bureau of Labor Statistics.”

The Artessa was financed with a Fannie Mae 10-year note at an attractive 4.1% fixed rate. Russell Oldham of CBRE represented the seller on the transaction.

CHICAGO, IL – Spirit Bascom Ventures a partnership between Irvine, California based The Bascom Group, and Stamford, Connecticut based Spirit Investment Partners, has acquired 6807 N. Sheridan Road for $18,875,000, its second Chicago acquisition in the past year. 

The property is located in the dynamic Rogers Park neighborhood, a few blocks north of Loyola University’s flagship Lake Shore Campus. Todd Stofflet of KIG CRE represented the seller in the off market transaction. Andy Feinberg, Marc Schulder, and David Harte from Ackman-Ziff arranged a first mortgage loan from local lender First Midwest Bank and mezzanine loan from New York based Hillcrest Real Estate.

The 1920’s era 9-story building contains 160 rental units featuring unobstructed views of Lake Michigan, dramatic, has high coffered ceilings on the ground floor and approximately 10,150 square feet of fully leased retail space along North Sheridan Road. The property is located four blocks north of the Loyola Station El stop and one block west of Columbia Beach. The transformation of Rogers Park into a popular neighborhood for millennials and young professionals combined with a limited supply of large luxury properties existing or planned for the submarket is what attracted the new buyers to the opportunity.

Spirit Bascom Ventures has been focusing on acquiring value add multifamily properties along the eastern seaboard and Midwest, acquiring over $300 million in assets over the past three years. The venture also focuses on neglected urban mixed use assets is path of progress submarkets that can benefit from similar high end repositioning and is seeking to add to the two property portfolio their currently own in Chicago.

David Nachman, a principal of Spirit Investment Partners, explains, “This building has been neglected for a long time and is underperforming its potential. We’re excited to unlock that potential and create a real amenity for the neighborhood.” Ian Hafner, a principal of Spirit Investment Partners, adds, “We love the long term growth story in North Chicago and want to add more properties to our growing local portfolio.”

(RECAP: New jobs are coming to Botetourt County, as many as 1,200 over the next five years. So where will all those workers live? That’s a crucial question for the county, and one that was raised Saturday during a strategic planning session held by the board of supervisors. A shortage of affordable workforce housing has long been a concern in Botetourt. But the issue grew more pressing this year after Eldor Corp. announced it would build an automotive parts factory in the county’s Greenfield industrial park and Ballast Point Brewing & Spirits followed with plans for an East Coast brewery and distribution center. Those and other new employers, and the spinoff jobs they will generate, are expected to exacerbate the housing crunch. The county has commissioned Patz to study its housing needs and how they might be met. Although a final report is several weeks away, this much seemed clear Saturday: A county where many residents live in mid- to upper-priced houses surrounded by ample lots must now shift its focus to encouraging more affordable apartments and townhouses in higher-density settings.)

CHEVY CHASE, MD – Federal Capital Partners (FCP) has completed the largest DC-area multifamily transaction in 2016 with the $328 million sale of five apartment communities totaling 2,490 units in the suburbs of Washington, DC.

The portfolio sale includes the following apartment communities acquired through FCP’s Funds I and II: Cypress Creek in Hyattsville, MD – 760 units, Penn Landing in Forestville, MD – 598 units, Cambridge Apartments at New Carrollton Station in New Carrollton, MD – 466 units, Summerlyn Place in Laurel, MD – 424 units, and Toledo Plaza in Hyattsville, MD – 242 units.

“FCP takes great pride in the improvements we have made to each of these properties,” said FCP Senior Vice President, Jason Bonderenko. “We have completed our business plan for these communities and continue to seek new multifamily investments in the region.”

FCP extends its appreciation to CB Richard Ellis for handling the marketing and sale of the portfolio. 

Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $5.0 billion in assets since its founding in 1999. FCP invests in all asset classes and provides equity, preferred equity and structured debt investments for commercial and residential real estate. The firm, based in Chevy Chase, MD, owns and manages in excess of $2.3 billion in assets. FCP is currently investing its third investment fund, a recently closed commingled, discretionary fund targeted at real estate markets on the East Coast of the United States.

MINNEAPOLIS, MN – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, announced it has started construction on a collegiate housing community adjacent to the University of Minnesota in a joint venture with Core Spaces (CORE).  EdR will be the 51 percent owner and will manage the $97.9 million development upon completion.

The Hub Minneapolis, a 707-bed community with a mix of studio, one-, two-, three- and four-bedroom floor plans, is located immediately adjacent to the University of Minnesota and is scheduled for delivery in the summer of 2018. This is EdR’s first development partnership with CORE. EdR and CORE are also partners in two existing communities: the Hub Madison, serving the University of Wisconsin, and Urbane, serving the University of Arizona in Tucson.

“We anticipated our new relationship with Core to result in future development opportunities,” said EdR’s chief executive officer Randy Churchey. “We are excited to see that come to fruition with the announcement of a great development adjacent to one of the country’s top universities.”

The highly amenitized community features individual study rooms, group study lounges, computer lab, cardio fitness center and robust internet and Wi-fi throughout the building. The rooftop area will feature a pool, hot tub, fire pits and cooking area. The Hub’s penthouse level will feature a chef’s kitchen, bar-top dining area and retractable doors leading to a three-season patio. The plan also calls for 10,000 square feet of retail space on the ground floor.

“We look forward to the continued partnership with EdR,” said Marc Lifshin, managing partner of Core Spaces. “The Hub brand is a perfect fit for this location, and we look forward to being a part of the development’s success.”

EdR has an ownership interest in and manages The Marshall, which also services the University of Minnesota but has a different unit mix than The Hub and is located on the other side of the university’s campus.

This latest project brings EdR’s share of 2018 development deliveries to $377 million.

“If you add our recently announced 2018 delivery commitments for Minnesota and Hawaii to our previously announced 2016-2018 capital commitments, due to our current low leverage, we could fund all of our capital commitments currently (even though actual funding will occur over the next 24 months) with cash on hand, proceeds from the future settlement of the completed ATM forward equity sales and borrowings under our line of credit and our debt to gross assets would be approximately 25 percent,” said Bill Brewer, EdR’s chief financial officer.

The University of Minnesota, with an enrollment of 51,580 in 2016, has one of the largest enrollments of any college in the nation. Its undergraduate program was ranked 69th  in U.S. News and World Report’s college rankings in 2016, with its pharmacy, psychology and audiology programs ranked in the Top 10 in the nation. 

(RECAP: Developers have moved a step closer to their vision of reshaping the Grace Street corridor with a mixed-use development that could cost as much as $100 million. The Richmond Planning Commission approved the sale of city-owned land across from the Carpenter Theatre, an L-shaped parcel encompassing most of the block between Grace, Franklin, North Sixth and North Seventh streets. If City Council approves the plan Monday, the 1.6-acre site will be sold to City Center Development LLC for $3.95 million. Requirements for the sale include providing at least 800 parking spaces, with 600 available to the public, 28,000 square feet of ground-level retail space and 372,000 square feet of residential or commercial space — or a combination. The first phase of parking and retail must be completed within 20 months, and the second phase within five years. Residential use or such commercial projects as a hotel are still being considered. The project also could include one tower or two.)