Author: ipgocorp

WOODSTOCK, GA – The Praedium Group, a New York City-based national real estate investment firm, announced the $43,175,000 acquisition of Crest at Laurelwood in Woodstock, GA. Developed in 2015, Crest at Laurelwood features 272 luxury apartment units in one of the highest growth submarkets of the Atlanta MSA.

The Property consists of eight buildings with units featuring nine or 10-foot ceilings, cherry wood cabinetry, tiled-backsplashes and private balconies. Community amenities include a cyber café, billiards room, two-story fitness center and yoga studio, resort-style swimming pool, outdoor fireplace with TV, fire pit, dog-park and electric car charging stations. Peter Calatozzo, Managing Director of The Praedium Group, made the announcement on the investment firm’s most recent acquisition.

Positioned on Highway 92 at the corner of Main Street, the property offers direct access to thriving downtown Woodstock, the benefit of being in the award-winning Cherokee County School District and close proximity to over 280,000 jobs in North Fulton and Cumberland/Galleria. Named “Best 50 Places to Live in America” by Money Magazine in 2015, Woodstock offers a walkable downtown experience with over 40 local restaurants and high-end boutiques.

In addition to North Atlanta’s existing array of amenities and employment, there are several large developments taking place that are expected to further enhance the area’s economy. SunTrust Park, a new $1.1 billion Atlanta Braves stadium and mixed-use development, is expected to open in 2017 and bring over 4,000 jobs to the North Atlanta region. Lakepoint Sports Campus is currently under development and is expected to bring over 26,000 new jobs upon completion in 2018. The 1,300 acre campus will offer 50 restaurants and 20 hotels. In addition, Crest is a short drive to Cherokee 75 Corporate Park, a recently developed light industrial park which has attracted several notable companies such as Adidas, MSK Covertech Inc. and ThyssenKrupp AG.  

“Crest is a high quality asset in a market with some of the top schools in the state of Georgia and direct access to an award winning downtown restoration and redevelopment,” said Peter Calatozzo.

WILMINGTON, CA – CityView, an investment management and development firm focused on urban multifamily real estate in the Western and Southwestern United States, announced that its Solimar apartment community in Wilmington, California is now available for leasing.

The development sits on an eight-acre site in the heart of Los Angeles’ South Bay, adjacent to the Harbor Park Municipal Golf Course and the Ken Malloy Harbor Regional Park. It is located on Pacific Coast Highway within walking distance to a Harbor Transitway stop, giving residents easy access to the area’s jobs and entertainment.

“Our development philosophy is to provide residents with easy access to local jobs, transportation and entertainment – and Solimar delivers on all these criteria,” said Sean Burton, CEO of CityView. “We have seen strong demand for these units among South Bay renters, and we are excited to welcome our first residents.”

Solimar’s 204 market-rate apartment homes come with many modern finishes and amenities that are common in CityView’s properties.

“Solimar is a quality housing development in our city which is in desperate need of more housing,” said Joe Buscaino, Los Angeles City Councilmember for Council District 15. “I look forward to continuing to work with the Planning Commission, City Council, Mayor Eric Garcetti and developers like CityView to build new housing that contributes to our neighborhoods in a smart and consistent way.”

IRVINE, CA – HCP announced that it has entered into definitive agreements to sell a portfolio of 64 properties leased to Brookdale Senior Living for an aggregate sales price of $1.125 billion to affiliates of Blackstone Real Estate Partners VIII L.P. 

HCP intends to use the proceeds primarily to pay down debt and for general corporate purposes.  

In addition, HCP and Brookdale have agreed to complete several other transactions, as outlined below.  Combined, these transactions will advance our strategic priorities to reduce Brookdale concentration, improve lease coverage, diversify our operator relationships and strengthen our balance sheet and credit profile.

Overview of the Brookdale Transactions

Sell a portfolio of 64 triple-net assets comprising 5,967 units for $1.125 billion, or $189,000 per unit, representing a trailing twelve month lease yield of 8.0%, inclusive of a portion of the rent re-allocation as described below.  Occupancy for the portfolio was 85.2% during the third quarter 2016, and EBITDAR-to-rent coverage was 0.81x for the trailing twelve months ended September 30, 2016.  HCP’s estimated gain on sale of the 64 properties of approximately $160 million will be recorded at closing, which is expected to occur by the end of the first quarter of 2017.  We intend to use the proceeds primarily to pay down debt and for general corporate purposes.

Terminate leases within the next twelve months on 25 properties operated by Brookdale representing 2,031 units.  HCP plans to sell the majority of the properties that are non-strategic, and transition select assets to other operators.  The in-place annual rent on the 25 properties total $20.3 million, of which $9.8 million will be re-allocated as follows: $6.3 million to the retained 78 triple-net properties retained by HCP, and $3.5 million to the 64 properties being sold.  The remaining $10.5 million of the in-place rent represents a low-6% cap rate on the estimated value of the 25 properties.  Occupancy for these 25 properties was 79.9% during the third quarter 2016 and EBITDAR-to-rent coverage was 0.52x for the trailing twelve months through September 30, 2016.

Transfer eight expiring Brookdale leases to RIDEA structures: i) convert four Texas communities comprising 527 units from a triple-net lease to a 90/10 RIDEA joint venture structure with Brookdale acquiring a 10% interest in the real estate and the operations for $11.7 million, and ii) transition four Florida communities comprising 340 units to a regional operator.  These transactions are expected to close during the fourth quarter of 2016.

The previously announced RIDEA II transaction remains on track to be completed during the fourth quarter of 2016.

Mike McKee, Chairman of the Board, President and Chief Executive Officer of HCP, stated, “We are pleased to announce these transactions related to our Brookdale portfolio, as a key component of our plan to launch HCP 3.0 as outlined earlier in the year.  These initiatives enable us to address several important strategic priorities for HCP, including reducing our Brookdale concentration, improving the lease coverage of our triple-net senior housing portfolio and diversifying our operator relationships.  We are delighted to have reached a positive outcome on these high priority initiatives and look forward to continuing to strengthen our partnership with Brookdale, the largest senior housing operator in the country.”

IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, released its CoreLogic Home Price Index and HPI Forecast for September 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased year over year by 6.3 percent in September 2016 compared with September 2015 and increased month over month by 1.1 percent in September 2016 compared with August 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase by 5.2 percent on a year-over-year basis from September 2016 to September 2017, and on a month-over-month basis home prices are expected to increase by 0.3 percent from September 2016 to October 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Home-equity wealth has doubled during the last five years to $13 trillion, largely because of the recovery in home prices,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Nationwide during the past year, the average gain in housing wealth was about $11,000 per homeowner, but with wide geographic variation.”

“Home-price growth creates wealth for owners with home equity,” said Anand Nallathambi, president and CEO of CoreLogic. “A 5 percent rise in home values over the next year would create another $1 trillion in home-equity wealth for homeowners.”

(RECAP: The quickening pace of home sales over the past year included a small rebound from two key segments of buyers who have been missing in action in recent years: first-time buyers and single women. This is according to the National Association of Realtors®’ annual Profile of Home Buyers and Sellers, which also found that for-sale-by-owner transactions remained at an all-time low of 8 percent for the second straight year. Nearly 90 percent of all respondents worked with a real estate agent to buy or sell a home. The 2016 edition of Profile of Home Buyers and Sellers continues the longest-running series of national housing data evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers; the survey dates back to 1981.)

(RECAP: There isn’t enough affordable housing for the oldest residents of the Williamsburg area, and the little housing that does exist costs too much for many of them. Diane Hartley runs the Williamsburg office of the Peninsula Agency on Aging. She believes many of the area’s facilities geared toward older residents are too costly for many people, especially those who are retired and are on a limited, fixed income. Many facilities in Williamsburg and James City County aren’t financially feasible for a large portion of the older residents in the area. Some are priced substantially higher than the market rate. Peter Walentisch, the executive director of Williamsburg’s Public Housing Authority, said more than 600 people are on the city’s waiting list for public housing, and the list is closed until next January.)

BOSTON, MA – TA Realty, a leading provider of real estate investment management services to institutional and private investors, announced that it acquired, on behalf of a separate account relationship with a state pension fund, Hanover at Vinnin Square, a 184-unit multifamily property in Swampscott, MA, for $67 million. The transaction marks the second property TA Realty has acquired on behalf of the separate account.

“Our investment philosophy focuses on creating diversified real estate portfolios that generate strong cash flow, benefit from intensive asset management and result in long-term value creation,” said Mike Haggerty, Partner at TA Realty. “This acquisition represents the continuation of our efforts to construct a well-diversified portfolio designed for a long-term hold that meets the objectives of TA Realty and our strategic partner.”

Hanover at Vinnin Square, located at 330 Paradise Road, is a newly constructed luxury apartment property located in an amenity rich location with excellent proximity to a Whole Foods and public transportation. The property, which was delivered to the market in Q1 2016, features scenic views, dramatic living spaces with high ceilings, expansive windows, custom color accent walls and open-concept gourmet kitchens.

TA Realty is among the largest and most experienced providers of real estate investment management services to institutional and private investors. Since its inception in 1982, TA Realty has managed more than $25 billion of real estate assets through a series of value-added, commingled funds and customized core separate accounts.

PORTLAND, OR – Pinnacle, one of the nation’s leading multifamily management firms, announced it has assumed management services for two garden style communities in the Portland metropolitan service area. MonteVista at Murrayhill is located at 14900 SW Scholls Ferry Road in Beaverton’s Murrayhill neighborhood and Cedar Crest sits in the heart of the city at 48000 SW Meuller Drive. Both properties benefit from convenient access to major employment hubs, restaurants, shopping and entertainment.

“Hunt is very excited about our partnership with Pinnacle to manage these exceptional multifamily assets,” said James Dobbie, senior vice president of Hunt Development Group. “Both communities are poised for success with competitive amenities in the peaceful surroundings of Beaverton. Working together, we will continuously improve the onsite experience to meet the needs of residents.”

Nestled in the Murrayhill neighborhood with breathtaking views and lush surroundings, the 288-unit MonteVista community offers nine unique floorplans with interior upgrades that include a white tile kitchen backsplash, two-tone cabinet faces, Stainless steel appliances and high-end lighting and plumbing packages. Exterior amenities feature an outdoor living room with a gas fireplace and BBQ along with a pet washing station. Upcoming renovations will focus on the outdoor living area, fitness center, clubhouse and model.

MonteVista is just minutes from Highway 217 and I-5 with quick travel to downtown Portland, Washington Square Mall, and Progress Ridge Shopping Center. The property is also walking distance to cozy coffee shops, unique restaurants with lakeside seating, luxury movie theatres and friendly dog parks.

Cedar Crest is a 254-unit community surrounded by acres of green space and wetlands. With the choice of four spacious floorplans, residents enjoy wood burning fireplaces, vaulted ceiling, and quality lighting and plumbing packages. This pet-friendly property is beautifully landscaped with walking paths and pet stations and features the convenience of a business center.

Situated just minutes from the famous Beaverton Farmer’s Market and City Library, Cedar Crest has easy access to sandy beaches or skiing on Mount Hood via Highway 26 as well as downtown Portland and Cedar Hills Shopping Center.

(RECAP: The Federal Reserve is not expected to leave anyone guessing. The central bank will use its two-day meeting Tuesday and Wednesday to put the market on notice that it intends to raise interest rates — in December. Economists expect the Fed to borrow a page from last year’s playbook to tee up a rate hike. Last October, the Fed policy statement said: “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress—both realized and expected—toward its objectives of maximum employment and 2 percent inflation.” Fed watchers saw the sentence as a clear hint of a move. And, in fact, the central bank followed through six weeks later with the first interest-rate hike in almost a decade. “I think that [sentence] pops up again,” said Tom Simons, a senior economist at Jefferies.)

QUINCY, MA – Mill Creek Residential, a leading multifamily investor, developer and operator specializing in premier apartment communities across the U.S., announced the acquisition of Alister Quincy, a transit-oriented apartment community in suburban Boston.

Formerly 5 Hundred Falls, the community was rebranded by Mill Creek under the Alister brand name and features 171 apartment homes. Situated at 500 Falls Boulevard in south Quincy, Alister Quincy sits 14 miles south of Downtown Boston and 1.5 miles south of Quincy Center, providing residents with prime access to professional opportunities throughout the metro area. Mill Creek plans to renovate the community to give it the modern edge today’s renters expect.   

“Alister Quincy offers great access to Downtown Boston and South Shore employment opportunities, in addition to the lifestyle amenities and retail in and around Quincy,” said Jessie Henry, managing director of acquisitions for Mill Creek Residential. “After our planned community and apartment improvements, Alister Quincy will offer the most modern features with the strongest value proposition around.”

Alister Quincy offers residents a complimentary shuttle to the Quincy Center T, one of the city’s primary commuter hubs with bus and rail options. Residents can reach Downtown Boston, Quincy Town Center, South Shore Plaza and the beach within 20 minutes or less. Interstate 93 and Routes 3 and 128 are also nearby and serve as the gateways to Boston and many key destinations across the metro area.

The Metro Boston market office is one of the strongest and most diversified in the country, and serves as the nation’s epicenter for biotechnology. Many prominent employers are situated within Quincy, including State Street Corporation, Blue Cross Blue Shield of Massachusetts, Harvard Pilgrim Health Care, Boston Financial Data Services, Boston Scientific, and the national headquarters of the Stop & Shop grocery chain.

Alister Quincy will benefit from the planned redevelopment of the southern portion of the Quincy Center, which would add 500,000 square feet of retail, entertainment, and amenity space. Several retail, dining and entertainment options are easily accessible from Alister Quincy, including Alba’s, The Four’s Restaurant, Napoli Pizzeria and Paddy Barry’s. Roche Bros. Supermarket, Walmart, Starbucks, and Dunkin’ Donuts are within walking distance of the community.

Alister Quincy consists of 1-, 2- and 3-bedroom apartment homes with loft layouts available. Community amenities include a club-quality fitness center, resort-style swimming pool and sundeck, resident lounge, playground and outdoor space with barbecue grills. More lifestyle-enhancing amenities are planned as part of Mill Creek renovation process. Planned apartment renovations include updated countertops, appliances, cabinets and fixtures. Select homes offer wood plank-style flooring, walk-in closets, fireplaces, backsplashes and all homes offer a private patio or balcony.

Including Alister Quincy, Mill Creek has developed, began development and acquired more than 1,100 apartments in the Boston area.