Author: ipgocorp

(RECAP: The Arlington County Board today moved to preserve 68 affordable apartments in the Westover neighborhood, approving a $10.9 million Affordable Housing Investment Fund allocation to the non-profit Arlington Partnership for Affordable Housing (APAH). The loan and associated documents will be considered by the Board in December. APAH will use the proposed loan to help it buy market-rate units within eight apartment buildings. The affordable housing developer intends to renovate the units and guarantee their affordability to families earning at or below 60 percent of the area median income for 60 years.)

(RECAP: The Charlottesville Board of Architectural Review has partially approved the design of a project to construct a six-story apartment complex behind two existing buildings on West Main Street. The BAR approved the massing and scale of the project in February and held a preliminary discussion on the design project in July. Two buildings currently on the site will be retained as part of the projects. One is the home of the Blue Moon Diner and the other is a convenience store. Parts of the convenience store will be removed. The project currently features 53 residential units that will be a mix of studios and one- and two-bedroom units. The BAR granted approval of the building’s elevations, materials and colors. Architect Jeff Dreyfus will need to come back with details on windows, handrails, lighting, landscaping and signage before final approval can be granted. A fact sheet provided states the developer hopes to begin construction early next year and open the building in the summer of 2018.)

NEW YORK, NY – New construction starts in August soared 21% to a seasonally adjusted annual rate of $711.2 billion, according to Dodge Data & Analytics, following lackluster activity in July.  The August rise for total construction starts featured an especially elevated amount for nonresidential building, which was helped by the start of a $3 billion petrochemical plant in Louisiana, the $1.7 billion Wynn Casino in the Boston MA area, and a $508 million terminal upgrade at Seattle-Tacoma International Airport.  The nonbuilding construction sector also experienced strong growth, with its public works segment lifted by the start of a $3 billion natural gas pipeline project in the states of Alabama, Georgia, and Florida.  In addition, residential building contributed with a moderate August gain, reflecting another advance for multifamily housing which included groundbreaking for the $900 million Wanda Vista Tower in Chicago IL.  Through the first eight months of 2016, total construction starts on an unadjusted basis were $439.3 billion, down 7% from a year ago.  As 2016 is proceeding, the year-to-date decline for total construction is becoming smaller, affected to a lesser extent by the comparison to the massive projects reported during the first half of 2015 and now benefitting from the start of several massive projects in this year’s second half.  If projects valued at $1 billion or more are excluded, total construction starts during the first eight months of 2016 would be down a slight 1%, or essentially even, with a year ago.

The August data raised the Dodge Index to 150 (2000=100), up from 124 in July.  The quarterly averages for the Dodge Index show that construction activity increased 11% in this year’s first quarter to 146, followed by a 10% decline in the second quarter to 131.  The July and August average for the Dodge Index comes to 137, a 4% gain relative to the second quarter.  “The sharp rise in August makes it likely when September data becomes available that construction starts for the third quarter will be able to register moderate growth, supporting the belief that the construction industry still has room for further expansion despite some recent deceleration” stated Robert A. Murray, chief economist for Dodge Data & Analytics.

“The presence or absence of very large projects, of course, has played a considerable role in the month-to-month pattern for construction starts,” Murray continued.  “While July did not receive much of a boost from very large projects, such a boost was clearly present in the August statistics.  Furthermore, the year-to-date readings for the first half of 2016 were skewed by the comparison to the heightened first half of 2015, which included 13 projects valued at $1 billion or more, such as a $9 billion liquefied natural gas terminal in Texas, the $2.5 billion 30 Hudson Yards office-retail tower in New York NY, and the $2.3 billion Interstate 4 highway project in the Orlando FL area.  The number of $1 billion-plus projects entered as construction starts decreased substantially in the second half of 2015, when only three such projects were reported, and another low amount took place in this year’s first half when only four such projects were reported.  In August, three projects valued each in excess of $1 billion were entered as construction starts, along with four projects in the $500 million to $1 billion range.  This ‘grouping’ of very large projects in August can be attributed to timing issues specific to each project, yet it may also be part of a more general trend reflecting a less hesitant stance by firms towards investment than what was present over the past twelve months.”

Nonresidential building in August surged 42% to $267.4 billion (annual rate), rising from the subdued activity reported during the previous four months and reaching the highest amount since April 2015.  A substantial boost came from the manufacturing plant category, which climbed 291% in August with the start of a $3.0 billion ethane cracker chemical plant in Lake Charles LA.  If this massive petrochemical plant is excluded from the August data, the manufacturing plant category would have retreated 44%, but nonresidential building would still have been able to register a 23% gain.  The commercial categories together advanced 31%, supported in particular by the August groundbreaking for the $1.7 billion Wynn Casino in Everett MA.  Hotel construction climbed 71%, reflecting the $465 million estimated for the hotel portion of the Wynn Casino, with additional support coming from other noteworthy projects such as the $180 million Lane Field Intercontinental Hotel in San Diego CA and the $127 million CityCenterDC Conrad Hotel in Washington DC.  The commercial garage category advanced 64%, helped by the $210 million estimated for the garage portion of the Wynn Casino, as well as by a $128 million parking facility at San Diego International Airport.  Warehouse construction strengthened 75%, due to the start of a $340 million trade and logistics center as part of the redevelopment of the Oakland Army Base in Oakland CA.  Office construction improved 3% following its 21% increase in July, supported by the $194 million office portion of a $300 million bank operations center in Plano TX and a $96 million office building in Herndon VA.  Store construction was the one commercial project type that did not report an August gain, as it held steady with its July pace.

The institutional side of the nonresidential building market increased 24% in August.  The amusement and recreational category jumped 118%, reflecting the $975 million estimated for the casino portion of the Wynn Casino.  Transportation terminal work climbed 30%, pushed upward by the start of a $508 million upgrade to the North Satellite Terminal at Seattle-Tacoma International Airport.  Educational facilities, which is the largest institutional category, grew 18% in August with the lift coming from the start of a $124 million life sciences building at the University of Washington in Seattle WA and a $118 million high school in the Dallas TX area.  Healthcare facilities increased 15%, featuring five projects valued at $100 million or more, led by a $300 million medical center expansion in St. George UT and a $271 million hospital in Rockford IL.  The religious buildings category managed to grow 16% in August from a subdued July, while the public buildings category (courthouses and detention facilities) fell 11%.

Nonbuilding construction, at $152.7 billion (annual rate), increased 25% in August.  The public works categories together rose 36%, with most of the gain coming from a 326% hike for the miscellaneous public works category which includes pipeline work.  August featured the start of the $3.0 billion Sabal Trail and Florida Southeast Connection natural gas pipeline upgrade project, which will transport natural gas from Alabama through Georgia and into central Florida.  If this massive project is excluded from the August data, the gains for the miscellaneous public works category and the public works group would have been 64% and 1%, respectively, while nonbuilding construction would have been down 4%.  Highway and bridge construction in August rose 5%, with major construction starts led by a $163 million tolled express lanes project in Denver CO and a $110 million realignment of State Route 99 in Fresno CA.  River/harbor development work in August grew 8%, but considerable declines were reported for water supply systems, down 35%; and sewer construction, down 43%.  The electric utility and gas plant category fell 31% in August, weakening for the third straight month, although August did include the start of a $573 million power transmission line in Illinois and a $156 million wind farm in upstate New York.

Residential building in August advanced 5% to $291.1 billion (annual rate).  Multifamily housing strengthened for the second month in a row, rising 25% after its 10% gain in July.  August featured 13 multifamily projects valued at $100 million or more, led by the $780 million multifamily portion of the $900 million Wanda Vista Tower in Chicago IL, a condominium-hotel-retail project which at 93 stories will be the third highest building in Chicago when completed. Other large multifamily projects that reached groundbreaking in August were the $465 million Transbay Block 8 building in San Francisco CA, the $344 million multifamily portion of a $375 million mixed-use building at 1120 South Grand Avenue in Los Angeles CA, and the $266 million multifamily portion of the $300 million Miami Worldcenter 7th Street development in Miami FL.  Through the first eight months of 2016, the top five metropolitan areas ranked by the dollar amount of multifamily starts were – New York NY, Chicago IL, Los Angeles CA, Miami FL, and Boston MA.  While New York City was able to hold onto to its number one ranking, its dollar amount of multifamily construction starts was down 30% in this year’s January-August period from a year ago.  In contrast, large year-to-date gains for multifamily housing were reported for Chicago, up 153%; and Los Angeles, up 24%.  Single family housing in August eased back 2%, essentially maintaining the plateau that’s been present so far in 2016.  The regional pattern for single family housing in August showed gains in the South Atlantic and the Northeast, each up 2%, while declines were reported in the Midwest, down 1%; the South Central, down 5%; and the West, down 7%.

The 7% drop for total construction starts on an unadjusted basis during the first eight months of 2016 was the result of declines for both nonbuilding construction and nonresidential building compared to a year ago.  Nonbuilding construction fell 17% year-to-date, with public works down 8% and electric utilities/gas plants down 34%.  Nonresidential building decreased 10% year-to-date, with commercial building down 1%, institutional building down 8%, and manufacturing building down 45%.  Residential building continued to be the one major sector reporting a year-to-date gain, increasing 3% with single family housing up 7% while multifamily housing receded 4%.  By major region, total construction starts during the first eight months of 2016 showed this performance compared to a year ago – the Midwest, up 5%; the South Atlantic, up 4%; the West, unchanged; the Northeast, down 12%; and the South Central, down 25%.

FORT WORTH, TX – The partners of Columbia Renaissance Square hosted a groundbreaking ceremony for the first phase of the new Columbia at Renaissance Square development in Southeast Fort Worth. The event was held at the building site on W.G. Daniels in Fort Worth, Texas.

“This groundbreaking is an exciting next step in the overall revitalization efforts in our Stop Six neighborhood. Starting first in Renaissance Square, these apartments coming in will not only provide an excellent housing option, but also pair nicely with our city-wide efforts to focus on health, education and engagement,” said Fort Worth Mayor Betsy Price. “I am confident that by growing the relationships with our already strong partners in the area we will continue to increase the vibrancy in this community for years to come.”

Well-connected street networks, infrastructure to support biking, pedestrian oriented streetscapes, easy access to Cobb Park, large green spaces and play areas for children will support an active lifestyle for residents and visitors. A future YMCA facility, a grocery store and health clinics will be located on site. The property will also include space to host a farmer’s market and support on-site gardening and farming for residents. The sustainable design of Columbia at Renaissance Square will increase access to nature and facilitate social engagement. Education centers, retail and office space is also located on site.

“Columbia at Renaissance Square is the result of hard work between all of our partners for the benefit of the future residents that will occupy this remarkable development,” said Noel Khalil, chairman and CEO of Columbia Residential. “Our goal is to transform the existing site and provide high-quality and sustainable affordable housing for the people of Fort Worth to be proud of and enjoy for years to come.”

Key partners involved in the project are Columbia Residential, the City of Fort Worth, BBVA Compass Bank, RBC Capital Markets and Renaissance Heights United. Located in southeast Fort Worth, Texas, Columbia Renaissance Square will contain three phases of mixed-income housing. The project closed in August 2016 and is expected to be completed by late 2017. Columbia Residential has already started construction on Phase I, which will include 140 units of mixed-income housing comprising of high-quality, sustainable design and construction. Phase II will contain 120 units of senior housing and is expected to begin construction in early in 2017.

“BBVA Compass is proud to support a project that will put affordable housing within reach for the people of Fort Worth,” said BBVA Compass Fort Worth CEO Brian Happel. “We want to be an engine of opportunity in this city, and our work at Columbia Renaissance Square puts a big exclamation point on that statement for us.”

The vision for Columbia Renaissance Square was developed and refined by hundreds of people, including community officials, town planners and designers. The master planned community encompasses a number of community assets that will be available for residents, making it a unique site for the city. The project will mark a turning point for the neighborhood and its future residents.

Hon. Kelly Allen Gray and Mr. Hap Baggett served as co-hosts and emcees for the event. Other notable guests included Councilwoman Kelly Allen Gray, Fort Worth District 8, Reverend Carl Pointer, Mayor Betsy Price, Mayor of Fort Worth, Mr. Larry Tubb, Chairman, Renaissance Heights United, Texas State Representative Nicole Collier, Mr. Brian Happel, president of BBVA Compass Bank, Mr. Brian Flanagan, RBC Capital Markets, Ms. Carol Naughton, president of Purpose Built Communities, and Mr. Noel Khalil, chairman and CEO of Columbia Residential.

(RECAP: In a tremendous victory for NMHC and NAA, Senate Finance Committee Ranking Member Ron Wyden (D-OR) on Sept. 22 introduced legislation to spur the production of multifamily rental homes for America’s working families through a Middle-Income Housing Tax Credit (MIHTC) that complements the Low-Income Housing Tax Credit. The apartment industry strongly supports the bill, and we immediately applauded its introduction in a statement, based on our concerns that there is a lack of affordable housing available to millions that comprises the nation’s workforce. For this reason, we worked closely with Senator Wyden to develop his proposal that would make building the needed units financially viable. Specifically, under the “Middle-Income Housing Tax Credit Act of 2016,” states would receive allocations of tax credits that would be distributed competitively to finance 50 percent of the cost of qualifying units.)

KENT, WA – MG Properties Group, a private San Diego-based real estate investor and operator, has announced the acquisition of the Mosaic Hills Apartments in Kent, Washington.

Built in 1980, Mosaic Hills is located in Kent Heights, providing residents with convenient access to retail amenities and employment corridors throughout the south Seattle region.  The low-density property features a broad mix of unit types, comprising one, two, and three-bedroom floorplans as well as an array of common area amenities. MGPG plans to significantly reposition the property through a multi-million dollar renovation plan which includes upgrades to the property’s common areas and unit interiors as well as a substantial capital investment to cure deferred maintenance.

The property was purchased for $51,575,000.  The sellers were represented by Giovanni Napoli and Phillip Assouad at Kidder Mathews. The acquisition was financed with a $41.3M Freddie Mac loan arranged by Charles Halladay and Lee Redmond at HFF.

According to Christian Garner, MGPG’s Chief Investment Officer, “Our ownership of similar properties in Kent and surrounding markets provided us with operating efficiencies and strong market knowledge.  We see Mosaic Hills as a diamond in the rough, and look forward to executing on our planned renovations.”

Mosaic Hills marks MG Properties Group’s tenth acquisition in the past year.  The ten acquisitions total approximately 3,000 units and $460,000,000 in combined purchase price. The company is targeting further acquisitions in Arizona, California, Colorado, Nevada, Oregon, and Washington. 

ORLANDO, FL – Florida’s housing market reported more closed sales, higher median prices, more new listings and fewer all-cash closed sales in August, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 25,070 last month, up 8.2 percent from August 2015.

“A continued lack of inventory – particularly in the mid-$200,000 and under range – is creating obstacles for many buyers who are trying to enter Florida’s housing market,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “Rising median prices also may be an inhibiting factor for these would-be homeowners; however, the uptick in prices could persuade sellers that now is the time to list their properties for sale, which in turn may help ease the tight supply in many areas.”

Home sellers continued to get more of their original asking price at the closing table in August: Sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $225,000, up 12.6 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in August was $160,000, up 6.7 percent over the year-ago figure.

In August, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 57th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in July 2016 was $246,000, up 5 percent from the previous year; the national median existing condo price was $228,400. In California, the statewide median sales price for single-family existing homes in July was $509,830; in Massachusetts, it was $376,750; in Maryland, it was $289,088; and in New York, it was $255,000.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 9,484 last month, up 3.3 percent compared to August 2015. Closed sales data reflected fewer short sales and cash-only sales in August: Short sales for townhouse-condo properties declined 37.4 percent while short sales for single-family homes dropped 37.3 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Closed sales of single-family homes in Florida were up by 8.2 percent year-over-year in August, effectively erasing all of the losses from July,” said Florida Realtors® Chief Economist Brad O’Connor. “August’s gains were broad-based, with 20 of Florida’s 22 metro areas experiencing a year-over-year increase in sales. However, a single month’s worth of data is rarely enough information to make assertions about a market’s direction.

“In the present case, it’s possible that a number of sales that might ordinarily have occurred in July were pushed back into August. Basically, if you consider the data over July and August together, the net growth rate continues the trend we’ve been seeing all year of slow but positive growth in the single-family market.”

Inventory was at a 4.2-months’ supply in August for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44 percent in August 2016, significantly lower than the 3.91 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

(RECAP: As interested developers prepare their proposals, the site of a planned redevelopment along the Boulevard is becoming a cleaner slate. Demolition of 22 city-owned buildings and miscellaneous structures around The Diamond is wrapping up, on parts of the 60-acre site where the City of Richmond is planning a massive mixed-use development. The work is making way for a mixed-use development that would replace The Diamond with as many as 4,000 housing units, 500,000 square feet of retail and entertainment space, 375,000 square feet of office or flex space, and a hotel totaling as many as 250 rooms. Those numbers were listed in a market analysis as the highest and best use for the city-owned site, which includes The Diamond, the adjacent Arthur Ashe center and other city-controlled properties that make up the 60-acre site.)

SAN ANTONIO, TX – Electra America, a private owner-operator focused on multifamily investments, along with its partner Robbins Property Associates, have acquired Vantage at Alamo Ranch, a 288-unit apartment complex in San Antonio, Texas. The newly built property was acquired from Vantage Communities and will be rebranded as Verandas at Alamo.

With this acquisition, Electra/Robbins’ Texas portfolio now includes over 7,000 apartment units in cities including San Antonio, Houston and Dallas. It is the company’s 29th multifamily property acquisition in the past 12 months.

“The Alamo acquisition reaffirms our commitment to San Antonio as a growing and vibrant city,” said Joe Lubeck, CEO of Electra America and a partner in Robbins. “Soon to be renamed Verandas at Alamo, we will upgrade amenities and services and look forward to being part of the Alamo community.”

San Antonio was named one of “America’s Next Boom Towns” by Forbes magazine in 2016, based on above-average projections for population, employment rates and income growth over the next 10 years.

Constructed in 2015, Vantage at Alamo is located at 6831 Alamo Parkway and features one-, two- and three-bedroom units in three-story buildings totaling 240,916 square feet. The community offers swimming pools, state-of-the-art fitness center, on-site maintenance, gated access, business center, picnic area, pet park and high speed Internet access. The property is currently 87% occupied.

It is conveniently located next to shops, restaurants, freeways, and entertainment, such as SeaWorld San Antonio.

The bedroom floor plans offer an array of highly desirable amenities, including 9-foot ceilings, air conditioning, balcony or patio, plush carpeting, hardwood flooring, walk-in closets, among others. Residence interiors will be upgraded with granite countertops, kitchen faucets, curved shower rods, and 2-inch faux wood blinds.

This acquisition brings the Electra/Robbins current portfolio to 63 properties totaling approximately 20,000 units valued at $2 billion.    

ATLANTA, GA – Emma Capital Investments announced the completion of the acquisitions of Somerpoint Apartments, a 144–unit garden style multi-family apartment community located at 1788 Austell Rd., Marietta, Cobb County, Georgia and Brix on Beech (formerly Georgian Arms), a 100-unit garden style multifamily complex located at 16 Beech Rd. SE, Marietta, Cobb County, Georgia at a combined purchase price of US$ 15.7 Million. This is Emma Capital’s 17th and 18th acquisitions in the United States and brings its total units acquired to date to approximately 4,000.

Both properties are located in the in the highly desirable City of Marietta, a city in one of the most affluent counties in Georgia – Cobb County. Marietta’s population is expected to expand nearly 7% over the next five years.  Between 2010 and 2015, the submarket exhibited strong rent growth of approximately 16% and is projected to increase organically a further 12-15% over the upcoming 4 years.  The area is undergoing tremendous investment in infrastructure including the new $622 Million Atlanta Braves stadium and its adjoining $400 Million entertainment district.

The immediate area near the Properties is also home to Dobbins Air Force Base the largest multi-service reserve base in the world supporting more than 10,000 guardsman and reservist from the Army, Navy, Marines and Air Force.   Adjacent to Dobbins Air Force Base is Naval Air Station Atlanta that supports 2,000 Navy and Marine Corps reservists in 31 different states.   Further, adjacent to Brix on Beech is Chattahoochee Technical College, a two-year state technical college with an enrollment of over 17,000 students annually (Approx. 13,000 in Marietta), making it the largest technical college in Georgia.  Also in the immediate vicinity is a campus of Kennesaw State University (KSU, the third largest university in the state of Georgia). The school currently has enrolment of over 33,000 undergraduate and graduate students of which 6,500 are located at the Marietta campus.

Somerpoint Apartments was built on 10.8 acre and offers two spacious one and two bedroom floor plans, with an average of 960 sq. ft.   Brix on Beech is built on 7.9 acres with beautiful frontage on Austell Road. The Property features large well-lit units averaging 900 sq. ft. in two floor plans. All of the units at both Properties feature original classic interior finishes, making the two assets strong candidates for unit interior upgrades by enhancing the finishes and appliances to achieve substantial rent increases.

“We are pleased to continue to expand or portfolio in the Greater Atlanta Area. The addition of these properties in Marietta further strengthens our footprint in this rapidly growing market,” stated founding partner and Co-Owner Haya Zilberboim. “These acquisitions are our 8th and 9th in the Atlanta area in the past year and a half,” added Partner and Co-Owner Oz Cohen. “We continue to execute on our growth strategy with quality assets in strong locations.”