Author: ipgocorp

CHICAGO, IL – Green Courte Partners announced that its fourth investment fund, Green Courte Real Estate Partners IV, LLC and its affiliates, has acquired a portfolio of three independent living facilities located in suburban Detroit, Michigan. 

GCP is building a portfolio of high-quality age-restricted apartments and independent living communities serving the growing population of 55+ adults seeking an active lifestyle in an attractive setting. 

These assets bring GCP’s total senior housing portfolio to 764 units nationwide. 

The acquisition, completed on October 31, 2016, includes: Pine Ridge of Garfield – 117-unit independent living community built in 2006 and located in Clinton Township, Pine Ridge of Plumbrook – 118-unit independent living community built in 2004 and located in Sterling Heights, and Pine Ridge Villas of Shelby – 136-unit independent living community built in 1987 (renovated in 2006) and located in Shelby Township.

GCP has retained the current third-party manager, an affiliate of Spectrum Retirement Communities, LLC, to manage the properties. 

Matt Pyzyk, Managing Director of Acquisitions for GCP, originated these transactions and is leading the Company’s effort to acquire high-quality age-restricted apartments and independent living communities in desirable markets throughout the United States.

Commenting on the transaction, Mr. Pyzyk stated, “We are very excited about the completion of this acquisition, which marks a significant step forward in the expansion of our rapidly growing senior housing portfolio. These assets provide a solid complement to the existing portfolio and we expect them to continue to be strong performers for many years.” 

Green Courte Partners is a Chicago-based real estate private equity investment firm focused on building industry-leading companies within niche real estate asset classes, including parking and specialty housing.

JERSEY CITY, NJ – Building and Land Technology (BLT) announced that The Hague, the sixth and final apartment building within The Beacon luxury apartment complex in Jersey City, has fully leased up within six months of its introduction. With this milestone achieved, The Beacon apartment complex is now stabilized in its entirety following a massive historic preservation and renovation effort, and is now home to nearly 2,000 residents in its 1,155 rental units.

The Beacon, listed on both the New Jersey and National Registers of Historic Places, represents one of the largest historic renovations ever completed in the country and stands as New Jersey’s largest example of Art Deco-style architecture. The property was originally built in early 20th century as the Jersey City Medical Center and has been completely re-purposed and restored into an unparalleled modern living experience. With over 95 percent of the apartments now leased and all construction completed, The Beacon is now a vibrant, urban residential destination with an outstanding package of amenities.

“It has been gratifying to play a role in bringing this incredible property back to life,” said Paul MacKnight, Jr., Residential Portfolio Director for Building and Land Technology. “The extraordinary response from residents says it all. The rapid leasing velocity for such a substantial number of apartments exceeded our expectations and underscores the appeal of the product we created. At an attractive price point, our residents are enjoying a complete lifestyle package with beautifully designed apartments and unrivalled amenities, as well as an incredible location with easy access to New York City.”

The Beacon’s rental residences feature studios as well as one-and two-bedroom apartments, all with unique floor plans, feature high ceilings and gourmet chef’s kitchens with granite counter tops, stainless steel appliances and garbage disposals. Baths are embellished with cultured marble vanity tops, tile floors and glass shower doors as well as individual washers and dryers. The homes are bathed in natural light with outstanding views and offer central heating and air conditioning. Found throughout the buildings are 24-7 state-of-the-art fitness centers, restored art deco theaters with oversized screens, children’s playrooms, resident lounges, Wi-Fi in common areas and landscaped courtyards with fire pits.

Located on one of the highest points in Jersey City, The Beacon residents enjoy a tremendous amount of private outdoor space, with a 45,000 square-foot landscaped park featuring seating areas, fire tables, and grills set against the panoramic backdrop of the Manhattan skyline and New York Harbor.  There is also a two-acre park with children’s playground, organic garden and expansive dog runs. 

Residents of The Beacon enjoy access to complimentary high-frequency shuttle service to the Grove Street and Exchange Place PATH/Ferry Stations, and are close to Jersey City’s downtown district, which includes NY Waterway Ferry terminals and PATH stations, as well as restaurants, cafes, coffee houses and cultural attractions. In addition, the Citi Bike Jersey City bike sharing program has a station at The Beacon.  

DENVER, CO – Griffis/Blessing finalized the acquisition of Glenbrook Apartments located in southeast Denver. Glenbrook is a 252-unit, garden-style multifamily community built in 1985 that is comprised of studios, one- and two-bedroom apartment homes, averaging 752 square feet. The community offers residents an outdoor swimming pool, indoor spa and sauna, clubhouse with business center and fitness center, racquetball court and walkable acreage with a pond and fountain.

The Glenbrook Apartment community has not undergone any significant capital improvements since it was built over 30 years ago. Griffis/Blessing believes it is perfectly positioned for a complete upgrade of the amenity package and unit interiors. Improvement plans will entail adding in-unit washers and dryers, upgrading unit interiors and corridors, updating the clubhouse, including the fitness center, pool deck and other shared amenities.

“This asset fits right into our proven value-add investment strategy,” says Gary Winegar, President of Investment Services for Griffis/Blessing. “This community has been held by the original owner since its development in the ‘80s and presents an opportunity to really add value to a well- located property in the Denver market.”

William J. Hybl, Jr., President and COO of Griffis/Blessing states, “We are excited about the addition of Glenbrook Apartments. Its location in a very strong multifamily market and close proximity to major drivers of employment, entertainment and education, as well as both an existing light rail line and one of the newest lines opening soon, will be appealing to renters and create an increase in demand.” 

Rachel Butler, District Manager, will manage the community, while Nicole Harris, Property Manager, will lead day-to-day operations.

The property was purchased for $33.4 million. ARA Newmark was the listing broker, and Brady O’Donnell of CBRE arranged the FMAC mortgage.

MCLEAN, VA – Freddie Mac announced multifamily investing fundamentals grew stronger in the second quarter, both nationally and in all 13 major metro markets tracked by the Freddie Mac Multifamily Apartment Investment Market Index (AIMI). This marks the second consecutive quarter of positive growth tracked by AIMI, a free on-line analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that objectively reflects market investment conditions.

Nationally, AIMI values increased 2.6% in the second quarter to 110.4 from 107.4 in the first quarter. Local markets seeing the biggest quarterly gains in their AIMI scores were Washington, D.C. (7.2%), Chicago (7.1%), Philadelphia (5.9%) and Seattle (5.7%).

A rise in AIMI values from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities, while a decline suggests that attractive investment opportunities are becoming more difficult to find.

“The increase in AIMI over the past quarter is due to strong net operating income growth along with a declining mortgage rate environment. These two pieces offset the growth in property prices. Strong demand is continuing to absorb new units despite today’s relatively high rate of construction,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling.

At the same time, the second quarter AIMI index also reflects a moderation in multifamily market’s rate of growth over the past year. Nationally, the AIMI index topped 115 at this same time last year. Locally, AIMI scores have fallen by an average of 4.5 percentage points over that same period of time in 11 out of the 13 metro areas used to compute the index. The only two markets where AIMI had increased compared to this time last year were Chicago (0.7%) and Washington, D.C. (0.6%).

NEW YORK, NY – Trepp, LLC, a leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its October 2016 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate moved up again in October, as more loans issued in 2006 and 2007 continue to mature. The delinquency rate for US commercial real estate loans in CMBS is now 4.98%, an increase of 20 basis points from September. The rate is just 25 basis points lower than the year-ago level and 19 basis points lower since the beginning of the year.

In October, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $820 million. Almost $500 million in loans were cured last month, but a whopping $1.9 billion in CMBS loans became newly delinquent in October.

“Unsurprisingly, delinquency rates continue to drift higher as borrowers with weak performing properties have found it difficult to refinance the corresponding loans,” said Manus Clancy, Senior Managing Director at Trepp. “Fortunately, the climb in delinquencies has not been terribly steep. With low interest rates and little spread volatility characterizing the current market, many properties with financials on the cusp of ideal refinancing standards are finding a way to muddle through.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased by the same amount as the overall delinquency rate. The rate of seriously delinquent loans moved up 20 basis points for the month to 4.87%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 5.20%.

The delinquency rates for all five major property types increased in October. The largest of those increases belonged to the retail sector, as that reading jumped up 30 basis points to 6.19% in October. The industrial delinquency reading added 26 basis points to 5.54%, while the lodging rate moved up 18 basis points to 3.43%.

For additional details, such as delinquency status and historical comparisons, download the October 2016 US CMBS Delinquency Report at Trepp.com

NEW YORK, NY – Mortgage rates were slightly higher this week with the benchmark 30-year fixed mortgage rate inching to 3.69 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The larger jumbo 30-year fixed rose to 3.74 percent, while the average 15-year fixed mortgage rate climbed to 2.96 percent. Adjustable mortgage rates increased this week as well, with the 5-year ARM moving up to 3.14 percent and the 7-year ARM jumping to 3.32 percent.    

With inflation finally on the rise, mortgage rates moved higher for the fourth time in the past five weeks. The benchmark 30-year fixed mortgage rate hit the highest level since mid-June, erasing the Brexit-induced decline that lasted all summer and much of the fall. Even though the Federal Reserve held off on raising interest rates, they pointed to increased inflation and inflation expectations, which are the factors that have been pushing bond yields and mortgage rates higher. Inflation is the worst enemy of a long-term bond investor as it erodes the value of the fixed payments the investor receives. Mortgage rates are closely related to long-term government bond yields because mortgages are often packaged together and sold as bonds. With uncertainty about the election gripping financial markets, the course financial markets take in the coming days will depend on how events in an already wacky election unfold.

At the current average 30-year fixed mortgage rate of 3.69 percent, the monthly payment for a $200,000 loan is $950.22.

SURVEY RESULTS                                                                                                             

30-year fixed: 3.69% — up from 3.64% last week (avg. points: 0.23)
15-year fixed: 2.96% — up from 2.93% last week (avg. points: 0.19)
5/1 ARM: 3.14% — up from 3.11% last week (avg. points: 0.26)

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 of panelists – 60 percent – expect mortgage rates to remain more or less unchanged over the next week.  The remaining respondents are mixed with 20 percent predicting a rise in mortgage rates and 20 percent forecasting a decline over the next seven days.

(RECAP: Nearly a decade after the housing crisis, the mortgage market has evolved in unexpected ways, with nontraditional financiers increasingly backing ever-more leveraged loans. Those mortgages, while underwritten to pristine standards, come with smaller down payments. And it’s non-banks, also known as “mortgage bankers,” that are making the most low down payment mortgages. Either development could be a concern. In general, homeowners with less equity staked in their homes have less incentive to try to keep them if something goes wrong. And while nonbanks like Quicken and Nationstar underwrite to the same strict standards the banks do, their business model could put them at a disadvantage in a downturn.)

TUCSON, AZ – The $250 million venture by The Bascom Group and funds managed by Oaktree Capital Management has acquired Springs at Continental Ranch Apartments, a 196-unit luxury community located in Tucson, Arizona. 

ACORE Capital provided debt financing, which was arranged by Brian Eisendrath, Brandon Smith, and Annie Rice of CBRE.  Art Wadlund & Clint Wadlund of Berkadia represented the buyer and seller on this transaction. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB). 

Built in 1999, Springs at Continental Ranch consists of 19 two-story buildings with two resort-style swimming pools and a relaxing spa.  Other amenities include a state-of-the-art 24-hour fitness center, controlled access gated entry, common area Wi-Fi, barbecue grills, theatre room, and private garages.  Springs at Continental Ranch is positioned in an excellent northwest Tucson location, just west of Interstate 10.

Mark Brotherton, Portfolio Manager of Bascom affiliate Bascom Arizona Ventures, comments, “Springs at Continental Ranch provided us with an exceptional opportunity to acquire another ‘A’ quality multifamily property in a highly desirable location, well below replacement cost, with significant upside with our value-add program.  Springs at Continental Ranch is our 15th acquisition since August 2012 in the state of Arizona, and our second in Northwest Tucson in the last 30 days. We are very excited about our newest acquisition and look forward to commencing our value-add program as soon as possible.”

Bill Wright, Asset Manager of Bascom affiliate Bascom Arizona Ventures, adds, “Bascom will recapitalize the property with exterior and interior renovations which will equip Springs at Continental Ranch with one of the best amenity packages in the submarket.  We look forward to creating value for our new residents.” 

“As a smaller market, Tucson is sometimes overlooked, but the jobs-to-permits ratio is amongst the highest in the nation with more than three jobs created for every housing unit built.  We believe Tucson is poised for meaningful rent gains as a result of strong, high-quality job growth coupled with a limited new supply pipeline,” said Mark Jacobs, Managing Director at Oaktree.  

VIRGINIA BEACH, VA – Hercules Living, a family-owned and operated multifamily regional developer headquartered in Virginia Beach, Virginia, announced its recent acquisition of two residential apartment communities in Georgia. The two acquisitions represent a $64M capital investment adding 469 homes to their vast multifamily portfolio that includes properties in the mid-Atlantic and Southeast region.

The latest acquisition for Hercules Living includes the purchase of Century Mill Creek in Duluth, a 259-unit apartment community located near the Mall of Georgia now named Dakota Mill Creek. Additionally, Hercules Living purchased Century Brook on Mesa Valley Road in Austell, a 210-unit multifamily community renamed, Chroma Park. Both properties are well-established rental communities; enjoy high occupancy rates and high tenant retention.

Hercules Living teamed with their development arm, RST Development, LLC, and construction arm, Triangle Construction, both of Rockville, MD, to enhance and upgrade both properties’ signage, common area amenities and to add additional assets in the coming months. Award-winning Hercules Living owns and manages over 40 properties, including more than 8,000 apartments in seven states.

“Our most recent acquisitions dramatically expand the depth of market share we enjoy in the Greater Atlanta area. This substantial investment showcases the strength of our commitment to provide high quality, yet affordable housing to Metro Atlanta,” said Scott Copeland, principal of RST Development.

(RECAP: America’s housing market is heating up again, fortifying the finances of current homeowners and frustrating potential first-time buyers. After hitting bottom in 2012, home prices took off dramatically before leveling off a bit in mid-2014. In the last two months, though, they turned higher again. The amount of equity homeowners now have — the value outside their mortgage debt — has doubled in the last five years, according to CoreLogic. The latest read on September home prices showed a 6.3 percent annual gain, a touch bigger than August and a clear sign that prices are heating up again after cooling through much of spring and summer.)