Author: ipgocorp

SEATTLE, WA – Columbia Pacific Advisors, an alternative investment firm in Seattle, Washington, has begun construction on The Danforth, a luxury apartment tower that will serve as an anchor of the intersection of two of Seattle’s most prominent streets and two of the city’s most dynamic neighborhoods.

The 16-story, 265-unit tower will rise at the corner of Broadway and East Madison Street, and near the border of the First Hill and Capitol Hill neighborhoods. The tower, at 1001 Broadway, will include First Hill’s first Whole Foods Market, a 40,000 square-foot store occupying the bottom two floors.

The Danforth – including luxury apartments, Whole Foods Market and 355 underground parking spaces – is scheduled to open in mid-2018.

The project was first announced by Columbia Pacific Advisors in November 2014. This month marks a major milestone with the announcement of the start of construction and the name of the project. Tiscareno Associates is the architect, DCI is the structural engineer, GGLO is the interior designer and Howard S. Wright, a Balfour Beatty company, is the general contractor.

“We expect The Danforth to be a destination for residents and workers of not just First Hill and Capitol Hill but also surrounding neighborhoods including downtown Seattle, Madison Park, Madison Valley and the Central District,” said Todd Seneker, Portfolio Manager for Columbia Pacific Advisors’ real estate investment strategy. “The luxury apartments and retail will be centrally located near some of the city’s most historic neighborhoods but also on the First Hill Streetcar line and just blocks away from the new Capitol Hill light rail station.”

“We are excited to share our mission and values with the neighborhoods this store serves,” said Joe Rogoff, Regional President for Whole Foods Market in the Pacific Northwest. “Creating jobs, supporting local producers and finding opportunities to partner with community organizations and non-profits are core to our philosophy and practices. We look forward to serving this intersection of the First Hill and Capitol Hill neighborhoods by providing a wide selection of natural and organic food, sustainable seafood, humanely raised meats and house made prepared foods and bakery items.”

Whole Foods Market has nine store locations in Washington State. In addition to the First Hill location, the company has stores in development in Kirkland and West Seattle.

The Danforth is one of two towers that Columbia Pacific Advisors intends to have built in the First Hill neighborhood. Earlier this year an announcement was released of a planned new ground-up 243-unit, 24-story senior housing community on land owned by the Archdiocese of Seattle.

Columbia Pacific Advisors has a broad real estate portfolio that spans multiple property types and geographic regions. In less than ten years, the firm has built an acquisition and development pipeline that consists of over 3,300 senior housing units, over 1,200 multi-family units and more than 1.2 million square feet of commercial space around the U.S. These projects include the recent sale of a 91,000-square-foot office building in San Francisco and the sale last fall of a 161-unit multi-family property in Seattle.

LONG BEACH, CA – The same expertise, process and attention-to-detail that have made Ensemble a success in the healthcare, commercial and hospitality sectors are now being applied to urban multifamily and mixed-use real estate.

Overseeing Ensemble division is Tyson Sayles, a seasoned real estate executive with an 18-year track record of delivering superior returns. Previously in charge of the residential division of The KOR Group, Sayles was instrumental in the creation of numerous successful, award-winning projects including Eastern Columbia, the world-renowned Art Deco landmark located in downtown Los Angeles’ Historic Core.

“I’m very excited to be part of the talented team at Ensemble,” said principal Tyson Sayles. “With our company’s unique brand of placemaking, we’re committed to developing urban residential communities that reflect the context in which they are built — providing inspiring places for people to live, work and play.”

Ensemble’s residential projects will be located in walkable, bike-friendly environments with proximity to transit, retail, cultural offerings and health and wellness venues. “Whether it’s well-designed spaces inviting people to gather and socialize, or infusing projects with inspiring works from local artisans, we’re all about creating buildings that captivate people’s imaginations,” continued Sayles. “Doing these things, our projects help to serve as catalysts in energizing a neighborhood’s cultural dynamic and future growth.”

A number of multifamily projects are in the pipeline for Ensemble, many of which will be enhancing the skyline of Downtown Long Beach, with two set to break ground this fall. Other proposed residential projects are located in Philadelphia, Pennsylvania, Santa Clara and Santa Cruz, California.

ATLANTA, GA – Carroll Organization, one of the country’s leading privately-held real estate companies focused on multifamily investment, management, and development announced that it has completed the sale of the apartment community ARIUM McAlpine Creek in Charlotte, NC. This is the first property sale from its investment vehicle, Carroll Multifamily Real Estate Fund III, LP. Carroll originally purchased this 214-unit property in July 2014.

“ARIUM McAlpine Creek represented an opportunity to acquire a high-quality asset with excellent visibility in a high growth corridor of South Charlotte, featuring walkable access to the McAlpine Creek Greenway, Charlotte’s first public greenway trail” said M. Patrick Carroll, Chief Executive Officer of Carroll Organization. “Throughout our ownership, we experienced tremendous organic rent growth and were recently able to prove out a value-add business plan through upgrades to the interiors and amenities. After a two year hold period, we elected to sell the asset to realize significant profits for our investors.”

“We are pleased to have partnered with Carroll Organization in the McAlpine Creek multifamily investment. The well-located property was acquired at attractive pricing, and Carroll’s successful execution of the business plan has provided the opportunity to execute an opportunistic disposition and realize an attractive return for our investors,” added Robert Davies, Principal with The Townsend Group.

ARIUM McAlpine Creek offers a lifestyle of comfort and distinction nestled in forested surroundings. The community is located in southeast Charlotte with direct and convenient access to Charlotte’s largest employment centers: Uptown, SouthPark, and Ballantyne. It is less than 2 miles away from a large neighborhood retail center and McAlpine Creek Park, a 114-acre park featuring a lake, dog park, soccer fields, and bike/nature trails. Throughout the hold period, Carroll’s business plan included improving net operating income by reducing and controlling expenses, increasing rents, and maintaining strong occupancy.

To date, Carroll has successfully exited seventeen assets valued over $575 million, including this transaction. The investments have produced an average IRR of 32%. Carroll has purchased twenty-six properties totaling over $1.2 billion since the beginning of 2015 and is continuing to actively purchase high-quality multifamily communities in the Southeast and Southwest, and other strategic target markets across the country. Carroll sourced many of its deals “off-market” directly from developers and owners, and is recognized in the industry as a best in class renovator and operator.

TAMPA, FL – Housing Trust Group (HTG), a leading real estate developer in Florida, has closed on financing and broken ground on the initial phase of Park at Wellington, a new $37.9 million, 220-unit affordable housing community for working families in Pasco County, located approximately 30 miles north of Tampa, Fla. Phase I development funding sources include $16 million in 9% Low Income Housing Tax Credit Equity provided by City Real Estate Advisors of Indianapolis, IN.; and a $15.5 million construction loan provided by KeyBank of Cleveland, OH., which converts to a $3.5 million permanent loan after completion.

Construction on Phase I of the apartment community, which includes 110 units and is slated to open in late 2017, began on Monday, July 18, 2016. The units will be set aside for renters earning at or below 40% to 60% of area median income (AMI). Rents will range from $367 to $783 per month. Construction of Phase II is expected to start in November 2016.

Currently, HTG has five affordable housing communities under construction in Florida. Other developments in progress include Valencia Grove in Eustis, Freedom Gardens in Brooksville, Wagner Creek in Miami and Courtside Family Apartments in Miami (a joint venture with Alonzo Mourning). All aim to fill a void in the market by providing much-needed, quality affordable housing to working families, seniors and individuals.

“Apartment rents are soaring in Pasco County and throughout Florida,” said Matthew Rieger, president & CEO of Housing Trust Group. “Park at Wellington aims to ease the burden on working families by providing modern, affordable housing in a safe, friendly neighborhood environment.”

Located in the city of Holiday, off of US Highway 19 at 4369 Sunray Drive, Park at Wellington is mid-rise garden-style apartment community composed of 18 one-bedroom/one-bath units; 62 two-bedroom/two-bath units; and 30 three-bedroom/ three-bath units for families. Units range in size from 676 square feet to 1379 square feet. Ninety-eight of the units will be set aside for residents earning at or below 60% AMI; 12 will be for tenants at or below 40% AMI.

Designed in the traditional Florida vernacular style (Victorian tropical), with elements derived from Frank Lloyd Wright’s architecture, the centerpiece of the community is a Grand Clubhouse featuring a cyber café, pool, exercise room, after-school care, laundry facility, offices and maintenance area. Residents will also enjoy the on-site playground, dog park and walking path around a central lake with various seating and gathering areas. The community is conveniently located directly across from a Publix grocery store, an elementary school and various other residential apartment communities.

The project team for Park at Wellington includes architect Fugleberg Koch, PLLC; civil engineer High Point Engineering, Inc.; and general contractor HTG Hennessy, LLC.

JACKSONVILLE, FL – Preferred Apartment Communities announced that it acquired a recently constructed 290-unit Class A multifamily community in Jacksonville, Florida named Sorrel Luxury Apartments. Sorrel offers spacious one, two and three bedroom homes fused with modern sophistication and high-speed convenience.

“We believe this is a high quality, Class-A community in a superb location,” said John A. Williams, the Chairman and Chief Executive Officer for PAC.  Mr. Williams added, “We continue to add communities in the fast growing Florida market.” 

PAC financed the acquisition utilizing a first mortgage loan from Prudential Multifamily Mortgage for approximately $33.6 million and has a maturity date of September 1, 2023, a fixed interest rate of 3.44% per annum and will amortize based on a 30-year amortization.  Prudential intends to assign this loan to Fannie Mae within 60 days of closing.

Preferred Apartment Communities, Inc. is a Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.

ORLANDO, FL – Florida’s housing market reported rising median prices and fewer all-cash closed sales in July, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 24,083 last month, down 8 percent from July 2015, reflecting the state’s current shortfall in inventory.

“Florida’s supply of for-sale homes remains tight, which is putting pressure on median prices and having a dampening effect on closed sales,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “But the state’s strong jobs outlook and growing economy are attracting more and more new residents, which provides a solid foundation for the housing market. Florida businesses created 26,500 jobs in July and our population is growing by more than 1,000 new residents each day, according to recent economic reports.”

Home sellers continued to get more of their original asking price at the closing table in July: Sellers of existing single-family homes received 96.4 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.6 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $223,238, up 11.6 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in July was $160,000, up 6.8 percent over the year-ago figure.

In July, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 56th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in June 2016 was $249,800, up 5 percent from the previous year; the national median existing condo price was $231,600. In California, the statewide median sales price for single-family existing homes in June was $519,440; in Massachusetts, it was $380,000; in Maryland, it was $291,892; and in New York, it was $248,500.

Looking at Florida’s townhouse-condo market, statewide closed sales totaled 8,934 last month, down 11.5 percent compared to July 2015. Closed sales data reflected fewer short sales and cash-only sales in July: Short sales for townhouse-condo properties declined 41.1 percent while short sales for single-family homes dropped 34 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“Compared to July of 2015, closed single-family home sales were down in 18 out of Florida’s 22 metro areas this July,” said Florida Realtors Chief Economist Brad O’Connor. “This translates into a statewide sales decline of 8 percent year-over-year, which is the largest drop we’ve seen for any month in 2016. But a closer look at the data shows the same underlying trend we’ve been seeing all year, which is that these sales declines are occurring almost exclusively in sub-$200,000 price tiers.

“Florida continues to suffer from a drought in the supply of affordable housing for sale, resulting from the gradual exhaustion of the state’s inventory of distressed properties and the lack of new construction in these price ranges. The same story is largely playing out in the markets for condos and townhouses.”

Inventory was at a 4.3-months’ supply in July for single-family homes and at a 5.9-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44 percent in July 2016, significantly lower than the 4.05 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

NEW YORK, NY – Mortgage rates posted only slight changes this week, with the benchmark 30-year fixed mortgage rate inching to 3.57 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.25 discount and origination points.

The larger jumbo 30-year fixed dipped to 3.57 percent, while the average 15-year fixed mortgage rate moved up to 2.87 percent. Adjustable mortgage rates were slightly changed, with the 5-year ARM nosing higher to 3.07 percent and the 7-year ARM slipping down to 3.22 percent.  

The uncommon quiet in financial markets fits the backdrop of the lazy days of summer, with barely any movement to speak of. This translates into mortgage rates as well, which are closely related to yields on government bonds. With financial markets in a summertime snooze, both bond yields and mortgage rates have been little changed in recent weeks. The benchmark 30-year fixed mortgage rate has moved a grand total of one-one hundredth of a percentage point since the beginning of the month. There has been slightly more movement on the larger jumbo mortgage, which reached a new record low this week of 3.57 percent. Fed Chairwoman Janet Yellen is giving a highly anticipated speech in Jackson Hole, Wyoming this Friday. Her appearance begs the question as to whether she will jolt financial markets awake with sharp words about a potential September rate hike, or tiptoe around so as not to disturb the summer slumber by noting the mixed economic signals and divided opinions within the Fed. We shall see.

At the current average 30-year fixed mortgage rate of 3.56 percent, the monthly payment for a $200,000 loan is $905.92.

SURVEY RESULTS

30-year fixed: 3.57% — up from 3.56% last week (avg. points: 0.25)

15-year fixed: 2.87% — up from 2.84% last week (avg. points: 0.18)

5/1 ARM: 3.07% — up from 3.05% last week (avg. points: 0.30)

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. One-quarter of the panelists believe mortgage rates will rise over the next week or so and three-quarters believe rates will remain relatively unchanged.  Interestingly, none of the experts expect rates to fall over the next seven days.

(RECAP: Millennials are often described as prioritizing leisure and entertainment, but many are going into debt to fund them. Most financial planners caution homeowners against using home-equity loans to fund short-term expenses, including vacations. Yet that is the most popular use of the money for the more than half of U.S. homeowners between the ages of 30 and 34 who have owned a home for three years or more and have taken out a home-equity loan, according to results of a Discover Home Equity Loans survey, released on Wednesday. Only 29.4% of those between 35 and 44, 19.9% of those between 45 and 54, 25.7% of those between 55 and 64, and 22.3% of those 65 and older also said they took out a home-equity loan against their home. The results come from a survey of 1,428 consumers, conducted earlier this year.)

DALLAS, TX – McCann Realty Partner and its joint venture partner, The Carlyle Group, acquired Marquis on Cedar Springs, a 165-unit apartment community located in Dallas, TX. The property will be re-branded Radius Turtle Creek.

Built in 2001, the four-story, mid-rise property with a below-grade, two-level parking garage is located at 3604 Cedar Springs Road in Dallas, TX. The community is within the exclusive neighborhood of Turtle Creek, and is bound by Uptown and Downtown Dallas to the south and the high-end residential neighborhoods of Highland Park and University Park to the north.

Residents are within walking and biking distance to a wide variety of shopping, dining, entertainment and recreational destinations including Katy Trail, West Village, Klyde Warren and Reverchon Parks, the Arts District, the American Airlines Center and Victory Park.

The property presents a compelling value-add opportunity. McCann’s business plan focuses on repositioning the property with a significant capital investment to upgrade the interior finishes, amenities, and clubhouse and leasing areas. The property will be managed by Pegasus Residential.

“The project has significant untapped value, plus a great location in a high-end neighborhood providing access to a growing employment center of Dallas,” said McCann’s Managing Director, Tre Banks. “By investing capital on interior finishes and common area amenities, we will be able to create value for our partnership and enhance our residents’ lifestyles.”

“Radius Turtle Creek fits our core plus strategy with near-term opportunities to significantly improve the overall positioning of the property with a post-renovation cost basis below replacement cost,” said Matt Akin, President of McCann. “We are pleased to work with Carlyle on this transaction and look forward to building a long-term relationship with them.”

Headquartered in Richmond, VA with offices in Houston, TX, McCann Realty Partners is a real estate investment and operating company that specializes in acquisitions, development and management of multifamily communities in the Southeast, Southwest, Mid-Atlantic and adjacent regions. Since inception, McCann has acquired 28 apartment communities totaling more than 7,695 homes in transactions valued at approximately $739 million.

HOUSTON, TX – Lenders continue to see opportunity as strong assets in the greater Houston area continue to exhibit stable growth. The Howard Hughes Corporation and JLL’s Capital Markets experts announced the $42.5 million refinancing of Millennium Six Pines, a 314-unit Class A+ multifamily asset located in The Woodlands, TX – a highly acclaimed master planned community north of downtown Houston. JLL secured the loan through its Fannie Mae DUS lending platform. Executive Managing Director Mike Melody, Managing Director Randy Fleisher and Executive Vice President Dustin Dulin led the JLL team on the deal.

“We are pleased to complete the refinancing of Millennium Six Pines with the help of JLL. The financing is a strong indication that the capital markets remain open and available for high performing assets in great locations in the Houston region, such as The Woodlands,” said Grant Herlitz, President of The Howard Hughes Corporation. “Our commercial properties in The Woodlands continue to generate steady earnings and this 12-year loan efficiently capitalizes this asset to perform well over the long term.”

“Millennium Six Pines is a superior market-rate asset in the northern Houston area with tremendous sponsorship behind it,” said Fleisher. “JLL’s relationship with Fannie Mae allowed us to execute this refinancing with the most favorable terms in the market. We anticipate financing to remain available for strong sponsors such as Howard Hughes as demand for well-amenitized multifamily assets continues.”

Millennium Six Pines is located 30 miles from downtown Houston and 25 miles from George Bush Intercontinental Airport and is in close proximity to entertainment venues, including The Cynthia Woods Mitchell Pavilion located in The Woodlands Town Center. The upscale five-story building’s community amenities include a pool, a clubhouse, a fitness center and gated access. In-unit amenities include granite counter tops, washers and dryers, patios or balconies, fireplaces and hardwood floors in living areas.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge deliver the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. In 2015 alone, JLL Capital Markets completed $140 billion in investment sales and debt and equity transactions globally. The firm’s Capital Markets team comprises more than 2,000 specialists, operating all over the globe.