Author: ipgocorp

HOUSTON, TX – Clearworth Capital announced its recent acquisition of Ponderosa Apartments, a 177-unit class C multifamily asset in Houston, TX. Covering 6.9 acres, Ponderosa is comprised of 17 two-story buildings, a pool area, and a recently remodeled clubhouse. This garden-style community offers one, two, and three-bedroom floor plans, with an average unit size of 854 sf.

The property is located in the well-established 1960/Champions neighborhood in north Houston. The location provides convenient access to major highways including I-45, Beltway 8, and the Grand Parkway. Residents enjoy short commutes to the George Bush International Airport, The Woodlands, and numerous employment and retail centers along FM 1960.

New ownership will implement an extensive renovation plan to include an exterior facelift and modernization of all unit interiors. The exterior enhancements include new paint, façade repairs, landscaping redesign, and numerous amenity upgrades. Interior upgrades will consist of new flooring, carpet, countertops, cabinets, fixtures, and updated appliances.

“Our partners are excited to acquire this property at an attractive basis. Ponderosa presents an excellent opportunity to reposition a quality asset in a vibrant submarket. The property is experiencing stable occupancy and is well-positioned for rent growth. Our business plan is focused on increasing performance of the asset by improving the physical plant through our strategic renovation plan and employing our exceptional management team,” said Jim Marfuggi, a partner in Clearworth Capital and CEO of NOIPM.

NOIPM, an affiliate of Clearworth, will be the new management company. 

(RECAP: The Fairfax County Planning Commission has recommended for approval Pulte Homes’ plan to rezone a low-slug industrial building into 44 residences at 1825 Michael Faraday Court near the Wiehle-Reston East Metro station. After a planning staff report recommended denying the application and the commission held a public hearing last week, the panel delayed making a decision until Wednesday. Hunter Mill planning commissioner Frank de le Fe said he still had some issues with the plan for the Lofts at Reston Station — which jams 12 2-over-2 townhouses and 32 multifamily units into fewer than two acres of land. The staff report asked the developer that a few units be removed to allow greater ease of movement and parking for emergency vehicles and trash trucks. Pulte said removing units would affect the number of homes set aside for workforce housing. The plan will next go to the Fairfax County Board of Supervisors for final approval.)

CHICAGO, IL – Chicago-based Golub & Company, an international real estate investment and development firm, announced the acquisition of One East Delaware, a luxury rental community in Chicago’s Gold Coast neighborhood, in a partnership with Boston-based Alcion Ventures. The 306-unit building is nestled among upscale shopping and dining options, offers easy access to public transportation and the Loop, and is steps from the lakefront and cultural destinations.

“We’re pleased to add One East Delaware to our growing portfolio of high quality urban mixed-use properties,” said Michael Newman, CEO of Golub & Company. “Our repositioning plan will make One East Delaware one of the most sought-after apartment buildings, in the heart of one of Chicago’s most desirable neighborhoods, the Gold Coast.”

A team from Golub and Alcion Ventures, a real estate private equity firm, negotiated the transaction. The seller, Waterton, was represented by HFF. HFF also arranged financing for the deal through Deutsche Bank on behalf of the purchaser. Terms of the deal were not disclosed.

One East Delaware offers studio, one- and two-bedroom apartments and attached indoor parking.  Residences feature dramatic city views with floor-to-ceiling windows and spacious living areas. Residents enjoy amenities such as a fitness center, expansive sundeck, business center, and 24-hour door service. Residents have access to gourmet grocer Potash Market, while on-site retail includes Starbucks Coffee and full-service spa Salon Buzz. Golub & Company plans to enhance the current features and amenities.

“The One East Delaware opportunity was attractive because of the sustained demand for residential and retail options in the Gold Coast,” said Mark Potter, Co-Founder and Partner of Alcion Ventures.  “We look forward to continuing our relationship with Golub as we maximize the revenue potential of this property.”

Golub & Company and Alcion Ventures are also co-investors in a portfolio of residential properties in many Chicago neighborhoods, including the recent acquisition of Lake Shore Tower in the historic Edgewater community.

BALTIMORE, MD – Officials of The Preiss Company, ranked the nation’s third largest privately held owner/operator of private student housing announced they have been named managers of The Varsity at UB Apartments in Baltimore, MD, consisting of 323 beds.

Built in 2012 to serve Baltimore’s urban universities, The Varsity at UB Apartments is located directly across the street from the University of Baltimore and also attracts students from seven other universities within a five- to 15-minute radius, including the Maryland Institute College of Art (MICA), Johns Hopkins University, Loyola University of Maryland, Notre Dame of Maryland University, Towson University, Stevenson University and Goucher College.

Located at 30 West Biddle Street, the 11-story brick building is comprised of 323 beds in 114 units, offering studio, two- and four-bedroom floor plans. Amenities in the fully furnished, upscale units include granite counter tops, black appliances and private bedrooms and baths. Other features include a 24-hour state-of-the-art fitness center, computer lab, private study rooms and an on-site Dunkin Donuts.

“Preiss will have a record growth year in 2016 with well over half-a-billion dollars in transactions, and third-party management will continue to play an important role in our planned expansion,” said Donna Preiss, chief executive officer. “We now serve 12 different ownership groups as a third-party operator. We continue to have a healthy appetite for third-party management opportunities, but remain highly selective in the type of properties we operate and acquire. We work only for those properties where we are confident we can add immediate and long-term value to the owner/investors.

‘The Varsity at UB Apartments is somewhat unique in serving so many diverse universities within a close radius,” Preiss added. “That situation offers a number of opportunities for our property management team to create a unique experience for all of our student tenants.”

OVERLAND PARK, KS – Senior Lifestyle, an industry-leading owner, operator and developer of senior living communities, announced its newest planned community, The Sheridan at Overland Park.

Developed by CA Senior Living, the senior housing investment and development division of Chicago-based CA Ventures, the community is part of CityPlace, a mixed-use development in Overland Park that includes plans for additional residences, shops, restaurants and office space, along with landscaped trails and gathering spaces.

Slated for completion in early 2017, The Sheridan at Overland Park is currently accepting leases for its 116 studio, one- and two-bedroom apartment homes, which include assisted living and memory care units ranging in size from 315 to 920 square feet.

“The Sheridan is unique in that it blends the latest concepts in senior living design with a warm and nurturing environment, all specifically programmed around residents and their families,” said Peter Crane, executive director of The Sheridan at Overland Park. “It will reflect the consummate level of expert care that has distinguished our family-owned company since its founding more than three decades ago.” 

The Sheridan will include a full suite of luxury amenities and services, including a bistro dining and gathering spot, chef-prepared meals, Wellness Monitoring, best-in-class memory care and 24-hour access to licensed care staff. Additionally, its location along U.S. 69 near College Boulevard and Switzer Road provides easy access to nearby churches and synagogues, as well as shopping, banking and entertainment destinations.

“As a hands-on owner, CA Senior Living is committed to providing best-in-class service at all of our senior housing communities,” said John Dempsey, COO of CA Senior Living. “Given Senior Lifestyle’s successful track record of operating communities that combine the social programming so many seniors desire with the essential services they need, we knew their holistic and highly personalized approach is perfectly suited to manage our development as The Sheridan at Overland Park.”

In addition to providing a range of assisted living and memory care accommodations to meet the housing needs of greater Kansas City’s growing senior population, The Sheridan will create more than 100 permanent new jobs in the community.

Diamond Charter Membership is currently available to potential residents and offers a variety of benefits, including first selection of apartment homes, exclusive pricing that will not increase for at least the first year, a private four-course dinner party hosted by the executive chef, and more. A Welcome Center is currently open at 10300 Indian Creek Parkway where prospective residents and their families can learn more about the community.

NEW YORK, NY –  Mortgage rates moved higher this week with the benchmark 30-year fixed mortgage rate rising to 3.56 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.24 discount and origination points.

The larger jumbo 30-year fixed bumped up to 3.58 percent after tying a record low last week, while the average 15-year fixed mortgage rate climbed to 2.85 percent. Adjustable mortgage rates were on the rise as well, with the 5-year ARM rising to 3.07 percent and the 7-year ARM reaching 3.24 percent.    

Mortgage rates began to move higher amid increased speculation about forthcoming Federal Reserve interest rate hikes. Improved readings on consumer sentiment and a brighter than expected outlook from the manufacturing sector, along with tough talk on interest rates from the President of the Federal Reserve Bank of Richmond Jeffrey Lacker, had investors increasing the odds of a December interest rate hike. Yields on long-term bonds, to which mortgage rates are closely related, moved higher in response.

At the current average 30-year fixed mortgage rate of 3.56 percent, the monthly payment for a $200,000 loan is $904.80.

SURVEY RESULTS

30-year fixed: 3.56% — up from 3.54% last week (avg. points: 0.24)

15-year fixed: 2.85% — up from 2.82% last week (avg. points: 0.20)

5/1 ARM: 3.07% — up from 3.04% last week (avg. points: 0.25)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets. However, this week’s survey was conducted on Tuesday due to Hurricane Matthew’s approach to the southeastern U.S.

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 respondents – 62.5 percent – expect mortgage rates to rise over the next week, while 37.5 percent predict further declines. None of the experts foresee mortgage rates remaining more or less unchanged in the coming week.

(RECAP: As outlined in President Obama’s Climate Action Plan, HUD today proposed utility benchmarking of water and energy in its portfolio of public and assisted, as well as newly-insured, multifamily housing. This new ‘utility benchmarking’ initiative would apply to approximately 2.2 million units across several categories of HUD-assisted affordable housing: developments with Project Rental Assistance Contracts, multifamily properties with mortgages insured by the FHA, and Public Housing Authorities (PHAs) with more than 250 public housing units. Under this initiative, certain providers of HUD-assisted or public housing will begin collecting and reporting on their water and energy use. Benchmarking will guide these property owners and PHAs to make informed decisions, reduce operating costs and improve building performance over time.)

SPARKS, NV – MG Properties Group, a private San Diego-based real estate investor and operator, has announced the acquisition of the 240-unit apartment community, Reflections at the Marina Apartments, in Sparks, Nevada, formally known as Green Leaf at the Marina.

Built in 1980, Reflections at the Marina is located in the heart of Sparks, NV.  Its proximity to Interstate 80 provides residents with convenient access to the Tahoe-Reno Industrial Park, one of the largest industrial parks in North America and home to the anticipated $5 billion Tesla Gigafactory. 

The property is also adjacent to The Sparks Marina Park, a 77-acre lake filled by a naturally occurring aquifer, which provides residents with additional amenities such as windsurfing, sailing, swimming, a dog-park, sports facilities and picnic areas.  MG Properties plans a $5 million renovation to the 240-unit low-density property which will upgrade the exterior structures, common areas and interior finishes.

The sellers were represented by Kenneth Blomsterberg, Ryan Rife and Ben Nelson of Marcus and Millichap. The acquisition was financed with a bridge loan from Key Bank, arranged by Brooks Benjamin.

According to Christian Garner, MGPG’s Chief Investment Officer, “This property represents a great fit for our Reno / Sparks portfolio and allows us to reposition an asset in an improving, dynamic market with forecast employment growth exceeding 6,500 jobs in the industrial park alone”.

Reflections at the Marina marks MG Properties Group’s eleventh acquisition in the past year.  The eleven acquisitions total approximately 3,500 units and $525,000,000 in combined purchase price. The company is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon, and Washington. 

MIAMI, FL – Lennar Corporation announced that LMC, its wholly owned subsidiary, received an additional $250 million commitment to its Lennar Multifamily Venture (“LMV”), which completes the fund raising for this long term multifamily development investment vehicle. With commitments totaling $2.2 billion LMV is well capitalized to develop and own Class A multifamily communities in 25 target markets throughout the United States. 

Lennar launched LMC in 2011, and since that time the company has been among the nation’s most active developers. LMC currently has approximately 13,300 apartment homes in 45 communities operating or under construction and including these communities, a total development pipeline that exceeds $7 billion and over 23,000 apartments. The company builds high-rise, mid-rise, and garden apartment communities.

LMV’s ownership includes six prominent institutional investors, comprised of foreign pensions, sovereign wealth funds, and insurance companies. Lennar also has a $504 million commitment to the venture.

Rick Beckwitt, President of Lennar Corporation, said, “The success of the LMV capital raise demonstrates the confidence venture investors have placed in LMC and our new build to core strategy that will allow us to maintain an ownership interest in a portfolio of income producing communities going forward. We continue to see growing demand in housing, both in our core homebuilding business as well as our multifamily platform. This venture is a key building block for one of our growing ancillary businesses.”

“As the multifamily development cycle has started to mature, we feel this is the right time to pivot to a strategy that is less reliant on merchant building, or ‘build to sell’ and focuses on ‘build to own’ ,” added Todd Farrell, President of LMC. “We have assembled a strong partnership with like-minded, patient capital investors and look forward to building out a geographically diversified, conservatively leveraged portfolio of Class A multifamily communities.”

“LMV positions us to move quickly on development opportunities, which gives us a significant competitive advantage. We are extremely appreciative of the world-class investors who have committed capital to this venture and believe the vehicle gives LMC a best-in-class ability to execute in the multifamily space,” said John Gray, Head of Investments at LMC.

Currently, the venture has approximately 9,100 apartment homes under development in 31 communities for a total development cost of $3.1 billion. With the combined equity commitments and 50% leverage, LMV has approximately $1.3 billion in dry powder to invest in future opportunities.

Macquarie Capital acted as a financial advisor and placement agent for LMC.

PORT ORANGE, FL – GoldOller Real Estate Investments announced the acquisition of the 208-unit Pierpoint Apartment Homes and the 170-unit The Groves both in Port Orange, FL, adjacent to Daytona Beach. With these latest acquisitions, GoldOller now owns and manages more than 3400 rental apartments in nine communities in North and Central Florida.

Both Pierpoint and The Groves enjoy high occupancy and consistent financial performance. GoldOller will make extensive capital improvements to the clubhouses, landscaping, amenities and exteriors as well as interior upgrades.

“We welcome Pierpoint and The Groves to our growing portfolio in Florida and are thrilled to expand our presence in the Daytona Beach area where we continue to have great success with our Ocean Oaks Community,” said Richard Oller, Chairman and Co-Founder of GoldOller. “Now with three beautiful communities in the close proximity, we can leverage our management resources and deliver an enhanced experience to residents,” Oller said.

According to Jill Hinton, GoldOller’s VP of Operations, “Our teams hit the ground running and have already begun introducing our signature Life on the GO amenities and programs at both properties.  As always, our goal is to create a sense of community and ensure that every resident truly feels that This is Home,” Hinton added.

Jake Hollinger, GoldOller partner and COO, said: “As our portfolio continues to grow throughout the United States, so does our enthusiasm, creativity, and commitment to our residents. Our extraordinary team knows how to deliver results by creating a unique experience at each property from day one. They love the opportunity each new acquisition presents.”