Author: ipgocorp

(RECAP: Freddie Mac’s renter research, conducted in September 2016, shows that renters are more satisfied with their rental experience than they were in October 2015. However, they are also more anxious about their finances. Over the past year, a greater number of multifamily and single-family property renters — 20 percent compared to 11 percent last year — feel they sometimes don’t have enough money for basics until the next payday. The Gen X renters are feeling the tightest squeeze with over one-quarter feeling this way. Renters are struggling with managing their debt and over one-third are either extremely or very concerned about potential rent increases in the next 12 months. Fear of eviction because of rising rents is now a reality for at least one in five Americans.)

SARASOTA, FL – TGM Associates announced the acquisition of TGM University Park, a garden style apartment community with 386 units in Sarasota, FL. 

The property, completed in two phases 1997 and 2001, is comprised of nineteen residential buildings built on a 40.5 acre site. The unit mix offers spacious one, two, and three bedroom apartment flats, averaging 1,086 square feet.

TGM University Park offers an ideal combination of location and lifestyle offering residents the opportunity to live, work and play all within a short distance of the community. Conveniently located off of I-75 and University Parkway, the community is within walking distance to the newly developed 880,000 square foot Mall at University Town Center, commonly referred to as UTC. 

Also, the community is in close proximity to downtown Sarasota’s business district, theaters, art galleries, shops and restaurants. University Park also provides easy access to the Sarasota-Bradenton International Airport, University of South Florida-Manatee and the beaches of Lido Key, Siesta Key and Longboat Key.  Furthermore, with the opening of the new 40,000 square foot Whole Foods Market in summer of 2017 residents will with have convenient walking access to the market located at the intersection of University Parkway and Honore Avenue.

The property has attractive amenities with two swimming pools, two whirlpool spas, a fitness center, an outdoor kitchen and a dog park. Residents also have full access to a tennis court, 9-hole putting green and a renovated clubhouse with a well-designed kitchen area. TGM will be completing renovation work to all apartment interiors, which will include new kitchen cabinets, countertops, appliances, flooring, lighting and hardware fixtures. Bathrooms will be renovated to match the finishes of the kitchen. The common areas such as the fitness center and pools will be upgraded with the state of the art equipment and new resort style furniture.  TGM successfully executed a similar renovation strategy at its neighboring community, TGM Palm Aire, which saw revenues grow by 17% and net operating income grow by more than 11% in only two short years. 

“We are pleased to expand our footprint in Sarasota with the acquisition of TGM University Park.  The staggering growth of the University Parkway corridor, which immediately surrounds TGM University Park and TGM Palm Aire has solidified North Sarasota as the dominant live, work, play district in all of Sarasota and Manatee Counties.  TGM is particularly attracted to this area because of the limited availability for new apartment construction in close proximity to UTC, Benderson Park, which is one of a few world class rowing and recreational facilities, and I-75,” said Zach Goldman, Managing Principal and Director of Operations for TGM Associates, a SEC-registered real estate investment advisory firm based in New York City. TGM University Park is managed by TGM Associates’ management brand, TGM Communities.  Also owned and managed by TGM on the west coast of Florida is TGM Ibis Walk (Saint Petersburg) TGM Bay Isle (Saint Petersburg), TGM Bermuda Island (Naples), TGM Malibu Lakes (Naples), and TGM Palm Aire (Sarasota).  On the east coast of Florida, TGM owns and manages TGM Oceana (Boca Raton).  In late 2015, TGM sold TGM Vintage at Abacoa (Jupiter) and TGM Floresta (Jupiter).

TGM University Park, formerly known as Tuscany, was owned by AB Merion II Tuscany, LLC and managed by Wynnewood, PA based Merion Residential.  Brokering the transaction was Jamie May, Chairman and CEO and Eddie Yang, Principal and Executive Director at JBM Institutional Multifamily Advisors.

IRVINE, CA – The Bascom Group, has acquired Hillside Terrace, a 32-unit apartment community located at 322 Hillside Terrace, Vista, California for $6,200,000 or $193,750 per unit or $228.00 per square foot. Olga Alworth with Meridian Capital arranged the debt financing and San Diego Private Bank provided the new loan. This was an off-market transaction with Rita Lancaster-Hannah with ACRE representing Bascom.

Built in 1988, the property is truly unique.  Four apartment buildings are terraced along a slope just off one of Vista’s major thoroughfares. The terracing of buildings along with the limited number of units per building gives each home a private, condo-like feel. Each unit at Hillside is a corner unit, limiting shared walls and increasing the presence of natural light. The spacious patios and balconies at the property offer tenants ample outdoor living space to enjoy the warm San Diego climate. Bascom’s planned modernization program will remodel the interiors and enhance the amenities, exterior, and overall curb appeal.

Vista’s apartment market continues to strengthen as average rent has increased for six consecutive years to $1,556 in 1Q 2016, a 32% increase since 2010. In 2016, the effective rent growth is projected to be 5.58%, outpacing San Diego’s projected growth of 4.55%. The vacancy rate in Vista remained at 3.45%. High barriers to entry, including a scarcity of land for development and natural boundaries, constrain new supply.

Lee Nguyen, Senior Vice President for Bascom, adds “We’re acquiring a well located, stabilized building that is ready for renovations in an expanding north San Diego economy. Our San Diego projects have performed well over the years so we are excited about the project.”

BALTIMORE, MD – Funds managed by Ares Management and investment partner TruAmerica Multifamily announced the acquisition of a 1,402-unit multifamily portfolio in suburban Baltimore for $236 million.

The portfolio consists of residential units spread across six properties located in some of the strongest multifamily sub-markets in the greater Baltimore metropolitan market: Dominion at Eden Brook and Dominion Kings Place in Columbia, Lakeside Mill in Owings Mills, Ellicott Grove in Ellicott City, Arborview at Riverside and Liriope in Belcamp, and Dominion Constant Friendship in Abingdon.

The properties are well-located near major military, government and corporate employers in the area. While maintained to institutional quality standards, approximately 50 percent of the units in the portfolio are slated to be renovated, offering a significant value-add opportunity.  The partnership will implement a multi-million dollar renovation and repositioning program across the entire portfolio.  Exterior upgrades will consist of significant landscaping, painting and refreshing of building exteriors, updated signage and common area updates.  The residential units will be renovated to include new appliance packages, faux-wood hard-surface flooring, new countertops and upgrades to existing cabinets.  

“We have been looking to work with TruAmerica, an experienced partner, for a long time and are excited we found this opportunity to create significant value in an attractive portfolio of geographically-diverse Baltimore metropolitan area assets,” commented Steven Wolf, Partner in Ares Management’s Real Estate Group.  “This investment is representative of our U.S. equity value-add strategy, which focuses on areas with strong employment centers and unit-enhancement opportunities.”

“This portfolio was brought to us as part of a strategic marketing campaign, where only buyers with proven track records and strong reputations were considered. Ares and TruAmerica proved to be an unbeatable partnership of financial strength and certainty of execution,” said TruAmerica President and CEO Robert E. Hart.

The Ares Real Estate Group, with approximately $10.4 billion in assets under management across equity and debt strategies, has a significant presence in the multifamily sector. Over the past decade, Ares’ U.S. equity value-add strategy has invested in over 27,000 units across its most recent funds.

This is the second significant investment for TruAmerica in the region since entering the market five months ago with the $187 million acquisition of three apartment communities in Baltimore and Annapolis totaling 1,004 units.  With the acquisition of the Baltimore Residential portfolio, TruAmerica now has more than 32,000 multifamily units under management with 2,400 in Maryland. 

SANTA MONICA, CA – Century West Partners, a Los Angeles-based developer of upscale apartment communities, announced the completion of Chelsea, a collection of luxury rentals located in the heart of downtown Santa Monica. Showcasing contemporary design with luxe finishes, Chelsea includes 56 units set above ground floor retail serving both Chelsea and surrounding residents. Century West Partners delivered the new rentals to meet heightened demand for quality living spaces in the highly sought city. The community is actively leasing and the Grand Opening celebration occurred Thursday, November 10.

“Chelsea epitomizes the concept of uber luxury, well amenitized living” said Randy Fifield, principal of Century West Partners. “This community is designed to set the bar in rental living with its mix of high design elements and finishes, exceptional resident amenities package, and unparalleled city and beach adjacent location.”

Chelsea’s units are set within a four-story building atop 6,000 square feet of retail services anchored by two restaurants occupying 3,150 square feet and 2,850 square feet respectively. The collection includes spacious studios, as well as one-bedroom and two-bedroom units. Floorplans are designed to meet the needs and wants of the increasing number of discerning renters actively looking in Los Angeles today and include panoramic ocean views, enviable set of high-end appliances, finishes and tech-friendly features.

“Renters have become more sophisticated and so have their tastes,” said Michael Sorochinsky, co-founder and principal with Century West Partners. “Chelsea’s offering addresses steep demand for well amenitized housing in Santa Monica.”

Envisioned for design-minded renters, Chelsea’s apartments feature masterfully crafted gourmet kitchens with fired oak finish cabinets, white quartz countertops, stainless steel Viking appliances, GROHE faucets, and filtered drinking water systems. Interiors boast high efficiency dual-paned windows and doors, walk-in closets and central heating and air conditioning. Bathrooms feature double bowl sinks and separate tub and shower glass enclosures. Tech-related offerings include Nest thermostats, controllable Nuvo streaming devices, Harman Kardon Revel in-wall or in-ceiling speakers, and USB charging ports.

In addition to the distinctive design and luxury finishes of the units, Century West Partners expects leasing at Chelsea to be driven significantly by the community’s robust set of resident amenities. These include complimentary WiFi in all public spaces; safe controlled community access; reserved underground parking; gourmet espresso bar; a landscaped relaxation deck; rooftop lounge with stunning city and ocean views, fire pit, BBQ and flat-screen TVs; bike storage and bike repair vending machine and station; easy online rent payment, service requests and amenity reservations; onsite dry cleaning pick-up and drop-off services; daily newspaper delivery to common area lounge; auto detailing and eco-friendly on-site car wash arrangements.

Los Angeles-based Nadia Geller Designs provided interior design services for the community. The firm selected all unit and common area materials and furnishings, as well as furnished two model units. All lobby furniture, including the entryway chandelier, were custom designed by the interiors team.

“Chelsea is our seventh community collaboration with Century West Partners,” said Nadia Geller, Principal and Managing Director of Nadia Geller Designs, Inc. “Our inspiration for the interiors was beach, modern luxury, and approachable casual sophistication. We sought to bring the feeling of an elite boutique hotel into the lobby, and are extremely proud of the results.”

Chelsea’s completion is significant in part because of continued limited new development in Santa Monica. “This market remains a high-barrier-to-entry locale for new development,” said Steve Fifield, co-founder and principal of Century West Partners. “With demand for upscale rentals here so high, yet so little new product available, we expect Chelsea’s units to lease very quickly.”

Chelsea is located at 1320 2nd Street in downtown Santa Monica. The community provides immediate access to the city’s many attractions including unique boutiques, world-class dining experiences, the bustling farmers market, Santa Monica Pier, and iconic Third Street Promenade. Adjacent to the ocean, Chelsea is designed to offer residents respite from life’s bustle and promote an active lifestyle with access to the beach, endless bike paths and stunning hiking trails. Public transportation in Santa Monica is better than in most other parts of the Los Angeles area.  Numerous bus lines including the Blue Bus are on every corner of Downtown Santa Monica.  The expo line on the corner of 4th and Colorado connects Santa Monica to Downtown LA, Pasadena, San Fernando Valley, South Bay, Long Beach and dozens of points in between.

(RECAP: Weingarten Realty announced today the acquisition of 5.2 acres of land at the corner of King and North Beauregard Streets that will be the site of The Gateway Alexandria (“Gateway”), a premier mixed-use project. Once completed, the project will feature 352 multi-housing units, 74 of which will be affordable, 110,000 square feet of retail anchored by Harris Teeter, and 87,000 square feet of office space. Weingarten’s net investment at completion is estimated to be $160 million and will include ownership in the retail, 275 luxury residences and approximately 23,000 square feet of office space.)

(RECAP: Ten months after long-festering tensions broke out between the Alexandria City Council and its public housing authority over subsidized housing that dates to World War II, the council unanimously agreed Saturday to replace a historical set of 15 deteriorating apartments with 52 affordable-housing units. The long-running saga of the fate of the 74-year-old Ramsey Homes ended peacefully with council members approving a ¬special-use permit that will allow the development of a four-story, E-shaped building facing Patrick at Wythe streets. Before the project moves forward, ARHA will have to win a federal tax-credit competition next spring, complete a federal historical review and get federal approval to “dispose” of the buildings. If those hurdles are cleared, construction would begin in early 2018 and be completed by the end of 2019.)

STARKVILLE, MS – Homestead Development Partners and Columbus Pacific have completed the development of HELiX Starkville adjacent to Mississippi State University in Starkville, Mississippi. The property opened on-time prior to the commencement of classes for the 2016-17 academic year.

HELiX Starkville boasts a premier campus adjacent location, a 13,000-square foot clubhouse that houses a two-story fitness center, bistro, game center and numerous small and large group study rooms. Outdoor amenities include a South Beach-inspired beach entry pool with cabanas and a summer kitchen. Each building also features an elevator – another unique feature for the Starkville market.

“Our team was thrilled to deliver HELiX Starkville to the market. We believe it was the perfect addition to Starkville and Mississippi State University. The community is directly adjacent to campus. The convenience of HELiX’s location is unmatched by anything else in the market. The amenities, events and overall design execution are epic. The property sets the stage for our residents to maximize the college experience by having significant opportunities to interact with friends and expand their social network, but to also dig in and focus on making their college experience everything it should be in terms of academics, personal growth and a lifestyle.” said Michael Augustine, President of Homestead Development Partners.

The apartments at HELiX Starkville range from 1 to 4 bedrooms. Each apartment is fully furnished with custom, modern furniture; plank flooring, upgraded cabinetry and blazing fast internet. HELiX Starkville is professionally managed by Homestead U.

PUEBLO, CO – This week we celebrated the Grand Opening of Oakshire Trails Apartments. We are extremely proud of the finished product. All 62 units in the building are 100% leased up. The residents are thrilled with their new homes.

The Colorado Housing Finance Authority, CHFA, is quoted as saying “CHFA is very proud to partner with Four Corners Development on the creation of this affordable new complex for Seniors.” Oakshire Trails was our first project in Colorado. Four Corners Development has another Senior Housing project in Greeley, Colorado that is anticipated to begin construction in early Spring 2017. We look forward to many more.

Oakshire Trails features a large common space as you enter with plenty of lounge seating, a large flat screen television, fireplace and an internet café. Off this area is a grand dining/activity room with a community kitchen and access to the patio, putting green and walking trails.

Down the hall is a library that allows for quiet reading from the books provided as well as a conference table for meetings or games. There is also a fully furnished workout room with treadmills, bikes, ellipticals, free weights and jump ropes. Across from the workout room is a theatre. It has theatre seating, large flat screen television and even a popcorn machine for movie night.

(RECAP: Bond guru Jeffrey Gundlach told CNBC on Friday that if the Federal Reserve doesn’t raise interest rates in December, “they are never going to raise rates again.” He also said the rise in Treasury yields “is about 80 percent of the way through.” Gundlach said the sharp turn up in rates since summer already has done the heavy lifting for the U.S. central bank. The benchmark 10-year note has seen a 0.77 percentage point rise since July 6, while the two-year yield has jumped .36 percentage points, all while the Fed has kept the overnight rate anchored below 0.5 percent. Traders are putting a 76.3 percent chance of a rate hike at the Dec. 13-14 meeting of the Federal Open Market Committee. However, they don’t see the next move happening until at least September 2017.)