Author: ipgocorp

SEATTLE, WA – Global real estate investment company Kennedy Wilson announced that the company and an equity partner acquired Equinox, a 204-unit multifamily community in Seattle, Washington, for $90 million.

The company and its equity partner invested $38 million of equity (inclusive of closing costs), of which the company’s share is 51%. The partnership also secured a 10-year loan of $53 million through Freddie Mac at a rate of LIBOR + 2.11% with interest only for five years. The acquisition was primarily funded by the company and its equity partner with $24 million of net proceeds from the sale of the Reserve, a multifamily community in Federal Way, Washington, completed in September 2016.

“The acquisition of Equinox represents a unique investment opportunity to acquire a well-located asset designed with condo finishes and featuring large floorplans and panoramic lake and skyline views,” said Shem Streeter, Managing Director of Kennedy Wilson Multifamily Investments. “Both transactions in the greater Seattle area demonstrate our ability to recycle capital from an asset where we realized significant value creation into a high-quality asset in a thriving submarket with future asset management potential.”

Equinox is a class-A apartment community located in Seattle, WA. The property was built in 2009 and consists of 204 apartments with stainless steel appliances, custom cabinetry, crown molding, and granite countertops. Equinox’s amenity package includes a rooftop deck with lake views, a large recreational game room with a kitchen, and a fitness center with a yoga studio.

The property is one mile away from the South Lake Union submarket and within walking distance to employers such as Amazon’s headquarters, Facebook, the Fred Hutchinson Cancer Research Center, and a future 607,000 sq. ft. Google campus. Equinox is also walking distance to many shops and restaurants, and is conveniently located within one block of an I-5 exit, providing quick access to the SR-99 and downtown Seattle.

TALLAHASSEE, FL – Lowe Enterprises Investors in joint venture with a foreign investment client has acquired St. Augustine Plantation, a senior housing community in Tallahassee, Florida, from Capital Health Group, LLC (CHG). CHG will maintain a minority ownership in the 100-unit, 115-bed community located at 2507 Old St. Augustine Road.

“St. Augustine Plantation offers LEI the ability to invest in a strong, stable Class A property and improve it through expansion and renovation,” said Brad Howe, co-CEO of LEI. “We also have the benefit of partnering with CHG, an experienced and respected senior housing property operator.”

St. Augustine Plantation is a best-in-class senior housing community in the Tallahassee market and is currently 97 percent occupied. The community was developed in two phases, the 75-unit assisted living building was built in 1998, and the 25-unit memory care building was built in 2012.The community’s common area amenities include a central dining room that serves three restaurant style meals a day, a beauty parlor and barber shop, activity centers for fitness, creative, social and spiritual programs, a craft/exercise center, chapel, and library.

The partners have developed a plan to improve common areas, expand the property by 24 memory care beds and add a wellness center for recreation and rehabilitation that will be managed by Florida State University.

St. Augustine Plantation is located approximately three miles southeast of downtown Tallahassee. Residents enjoy easy access to health care providers, with five hospitals in a five mile radius, as well as shopping and entertainment with a major shopping mall just over a mile from the property. Tallahassee serves as a healthcare hub for 23 surrounding rural counties.

LEI continues to expand its investment activities in the Southeast with recent acquisitions that include a Hampton Inn in Jacksonville, FL, an apartment community in Greensboro, NC and a portfolio of three Hilton Garden Inns in Georgia. The firm will seek additional opportunities to team with CHG on senior housing investments nationwide.

John Gaghan led the LEI investment team, Kenneth Assiran and HFF led the seller’s team. Berkadia’s Senior Housing and Healthcare Group, led by Christopher Honn, Jeff Heath and Mike McKee, arranged financing for the transaction.

DALLAS, TX – Despite positive economic indicators like record wage growth and falling unemployment, housing confidence remained flat from June through September, according to the new ValueInsured Housing Confidence Index.

Housing confidence rose a mere 0.2 points from June through September to 68.9 on the hundred-point scale. That figure is up 1.9 points since March. A number of factors are likely to blame for the subdued confidence measure, according to Joe Melendez, CEO of ValueInsured.

“Home prices rose over the summer, putting them out of reach for many renters who also saw their rents rising,” said Melendez. “Another factor suppressing housing confidence is the unsettling presidential contest and uncertain future it entails. Combine those factors with the hangover of the 2008 housing crisis, and many prospective buyers really need a confidence boost.”

The ValueInsured Housing Confidence Index is the aggregate mean of seven multidimensional confidence measures collected through the Modern Homebuyer Survey, which is conducted once per quarter. As such, the Index reflects the attitudes of American homeowners and non-homeowners toward the housing market and benefits of buying a home.

A significant factor in the flat confidence index is the continued uncertainty and anxiety of millennials. Although three-in-four (76 percent) millennial non-homeowners (i.e., would-be first-time buyers) want to buy a home, less than two-in-five (38 percent) are confident they can afford a down payment. Millennials also outpace Americans in general in a number of other home buying concerns measured by the survey:

Overall, millennials are skeptical and bracing for volatility. They are more likely to expect a price bubble and correction in the next two years than Americans overall (60 percent of millennials vs. 47 percent of Americans). Prospective first-time homebuyers in particular are nervous about market instability – only a quarter of these millennial non-homeowners are confident that the 2008 housing crisis will not happen again in their lifetimes. 

On the bright side, 70 percent of millennials said the American Dream is alive and well. They do, however, describe it differently than past generations. They want to own a home but not be tied down by it. More than four-in-five (83 percent) millennials say their new definition of the American Dream is “owning a home on my own terms while staying mobile, agile and financially secure.” In fact, more than four-in-five (81 percent) millennials plan to live in their current home for less than five years.

NEW YORK, NY – Mortgage rates continued their move higher this week with the benchmark 30-year fixed mortgage rate rising to 3.62 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.22 discount and origination points.

The larger jumbo 30-year fixed climbed to 3.64 percent, the highest since late July, while the average 15-year fixed mortgage rate increased to 2.91 percent. Adjustable mortgage rates were also on the move, with the 5-year ARM rising to 3.12 percent and the 7-year ARM reaching 3.32 percent.    

Mortgage rates have been rising because of more than just the expectation of a Federal Reserve interest rate hike in December. Wages are increasing, oil prices have gone above $50 per barrel, and core inflation has ticked higher, all of which are pushing yields on government debt higher. Mortgage rates are closely related to yields on long-term Treasury bonds. But this isn’t to say that mortgage are now skyrocketing, or are at immediate risk of doing so, as mortgage rates have returned to levels seen in mid- September. With the backdrop of sluggish economic growth and low inflation around the world, there is a ceiling to how high rates will move right now – and we are likely very close to it.  

At the current average 30-year fixed mortgage rate of 3.62 percent, the monthly payment for a $200,000 loan is $911.54.

SURVEY RESULTS

30-year fixed: 3.62% — up from 3.56% last week (avg. points: 0.22)
15-year fixed: 2.91% — up from 2.85% last week (avg. points: 0.16)
5/1 ARM: 3.12% — up from 3.07% last week (avg. points: 0.24)

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. Two-thirds of this week’s respondents predict mortgage rates will keep rising while one-third expect mortgage rates will hold steady at these levels over the next week. Interestingly, none of this week’s respondents forecast a decline in mortgage rates in the coming week.

(RECAP: The Arlington Partnership for Affordable Housing (APAH) has announced the grand opening and ribbon cutting for a brand new apartment complex designed for low-income residents of Arlington. The Springs Apartments, located just a few blocks south of the Ballston Common Mall at 555 N. Thomas Street, will be officially open to residents on Nov. 3 with a ceremony scheduled for 2 p.m. Construction of The Springs Apartments began in early 2015. The building will be a five-story, 104-unit mixed-use development that will include 98 new units affordable to low and very low income individuals and families, according to APAH.)

LOUISVILLE, KY – CAPREIT, a national real estate development and investment company responsible for the ownership and management of more than $5 billion of multifamily assets, announced the acquisition of Avana Southgate, a 256-unit apartment community on the south side of the state’s largest city.

Situated less than 20 minutes from downtown Louisville, the community sits in close proximity to the city’s primary thoroughfares and within nine miles of Louisville International Airport. CAPREIT will renovate portions of the community and add washers and dryers to select homes.

“It’s tough to beat the fantastic location of Avana Southgate, with several local businesses in the immediate area and prime access to key destinations throughout the Louisville area,” said Ernie Heymann, Chief Investment Officer at CAPREIT. “The community will serve as an excellent housing option for the many local-business employees, as well as those who commute to the airport or the downtown corridor.”

Located at 10960 Southgate Manor Drive, Avana Southgate is within minutes of Route 61 and Interstate 65, which offer expedient access to professional employment opportunities throughout the metro area. That includes Worldport, the worldwide air hub for the United Parcel Service. The airport-based hub has more than 20,000 employees. The community also is a short drive from Interstate 265, the gateway to desirable and affluent suburbs on the east side of the city.

Nearby attractions include historic Churchill Downs, Kentucky Exposition Center, Quail Chase Golf Course, Southgate Shopping Center and Jefferson Mall. The community is within walking distance of a Kroger grocery store, a Jimmy John’s sub shop and several other fast-casual restaurants. Commuters are a three-minute walk from the Hillview Woods stop on the Louisville TARC bus line on Mud Lane. Less than a mile east, Blue Lick Park is home to several recreational outlets, including athletic fields, running trails and picnic areas.

CAPREIT’s planned renovations for Avana Southgate include upgraded stainless steel appliances, plank flooring, new cabinet fronts, two-tone paint and updated plumbing and lighting fixtures. Existing amenities at the pet-friendly community include a state-of-the-art fitness center, resort-inspired swimming pool, resident clubhouse, business center, personal garages and storage areas, grilling areas and tennis and basketball courts.

Avana Southgate consists of 1- and 2-bedroom apartments ranging from 680 to 1,488 square feet. The apartments feature 9-foot vaulted ceilings, private balconies or patios, oversized pantries, washer and dryer connections and gas fireplaces in select homes.

Including Avana Southgate, CAPREIT currently owns and operates nearly 14,000 units across the nation.

DALLAS, TX – Pinnacle, one of the nation’s leading multifamily management firms, announced it has been selected to manage a new 281-unit apartment community in Richardson, Texas. The Mallory Eastside, located at 1705 North Greenville Avenue, is in the heart of Richardson’s telecom corridor just minutes from UT Dallas. Residents of this luxury community will enjoy a high concentration of nearby restaurants, retail centers, major employers, and recreational facilities. Approximately one mile south of the SH 75 and 190 interchange, the property is accessible from all points of the Dallas metropolitan area via major roadways and the DART rail.

“This property will introduce exclusive and boutique ground-breaking amenities to the Richardson market,” explains Toni Rials, regional vice president for the North Texas Market. “The Mallory’s rooftop lounge will create a sense of community among residents and the 70′ lighted sculpture will be an iconic draw visible from the neighboring roadways.”

The Mallory Eastside Apartments is a pet-friendly community offering 14 spacious floorplans that include studio, one, and two bedroom options. The property’s modern interiors feature premium fixtures, high-end flooring, and designer kitchens complete with oversized prep islands, stainless steel appliances and polished granite countertops. Residents will also enjoy perks such as a spa-inspired bathroom, full size washer and dryer, elegant high ceilings with industrial-style ceiling fans and contemporary interior color schemes.

Outside, residents can relax on the rooftop deck or poolside in a cabana, unwind in the televised entertainment area, shape up in the fitness center, meditate in a Zen courtyard or romp with their pet at the open-air park. The community also offers multiple grilling stations, breezy picnic areas, private yards, garages, and pet wash and bike repair stations. An on-site City of Richardson Art Park will house one of the city’s most distinctive works of art designed by local artist Ed Carpenter.

The project developer, Jim Dobbie with Hunt Companies states that, “The property is uniquely positioned to support the needs of the thousands of new employees moving to North Dallas.”

(RECAP: After several years of on-again, off-again plans for redevelopment, Lake Anne Fellowship House has a signed agreement to build a new affordable senior housing complex. The Fellowship Square Foundation (FSF), which operates the Lake Anne buildings, the facility at Hunters Woods Village Center, and several others in the Washington, DC area, says it has a signed deal with the Community Preservation and Development Corporation (CPDC) for a new building to replace the aging structures at 11480-11450 North Shore Drive in Reston. The new construction project will replace all 240 apartment units, built in the early 1970s, with “a new, state of the art facility.” CPDC is a non-profit developer of affordable housing.)

ARLINGTON, VA – Kettler, one of greater Washington, D.C.’s leading real estate development and property management companies, announced the opening of m.flats Crystal City, an 11-story, 198-unit, high-rise apartment building located in the Crystal City neighborhood of Arlington, Va.

m.flats not only revives a site once occupied by the former Crystal City Post Office, but provides a community conveniently located just one block from the Crystal City Metro offering easy access to work, entertainment and downtown Washington, D.C.

“m.flats will provide a spark that will help Crystal City become the vibrant community we all envision,” said Robert C. Kettler, Chairman and Chief Executive Office of Kettler. “It not only expands the number of residences, but takes Crystal City a step closer to becoming a thriving transit-oriented, walkable neighborhood.”

m.flats was the first residential building proposed to the Arlington County Board since the adoption of the Crystal City Sector Plan in 2010. The plan is a roadmap adopted to redevelop Crystal City through 2050.

“Demand for luxury city living is especially strong in the Arlington submarket,” added Pamela Tyrrell, Vice President of Multifamily for Kettler. “Many young professionals want a home that features an array of amenities, is in close proximity to mass transit as well as dining and entertainment options. m.flats offers all of the above in a boutique, well designed building.”

“KTGY designed an exterior aesthetic at m.flats that is contemporary yet restrained. In contrast to the existing 1960s-era buildings, the facades add color, texture and transparency,” stated Rohit Anand, Managing Principal at KTGY Architecture + Planning’s East Coast office in Tysons.

m.flats Crystal City offers primarily one- and two-bedroom units as well as standard unit finishes including washed oak flooring, quartz countertops and stainless steel appliances.

Building amenities include a club room equipped with WiFi and ample lounge areas, fitness center, bike storage and workstation, and an all-season landscaped courtyard with fire and water features. The rooftop amenities include multiple entertainment spaces with outdoor seating and dining areas, outdoor kitchens with grills, fireplace, as well as a southern-facing sundeck with cabanas overlooking the rooftop swimming pool and views of the city.

The LEED Silver designed high-rise is Kettler’s sixth multi-family building in the Crystal City/Pentagon City market. Kettler opened The Acadia, a 411-unit high-rise luxury apartment building in Metropolitan Park, spring of 2015.  Construction on m.flats Crystal City began at the end of October 2014. International award-winning KTGY Architecture + Planning was the architect on the project, Bohler Engineering, a civil engineering and consulting services firm, the engineer, and John Moriarty & Associates, the general contractor.
 

SAVANNAH, GA – Olympus Property expands their Savannah portfolio with the acquisition of Century at Fenwick Village in Savannah, Georgia. Effective immediately, the property will be renamed “Olympus Fenwick”.

Olympus Fenwick is a Class “A” apartment community completed in 2008 consisting of 448 units. The asset is situated on over 37 acres in a strategic location of the Savannah-South submarket. Property amenities include two swimming pools, a clubhouse with business center, two fitness centers, resident game room and club room, two playground areas, dog park, and cabana with barbecue grills, and two car care centers with vacuums.

“With a planned multi-million dollar renovation, the Olympus Fenwick will be one of the finest properties in the Savannah market,” said Chase Bennett, Acquisitions Manager for Olympus Property.

The spacious floor plans include 118 one-bedroom, one-bath units, 282 two-bedroom, two-bath units, and 48 three-bedroom, two-bath units. The apartments feature high end finishes including open floor plans with 9 foot ceilings, faux-granite countertops, crown molding, walk-in closets, double-basin stainless steel sinks, garden bathtubs, breakfast bars, screened porches, and bay windows.

The proximity to a diverse range of employment opportunities is appealing to residents. The list includes Gulfstream, Mitsubishi, the Port of Savannah, multiple healthcare employers, and over 26,000 active military.

“Olympus Fenwick offers residents an attractive property and a central location only 15 minutes from downtown Savannah, a city that we have a strong affinity for,” said Chandler Wonderly, Principal of Olympus Property.

Olympus Fenwick is the fifth property to be added to Olympus Property’s sixth fund. The investment structure will provide investors an opportunity to diversify among numerous multi-family assets providing immediate cash flow in strong markets throughout the United States.

“Fund VI offers the opportunity to diversify across four states in five strong cash flowing assets,” said Braden Barr, Senior Investment Officer at Olympus Property.