Author: ipgocorp

(RECAP: Reports indicate that President-elect Donald Trump and House Republicans plan to aggressively pursue tax reform in early 2017. It’s too soon to say what the tax reform might mean for specific tax provisions, such as the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic preservation tax credit (HTC) and renewable energy tax credits. But, it’s important to note that even if these tax credits are left intact, Congress and the president could consider a number of other changes that would have significant implications for the future of investment affordable rental housing, community development, historic preservation and renewable energy.)

BEVERLY HILLS, CA – Global real estate investment company Kennedy Wilson announced a series of separate multifamily transactions totaling $363 million including: the acquisition of Alara Hedges Creek, a 408 unit apartment community built in 1998 in a suburb of Portland, Oregon for $93 million; the disposition of The Grove, a 331 unit apartment community built in 1964 in San Jose, California for $96 million; and a $175 million refinance of Bella Vista at Hilltop, a 1,008 unit apartment community built in 1988 located in the San Francisco Bay Area.

“These transactions allowed us to harvest gains, improve the quality of our portfolio and lock in attractive long term financing,” said Kurt Zech, President of Kennedy Wilson Multifamily Investments. “We were able to generate excess capital through these transactions while growing the cash flow of our portfolio.”

On Thursday, Kennedy Wilson acquired 100% of Alara Hedges Creek for $93 million, securing a $60 million 10-year fixed rate loan from Freddie Mac at 3.59%, interest-only for 5 years. The loan’s interest rate was locked in October. The $33 million equity investment was primarily funded from the net sale proceeds of The Academy, a 175,000 sq. ft. office building in North Hollywood, CA, which was sold in October. Alara Hedges Creek is a low-density garden style community situated on 20 acres. The property is located in the Portland suburb of Tualatin, near an abundance of upscale retail destinations, recreation and entertainment options. Kennedy Wilson’s value-add asset management strategy includes unit renovations with upgrades to the appliances, countertops and flooring.

On Wednesday, Kennedy Wilson and its partner sold The Grove for $96 million, generating $58 million in net proceeds, including $29 million to the company which equates to a 5.0x equity multiple over the life of the investment. Kennedy Wilson held a 50% ownership interest in The Grove.

On Wednesday, Kennedy Wilson refinanced Bella Vista at Hilltop, a wholly-owned asset, with a new $175 million 10 year fixed-rate loan at 3.50% from Fannie Mae, interest-only for the entire term. The loan’s interest rate was locked in September. The property previously had two loans totaling $126 million at an average interest rate of 4.6%, of which $91 million was due to mature in June 2017. This represented the company’s largest debt maturity in 2017.

BRIGHTON, CO – Inland Real Estate Acquisitions announced that it facilitated the acquisition of Solaire Apartments, a newly constructed 252-unit multifamily property located in Brighton, Colorado, approximately 20 miles northeast of the central business district of Denver. Matthew Tice, senior vice president of Inland Real Estate Acquisitions, facilitated the transaction on behalf of an Inland affiliate.

Located at 1287 South 8th Avenue, Solaire Apartments consists of 11 buildings containing 114 one-bedroom, 108 two-bedroom and 30 three-bedroom units. Situated on one of the nation’s largest geothermal systems, Solaire Apartments provides its residents with renewable energy. Each unit includes nine-foot ceilings, a roman tub, full size washer and dryer, exterior storage and a private balcony or patio. The property also offers residents a variety of community amenities, including a heated swimming pool, hot tub, 24-hour fitness center, outdoor grilling stations, business center and playground.

“Solaire Apartments was an attractive purchase due to its unique energy-efficient capabilities and prime location within the rapidly growing northeast Denver submarket, which has a population that is projected to increase by 20,000 over the next five years,” said Tice. “Northeast Denver has experienced an approximate 41 percent growth in employment since 2009, and has several large projects underway with well-known employers like Amazon, Panasonic and Wal-Mart.”

As of the acquisition date, the property was 94 percent leased.

This property marks more than $550 million of purchases that Inland Acquisitions has facilitated within the Denver market. To date, the Company has facilitated $44 billion of purchases including retail centers, single-tenant properties and a total of $4 billion in apartments.

SAN JOSE, CA – Marcus Millichap announced its Institutional Property Advisors (IPA) division closed the $95.5 million sale of The Grove, a 331-unit apartment complex built in 1970 in San Jose, California.

“The investment appeal of this centrally located west San Jose apartment complex is driven by the area’s tremendous employment fundamentals, the extensive value-add upside to be gained through continued unit interior and common area amenity upgrades, the current loss-to-lease, and the pedestrian- and transit-oriented nature of the location,” said Stan Jones, IPA executive director.

Jones, along with IPA executive directors Salvatore Saglimbeni and Philip Saglimbeni, represented the seller, Kennedy Wilson Multifamily. The buyer is TH Real Estate, an operating division of TIAA Global Asset Management.

“This asset aligns with one of our main multifamily investment strategies of acquiring quality communities with value-add potential in stable markets with positive long-term fundamentals,” said Terry Senger of TH Real Estate. “We’ve successfully invested in such properties throughout all points in the investment cycle, and believe that current economic and demographic trends will continue to provide opportunities for multifamily investing that can result in strong performance for our institutional investors.”

The property is situated within an expansive, 11.7-acre, park-like setting at 1919 Fruitdale Avenue. Amenities at The Grove include two resort-style swimming pools with furnished sundecks, a hydrotherapy spa, fitness center, clubhouse, business center, resident lounge, outdoor barbecue area, gated access and covered parking. The apartment homes feature fully equipped kitchens with complete appliance packages, separate dining areas, private balconies/patios, spacious closets and double-paned windows. The unit mix consists of studio, one-, two- and three-bedroom floor plans.

(RECAP: Though born in controversy, Arlington’s Affordable Housing Study Working Group managed to win over most critics during its three-year effort, and on Dec. 4 was among the honorees at the eighth annual Ellen M. Bozman Affordable Housing Awards, presented by the Alliance for Housing Solutions. “It’s great to live in a community where affordable housing is a bipartisan issue. Arlington can serve as an inspiration to the country as to how we can make it work,” said Michael Spotts, who served as vice chair of the 18-member task force. The body’s work evolved into an Affordable Housing Master Plan, adopted unanimously by the County Board last year.)

LOS ANGELES, CA – Waterton, a U.S. real estate investor and operator, announced the acquisition of Candlewood North Apartments, a 189-unit rental community in Northridge, Calif., approximately 27 miles northwest of downtown Los Angeles.

The community at 9830 Reseda Blvd. comprises three, three-story residential buildings with a mix of studio, one- and two-bedroom units. Its location near several major thoroughfares, including the 405, Ronald Reagan Freeway and Golden State Freeway, and Northridge Metrolink station, just 2 miles southwest of the property, provides convenient access to destinations throughout the Los Angeles metro.

“Located in the heart of the San Fernando Valley, Candlewood North is in proximity to many of the region’s largest employers, which made the property especially attractive from an investment standpoint,” said Mark Stern, senior vice president of acquisitions. “With strong transportation access, the submarket has attracted healthcare, entertainment, business services, aerospace, foreign trade and advanced manufacturing industries, fueling job growth and demand for rental housing.”

Warner Center, a large mixed-use development in Woodland Hills that includes a large concentration of offices and high-end shopping and dining options, is approximately 15 minutes from the property. Candlewood North is also within walking distance of the Cal State Northridge campus, located 1 mile south of the community, as well as nearby retail, including the Devonshire Reseda Shopping Center and Northridge Fashion Center.

On-site amenities at Candlewood North include two swimming pools and spas, an outdoor kitchen area and covered parking.

“Waterton plans to fully renovate the common areas of the property as well as implement an in-unit renovation program to realize the significant upside the property presents,” said Stern. “Being that the units at Candlewood North have remained largely untouched, we plan to make substantial enhancements in order to meet the standards of today’s renters.”

Waterton’s initial scope is to renovate the units to include wood-style flooring; modern kitchens with updated cabinetry, solid-surface countertops, tile backsplashes and stainless steel appliances; upgraded lighting and plumbing fixtures; and contemporary window treatments. In conjunction with the interior renovation program, Waterton plans to further reposition the property through several amenity upgrades and maintenance projects, including exterior façade improvements and painting, as well as elevator cab modernization and landscaping upgrades.

Candlewood North marks Waterton’s fifth multifamily acquisition in 2016. The firm owns and manages six other rental communities in the Los Angeles area comprising nearly 1,400 units.

VERO BEACH, FL – Walker and Company Construction is making notable progress at the site of Watercrest of St. Lucie West Assisted Living and Memory Care Community in Port St. Lucie, Florida. The 128 unit senior living community, owned and operated by Watercrest Senior Living Group, broke ground this past summer and is scheduled to open to residents in late 2017.

Watercrest of St. Lucie West is a signature Watercrest product, offering 102 assisted living and 26 memory care apartments with resort-style service, extraordinary care and breathtaking lakeside views. The community boasts an exquisite design with stunning promenade, fireplace, signature water wall, multiple dining options, pool, salon & spa, grand balconies and Florida style outdoor living spaces with picturesque water views.

With multiple senior living projects in development across the southeast, Watercrest principals, Marc Vorkapich, CEO and Joan Williams, CFO, are setting new standards of quality for seniors and their families in the development of upscale senior living communities.

“The Port St. Lucie community has responded with tremendous enthusiasm anticipating the opening of Watercrest of St. Lucie West,” says Marc Vorkapich, Principal and CEO of Watercrest Senior Living Group. “We are thankful for the community support and privileged to honor seniors with the diverse, enriching lifestyles they deserve.”

Residents of Watercrest of St. Lucie West will enjoy pampering in elegant Spa W, savor private label Watercrest wines at the wine bistro, and relish the flavors of locally grown, seasonal ingredients and organic fare whether dining waterfront, bistro-style or in the chef’s private dining room.

Ideally located at 279 NW California Boulevard, Watercrest of St. Lucie West is just minutes from abundant dining, entertainment, and retail options. Recently named the eighth largest city in the state of Florida, Port St. Lucie is home to PGA Village, the NY Mets Spring Training, waterfront downtown district, botanical gardens, as well as a top-rated park system, cultural attractions, recreational facilities, and vast residential options.

Watercrest Senior Living prides itself on providing outstanding caregivers and extraordinary care, all tailored to individual resident preferences. Their comprehensive memory care program is specifically designed to engage the senses, expand the mind, and enhance the emotions of residents. All Watercrest memory care associates are Certified Dementia Specialists and programming focuses on innovative lifestyle approaches, including personal life silhouettes, multi-sensory enhancements, Memories in the Making, and Music and Memory programs.

(RECAP: Donald Trump’s choice to have his one-time rival Ben Carson head HUD has triggered a lot of head-scratching. Carson’s ongoing dilly-dallying on whether to accept the job has perhaps driven many into full excoriation disorder, wondering why a retired neurosurgeon with no housing policy experience is even being considered. But if the critique is that a medical professional is unfit for the HUD position, then that doesn’t square with the research, which is increasingly convinced that housing is indeed a health issue. “There are clear and obvious links between health and housing,” says Diane Yentel, president and CEO of the National Low Income Housing Coalition. “Whether Dr. Carson would use his position and his expertise to make that case in order to protect and expand proven affordable housing solutions remains unknown.”)

KANSAS CITY, MO – JVM Realty, a leading vertically integrated multifamily real estate investment and property management firm, announced it has acquired The Residences at New Longview, a newly constructed 309-unit luxury apartment community in suburban Kansas City.

Located in Lee’s Summit, Mo., The Residences at New Longview is adjacent to another luxury JVM community, the 206-unit New Longview Apartments. The properties are situated about 20 minutes from downtown Kansas City and in one of the nation’s most thriving suburbs. Lee’s Summit was ranked No. 43 on Money’s 2016 “Best Places to Live” list.

“There could not be a more perfect fit for JVM than The Residences at New Longview,” said Jay Madary, president and CEO of JVM, which owns and manages luxury apartment communities in secondary and tertiary markets in the Midwest. “Lee’s Summit is a truly dynamic city, one that offers high-paying jobs and plenty of opportunities for recreation and entertainment. With the favorable demographics in the area and the implementation of our top-notch marketing and revenue-management platforms, we see plenty of opportunity for demand and revenue growth at this community. Plus, with these adjacent properties, we will be able to offer prospects multiple options at different price points.”

The Residences of New Longview is conveniently located near I-470, I-435 and U.S. 50, enabling residents to easily move about the metro Kansas City area. The community is just a short drive from the Summit Technology Campus, which is home to Cerner, a health information technology provider and a major employer in the area. The campus is indicative of Lee’s Summit’s broad-based economy that has benefited from strong growth in various sectors, including healthcare, technology and education.

The submarket’s economy also benefits from a strong retail sector, which includes the Summit Woods Crossing and Summit Fair shopping centers. Summit Woods Crossing is home to Bath & Body Works, Best Buy, Eddie Bauer Outlet, Helzberg Diamonds and Target. Among the notable retailers in Summit Fair are Chico’s, Jos. A. Bank and Macy’s. St. Luke’s East Hospital and the numerous adjacent smaller medical centers are in the area as well, and the community is located within Lee Summit’s highly acclaimed public school district.     

Outdoor enthusiasts will enjoy nearby Longview Lake Park, which includes a 930-acre lake, public golf course, beach facilities, boat ramps, hiking/biking trails, camping sites and horse park.

The 15-acre Residences of New Longview offers one- and two-bedroom homes. The apartment homes feature gourmet kitchens, granite countertops, stainless steel appliances, 9- to 12-foot ceilings with crown molding, and full-sized washers and dryers.

Community amenities include a resort-style, saltwater pool; clubhouse with business center, theater and pub; massage therapy room; tanning bed; and Google Fiber TV and Internet service.

NEW YORK, NY – José R. González, President and CEO of the Federal Home Loan Bank of New York, announced that the Bank has awarded $32.6 million in subsidies to fund 39 affordable housing initiatives throughout New Jersey, New York, Florida, Maryland, Ohio, Pennsylvania and Texas. These awards are funded through the Bank’s Affordable Housing Program (“AHP”), and will result in the creation or rehabilitation of 3,128 affordable housing units, including more than 2,100 units dedicated to very low-income housing and more than 3,000 units of affordable rental housing. The awards will not only help provide housing, but also drive community development: it is anticipated that more than $652 million will be leveraged in housing investment from the development of these initiatives.

“Our membership is broad and diverse, spanning institutions with different asset sizes, different business models and different areas of focus. But all are bound by a shared commitment to the communities they serve,” said Mr. González. “Our Affordable Housing Program provides us with an opportunity to partner with our members to help support these communities. The AHP is funded through our earnings – earnings generated by our members’ participation in our cooperative throughout the year.  The AHP not only reflects our mission; it also drives our cooperative forward.”

The $32.6 million announced today are funds drawn from the Bank’s earnings. As mandated by Congress, the Bank forgoes 10 percent of its earnings each year to support these neighborhood housing and economic development initiatives. 

The Federal Home Loan Bank of New York’s AHP provides member-lenders with direct subsidies which are passed on to income-qualified households through sponsoring local nonprofit organizations. AHP financing is combined with other funding sources to create housing for moderate, low- and very low-income families. Program awardees receive this funding through a competitive application process. Each competing project must be sponsored by a financial organization that is a member of the Bank in partnership with a community-based sponsoring organization. 

The AHP was created by Congress in 1989, and the 11 Federal Home Loan Banks have awarded more than $5.1 billion in AHP funds since the first awards were granted in 1990. At the Federal Home Loan Bank of New York, the AHP has supported 1,485 projects with more than $545 million in grants, helping to create or preserve more than 67,000 units of affordable housing and generating an estimated $10 billion in total development costs.