Author: ipgocorp

(RECAP: When a community is in economic crisis, with shuttered storefronts and dwindling downtown foot traffic, Virginia Community Capital may be able to offer incentive for revival. For the past decade, VCC, a nonprofit community development financial institution and B Corp bank, has been doing just that in communities across the commonwealth. The impact, said Jane Henderson, president and CEO of VCC at an anniversary celebration on Wednesday, is more than money. The program is encouraging jobs and business, healthcare and fresh food, affordable housing and community revitalization.)

NEW YORK, NY – CIT Group, a leading provider of commercial lending and leasing services, announced that CIT Real Estate Finance provided a $35 million senior secured mortgage loan to a special purpose entity controlled by The Bascom Group, an owner/operator of multifamily properties, and funds managed by Oaktree Capital Management, a global investment manager specializing in alternative investments. The proceeds of the facility were used to finance the acquisition of Stone Creek Apartments, a 368-unit apartment complex located in Sacramento, California. Financing was provided by CIT Bank, N.A., the principal bank subsidiary of CIT. Terms of the transaction were not disclosed.

Brian Wirtz, Managing Partner, Bascom Northwest Ventures, LLC, said, “Stone Creek Apartments is conveniently close to downtown Sacramento’s Central Business District, which hosts over 100,000 employees and offers more than 11 million square feet of office space. We have worked with CIT on several previous transactions, and, as they have done before, CIT quickly understood the value proposition of this property and developed a comprehensive financing proposal that met our needs.”

Mark Jacobs, a Managing Director at Oaktree, said, “Stone Creek’s central location provides residents access to major transportation corridors including I-5 (10 minutes to downtown Sacramento), I-80 (88 miles to San Francisco), and U.S. 50, which offers access to San Francisco and Lake Tahoe. CIT leveraged its experience with financing multifamily real estate transactions to build a tailored financing package that helped make this acquisition possible.”

Matt Galligan, President, CIT Real Estate Finance, said, “Both Bascom and Oaktree have extensive experience as real estate investors. As new owners of Stone Creek, they are making substantial improvements to the grounds and the interior and exterior of the apartments, as well as enhancing the amenities for residents. We are pleased to extend our longstanding relationship with Bascom and look forward to working with Oaktree again.”

HAMPTON, VA – Preferred Apartment Communities announced the sale of Trail Creek Apartments, its 300-unit multifamily community in Hampton, Virginia. 

The sale generated net proceeds of approximately $10.5 million to PAC, which PAC will utilize for working capital purposes including reducing the outstanding balance under its revolving line of credit facility, acquisitions, real estate investment loans and general corporate purposes. 

Leonard A. Silverstein, PAC’s President and Chief Operating Officer, said, “We are pleased to announce the sale of this multifamily community which we previously reported as being held for sale.”

Trail Creek Apartments offers unique one and two bedroom rental townhomes as well as brand new two and three bedroom townhomes in a beautiful setting that combines the comforts of home with superior resident services and outstanding community amenities. The convenient location is just minutes from great shopping, dining, and entertainment.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

PORTLAND, OR – Berkshire Group announced the purchase of Cook Street Apartments in Portland, Oregon, from Seattle-based developer, Lake Union Partners. The 206-unit, Class A apartment community located in the Williams District of urban Portland will be managed by Berkshire Communities, the property management division of Berkshire Group.

This transaction represents Berkshire Group’s second multifamily investment in urban Portland in 2016 following the Lower Burnside Lofts acquisition in February.

“In purchasing Cook Street Apartments, Berkshire is continuing its strategy of investing in quality properties in key markets,” noted Eric Schrumpf, Senior Vice President, Multifamily Acquisitions, Berkshire Group. “Urban Portland and the North Williams submarket offer a rich quality of life for residents drawn to the bustling restaurant, retail and nightlife scene in the immediate neighborhood in close proximity to the heart of downtown Portland.”

Cook Street Apartments amenities include a roof-top deck, yoga studio, fitness center, library, bike storage/repair studio, and a top floor resident lounge with a demonstration kitchen. The roof deck includes a sizable trellis, multiple fire pits, and two barbeques. Units feature stainless steel kitchen appliances, hard surface countertops, and washer/dryers. The property is located adjacent to the high-end, locally-based New Seasons Market that serves as the neighborhood’s anchor grocery store.

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. Berkshire Group had approximately $6.2 billion in real estate assets under management.

WEST OAHU, HI – International award-winning firm KTGY Architecture + Planning announced that Kapolei Lofts in West Oahu, Hawaii, received two Awards of Excellence during the NAIOP Hawaii’s 19th Annual Kukulu Hale Awards ceremony held recently at the Royal Hawaiian Hotel in Oahu. Developed by Forest City Hawaii and designed by KTGY, Kapolei Lofts won the Green Building Award and New Project Award – Commercial/Other Over 40,000 SF. The NAIOP Hawaii’s Awards of Excellence program recognizes accomplishments in Hawaii’s commercial real estate industry, including recognition for new and renovated commercial and public projects statewide.

With 499 residential rental homes in the heart of Kapolei, Kapolei Lofts offers renters contemporary living with resort-style amenities, including a private clubhouse, cyber café, complimentary Wi-Fi, self-service pet spa and an on-site management team. Other amenities include an expansive pool and sundeck with private cabanas, daybeds and chaise lounges, poolside entertainment lanai, outdoor grilling, and state-of-the-art fitness center with Fitness On Demand. Kapolei Lofts’ Palailai Mall is part of the community parkway that connects residents with walking paths, rock climbing and more.

Kapolei Lofts is located on 17 acres at the corner of Kapolei Parkway and Wakea Street, across the street from a Foodland Grocery and just a short walk to shopping malls, schools, food spots, and a regional transportation hub. The apartment homes at Kapolei Lofts are contemporary in design, with a host of features including central air conditioning, nine-foot ceilings, walk-in closets, in-suite washer and dryer, and lanais spacious enough for outdoor dining. Kapolei Lofts offers a wide range of unit types and sizes, ranging from one-bedroom apartments to three-bedroom apartment homes – allowing for a diverse range of price points for prospective renters, according to KTGY Associate Principal Nathan Sciarra.

“The Kapolei Lofts community, a four-block series of three-story walkup apartment buildings, serves as a gateway on the southern end of Palailai Mall, a regional green space, that connects to the Kapolei city center. The layout of the buildings helps define that portion of Palailai Mall and its surrounding streets with a cohesive architectural character,” said Sciarra. “Each of the 14 buildings create a strong corner presence and, along with the clubhouse and Kapolei Lofts’ retail component, promote a mixed-use, pedestrian-friendly community with entry stoops connecting ground floor entrances directly to the sidewalk along the street.”

Kapolei Lofts was designed and constructed with sustainability in mind. “Forest City had a great vision to create an innovative community with over 6,000 photovoltaic panels that output up to 2.7MW of solar energy providing approximately half of the electricity used by residents,” said KTGY’s Project Director Scott Bryans. “The residents benefit from the renewable energy generated at competitive rates and the developer benefits from the revenue generated by selling the power to the residents. Forest City also partnered with the local utility to provide each unit with a demand response water heater that stores approximately 25% of the equivalent amount of electricity generated by the solar panels.” 

According to Bryans, Hawaii’s high energy costs fueled these innovative approaches, which can serve as a sustainable model for future developments here and on the mainland. “The award-winning Kapolei Lofts includes other energy conservation features such as water and energy-efficient appliances and fixtures, electric vehicle charging stations for residents, and the use of recycled water to irrigate native plants and other landscaping,” Bryans added. 

LOS ANGELES, CA – The Turner Multifamily Impact Fund, a real estate investment fund managed by Turner Impact Capital designed to address the nation’s growing shortage of affordable workforce housing, has expanded its portfolio with the acquisition – within the past three months – of four multifamily housing communities, totaling more than 1,300 units in the key growth markets of Dallas, Austin, and Las Vegas. The acquisitions expand the fund’s total portfolio to nearly 2,500 units.

The new acquisitions are Legends on Lake Highlands, 356 units in a garden-style complex in the Lake Highlands community northeast of downtown Dallas; the View at Kessler Park, 299 units in an 11-story high-rise in the North Oak Cliff neighborhood of Dallas; the Park at Stone Creek, 420 units in a garden-style complex north of downtown Austin; and the Enclave, 258 units in a garden-style complex just east of the Las Vegas Strip in Las Vegas.

Each acquisition advances the fund’s objective of acquiring, enriching and preserving critically needed rental housing for families who earn less than the area median income and live in densely populated, ethnically diverse urban communities. Residents include community-serving professionals such as teachers, police officers, health care workers, service workers and others who earn too much to qualify for subsidized housing, but not enough to afford higher-cost apartments or home ownership in areas near their workplaces.

The Turner Multifamily Impact Fund seeks to address the nation’s acute housing affordability crisis by preserving the workforce housing status of the properties it acquires and implementing property management improvements and resident-focused services that enhance day-to-day operations and the quality of life for its residents – while generating strong risk-adjusted financial returns for leading private and institutional investors. These programs may include after school tutoring, community health and well-being services, and neighborhood watch programs.

The fund currently owns six multifamily properties, and is expected to eventually acquire and manage up to $1 billion in apartment communities in underserved urban communities throughout the country over the next two years. Previous acquisitions are located in the greater Miami-Fort Lauderdale metropolitan area, and Prince George’s County, Maryland near Washington, D.C.

“The demand for quality workforce housing continues to grow, driving rents higher in communities across the country,” said Bobby Turner, Principal and CEO of Turner Impact Capital. “Nearly half of all renters in America spend more than 30 percent of their income on rent, and one quarter spend more than half of their income on rent. These figures are simply unsustainable over time. Our fund’s new acquisitions will make a big difference in the lives of more than 2,100 individuals in Dallas, Austin and Las Vegas.”

Legends on Lake Highlands consists of 356 units in 27 two- and three-story garden-style residential buildings built in 1971 and 1979. Amenities include two swimming pools, a fitness center and a dog park. The property is located near the “Telecom Corridor,” a large technology business center that accounts for more than 80,000 jobs, as well as Texas Health Presbyterian Hospital Dallas, Texas Instruments, and NorthPark Center, a large regional mall.

The View at Kessler Park is an 11-story residential building with 299 units built in 1963 and renovated in 2012. Its amenities include a swimming pool, fitness center, resident activities center, theater with bar and billiards table, picnic area and dog park. The property is located near Downtown Dallas and the Bishop Arts District as well as UT Southwestern Medical Center and other employment centers in the medical field.

The Park at Stone Creek was built between 1981 and 1983 in North Austin, Texas, with 420 units spread across 18 acres. Amenities include two swimming pools, a fitness center, a community clubhouse, a lighted sports court, landscaped grounds with picnic and grill areas, a playground, a disc golf course, and a dog park. The property is located near public transit as well as a variety of employment drivers, including Samsung Austin Semiconductor, a GM Technology Center, Austin public schools and large retailers.

The Enclave was built in 1978 just east of the famed Las Vegas Strip, with 258 units spread across 11 acres. Amenities include two swimming pools, two sports courts, a gym, business center, remodeled clubhouse, three laundry facilities, and a dog park. The property is easily accessible by public transit, within walking distance of the University of Nevada, Las Vegas, and one mile from McCarran International Airport.

“These properties embody all the characteristics we look for in new acquisitions: they are strategically located in dense, high-demand areas, and are affordable to a workforce population that is highly diverse. Moreover, many are located near charter school campuses built by our affiliate, the Turner-Agassi Charter School Facilities Fund,” said Gee Kim, President of Multifamily Housing Initiatives. “By enriching these properties with valuable resident-focused services in the areas of education, health care and security, we can help to strengthen these communities and ensure they remain affordable to working families – all while delivering consistent returns for investors.”

Earlier this month, Turner Impact Capital announced that celebrated actress and philanthropist Eva Longoria had joined forces with the firm as a partner and ambassador for the Turner Multifamily Impact Fund. In those roles, Longoria will help raise awareness about the critical need for workforce housing in the United States and help ensure that the fund is meeting the needs of residents in urban communities.

NEW YORK, NY – Mortgage rates increased again this week, with the benchmark 30-year fixed mortgage rate rising to 3.82 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.2 discount and origination points.

For just the third week in a row, the larger jumbo 30-year fixed came in a tad higher than the smaller conforming loan, at 3.84 percent. This is in contrast to the prevailing trend dating to last June where the larger jumbo loan rate was lower than the smaller conforming loan rate. The average 15-year fixed mortgage rate climbed to 3.06 percent this week. Adjustable mortgage rates were higher also, with the 5-year ARM hitting a two-month high of 3.23 percent.      

The barrage of comments from the Federal Reserve about the potential for a summer interest rate hike continued this week, and market expectations are resetting as a result. This is the catalyst for the increase – albeit modest increase – in mortgage rates over the past 10 days. The message the Fed has been trying to send in an effort to guide expectations higher has been received, with interest rates across the spectrum rising accordingly. The increases on mortgage rates have been comparatively tame as long-term interest rates – to which mortgage rates are closely related – have seen increases tempered by the poor global growth outlook and ongoing purchases from overseas investors in pursuit of yield. Markets now reflect more realistic expectations for an interest rate hike in the coming months, the exact conditions the Fed needs to see in order to be able to raise interest rates without catching markets off guard.

At the current average 30-year fixed mortgage rate of 3.82 percent, the monthly payment for a $200,000 loan is $934.19. 

SURVEY RESULTS

30-year fixed: 3.82% — up from 3.76% last week (avg. points: 0.20)

15-year fixed: 3.06% — up from 2.98% last week (avg. points: 0.13)

5/1 ARM: 3.23% — up from 3.18% last week (avg. points: 0.22)

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 panelists are evenly split, with 45 percent expecting further increases and 45 percent predicting that mortgage rates will remain more or less unchanged in the coming week. Just 10 percent forecast a decline in mortgage rates in the next seven days.

(RECAP: Liberty Place’s developers have finally won approval for their $46.3 million mixed-use development in downtown Fredericksburg. City Council voted unanimously at its meeting Tuesday to approve an amendment to Wack General Contractor’s 2014 special use permit, or SUP, for the project. Developers Tom Wack and his sister Cathy Wack increased the amount of retail and office space in Liberty Place, and cut the number of condominiums from 51 to 44. By right, 35 residential units are allowed in that zoning district.)

(RECAP: Increased mortgage borrowing was behind a 1.1 percent rise in U.S. household debt in the first quarter, with slowdowns in other areas such as credit-card balances and auto loans, according to the Federal Reserve Bank of New York. Total mortgage debt rose 1.5 percent from the final quarter of 2015 to $8.37 trillion, marking the highest level since the third quarter of 2011, according to the New York Fed’s quarterly report on household debt and credit, released Tuesday.)

ST THOMAS, VI – With a festive ceremony headlined by The Governor of The Virgin Islands, and attended by island legislators and federal officials, executives from The Virgin Islands Housing Authority and The Michaels Organization celebrated the grand opening of Sugar Estate on May 20. The newly constructed affordable housing community for the elderly is located on the East side of the Foothills on the U.S. Virgin Island of St. Thomas.

“We are so proud to be able to offer our seniors much-needed affordable housing in a modern state-of-the-art community,” said Noreen Michael, Ph.D., Chairperson of the Virgin Islands Housing Authority Board of Commissioners and President of the V. I. Housing Revitalization Corp.

Along with Governor Kenneth E. Mapp, VI Delegate to Congress Stacy A. Plaskett and Island Senator Marvin A. Blyden were among the dignities who spoke at the ribbon-cutting ceremony.

The Executive Director of the Virgin Islands Housing Authority, Robert Graham, hailed the new development as one which will “set the standard for development throughout the territory.” He praised the construction, the view, and the accommodations as fundamental changes in senior housing design. The Sugar Estate is the first senior development built with VIHA as co-developer in a public-private partnership on St. Thomas.

The $35.7 million community, which offers 80 apartments, all handicapped adaptable, for seniors with low to moderate incomes was developed by VIHA in partnership with The Michaels Development Company, the nation’s number one affordable housing owner.

Each residential unit features living, dining and kitchen areas, complete with energy-efficient appliances and ample storage. Amenities include on-site parking, laundry facilities in each building, a large community room with kitchenette, a “living room” which will serve as a quiet reading and/or visiting room, computer learning center, and on-site offices for management and social service functions.

Within the community spaces, social services will be provided that are centered on the needs of the senior residents and will emphasize wellness and resident empowerment through independent living. The social services will include case management, medical screenings, nutritional counseling services, training programs, financial workshops and social and recreational activities.

“We feel privileged to work with VIHA in bringing their vision for this development to reality,” said Gary Buechler, president of The Michaels Development Company. “Now our sister company, Interstate Realty Management, will serve as the property manager, ensuring that Sugar Estate remains a long-term asset to this community,” Buechler said.

Financing for the development includes $30.4 million in equity raised by the sale of 9 percent federal Low Income Housing Tax Credits allocated by the Virgin Islands Housing Finance Authority; Virgin Islands Public Finance Authority Territory funds, Virgin Island Housing Authority disposition proceeds, and a New York Federal Home Loan Bank Affordable Housing Program award. The tax credits were syndicated by Riverside Capital, LLC.

Other partners in the project include Prestige Building Company, which served as the general contractor, and Springline Architects, a full-service architectural firm based in St. Thomas. Prestige Building Company and its subcontractors employed 137 island residents during the construction phase of the project.

Joining today’s celebration was the Michael J. Kirwan Terrace West Stars Steel Orchestra and Apostle Alger B. Warren of Faith Christian Fellowship Church Alive in Christ, who offered both the Invocation and the Benediction.