Author: ipgocorp

HOUSTON, TX – SkyHouse Main, downtown Houston’s newest apartment tower, will host its grand opening celebration on October 20, 2016. With the first residents moved in, SkyHouse Main joins SkyHouse Houston in remaking two full blocks of the Central Business District into a live-work-play neighborhood.

Opened in the summer of 2014, SkyHouse Houston is leased up and the new tower, a mirror-image of the first, has experienced strong early demand.

“We join Batson-Cook Development Company and our local partner, Peter W. Dienna, in welcoming the first residents to SkyHouse Main,” said Jim Borders, President, Novare Group. “We had confidence from the start and have received tremendous support and encouragement from the City of Houston on this project, and this success is a result of everyone pulling together to make a concerted vision for this part of town a reality.”

SkyHouse Main is located at 1725 Main Street and features 336 residences, is 24 stories and has 7,200 square feet of street-level retail space. The mixed-use project will be home to renter-by-choice professionals, who want to live in urban centers close to public transportation, employment centers and cultural institutions.

The apartment homes all have floor-to-ceiling glass and nine-foot-plus ceiling heights with high-end finishes, including stainless steel appliances, granite counter tops, wood floors, expansive balconies and high speed internet. The market-leading amenity package includes the signature “SkyHouse” on the top floor including a club room, fitness center, pool, and grilling area, with unimpeded views of much of Houston.

The project is within walking distance of more than 40 million square feet of office space, the Toyota Center, Minute Maid Park and BBVA Compass Stadium. It is near the Bell Station Metrorail stop, providing residents with access via public transportation to the surrounding areas including the Texas Medical Center, the largest medical center in the world and a large economic driver within the Houston metro.

The project is a collaboration between Atlanta developers Novare Group, Batson-Cook Development Company and Houston-based development partner Peter W. Dienna. Sumitomo Mitsui Banking Corporation provided financing for SkyHouse Main along with NGI Investments, LLC, led by Borders, and Batson-Cook Development Company.

WASHINGTON, DC – Fannie Mae announced enhancements to its Green Rewards product that eliminate the cost of a required energy and water audit report and increase loan proceeds to borrowers by enabling lenders to underwrite 75 percent of the owners’ projected cost savings. These enhancements come on the heels of a product that already provides better pricing for borrowers.

“At Fannie Mae, our goal is to be the undisputed leader in providing innovative products and affordable financing for owners and operators who want to reduce their properties’ environmental impact on the planet,” said Bob Simpson, Vice President for Multifamily Affordable, Green, and Small Loan Financing, Fannie Mae. “Since the beginning of the year, we have proven that leadership by providing more than $1.2 billion in financing for green properties through July, and by continuing to innovate in ways that make it easier and more affordable for borrowers to make energy- and water-efficient improvements.”

In addition to increasing the underwriting of an owner’s projected energy and water cost savings to 75 percent, Green Rewards continues to allow 25 percent of tenants’ projected cost savings to be underwritten, a feature offered only by Fannie Mae. Another significant improvement is that Fannie Mae will now pay 100 percent of the cost of the energy and water audit report, which includes the ASHRAE Level 2 report required for all Green Rewards and Green Preservation Plus loans.

“Our Green Financing solutions are making positive, measurable changes at multifamily properties,” said Chrissa Pagitsas, Director Green Financing Business, Fannie Mae. “The product enhancements that we’ve made further remove barriers for owners to make smart green investments, for tenants to live in better quality properties and for sustainability-focused investors to access a consistent supply of Green MBS.” 

Fannie Mae’s Green Financing business supports loans for properties that will save 20 percent or more on their annual energy or water consumption by upgrading to energy- or water-efficient equipment, as well as for properties that have been awarded a green building certification, such as LEED, ENERGY STAR, or National Green Building Standard.

For nearly 30 years and through every market cycle, Fannie Mae has provided liquidity, stability, and affordability to the rental market working with its 25 Delegated Underwriting and Servicing (DUS®) Lenders. Fannie Mae’s unique DUS platform relies on shared risk, with lenders retaining some of the underlying credit risk of the loans they sell to Fannie Mae. Our DUS Lenders are delegated the ability to underwrite, close, deliver, and service loans on all types of multifamily properties, which means faster decisions and quicker closings for customers. 

HOT SPRINGS, AR – A long-abandoned nursing home nestled next to Hot Springs National Park will be transformed into an independent living facility by spring 2017. Under development by McGrew Properties, the new rental property named Rose Villa Senior Living, will serve people ages 55 and older living on fixed incomes.

The project was awarded a $224,000 Affordable Housing Program (AHP) grant in 2016 from the Federal Home Loan Bank of Dallas (FHLB Dallas) and member institution BancorpSouth Bank. The funds will be used for renovating the building into a 32-bed, non-assisted-living facility.

“The clean-up began August 29, and a lot has to happen,” said Richard McGrew, the project developer. “We are essentially going to gut the building and start over.”

The building is within walking distance of Hot Springs’ historic Bathhouse Row, and it will feature a semi-enclosed courtyard and 25 units, each with a kitchen, living area, bathroom, and bedroom. Transportation services to local grocery and drug stores are also planned for the community.

“A common bond for community development and revitalization was formed from my conversations with McGrew Properties. BancorpSouth Bank knew that Rose Villa was a project to champion because it will provide affordable housing for seniors. It is a great example of collaborating to revitalize,” said Evelyn Edwards, vice president and CRA specialist at BancorpSouth Bank. “Rose Villa is an adaptive reuse of an existing building, which helps renew the surrounding neighborhood. Thank you, FHLB Dallas for the financial partnership and McGrew Properties for the vision to restore this needed facility for seniors.”

FHLB Dallas annually returns 10 percent of its profits in the form of AHP grants to the communities served by its member institutions such as BancorpSouth Bank. AHP grants fund a variety of projects, including home rehabilitation and modifications for low-income, elderly, and special-needs residents; down payment and closing cost assistance for qualified first-time homebuyers; and the construction of low-income, multifamily rental communities and single-family homes.

Mr. McGrew and his wife, Debbie, founded their residential development firm 15 years ago. In that time, they have built or renovated a dozen buildings for affordable housing, primarily serving low- to moderate-income families.

“This is our first Affordable Housing Program grant,” Mr. McGrew said. “Working with BancorpSouth Bank has been terrific. I learned about the grant while serving on an advisory council with a BancorpSouth representative.”

In 2016, FHLB Dallas awarded $7.8 million in AHP grants to 27 projects that will result in 1,499 new or renovated housing units. Arkansas received $273,000 this year for the construction or renovation of 39 units. Since the inception of the AHP in 1990, FHLB Dallas has awarded more than $245 million in AHP and AHP-funded grants to assist more than 45,500 families.

“BancorpSouth Bank has been a strong and committed partner in the community investment arena for 25 years,” said Greg Hettrick, first vice president and director of Community Investment at FHLB Dallas. “We have undertaken more than 75 AHP grants together since 1991, and this is another fantastic example of their community values in action.”

LAS VEGAS, NV – Inland Real Estate Acquisitions announced that it facilitated the acquisition of The Wyatt Apartments, a 308-unit multifamily property located in Las Vegas, Nevada, approximately six miles west of Las Vegas Boulevard. Mark Cosenza, senior vice president of Inland Real Estate Acquisitions, facilitated the transaction on behalf of an Inland affiliate.

Located at 7017 South Buffalo Drive in Las Vegas, The Wyatt Apartments consist of 26 two-story buildings containing 110 one-bedroom, 166 two-bedroom and 32 three-bedroom units. Built in 2015, each unit includes stainless steel appliances, nine-foot ceilings, ceiling fans, in-unit washer and dryer and a 50-inch flat screen smart TV. The property also features resort-style pools with cabanas, a 24-hour fitness center, a dog park, bike storage, an on-site cafe and a theater room.

“We are pleased to have closed on this high quality multifamily property that has strong demographics and is located in the growing southwest submarket along the I-215 corridor,” said Cosenza. “Not only are The Wyatt Apartments in close proximity to numerous retailers and restaurants, but the property is also a mile away from Dignity Health – St. Rose Dominican Hospital.”

As of the acquisition date, the property was 96 percent leased.

To date, Inland Real Estate Acquisitions, Inc. has facilitated more than $43 billion of purchases including retail centers, apartments and single-tenant properties.

AUSTIN, TX – McCann Realty Partners announced it has started construction on the 303 unit Retreat at Wolf Ranch Apartments in Georgetown, Texas, a north Austin submarket. The 19-acre property is located just west of downtown Georgetown in the Wolf Ranch Master Planned Community adjacent to the 670,000 square foot Wolf Ranch Town Center.

The luxury, Class A apartment project will include 2 story townhouse and 3 story walk-up buildings appointed with stone and stucco exteriors with views of the San Gabriel River and the Texas Hill Country.  Amenities will include a fitness center, resort-style swimming pool, and a stand-alone clubhouse with a media center, cyber café and gourmet kitchen. 

Residents at Retreat at Wolf Ranch will have easy access to job centers along Interstate 35 in central Texas and in Austin, which consistently ranks among the leaders in the US for job growth.  The project is scheduled to begin leasing in the third quarter of 2017 and will be managed by Pegasus Residential, LLC.  McCann will act as general contractor on the project.

“We are excited to break ground on our second development project in the Austin area,” said McCann’s President, Matthew T. Akin.  “We were drawn to this location because it is adjacent to Wolf Ranch Town Center and part of the Wolf Ranch Master Planned Community being developed by The Hillwood Company.  Georgetown is really a great lifestyle choice for people looking to relocate.”  The most recent census estimates showed it is the fastest growing city in the nation with populations of 50,000 or more, with a growth rate of 7.8% for the 12- month period ending July 2015.  

NEW HAVEN, CT – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has closed the sale of a six-property, 741-unit multifamily portfolio located in the Central Connecticut Farmington Valley, and Hartford and Tolland counties. The $90 million sales price equates to $121,457 per unit.

“The portfolio is an assemblage of well-maintained workforce housing assets located in strong Connecticut submarkets,” said Victor Nolletti, an executive director of IPA’s Northeast and Florida team. “The assets are all well positioned for enhanced revenue through a combination of kitchen, bath, common area and amenity upgrades.”

“It is not often that multifamily investors receive a chance to acquire this many residential housing units and establish a substantial presence with operational efficiencies in Central Connecticut,” said Steve Witten, an executive director of IPA’s Northeast and Florida team.

Nolletti, Witten and Still Hunter III, also an executive director of IPA’s Northeast and Florida team, along with Eric Pentore, an IPA associate, represented the seller, a series of Delaware limited liability companies controlled by a large real estate investment trust. Nolletti and Pentore procured the buyer, a Connecticut-based owner-operator, Navarino Acquisitions LLC.

The properties are Summit and Birch Hill Apartments: 13 buildings, 186 units, Farmington; Fox Hill Apartments: 23 buildings, 168 units, Enfield; Briar Knoll Apartments: 15 buildings, 150 units, Vernon; High Meadow Apartments: six buildings, 100 units, Ellington; Bradford Commons: eight buildings, 64 units, Newington; and Woodbridge Apartments: six buildings, 73 units, Newington.

NEW YORK, NY – Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its August 2016 US CMBS Delinquency Report and Infographic.

The Trepp CMBS Delinquency Rate reversed the recent trend and decreased for the first time since February. The delinquency rate for US commercial real estate loans in CMBS is now 4.68%, a drop of eight basis points from July. The rate 77 basis points lower than the year-ago level and 49 basis points lower since the beginning of the year

In August, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $1 billion. Over $650 million in loans were cured last month, a welcome increase from the $200 million cured in July. $1.25 billion in CMBS loans became newly delinquent in August.

“The pause in the upward momentum of the delinquency rate is a positive sign for investors,” said Manus Clancy, Senior Managing Director at Trepp. “With about 18 months to go until the loans representing the wall of maturities are fully digested, we remain cautiously optimistic that losses on these 2006 and 2007 notes will come in at the low end of expectations.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, decreased along with the overall delinquency rate. The rate of seriously delinquent loans inched up nine basis points for the month to 4.58%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.91%.

Delinquency readings for three of the five major property types underwent a significant improvement in August. The office delinquency rate fell 20 basis points to 6.03%, the largest decrease for any property sector last month. The multifamily reading dropped 13 basis points to 2.38%, which is still the best performing rate amongst major property types. The retail sector incurred the largest rate increase of the month, jumping up five basis points to 5.81%.

For additional details, such as delinquency status and historical comparisons, download the August 2016 US CMBS Delinquency Report and Infographic.

IRVINE CA – The Sares-Regis Multifamily Value-Add Fund II held a final close, having raised over $300 million in total equity commitments. Utilizing leverage, the Fund will seek to acquire approximately $850 million of assets in its target markets.

“We are very pleased to have exceeded our target raise of $250 million, bringing together a number of repeat investors from our first fund with several new top tier institutional investors,” said Ken Gladstein, the Fund’s President. Investors in the Fund include insurance companies, public pension funds, wealth managers and other institutional investors from the United States, Europe and Asia. “The focused strategy of the fund allows for immediate deployment of investor capital to take advantage of numerous value-add acquisition opportunities in our pipeline,” he added.

Sares-Regis formed the Fund to capitalize on attractive multifamily fundamentals in the Western United States, as well as the potential to create value via the renovation and repositioning of well-located Class-B properties by leveraging SR’s vertical operating capabilities. The Fund targets assets in Northern and Southern California and the metropolitan areas of Seattle, Portland, Denver and Phoenix.

To date, the Fund has acquired three assets that, in aggregate, represent approximately 20% of the Fund’s total commitments. The Fund’s first two investments are in the Los Angeles metropolitan area and the third is in San Diego. A fourth investment in Denver is expected to close in the next few weeks. “The fund has a focused, well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in major western U.S. markets,” said Bill Montgomery, the Fund’s Chief Investment Officer. “SR’s skill as an investor, manager, developer and contractor, provides experience and depth in every stage of the value-add process as well as economies of scale that will benefit investor returns,” he added.

(RECAP: Hispennials, or Hispanic Millennials, view their finances differently than the majority of Millennials, according to a recent study by Wells Fargo. One of the most notable differences is that Hispennials are more likely to provide supportfor extended family members, the survey shows. About 30% of Hispennials say they are currently providing financial support to two or more generations of their family, versus 14% of total Millennials. This trend shows through even when it comes to buying a home. Hispennials are more likely than any other race or generation to use a gift to pay their down payment on a home, said Frank Fuentes, New American Funding vice president of multicultural community lending. Hispennials report a slightly lower income level of $31,100, compared to $33,800 reported by the general population. On the other hand, Hispennials report a significantly lower student debt amount at $10,267, compared to the median reported by general-population millennials of $19,978.)

LAS VEGAS, NV – TruAmerica Multifamily, in partnership with MSD Capital, has made its largest investment in Southern Nevada with the acquisition of three Las Vegas garden-style multifamily communities in an off-market transaction.  

Since entering the market in May of 2015, TruAmerica has invested approximately $200 million in building a Las Vegas multifamily portfolio that now totals 1,746 units. 

“Las Vegas is showing impressive signs of post-recession recovery,” said Greg Campbell, Managing Director of Acquisitions for TruAmerica.   “However, the recovery is still in its infancy compared to the majority of major Western markets, which have surpassed their pre-recession highs.  We believe there is a lot of runway left and will continue to look for opportunities to expand our presence in Southern Nevada.”

The three properties, Oasis Gateway, Oasis Palms and Oasis Vinings, are located within 2.5 miles of one another in the heart of Northwestern Las Vegas.   Built between 1989 and 1997, all are low-density, gated communities featuring outsized common area amenities that are highly desirable in Las Vegas, such as resort style pools, fitness centers, clubhouses and BBQ areas.  Collectively, the portfolio totals 802 one, and two-bedroom units ranging in size from 700 to 1,200 square feet. 

TruAmerica will immediately begin implementing a capital improvement program across all three properties.  Interior unit upgrades will include new appliance packages, updated cabinetry and faux-wood floors.  Exterior renovations will bring a fresh new look to the clubhouses, fitness centers, pools and landscaping at each property.

“MSD Capital continues to see attractive opportunities in repositioning older multi-family assets,” observed Barry Sholem, head of MSD Capital’s real estate group.  “This transaction represents our third such venture with TruAmerica in the past four months.”

“By acquiring and improving well-located, Class B properties, we can deliver high quality product at rental rates that are still affordable to the vast majority of renters: middle income families and individuals entering the work force,” said Campbell.

TruAmerica Multifamily is a vertically integrated value-add multifamily investment firm based in Los Angeles. Founded in July 2013 as a joint venture between Robert Hart and The Guardian Life Insurance Company of America, TruAmerica has been one of the country’s most active multifamily investors and manages a $6.3 billion portfolio of approximately 30,000 units across prime locations throughout Northern and Southern California, Washington, Oregon, Colorado, Arizona, Nevada, Utah and Maryland.