Author: ipgocorp

SANTA ROSA, CA – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has closed the sale of Sonoma Ridge Apartments, a 180-unit apartment community in Santa Rosa, California. The $44,650,000 million sales price equates to $248,056 per unit.

“Santa Rosa’s multifamily market experienced 8.1 percent rent growth over the last 12 months and had maintained an average occupancy rate of approximately 96 percent as of the first quarter,” said Stan Jones IPA executive director. “This type of solid market support, plus strong barriers to entry from growth restrictions imposed by the city of Santa Rosa, helps drive investment appeal for Sonoma Ridge Apartments.”

Jones, together with IPA executive directors Philip Saglimbeni and Salvatore Saglimbeni, represented the seller, CORE Realty Holdings Management, and procured the buyer, Bridge Partners.

“Strong rental demand presents new ownership with an exceptional value-add opportunity through the renovation of unit interiors and enhancements to common area amenities,” added Philip Saglimbeni. “Unit interiors have been largely untouched since a previous renovation about 10 years ago.”

Built in 1974 on approximately 17 acres at 2900 St. Paul Drive in Santa Rosa, the property is adjacent to the Bennett Valley Golf Course and Annadel State Park. The Bennett Valley Shopping Center is one block away and the Whole Foods-anchored Mayette Village Shopping Center is 1.5 miles north.

Sonoma Ridge’s 22 one- and two-story buildings have a mix of one-, two- and three-bedroom apartment homes that average 987 square feet. Interiors feature oversized living rooms, large patios or balconies and double-paned windows. Community amenities include a resort-style swimming pool, business center, children’s play structure, and a community garden.

IRVING, TX – Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a $19.2 million Fannie Mae loan to finance the acquisition of a multifamily property located in Irving, Texas.

Ladera Ranch Apartments is a garden-style multifamily complex comprised of 24, two-story residential buildings, plus a standalone leasing office with a total of 280 units.  The borrower is Aldwin Apartments, and its managers are John Whitman and Seth Weinroth.

“John and Seth are not only repeat Fannie Mae clients, but they are return Hunt Mortgage Group sponsors,” explained Vic Clark, Managing Director with Hunt Mortgage Group. “We have been working together for nearly 20 years and value this long-term relationship immensely.”

The term of the loan is 12-years with 3-years of interest only, followed by a 30-year amortization schedule.  Built in 1983, the property was previously known as Wind Tree Apartments.

“In 2014, the seller invested approximately $1.6 million in exterior improvements to the property, including a full clubhouse renovation and new exterior siding and painting,” added Colin Cross, Vice President at Hunt Mortgage Group, who managed the transaction. Cross noted, “The borrower plans to continue to improve the property by implementing interior renovation.  The property is in good condition and offers superior curb appeal. We were pleased to facilitate this acquisition for such a quality repeat sponsor.” 

Common area amenities include:  two in-ground swimming pools, a tennis court, two laundry facilities and a playground.

Hunt Mortgage Group, a wholly owned subsidiary of Hunt Companies, Inc., is a leader in financing commercial real estate throughout the United States.  The Company finances all types of commercial real estate: multifamily properties (including small balance), affordable housing, office, retail, manufactured housing, healthcare/senior living, hospitality, industrial, and self-storage facilities. 

DALLAS, TX – North Texas-based management company, Civitas Senior Living, announced that it is taking over the management agreement of Acadia Estates, an assisted living community located in Farmer’s Branch.

The transition includes Acadia’s 70 existing apartments and 16 new memory care residences that are currently undergoing construction.

“Acadia is our first community in Farmer’s Branch,” said Wayne Powell, Civitas President and Fort Worth-native, whose company also recently announced the addition of Grapevine’s Dancing River senior living community. “We’re excited at the opportunity to expand the passionate care, empathy and expertise that has brought so much joy and comfort to our North Texas residents and their loved ones.”

The addition of Acadia’s 86 living units adds to a growing portfolio for Civitas, fast-emerging as a regional leader in the assisted living industry. The company now manages more than 25 senior living communities nationwide.

Acadia Estates is located at 3344 Forest Lane in Farmer’s Branch.

Civitas Senior Living is a Fort Worth, Texas-based management company that specializes in development, acquisitions, operational management, and consulting for senior housing properties, including assisted living, retirement centers, and independent senior living properties.

(RECAP: Fannie Mae said on Monday it has launched a program to streamline its underwriting on mortgages for some borrowers that uses electronic data instead of physical proof of their income, assets and employment. The U.S. government mortgage agency said the “Day 1 Certainty” program would also offer relief from representation and warranty for the appraised value of a home and a waiver of its property inspection requirement for many mortgage refinancings. These program features will be available on Dec. 10, Fannie Mae said.)

SAN FRANCISCO, CA – Pacific Pointe, the first 100% affordable housing development in the San Francisco Shipyard, held its grand opening led by District 10 Supervisor Malia Cohen. Young Community Developers, a non-profit that serves the Bayview Hunters Point community, and AMCAL Multi-Housing, a leading affordable housing developer, joined together to develop Pacific Pointe. Located at 350 Friedell Street, Pacific Pointe includes 60 modern, fully equipped apartments, many with views of the city and bay.

“I am encouraged that the Pacific Pointe project actually serves the residents of the Bayview neighborhood. Many of our neighborhood’s residents live at Pacific Pointe and many have worked on its development,” said Supervisor Malia Cohen. “Not only has the construction of this project provided job and training opportunities for residents but also more permanent affordable housing opportunities for Bayview residents.“

Joining Supervisor Cohen at the ribbon-cutting ceremony were: Tiffany Bohee, Executive Director of the San Francisco Office of Community Investment and Infrastructure; Kofi Bonner, Regional President of FivePoint; Shamann Walton, Executive Director of Young Community Developers; Charmaine Atherton, Senior Vice President of Southern California Community Development Banking for Bank of America Merrill Lynch; and Maurice Ramirez, Executive Vice President of AMCAL Multi-Housing.

Pacific Pointe is already 100 percent leased to households earning no more than 50 percent of the San Francisco median income. The project was developed in cooperation with the San Francisco Office of Community Investment and Infrastructure and is part of the inclusionary affordable housing in FivePoint’s (formerly Lennar Urban) redevelopment of the 638-acre Shipyard, the largest redevelopment effort in San Francisco history.

Lennar provided a $10 million construction subsidy and the site infrastructure for the new affordable community. Bank of America is the lender and tax-credit investor for the project.

“I am excited to see the wonderful opportunities that have been available in our community finally come to fruition. One hundred percent affordable housing demonstrates that YCD is serious about keeping our community whole,” said Shamann Walton, Executive Director of Young Community Developers. YCD co-developed Pacific Pointe and will be providing training and social services to residents.

Residents of Pacific Pointe enjoy one-, two- and three-bedroom apartments with onsite amenities including four community rooms and lounges, laundry facilities, a common space kitchen and secured parking. Two four-story buildings sit atop a one-story garage that provides 45 parking spaces and 44 bike spaces. The project provides outdoor public spaces common to market rate apartments such as a rooftop open-air deck and landscaped courtyards. The site is close to the Third Street light rail line, Muni bus line, a bicycle route, India Basin Shoreline Park and Hilltop Park, Hunters Point #2 School, and the city’s Southeast Health Center.

“I am thrilled to see the completion of our first development in San Francisco and very grateful to have had the opportunity to work with the City, Lennar and YCD and many others,” states Percival Vaz, CEO of AMCAL.

The design by David Baker Architects and INTERSTICE Architects is contemporary with exterior architectural elements that vary in size and color to create a distinctive and memorable façade for the structure. The corten steel “sail” pays homage to Hunters Point’s history as a shipping community. Sustainability played an important role in the design and construction of the building. Pacific Pointe achieved GreenPoint Rated status.

Pacific Pointe includes a special community tribute that provides a cultural and historical narrative of the people, places and things that have influenced Hunters Point over the years – spanning from the earliest settlement by the Muwekma Ohlone to the present and future places and institutions of this vibrant community. This public-oriented entry feature was a result of an intensive collaboration with the Hunters Point community as part of the project design process. The idea to tell a story within the project was brought forward early, and was actively supported by several community members, including Pastor Joesiah Bell and Dr. Veronica Hunnicutt.

The master plan for the San Francisco Shipyard and adjacent Candlestick Point includes 12,000 homes, three million square feet of office space, an urban outlet center, local retail, restaurants, a theater and performing arts space. Plans are in place to create 326 acres of parks and open space at the sites.

CHARLESTON, SC – Greystar Real Estate Partners, a global leader in the investment, development, and management of rental housing, and Credicorp Capital, the leading investment bank in the Andean Region, announced the closing of “Fondo de Inversión Credicorp Capital Renta Residencial I Chile”. The discretionary commingled fund is focused on the development of high-quality multifamily assets in Chile.

Greystar operates over 400,000 rental units in 160 markets globally with an ownership interest in assets worth over $14.0 billion USD. Greystar will look to leverage its rental housing expertise to identify underserved markets in Santiago to generate attractive risk-adjusted returns to its investors and an unmatched living experience for its residents.

“We are excited to announce the closing of our first investment fund in Chile,” said Bob Faith, Chairman and CEO of Greystar. “This is another step in our successful international growth strategy and vision to professionalize the rental housing business and provide opportunities for institutional capital globally. Greystar’s vision and our world class Latin America team will combine with Credicorp Capital’s deep regional relationships to generate attractive investment returns.”

“The fund will focus on the development of highly attractive opportunities in the most attractive submarkets in Santiago, where we find strong fundamentals for multifamily assets,” said Eduardo Orozco, Managing Director of Investments for Greystar’s Latin America platform. “Our goal is to develop the premier portfolio of buildings that will redefine the apartment for rent experience in Chile. Having a presence in the Chilean market is key to our continued growth throughout Latin America. We are excited to work with Chilean investors on this fund and develop the multifamily industry in the region.”

“The joint venture with Greystar in Chile is just the start of what we believe is a significant opportunity in the multifamily space across Latin America, and we look forward to growing this partnership throughout the entire Andean Region,” said Cristián Letelier, Managing Director of Alternative Investments of Credicorp Capital.

(RECAP: More affordable housing for millennials, first-time home buyers and empty-nesters could be in Fredericksburg’s future. The developer of The Hamptons at Noble, a 128-unit apartment complex being built behind Huber Motor Cars’ Mercedes and Volvo dealerships on Fall Hill Avenue, is seeking rezoning of an adjacent parcel to build the second phase of the project. The Hamptons Phase II would include 78 townhouses, five apartment buildings with a total of 120 units, and a high-end car dealership next to Huber’s Volvo dealership. The City Council will hold a public hearing on Norfolk-based S.L. Nusbaum Realty Co.’s request and may take action on it when it meets Tuesday in council chambers. If the rezoning is approved, Nusbaum would use a VHDA tax credit to fund the multifamily portion of the project. This would allow it to build affordable housing for people in the $48,000 to $78,000 household income range.)

(RECAP: Fed Chair Janet Yellen’s interest in running a “high-pressure economy” threatens to add to an increasingly divisive climate at the U.S. central bank. In remarks last week that jarred the market, Yellen ruminated about the benefits of letting inflation run a little hotter than normal while allowing the unemployment rate to drop below the point that historically would trigger Fed tightening action. To many observers, the comments were a clearly dovish signal that she favors a lower-for-longer approach when it comes to interest rates. But that kind of attitude could exacerbate tensions among Federal Open Market Committee members, in particular those who have been clamoring for rate hikes.)

WASHINGTON, DC – Apartment markets softened across all four indexes in the October 2016 National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The Market Tightness (28), Sales Volume (42), Equity Financing (33) and Debt Financing (38) Indexes all landed below the breakeven level of 50 – showing weaker conditions from the previous quarter.

“The growing supply of new apartments, primarily in the Class A space, appears to have finally reached a level to slow the historically high rent growth. Additionally, debt and equity markets are more discerning in terms of what deals they are ready to take on, including the continued slowing of available construction loans,” said Mark Obrinsky, NMHC’s Senior Vice President of Research and Chief Economist. “Despite the softening due to the new development focus on Class A apartments, the overall fundamentals for apartments remain stable, indicated by the strong demand for Class B and C properties.”

The Market Tightness Index fell to 28, the lowest since July 2009 and the fourth quarter in a row showing declining conditions. Almost half of respondents (49 percent) reported looser conditions than three months ago. Likewise, only six percent noted tighter conditions. The remaining 45 percent reported no change at all.

The Sales Volume Index decreased from 50 to 42, signifying lower overall sales volume. Sixteen percent of respondents reported higher sales than three months prior, compared to 33 percent that reported lower sales volumes.

The Equity Financing Index dropped 11 points to 33. This marks the fourth quarter in a row below 50 and the lowest in more than seven years. Forty-two percent of respondents believed that financing was less available, compared to eight percent who regarded financing as more available.

The Debt Financing Index decreased from 62 to 38, indicating a sharp reversal from last quarter. One-third of respondents reported worse conditions for borrowing compared to the three months prior, while only nine percent reported better conditions. Over half (52 percent) reported no change whatsoever in the debt market.

The survey also asked about rent growth among different class buildings. Excluding the ten percent that marked “don’t know/ not applicable”, nearly nine of ten (84 percent) respondents reported rent growth for Class B and C apartments as much stronger (33 percent) or somewhat stronger (51 percent) rent growth compared to Class A units. Just five percent reported somewhat weaker rent growth among Class B and C apartments compared to Class A, and two percent thought that B and C apartments exhibited much weaker rent growth. The remaining nine percent reported that rent growth levels were about the same throughout all classes of apartments.

The October 2016 Quarterly Survey of Apartment Market Conditions was conducted October 10-October 17, 2016; 147 CEOs and other senior executives of apartment-related firms nationwide responded. View the full data online at nmhc.org

ATLANTA, GA – Bluerock Residential Growth REIT announced that it has acquired the 480-unit multifamily Nevadan Apartments in Atlanta, Georgia. The Company acquired the property through a joint venture for a total purchase price of approximately $68.25 million, or approximately $142,188 per residential unit.

The acquisition is projected to yield a stabilized pro forma cap rate of approximately 6.5% on execution of the Company’s Value-Add upgrade strategy, which compares favorably to estimated market cap rates of 4.75% – 5.25% for comparable assets.

BRG invested 90% of the venture’s equity requirement, or approximately $23 million, with an affiliate of the Carroll Organization investing the balance for a 10% stake in the venture.  The transaction, which was sourced off market, was further capitalized with a senior loan in the amount of approximately $48 million.

The Nevadan, which was built in 1990, features one-, two- and three-bedroom units averaging nearly 1,100 square feet. It is located within Perimeter Center, one of Atlanta’s fastest growing employment submarkets, and features a large clubhouse as well as a resort style swimming pool, poolside grill/lounge, 24-hour fitness center, tennis courts and underground parking.

The property benefits from close proximity to I-285 and GA-400, which provide easy access to employment nodes throughout the city. Three major hospitals, known collectively as ”Pill Hill,” are five to seven minutes’ driving distance from the property and provide approximately 15,000 jobs. An added 9,000 jobs are being created within 3 miles of the property as State Farm and Mercedes-Benz establish new headquarters in Perimeter Center.

“We see significant upside potential for this property and believe it to be a strong addition to the portfolio. The property has good, intrinsic value, while the Perimeter Center submarket and the larger Atlanta MSA show much promise for the coming years. Our ability to source this property at a favorable cost basis makes it possible for us to bring a strong product to market at competitive rents,” said Ramin Kamfar, Chairman and CEO of BRG.