Author: ipgocorp

CHICAGO, IL – Northbrook, Illinois-based Prime Property Investors Co-CEOs Barbara J. Gaffen and Michael H. Zaransky announced the sale of The Arbors of Brookdale in Naperville, Illinois, a 281 Unit, full amenity Class A Garden Style Apartment Community. The gross sales price was $60.0 million equating to approximately $214,000 per unit. Prime purchased the property in December of 2009 for $32.0 million. The gross sales price was 187% of Prime’s initial purchase price. The fully stabilized property was 100% occupied at closing.

The Arbors of Brookdale is a unique asset located in a highly desirable location within Naperville only 2 miles from the I-88 Corridor. Situated on 26 lushly landscaped acres, the community consists of thirty-five buildings, a clubhouse and 138 private garages. All 281 apartment homes are corner units with private direct entry doors. The clubhouse contains the leasing and management office, as well as indoor and outdoor pools, Jacuzzi, sauna, fitness center and business center. Additional amenities include two tennis courts and a children’s Playground.

Gaffen stated, “The Arbors is a special property in the growing Naperville sub-market, with significant barriers to entry and a proven value add opportunity for a new buyer.” Zaransky added, “This institutional quality asset acquisition opportunity attracted over 20 highly qualified offers in a competitive sales process.”

PPI was represented by the Chicago-based Institutional Properties Multi Family Group at CBRE consisting of Executive Vice Presidents Dan Cohen and John Jaeger, and Senior Associate MJ Zaring.

Prime Property Investors (PPI) is a real estate investment firm with a national portfolio of Class A suburban garden style apartment communities and healthcare-medical office properties as well as student housing properties on major college campuses. Barbara J. Gaffen and Michael H. Zaransky, co-CEOs of PPI, co-founded the company in 1993.

MCKINNEY, TX – The Bascom Group acquired a 260-unit multifamily community located in the desirable North Dallas city of McKinney, Texas. The transaction was brokered by Sperry Van Ness. Debt financing from EastWest Bank was arranged by John Brownlee and De’On Collins of HFF. James D’Argenio sourced and managed the acquisition for Bascom.

Built in 1997, the property consists of 24 two-story residential buildings and one stand-alone leasing center spread across 20 acres. The unit mix is comprised of 25% one bedroom units and 75% two bedroom units averaging 873 square feet. The seller was also the original developer.

Community amenities include a clubhouse, small fitness center, pool, tennis court and ample greenspace. The property is located 30 miles north of downtown Dallas. McKinney is home to more than 11,000 firms across a diverse array of industries, including: medical, technology, data management, manufacturing, sustainability, aviation, defense, retail, office and transportation.

James D’Argenio, Principal for Bascom, comments, “The community was in need of physical upgrades to match the consumer’s quality demands of today. Hopefully we can find more opportunities like this.”

Jason Hanna, Senior Vice President of Portfolio Operations for the Texas region adds, “McKinney’s multifamily fundamentals are strong and we are excited to initiate a renovation program that will reflect the needs of the rental community.”

The Bascom Group is a private equity firm specializing in value-added multifamily, commercial, and non-performing loans and real estate related investments and operating companies. Bascom has completed over $11.7 billion in multi-family and commercial value-added transactions since 1996 including more than 292 multifamily properties containing over 78,000 units. Bascom has ranked among the top 50 multifamily owners in the US. 

(RECAP: The r-star (r*) is the natural rate of interest that sometimes crops up in economics texts. It also might be the Federal Reserve’s newest, biggest idea, according to strategists at the Goldman Sachs Group Inc. The notion that the natural or neutral rate of interest has been stuck at ultra-low levels might help the U.S. central bank square a dilemma between hiking interest rates and strengthening the U.S. dollar. “For the FOMC, this is a genuine conundrum, because it means that too hawkish a message could send the Dollar sky-rocketing, a deflationary shock that would also weigh on growth, thereby – in a way – undermining the very rationale for shifting hawkish in the first place,” write Goldman strategists. “To deal with this conundrum, the framework that many at the Fed seem to be converging around is that ‘r-star’ is low, so that the degree of monetary policy accommodation is only moderate, despite policy rates being so low.” Such a stance could allow the central bank to justify keeping benchmark interest rates lower for longer.)

LITTLE ROCK, AR – The expansive Overbrook Apartment Community that has been a fixture of the North Little Rock Arkansas resident community is about to look a lot different. Little Rock based BSR Trust, LLC is investing nearly four million dollars renovating the property, which consists of 440 apartment homes in the heart of North Little Rock on JFK Boulevard. Construction began in late June and will continue through September 2016.

“BSR Trust may have grown far beyond the state’s borders in recent years, but our roots are here in central Arkansas, and Overbrook Apartments is one of the original flagship properties of our portfolio.” said Daniel Oberste, Chief Investment Officer of BSR Trust. “We saw an opportunity at Overbrook to layer community reinvestment on top of our existing growth strategy and enhance one of our core properties. The result will be a modernized community, at a competitive price point, in the heart of North Little Rock offering amenities typically found at newer builds on the periphery of a city.”

Overbrook Apartments has a broad mix of one, two, and three-bedroom apartment homes. Some apartments are even multi story and have amenities like private porches, and garages. Between leases in 2016 these residences are receiving new appliances, countertops, fixtures, lighting, flooring, paint, porch railings and other improvements. But these renovations are not limited to the apartments alone. Common area additions include the following amenities: Dog Park, playground, pavilion, outdoor grilling area, sports court, private access gate and building exterior improvements. BSR has also decided to use three acres of undeveloped land adjacent to the property to add a nature trail for residents.

“This investment is a response to what customers in the multifamily industry demand,” Oberste continued. “However, Overbrook is not new construction on land we remember that was once the edge of our city. This is reinvestment in an already great property centrally located in heart of our community. This investment allows us to meet our business objectives and improve the North Little Rock community at the same time.”

For more information on Overbrook Apartments visit www.overbrookapthome.com.

BSR Trust, LLC traces its roots back to 1956 with the formation of Bailey Corporation in Little Rock, Arkansas. Headquartered in the historic Union Station in downtown Little Rock, the resulting company owns and manages almost 9,000 apartment homes across 45 properties in five states. BSR Trust, LLC employs over 250 team members across its operations. The primary mission of BSR is to provide an exceptional living experience for residents at a community they are proud to call home while creating value for our shareholders through strength, profitability and growth.

GREENFIELD, MA – Congress Building, a full service construction firm based in Peabody, Massachusetts, recently completed renovations of Greenfield Acres, a state-of-the-art, nine-story, Senior Living and Independent Living community located at Congress Street in Greenfield, Massachusetts.

Owned by Greenfield Acres, LLC of Peabody, Massachusetts, and operated by PCE Management, affiliates of the Congress Companies, Greenfield Acres was designed by Siemasko & Verbridge Architects of Beverly, Massachusetts. The 86,000 square foot, senior living community features 94 bright and spacious apartments and common areas that include comfortable lounges, a computer lab, an exercise area, an outdoor patio for seasonal dining, and other signature high standard amenities designed to keep residents engaged and active.

Greenfield Acres was completed under a cutting edge financing program including a collaborative effort of MassHousing, HUD and the U.S. Treasury.

“We are proud and appreciative of our continued relationship and the projects we have accomplished with valued business partners MassHousing, HUD, and Siemasko & Verbridge. Congress is proud of its track record with HUD and MassHousing, having completed over 30 successful projects with the agencies. The Greenfield Acres project is another successful, collaborative effort that the entire team can be proud of,” said William A. Nicholson, Congress CEO.

“The Congress Companies was one of the first in Massachusetts to use this new financing platform because they were committed to maintaining affordability at Greenfield Acres and making extensive property improvements for the senior citizens who live there,’’ said MassHousing Executive Director Timothy C. Sullivan. “We are very pleased that their collaboration with MassHousing, HUD, the Department of the Treasury and the Federal Financing Bank has resulted in Greenfield Acres being an important housing resource in Greenfield for many years to follow.’’

“This project redefines the delivery and financing vehicles available for agency financed senior housing to be improved and brought up to state of the art status. We are grateful for HUD and MassHousing’s continued success in a high quality community such as Greenfield. We further are appreciative of the Town of Greenfield’s continued support and cooperation. They have been great to work with,” Nicholson added.

MINOT, ND – Investors Real Estate Trust, a real estate investment trust focusing on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets throughout the Midwest, announced that it has entered into six separate sales agreements with several affiliates of Edgewood Senior Living for the planned disposition of 26 of the Company’s senior housing properties, and one multifamily property, for a total of approximately $236.0 million. 

Affiliates of the buyers currently lease 25 of the 26 senior housing properties from the Company.  The Company expects these sales to close in calendar 2017.  These sales are in addition to the previously-announced exercise of purchase options by affiliates of the buyers, who are current tenants, to purchase 8 senior housing properties the Company owns in Idaho for a total of approximately $43.5 million.  If all of these transactions close, the Company will have completely disposed of its senior housing portfolio for a total of approximately $279.5 million.

“The sale of our senior housing properties is a significant step in our efforts to transform IRET into a pure play multifamily company,” stated Chief Executive Officer Tim Mihalick.  “As we move forward, these transactions unlock significant value within our portfolio and provide capital for new investments, while we enhance our operating platform, strengthen our balance sheet and drive cash flow.  We remain excited about our pipeline of opportunities, focusing on our long term strategic growth objective to drive long term value for our shareholders.”

Investors Real Estate Trust (IRET) focuses on the acquisition, development, redevelopment and management of multifamily communities located primarily in select growth markets throughout the Midwest.  As of April 30, 2016, the Company owned interests in 146 properties, consisting of: (1) 99 multifamily properties consisting of 12,950 units, and (2) 47 commercial properties, including 31 healthcare properties, containing a total of approximately 2.9 million square feet of leasable space. 

NEW YORK, NY – Mortgage rates were little changed as August came to a close, with the benchmark 30-year fixed mortgage rate holding at 3.57 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 maintained last week’s record low level of 3.57 percent, while the average 15-year fixed mortgage rate was down a hair to 2.86 percent. Adjustable mortgage rates were up slightly, with the 5-year ARM nudging higher to 3.09 percent and the 7-year ARM climbing back to 3.26 percent.  

Mortgage rates spent the month of August doing what many people like to do in the lazy days of summer – nothing. The benchmark 30-year fixed rate mortgage moved a scant one-one hundredth of a percentage point during the entire month. Not only has trading volume in financial markets been extremely low, but even an anticipated speech by Fed Chair Janet Yellen elicited little more than a shrug in markets. While Yellen said the case for an interest rate hike had grown, she provided little clarity as to whether that would come later in September. It was Fed Vice Chairman Stanley Fischer who stated that two interest rate hikes by year-end were still a possibility, which suggests a September increase might yet materialize. With an ambiguous timetable from the Fed, mortgage rates were little changed, if at all. 

At the current average 30-year fixed mortgage rate of 3.57 percent, the monthly payment for a $200,000 loan is $905.92.

SURVEY RESULTS

30-year fixed: 3.57% — unchanged from last week (avg. points: 0.23)
15-year fixed: 2.86% — down from 2.87% last week (avg. points: 0.21)
5/1 ARM: 3.09% — up from 3.07% last week (avg. points: 0.27)

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 lion’s share – 87 percent – expect mortgage rates will remain more or less unchanged over the next week, while 13 percent forecast an increase. Interestingly, none of this week’s respondents predicts a decline in mortgage rates over the next seven days.

(RECAP: Reducing or even eliminating the mortgage interest deduction could be worth considering as part of a comprehensive reform of the American tax code, Mortgage Bankers Association CEO David Stevens told CNBC on Wednesday. “We’re not religiously wed to the mortgage interest deduction,” Stevens said on “Squawk Box,” in a sign the real estate financing industry may be open to dealing on the popular tax break. “Entry level homebuyers typically don’t deduct, don’t itemize. And wealthy borrowers won’t really care,” Stevens said. “[But] everybody needs to understand the American that benefits from the mortgage interest deduction is the middle-class homebuyer.” For changes to the mortgage interest deduction to be on the table, Stevens said a broad tax reform package would have to provide offsetting protection for working Americans.)

CLEVELAND, OH – BGL Real Estate Advisors announced the successful completion of development financing for Weston Inc.  The multi-faceted capital structure will support the historical conversion of the Standard Building in downtown Cleveland, Ohio. 

The $81.0 million financing consisted of: Senior construction debt, subordinated bridge debt, municipal city and state agency debt, Federal and State Historic Tax Credit Equity, and Weston Inc. GP equity.

Financial institutions including The Huntington National Bank, Fifth Third Bank, First Commonwealth Bank, Peoples Bank, and Cleveland Development Advisors, as well as multiple city and state agencies including the Ohio Water Development Authority, and Ohio Development Services Agency were represented in the transaction.  Piper Jaffray, Port of Cleveland, RSM US LLP, and Stonehenge Capital were involved with the capital lease and historic tax credit equity structuring and syndication. 

The Standard Building was originally built for Standard Bank in the 1920s.  It is being converted from its present use as Class B office space into market rate luxury apartments and first floor retail.  Weston is a commercial real estate company with offices in Cleveland, Ohio and Louisville, Kentucky.  

“We are excited about this opportunity, and the role BGL has played has enabled Weston to get this project off the ground. The addition of apartments to Cleveland’s critical mass is important for the development of the city, and this transaction has allowed us to successfully contribute to it,” said TJ Asher, Chairman of the Board for Weston Inc.

Weston plans to fill the office space with 287 apartments. The company might maintain the second through fifth floors as offices, which would reduce the number of apartments to roughly 240.

ROSWELL, GA – Federal Capital Partners (FCP) announced the acquisition of the River Trace Apartments in the Atlanta, GA city of Roswell for $29.5 million. Residents of the garden and townhome style apartments enjoy a quiet, lakefront setting on 34 acres in a highly desirable North Atlanta location. This transaction marks FCP’s fourth investment in Atlanta this year.

“River Trace Apartments offers very well-located workforce housing in a market with few similar options,” said FCP Sr. Vice President, Bryan Kane. “This location in Roswell is particularly appealing due to the strong Fulton County schools, easy access to GA-400 and the Perimeter, and its proximity to a number of job centers.” River Trace will be rebranded as River Crossing at Roswell as part of planned renovations to the community.

River Trace is located adjacent to neighborhood shopping centers anchored by a Publix and a Lifetime Fitness. Walking distance to the Chattahoochee River, River Trace has a full array of amenities that includes a clubhouse with a fitness center overlooking the property’s lake, a pool, a playground, a picnic area and a laundry center. The one, two, three and four bedroom apartments are characterized by exceptionally large floor plans, full size washer and dryer connections, and private balconies and patios.

FCP extends its appreciation to Shea Campbell and CBRE for their representation of the seller.

Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $4.0 billion in assets since its founding in 1999. FCP invests in all asset classes and provides equity, preferred equity and structured debt investments for commercial and residential real estate. The firm, based in Chevy Chase, MD, owns and manages in excess of $2.3 billion in assets.