Author: ipgocorp

ROUND ROCK, TX – The Bascom Group acquired a multifamily asset with over 300 units located in the growing North Austin city of Round Rock. The property offers residents great access to North Austin’s major employment corridors. Debt financing was arranged by De’On Collins, John Brownlee and Charles Halladay of HFF. Sean Sorrell with HFF represented the seller in the transaction.

The property consists of 19 residential buildings and one stand-alone leasing center spread across 17 acres. The unit mix is comprised of 51% one bedroom units, 40% two bedroom units, and 9% three bedroom units. Community amenities include a clubhouse, fitness center, swimming pool, BBQs, picnic areas and a pet park.

With the growth of the Austin MSA, North Austin continues to expand as “STEM” businesses look for space, affordability, and quality of life outside the urban core. This northern expansion and limited supply will continue to strengthen multifamily fundamentals in North Austin.

James D’Argenio, Principal for Bascom, comments, “We acquired a well-built, well-located asset benefitting from a great school system and a stable resident base. Although recently built, the interiors offer an upgrade opportunity when compared to newer, more expensive apartments.”

Tony Ferrell, Director of Portfolio Operations for the Texas region adds, “North Austin and the surrounding markets continue to show strong apartment fundamentals and household economic statistics relative to other Texas markets. The property along with the neighboring properties are all high 90s occupancy with healthy resident analytics.”

IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled services provider, released its CoreLogic Home Price Index (HPI) and HPI Forecast data for April 2016 which shows home prices are up both year over year and month over month.

Home prices nationwide, including distressed sales, increased year over year by 6.2 percent in April 2016 compared with April 2015 and increased month over month by 1.8 percent in April 2016 compared with March 2016, according to the CoreLogic HPI.

The CoreLogic HPI Forecast indicates that home prices will increase by 5.3 percent on a year-over-year basis from April 2016 to April 2017, and on a month-over-month basis home prices are expected to increase 0.9 percent from April 2016 to May 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“Low mortgage rates and a lean for-sale inventory have resulted in solid home-price growth in most markets,” said Dr. Frank Nothaft, chief economist for CoreLogic. “An expected gradual rise in interest rates and more homes offered for sale are expected to moderate appreciation in the coming year”

“The appreciation in home prices over the past year reflects the gathering pace of the recovery in housing in most states and regions in the U.S.,” said Anand Nallathambi, president and CEO of CoreLogic. “Price increases in a significant number of states in the Northeast and Mid-Atlantic regions lagged the national average with Connecticut, Maryland, Pennsylvania, West Virginia, New Jersey and Vermont registering gains of 1 percent or less over the past year.”

(RECAP: The Federal Reserve has abandoned hope of raising interest rates at its next meeting in June, but Fed officials say they are still thinking seriously about raising rates in July or September. Janet Yellen, the Fed’s chairwoman, who said a few weeks ago that she expected the Fed to raise its benchmark interest rate “in the coming months,” omitted those words from a Monday speech, indicating the reported weakness of job growth in May has caused the Fed to rethink its plans. But Ms. Yellen delivered a generally upbeat assessment of economic conditions. While describing the May jobs report as “concerning,” she also emphasized that it was just one piece of data and that other economic indicators, including wage growth, paint a considerably brighter picture.)

BIRMINGHAM, AL – JLL Income Property Trust has acquired Lane Parke Apartments, a 276-unit apartment complex that is 97 percent leased. The apartments are located in the Birmingham suburb of Mountain Brook, Alabama, one of the most affluent neighborhoods in the country. The purchase price was approximately $73.3 million with an estimated capitalization rate based on purchase price of 5.3 percent.

Mountain Brook is in one of the top 5 percent wealthiest zip codes in the United States, and has been referred to as one of the nation’s ‘Super ZIPs’ by the Washington Post, achieving the highest score possible based on income and education. The area features schools that have been rated #1 in Alabama, and a high school that was rated in the top 100 nationally by Newsweek. Historically, LaSalle Investment Management has found that properties located in areas featuring a combination of top incomes and school districts have outperformed the broader apartment market. These communities tend to have restrictive apartment development policies creating strong barriers to entry.

“The purchase of Lane Parke furthers our apartment acquisition strategy which is geared toward identifying suburban locations within highly rated school districts with attractive demographics and significant barriers to entry for new apartments,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “This is our sixth property investment in the apartment sector as we continue to expand our portfolio’s exposure to a diverse range of geographic markets and property sectors. The investment brings our aggregate apartment allocation to over $280 million across 1,587 total units.”

Lane Parke Apartments features high-quality finishes catering to the local upscale demographics, as well as amenities such as an outdoor terrace, large fitness center, swimming pool with sundeck and lounge area, business center, clubhouse with a demonstration kitchen, outdoor fireplace and grilling station. The property is part of the larger, 28 acre mixed-use development which boasts over 117,000 square feet of high-end retail, including a gourmet grocery store and wine shop, and a Marriott luxury hotel.

JLL Income Property Trust is a non-listed, daily valued perpetual life real estate investment trust (REIT) that gives investors access to a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world’s leading real estate services firms.

BRONX, NY – New York State and City joined the Center for Urban Community Services (CUCS) to launch the Sydelle, CUCS’ newest supportive housing residence for 107 low-income and special-needs individuals and families. CUCS is a pioneer in rebuilding lives of homeless New Yorkers that serves more than 50,000 people annually.

“For three decades CUCS has been committed to helping families and individuals exit homelessness and rise from poverty. Our integrated support services at the Sydelle will help those who now call it home to rebuild their lives,” CUCS CEO Tony Hannigan said.

Keynote speakers at the ceremony include: Commissioner Vicki Been, NYC Department of Housing Preservation and Development; Commissioner Samuel D. Roberts, NYS Office of Temporary and Disability Assistance; Commissioner Ann Sullivan, NYS Office of Mental Health; and Deputy Executive Commissioner Gary Belkin, NYC Department of Health and Mental Hygiene.

“Building and subsequently operating a residence like the Sydelle would not have been possible without the support of our partners from New York City and New York State, which has been integral throughout each step of the process from construction through daily operations,” Mr. Hannigan continued.

The Sydelle illustrates how CUCS’ innovative, integrated approach linking housing, health and social services enables individuals and families to exit homelessness and rise from poverty.  On-site services include employment assistance, household management and coaching, and crisis prevention and intervention. Primary medical care and psychiatric services will be provided at the residence’s on-site medical suite through CUCS’ acclaimed Janian Medical Care program.

The Sydelle is a LEED Silver environmentally certified building with a total development cost of $40 million. Major funding for the development of the building came from the New York State Office of Temporary and Disability Assistance’s Homeless Housing and Assistance Program, the New York City Department of Housing Preservation and Development’s Supportive Housing Loan Program, and the New York City Housing Development Corporation. Enterprise Community Investment, Inc. served as the project’s Low-Income Housing Tax Credit syndicator. CUCS also received a New York State Energy Research and Development Authority award for the residence.

(RECAP: The BurkeyLoan, developed by financial company Burkey Capital, is expected to hit the market this fall with a seductive and unique sales pitch: to help college grads become homeowners by rolling their student debt into a 30-year fixed mortgage. The groundbreaking new loan is raising eyebrows in the mortgage community due to its revolutionary nature—as well as the skimpy information that’s available so far about the mortgage or its sponsor company. At this writing, the loan’s bare-bones, one-page website was noticeably stingy on, you know, details. So is it too legit to quit—or too good to be true?)

CHANDLER, AZ – Emma Capital Investments announced the completion of the acquisition of Crosswinds Apartments, a 374–unit garden style multifamily apartment community located in Chandler, Arizona at a purchase price of $22 Million. This is Emma Capital’s 14th purchase in the United States and brings Emma Capital’s total acquisitions to date to over $200 million and over 3,000 apartment units.

The Property is strategically located on Arizona Avenue / Pecos Road, less than 1 mile South of Downtown Chandler. The submarket is located approximately 20 miles southeast of Downtown Phoenix, and is an integral part of the thriving SE Valley. With a strategic location, between downtown Chandler and Loop-202, Crosswinds offers exceptional access to numerous demand generators and employer job hubs.

Crosswinds was built in 1984, and has an attractive unit mix, offering studio, one and two bedroom units. The complex features a resort-like swimming pool and Spa, BBQ Grilling Stations, Beautiful landscaping, Laundry facility, Fitness Center, sport courts a Walking/Jogging Track surrounding the Property as well as Covered Parking.

A significant opportunity exists for Emma Capital to increase the value of the property through a unit interior upgrade program, where units will be modernized with new appliances and flooring in a contemporary style as well as a repainting of the exterior of the Property with a modern color scheme.

“We are pleased to add Crosswinds Apartments to our growing portfolio in the Phoenix Area,” stated founding Partner and Co-Owner Haya Zilberboim. “Chandler is one of the fastest growing urban centers in the United States and is one of the fastest growing High Technology manufacturing cities in the west. Downtown Chandler is undergoing a period of explosive growth. The addition of this property further strengthens our footprint in this rapidly growing market.”

“This investment is our 7th in the Phoenix area,” added Partner and Co-Owner Oz Cohen. “We continue our expansion into new submarkets such as Raleigh and Charlotte, NC while enhancing our presence in the Phoenix and Atlanta areas with the purchase of quality value-add assets in strong locations.”

FOXBOROUGH, MA – Berkshire Group, in a joint venture with The Hanover Company, announced the groundbreaking in on Domain Foxborough, a 248-unit apartment community located in Foxborough, Massachusetts. Completion for the development project is slated for late 2017.

Once stabilized, the property will be managed by Berkshire Communities, the property management division of Berkshire Group.

“We are excited to execute another joint venture with The Hanover Company,” noted Kel Frazier, Vice President, Multifamily Development Investments, Berkshire Group. “Domain Foxborough fits nicely with our strategy and we are eager to watch the project progress. The development is located in a supply-constrained submarket with significant barriers to entry for future multifamily development. In addition, the site is highly visible and offers great connectivity to the employment nodes within the region.”

Domain Foxborough amenities include a resort-style pool with grilling stations, game room and movie room, dog park, business center and fitness center.

Berkshire Group is a real estate investment management company primarily known for its multifamily investment and operational experience. In addition to deploying capital through equity, debt and development in the multifamily arena, Berkshire invests in opportunistic ventures in other real estate sectors through its Venture Investments group.

SEATTLE, WA – Security Properties and Pacific Life Insurance Company purchased Overlook at Lakemont, a 400-unit, Class B multifamily property located in Bellevue, WA, for $118,000,000.  This was Security Properties’ first joint venture with Pacific Life.

Overlook is located in the prestigious Lakemont community where the average home price is nearly $900K and the average income within three miles of the subject is $130K.  Lakemont is part of the Issaquah school district which is repeatedly ranked as one of the top districts in the state.  Living at Overlake allows residents access to both the schools and the reputation associated with Lakemont at an affordable price point.

The location is fantastic as it has a low density, suburban feel, but offers walkable retail including Starbucks and a high end local grocery store, Town and Country, that will be undergoing renovations.  To the northeast of the subject is Lakemont Park and to the southwest is Lewis Creek Park.  Additionally, less than one mile east is Cougar Mountain Park a 5,000 acre protected wildland area designated for hiking and horseback riding.  Transportation is great as well with an I-90 entrance just over a mile away.  Major employers that operate their corporate headquarters within 6 miles of Overlook include Microsoft, Costco, Expedia, T-Mobile, Paccar and Puget Sound Energy.

The subject was built in 1992 and, with a few exceptions, is in original condition.  The business plan is to renovate all of the units as well as update the clubhouse, replace the roof, re-side the property, and paint the exterior.  The end result will be a core asset in an A+ location.  This is the only property in Bellevue of over 250 units built in the 90’s so it does not have some of the functional obsolescence of 80’s construction product, but it has an in-fill location that is irreplaceable. 

Davis Vaughn, Investment Manager at Security Properties says they acquired this property because, “this was a rare opportunity for us to buy in one of the best residential neighborhoods in the Seattle metro.  The quick I-90 access provides convenient commuting to some of the top employers in our region and the area demographics are outstanding.  We think our renovation program will absolutely transform the asset and provide the high quality product that Lakemont expects.”

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

Overlook at Lakemont was purchased from Heitman. The sale was led by Jeff Williams, Chris Ross and Tim Brown of Moran & Company.

TALLAHASSEE, FL – Preferred Apartment Communities announced the acquisition of Campus Circle, a 219-unit, 679-bed student housing community located near Florida State University in Tallahassee, Florida.  PAC acquired this asset through its wholly-owned subsidiary Preferred Campus Communities.   

Preferred Campus Communities financed the acquisition by assuming the existing first mortgage loan with a maturity date of October 1, 2022 and an annual interest rate of 4.02%.  

“We believe this acquisition represents a strong, strategic move into the student housing sector.  This property is well located with easy pedestrian access to campus.  We feel the modern features, including a resort-style pool, a fitness center and other student-centered amenities are very appealing to the resident base,” said Paul Cullen, PAC’s Chief Marketing Officer and Chief Executive Officer of PCC.

PAC also announced that on January 1, 2016 Preferred Campus Management began operating as a manager of student housing communities.  PCM is a wholly-owned subsidiary of Preferred Apartment Advisors, the Company’s external manager.  PCM will manage the Campus Circle community for PAC. 

In addition to Campus Circle, PCM currently manages seven newly constructed student housing projects in five states having an aggregate of 5,296 beds.  PAC provided a portion of the proceeds for the construction of each of these communities for which PAC received an option to purchase following stabilization at a discounted price to market.  Upon the acquisition of any of these student housing communities, PAC intends to acquire them through PCC and to engage PCM as its property manager.

PAC is also pleased to announce that Kimberly (Barkwell) Hodge was brought on as President and Chief Executive Officer for PCM at inception.  Kim currently oversees all facets of PCM’s operations, including strategic initiatives, financial oversight, business services, property performance and company culture enhancement.  John A. Williams, the Company’s Chief Executive Officer said, “Kim is a seasoned student housing and multifamily veteran with over 35 years of experience in all sectors of property management.  We are thrilled that she is leading the PCM team.”

Ms. Hodge became a partner at Ambling Property Investments in 2004 and in 2008 was appointed President of Ambling Student Housing/Ambling Management Company.  Under her leadership, Ambling operated over 25,000 student housing beds, as well as Ambling’s owned portfolio of 83 conventional, senior and affordable housing assets totaling nearly 13,000 units.