Author: ipgocorp

SEATTLE, WA – Cambridge, Massachusetts is the best mid-sized U.S. city for public transit, according to the latest ranking by Redfin, the next-generation real estate brokerage. With a Transit Score of 72.3 out of 100, Cambridge is considered to have “excellent transportation,” based on its Transit Score rating, meaning that public transit is convenient for most trips.

Walk Score, a Redfin company, created the Transit Score to rate locations and cities by the usefulness of their public transportation options. Jersey City, New Jersey, which took second place with a score of 70, also falls into the “excellent” category. The remaining eight cities all have scores within the 50 to 69 point range, which Walk Score designates as areas that have “good transit with many nearby public transportation options.

With the exception of Buffalo, all of the cities highlighted in the report are connected to the public transportation system(s) of major cities nearby.

Typically it’s America’s largest cities that are known for having the best access to public transit, but Redfin chief economist Nela Richardson points out that often times commuter cities have great transportation too and they tend to be more affordable. Living in these areas can provide residents with most of the amenities they’d get living in a major city.

“It’s not uncommon for folks to commute to nearby major cities via public transit, which tend to be areas with the most economic opportunity. Having ample public transportation that can get you to where you need to go in your own city, as well as other larger cities nearby, is important for sustainable urban growth across America,” said Richardson.

See the full list at RedFin.com

(RECAP: A nonprofit developer has purchased a hotel most recently known as a Quality Inn for a redevelopment project in the rapidly changing Scott’s Addition area of Richmond.
In a competitive bidding process, the Better Housing Coalition plans to invest a minimum of $30 million to transform the six-story building at 3200 W. Broad St. and the entire block into a mixed-income apartment complex for families — with commercial space on the first floor fronting Broad Street. The Better Housing Coalition plans to turn the hotel into a family property and offer one-, two- and three-bedroom units, unlike many of the efficiency apartments that have opened in recent years in Scott’s Addition.)

DALLAS, TX – Seasonal trends, along with the continued moderation of the apartment market, were reflected in the August 2016 performance picture, according to Axiometrics, the leader in apartment and student housing market research and analysis.

August annual effective rent growth of 2.9% was the first time the rate fell below 3% since February 2014. Rent growth still remains above the 1996-2015 average of 2.2%. Meanwhile, occupancy increased to 95.2% in August.

“Historically, rent growth has decreased and occupancy has increased in August,” said Jay Denton, senior vice president of analytics for Axiometrics. “With school starting, more people are settled in their residences and fewer people move. The reduced demand has property owners and managers holding off on rent hikes.”

Also, Denton added, “Residents who sign leases in August often don’t move in until September or October, and owners tend to be less aggressive about rents during this time so they don’t miss opportunities to fill units.”

The recent trend of rent-growth decline was demonstrated by the almost across-the-board decreases from July figures in individual metros. Some 38 of Axiometrics’ top 50 markets, based on number of units, recorded lower rent growth, as did 75 out of Axiometrics’ top 120.

Occupancy remains a bright spot, with the rate above 95.0% — the rate at which Axiometrics considers a property or market full — for the sixth straight month and the 13th month of the past 17.

Rent Growth Drops in Most Metros

Axio top 50 markets that saw decreased rent growth month-over-month also declined year-over-year, but markets with higher month-to-month growth were split between increased and decreased year-over-year rates.

Except for Sacramento and Riverside — which recorded the two highest rent-growth rates among top 50 metros in August — the markets in the bottom three categories were primarily in the Midwest, Southeast and Northeast. The Northeast markets, not including DC, experienced increased rent growth after several months of decline.

Note San Francisco and Houston as markets that have decreased annual rates. Houston recorded its fifth straight month with negative rent growth, falling to -2.9% in August. The oversupplied, urban-core Montrose/River Oaks submarket was the primary culprit with -8.0% effective rent growth.

San Francisco fell to -1.7% rent growth in August, and was joined in negative territory by San Jose, at -1.6%. Oakland was still above water at 1.4%, its lowest rate since April 2010.

Top 3 Metros Remain the Same

Sacramento marked six straight months as the market with the highest annual effective rent growth among the Axiometrics top 50, with Riverside and Seattle remaining at Nos. 2 and 3 for the second straight month.

Atlanta had the strongest upward move, climbing two spots to No. 8, while Charleston recorded the biggest drop, four places to No. 17.

All the metros in the list below held over from July’s list. Just short of the mark are surprising Indianapolis and Memphis, which had the two highest year-over-year rent-growth increases among the top 50 — 329 bps and 255 bps, respectively.

SAN FRANCISCO, CA – RealtyShares, a leading online marketplace for real estate crowdfunding, has closed a major multifamily property investment led by the Network Acquisition Partnership Alliance, also known as NAPA Ventures. The investment will fund the acquisition, renovation and repositioning of the Westwood Apartments, a 187-unit complex comprising 25 residential buildings and a leasing office on a 9.4 acre site in Dallas.

NAPA Ventures is a multifamily and commercial real estate investment company based in Texas, with a growing portfolio of holdings in the Lone Star state and other rapidly growing markets. With extensive experience in the Dallas real estate market, NAPA is well-positioned to manage the entire development process, from acquiring the property, to renovating units and upgrading community amenities, to repositioning the apartments for rental and sale.

“Crowdfunding has certainly changed the landscape of real estate investments, and we are glad to have partnered with RealtyShares, which is on the forefront of this movement,” said Shravan Parsi, Co-CEO and Principal of NAPA Ventures. “From launch to close, the traditional capital raising process is chaotic, time-consuming and involves expensive legal work. With RealtyShares we raised capital within days of listing our sponsored deal, and we were able to seamlessly send information to investors, disseminate funds and close documents through the platform.”

Through the RealtyShares platform, investors from across the country are participating in the NAPA Ventures sponsored deal. The firm has been active in the Dallas area, raising $2.6 million from online investors for an Arlington property in July.

“NAPA has been able to raise nearly $5 million in capital in the past 60 days on the RealtyShares platform, affording investors access to real estate opportunities that potentially would never have been possible before,” said Brian Esquivel, Director of Commercial Equity Investments at RealtyShares. “This property was sold off-market by an out-of-state seller, as part of a larger package that NAPA will acquire over several months. Located in a rapidly developing area with a stabilized workforce, this is a possible prime opportunity for investors to tap into. NAPA continues to offer valuable assets to our network of investors.”

The RealtyShares platform also participated in a Grand Prairie, Texas project in June. To date, RealtyShares’ network of accredited investors have funded more than $150 million worth of investments in more than 2000 properties.

BELLEVUE, WA – Global real estate investment company Kennedy Wilson announced that Kennedy Wilson Real Estate Fund V acquired a 100% interest in LIV Bel-Red, a 451-unit multifamily community in Bellevue, Washington, for $172 million. Fund V invested $58 million of equity and secured a 10-year loan of $115 million through Fannie Mae at a rate of LIBOR + 2.31%.

“We are excited to increase our footprint within the Bel-Red corridor with this high quality asset,” said Shem Streeter, Managing Director of Kennedy Wilson Multifamily Investments. “Bel-Red is in the early stages of an ongoing transformation with the expansion of mass transit, lifestyle amenities, and new development of globally-recognized firms. Kennedy Wilson has been successfully investing in Washington for over a decade, and our deep knowledge of the local market will benefit the implementation of our asset management strategy at this property.”

LIV Bel-Red is a class-A apartment community located in Bellevue, WA. The property was built in 2015 and consists of 451 apartments with gourmet kitchens with quartz countertops, stainless steel appliances, tile backsplashes, oversized windows and in-unit washer/dryers. LIV Bel-Red consists of four buildings, each with rooftop decks fully-equipped with amenities including lounge furniture, dining areas, outdoor televisions, and BBQs. The affluent Bellevue submarket has a diverse employment base, including Microsoft’s world headquarters, Boeing, Expedia, Salesforce, Symetra Financial and many other Fortune 500 companies in neighboring cities. Bellevue also boasts some of the top public schools in the country, and is located near the expansion of a light rail extension which will offer service to and from Seattle.

Kennedy Wilson is a 12% investor in Fund V. The Company now has an ownership interest in 10,344 units across 40 communities in the State of Washington.

ORLANDO, FL – Pembrook Capital Management closed $20.5 million of financing for the acquisition of Silver Oaks Apartments, a 320-unit rental apartment complex for low and moderate income families located in Orlando, FL and for the renovation of 115 units at the property over the next two years.  The financing consists of a $17.0 million first mortgage bridge loan and a $3.5 million preferred equity investment.

“Pembrook specializes in customized financing to deliver the right capital stack for our borrowers,” said Stuart J. Boesky, CEO of Pembrook.  “In this case Pembrook was able to provide two layers of financing to help the sponsor acquire this property and undertake improvements to add value.  Having discretionary capital allows us to structure complex financing solutions in the current lending environment in which other lenders are not in a position to provide flexibility or sufficient proceeds to support a business plan of this nature, which in part, includes providing quality affordable housing to families.”

Silver Oaks Apartments consists of 215 two-bedroom units and 105 one-bedroom units, comprising 306,298 rentable square feet in total.  The sponsor, an experienced investor with a substantial track record of acquiring and renovating undervalued properties, plans to improve the interiors of 115 apartments by replacing appliances, fixtures, flooring and carpeting, lighting and electrical, and applying new paint.  Other units have been updated previously.  Additionally, the renovation plan calls for exterior improvements to buildings, swimming pools, and club house.  The fitness center will be expanded and improved to provide more light and a view of the pool.

Terry Baydala, Managing Director, Originations, added, “We were able to close the loan and preferred equity investment within 30 days of signing the contract. The transaction had a very tight timeline as the developer had an expiring contract and significant deposit money at risk.  We believe the property has intrinsic value and potential; we came to that conclusion quickly.”

Pembrook is a real estate investment manager that provides financing throughout the capital structure, including first mortgages, mezzanine, bridge loans, note financings and preferred equity for most property types.  The firm recently announced it has originated or participated in investments totaling over $1 billion since its inception in 2007.

CHANDLER, AZ – Security Properties purchased Arches at Hidden Creek, a 432-unit multifamily property located in Chandler, AZ for $55 million.  Security Properties now own five assets in the Phoenix marketplace.

Arches at Hidden Creek is located within the dynamic Chandler submarket.  Chandler’s median annual household income is approximately $71,000, 32% higher than Maricopa County, which covers most of the Phoenix MSA.  Chandler’s greatest strength is its employment base.  Arches sits within five miles of 70,000 jobs in industries that include high-tech manufacturing, aerospace, bioscience, and advanced business services.  Because of the city’s central location and proximity to three freeways, it can pull from more than 1.7 million people within a 30-minute commute. The Price Road Corridor is the area’s largest and most established employment center. Silicon Desert, as it is known, is located just one mile southwest of Arches.

The property is also within close proximity to the ASU Research Park (15,000 jobs), Arizona Avenue Business Parks (20,000 jobs), Downtown Chandler (5,000 jobs) and the Chandler Airpark (5,000 jobs). Less than 3 miles directly to the west of Arches lies the Chandler Fashion Center, an upscale, super-regional mall that encompasses over 180 stores and roughly 1.2M SF. The mall is widely considered the premier shopping destination in metropolitan Phoenix’s Southeast Valley and is anchored by Nordstrom, Dillard’s, Macy’s and Sears.

Arches at Hidden Creek is a garden-style apartment community that was constructed in 1986.

The business plan is a moderate value-add. To date, 133 units have been upgraded throughout the property. Interior upgrades include: faux wood flooring, baseboards, black appliances, faux granite countertops, new cabinet fronts with hardware and painted cabinet boxes to match, light fixtures, two-tone paint, ceiling fans and updated hardware and plumbing fixtures. SP plans to continue this rehab strategy by renovating the remaining 299 original units to a similar interior scope.

According to Davis Vaughn, Director at Security Properties, the acquisition was made because, “Arches at Hidden Creek offers everything we look for in an investment.  The Chandler job story is one of the best in all of Phoenix plus the location gives residents easy access to retail and enrollment in the top-rated Chandler school district.  With a basis well below replacement cost, we expect to produce outstanding risk-adjusted returns to our investors with this purchase.”

The property will be managed by Security Properties-affiliate Madrona Ridge Residential.

NEW YORK, NY – Mortgage rates were slightly higher this week, with the benchmark 30-year fixed mortgage rate nosing up to 3.64 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The larger jumbo 30-year fixed climbed to of 3.62 percent, while the average 15-year fixed mortgage rate rose to 2.91 percent. Adjustable mortgage rates increased this week as well, with the 5-year ARM moving up to 3.13 percent and the 7-year ARM jumping to 3.32 percent.  

Concerns about whether or not central banks have reached their limits drove bond yields and mortgage rates higher this week, with the benchmark 30-year fixed rate erasing the entire post-Brexit decline and rising to 3.64 percent. Bond yields and mortgage rates alike were hit by worries of a potential Federal Reserve interest rate hike, a lack of additional stimulus by the European Central Bank, and the notion that the stimulus efforts at the Bank of Japan have hit a wall with not enough bonds available for them to purchase.

Rates have been uncharacteristically low – with some saying markets have been distorted – because of the collective actions of central banks around the globe. If there’s no more stimulus to come, then there are fewer reasons for investors to buy and hold those assets the central banks have been buying. Mortgage rates are closely related to yields on long-term government bonds and market dynamics like this have a very strong influence on the movements of mortgage rates.

At the current average 30-year fixed mortgage rate of 3.56 percent, the monthly payment for a $200,000 loan is $913.79.

SURVEY RESULTS

30-year fixed: 3.64% — up from 3.56% last week (avg. points: 0.23)
15-year fixed: 2.91% — up from 2.87% last week (avg. points: 0.18)
5/1 ARM: 3.13% — up from 3.07% 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.

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 – 58 percent – expect mortgage rates will increase over the next week, while 17 percent predict a decline.  25 percent forecast that mortgage rates will remain more or less unchanged over the next seven days.

(RECAP: Lofty home-price growth and tight supply are leading to softening confidence among renters about whether it’s a good time to buy a home, according to the latest installment of the National Association of Realtors® Housing Opportunities and Market Experience (HOME) survey. The survey also found that a misconception about how much of a down payment is needed to buy could be unnecessarily delaying some qualified young adults from entering the market.)

ORLANDO, FL – Mill Creek Residential, a leading multifamily investor and operator specializing in premier apartment communities across the U.S., announces the start of construction on Modera by Mill Creek, Central. The community is projected to debut in the fall of 2018 as the premier mixed-use residential and retail community in the Downtown Orlando area.

The community will be located on the block connecting Rosalind Avenue and East Central Boulevard on a lot that was purchased from the long-standing University Club of Orlando. Joining the Orlando skyline overlooking Lake Eola, the 22-story high rise will house approximately 12,500 square feet of ground floor retail space, 350 apartment homes and a beautifully reimagined University Club spanning 25,000 square feet on four levels.

In a symbolic tribute to the intersection of traditional and modern development, the University Club will stand in the same place it has been located since 1960. Construction on Modera by Mill Creek, Central will begin this year, and will be constructed by its affiliated general contracting group. Cushman & Wakefield’s Orlando office represented the University Club in the sale.

“Throughout the planning process, we’ve had the opportunity to forge invaluable relationships with both city officials and longstanding members at the University Club,” said Todd Bleakley, vice president of development in North Florida for Mill Creek Residential. “These relationships have allowed us to begin developing a community that fits the specific needs of the Club, the city and our future residents.”

Chad DuBeau, senior managing director for Mill Creek Residential, added: “Providing a modern residential space that promotes a social, active lifestyle in addition to benefiting the community at large has always been top of mind for the team at Mill Creek.”

The site’s strategic location positions Modera by Mill Creek, Central in the epicenter of South Eola and the Central Business District, bridging the gap between work and recreational destinations in the city. Modera by Mill Creek, Central’s outdoor amenities, including an elevated pool deck, are specially designed to optimize picturesque views of the city and the lake. In addition to on-site retail space and innovative amenities, the future community sits within walking distance of more than 120 restaurants and nightlife establishments, Downtown’s sole grocery store and Lake Eola Park, boasting an impressive Walk Score of 94.

In recent years, the evolution of Downtown Orlando has been a focus area for the city’s leadership. Significant increases in the Downtown Orlando job market have sparked investments in entertainment venues, Interstate-4, SunRail and the University of Central Florida, among other area institutions, to create a more accessible and diverse Downtown area. The addition of Modera by Mill Creek, Central as a residential community, retail opportunity and privately-held club provides a desired destination to accommodate the prospering city, growing population and its highly coveted business district, while remaining in close proximity to residential and entertainment centers.