Author: ipgocorp

CHICAGO, IL – RealtyMogul.com, one of the leading online marketplaces for real estate investing, announced that it has closed an investment into a $21.6 million acquisition. The platform helped finance the acquisition of The Edison Apartments, a mid-rise multifamily property in Chicago, by Spirit Bascom Ventures, a sponsorship joint venture between Stamford, Connecticut-based Spirit Investment Partners and Irvine, California-based The Bascom Group.

The sponsorship group, which specializes in distressed and value-add multifamily investments, plans to rehabilitate and renovate the building with the goal of increasing its revenue to levels comparable with those of similar renovated properties in the market. The 223-unit building, currently 97-percent occupied, is situated in the rapidly transitioning Edgewater neighborhood and also boasts 8,850 square feet of ground-floor retail space.

“With this acquisition, we saw potential for our investors to benefit both from the market expertise of Spirit Bascom Ventures and from the submarket’s growing Millennial population,” said Jilliene Helman, CEO of RealtyMogul.com. “As the neighborhood undergoes a demographic transition, we believe the rehabilitation project will allow the property to tap into rising rental rates in the market.”

In this transaction, RealtyMogul.com contributed limited partner common equity. Since its inception, RealtyMogul.com has invested more than $25 million in Chicago-area property transactions.

“We specialize in investing $1 million to $5 million into joint venture equity, preferred equity, mezzanine loans and bridge loans, so this investment was a perfect fit for our joint venture equity program,” Helman added. “Through the democratizing force of real estate crowdfunding, we look forward to connecting more investors to opportunities like this one.”

Spirit Bascom Ventures is one of RealtyMogul.com’s largest sponsors to date, representing over $10 billion in combined transactions.

ATLANTA, GA – Cocke Finkelstein, Inc. (CFI), in conjunction with its JV partner, Enfold Properties, would like to announce the sale of Collier Lofts. Located between the burgeoning West Midtown and Buckhead submarkets, Collier Lofts is part of a wave of high end apartment communities that make up the new in town submarket being billed as “The Upper West Side.”

Delivered in 2014, Collier Lofts leased up at a swift pace, and has since seen continued rent growth, further illustrating demand for apartments in Atlanta. CFLane, the wholly owned management affiliate of CFI, handled the lease up and management at Collier Lofts.

CFLane currently manages over 30,000 units comprised of a diverse portfolio ranging from Class C to Class A Lease-Ups.

Collier Lofts represents the first of two joint venture developments between CFI and Enfold Properties. The community was thoughtfully designed with a modern industrial influence. A contemporary look and feel inside, coupled with a dog park in the rear of the property, helped create the unique experience that CFI and Enfold envisioned for the diverse neighborhood.

Cushman Wakefield marketed the investment on behalf of the seller. The buyer of Collier Lofts was represented by Shea Campbell with CBRE.

“We are thrilled to celebrate the success of this project and to work collaboratively with the buyer on this purchase. This is a solid win for all involved,” states CFI’s Chief Investment Officer, Neil Herceg.

(RECAP: Moody’s Investors Service has assigned a Aaa rating to proposed $100,019,762 Virginia Housing Development Authority (“VHDA”) Commonwealth Mortgage Bonds (“CMB”) 2016 Series A-Taxable (Pass-Through). The Aaa rating on the approximately $1,860,857,000 of outstanding CMB debt is also affirmed. The outlook on the ratings is stable. The Aaa rating on the Commonwealth Mortgage Bond (“CMB”) program reflects the bond program’s very strong financial position, the Authority’s active management, as well as its solid portfolio composition and performance. Bondholder security is further enhanced by the presence of the Authority’s general obligation pledge. VHDA maintains a Moody’s Issuer Rating of Aa1 with a stable outlook.)

DALLAS, TX – Increasing moderation in larger markets pushed national annual effective rent growth down to 3.9% in April 2016, the first time the rate has been below 4.0% since July 2014, according to Axiometrics, the leader in apartment and student housing market intelligence.

Even though the 4.0% streak ended, the apartment market showed signs of strength in April:

Occupancy increased to 95.1%.

The $1,277 average effective rent was $12 higher than March’s average.

“Many of the nation’s largest apartment markets precipitated the drop,” said Jay Denton, Axiometrics’ Senior Vice President of Analytics.

Denton mentioned that annual effective rent growth decreased in April:

By 97 to 136 basis points (bps) in the three San Francisco Bay Area metros in April.

By 102 bps in Los Angeles.

By 77 bps in Charlotte.

Also, Denver’s April rent growth was the second lowest of this cycle, and New York’s fell below 1.0% for the first time since February 2014.

Finally, Houston’s 89-bps rent-growth decline in April put that market in negative territory (-0.6%) for the first time since August 2010, as oil and gas industry jobs continued to decline, despite the recent rebound of oil prices past $40 per barrel.

“Our forecast has annual effective rent growth at about 3.8% for 2016,” Denton said. “Many metros are still coming down from exceedingly high rent growth figures in 2015, but the national market is still achieving rent growth above the long-term average. And, some large markets did experience increased effective rent growth in April, including Seattle, Dallas and Phoenix.”

The national rate was 16 bps lower than March’s 4.1% and 115 bps below the 5.1% of April 2015.

On a more positive note, the national occupancy rate increased for the third straight month, rising 14 bps to 95.1% from March’s 95.0%. The April rate represents the ninth month of the past 13 in which the national apartment market achieved occupancy of 95.0% or higher – the level at which Axiometrics considers an apartment market full.

April’s occupancy rate was essentially the same as that of April 2015.

Sacramento Again King of Rent Growth

Sacramento, with a rate of 11.4% was the only metro among Axiometrics’ top 50, based on number of units, to achieve double-digit annual effective rent growth in April. As such, it maintained its No. 1 position among the top 50 for the second straight month.

And why not? The metro added more than 22,000 jobs in the 12 months ending March 2016, increasing apartment demand, and only 665 new units were delivered in 2014 and 2015 combined. Just 255 have been identified to come to market this year, and 341 for 2017 have been identified.

California’s capital padded its lead over No. 2 Portland, as the Oregon city’s 8.7% rent growth marked the first time since March 2015 that its rate was below 10%.

Seattle and Riverside traded the Nos. 3 and 4 spots.

Fort Worth was the biggest mover, rising from No. 13 to No. 7.

Tampa-St. Petersburg and Orlando were Nos. 8 and 9, jumping from Nos. 10 and 12, respectively.

LOS ANGELES, CA – Turner Impact Capital, one of the nation’s largest and fastest-growing investment firms dedicated to social impact investing, is joining forces with Eva Longoria to acquire, enrich and preserve critically needed workforce housing for families who earn less than 80% of the area median income and live in densely populated, ethnically diverse urban communities throughout the U.S.

The famed actress, businesswoman and philanthropist will become a partner in and an ambassador for the firm’s Turner Multifamily Impact Fund, which is well-positioned to acquire and manage up to $1 billion in apartment communities in urban markets throughout the U.S. Since its launch in 2015, the fund has purchased nearly 2,500 units in Maryland, Florida, Texas and Nevada, with many more acquisitions planned. In these roles, Longoria will help raise awareness about the critical shortage of workforce housing and highlight the potential for innovative, market-driven solutions to tackle some of the most daunting challenges we face as a country.

The demand for quality, affordable workforce rental housing in the most populated areas of the country is expanding, due in part to the prohibitively high cost of land and construction. As a result, rents are reaching historic highs. Nearly half of all renters spend more than 30% of their income on rent and one quarter of all renters spend more than 50% of their income on rent. The growing disparity in workers’ income and their rent is untenable.

Dedicated to generating “profits with a purpose,” Turner Impact Capital is an acknowledged leader and innovator in the growing field of social impact investing – an investment approach that takes into account two goals: generating positive, risk-adjusted financial returns and creating purposeful, measurable, and positive social or environmental impact through those investments. Founded in 2014, the firm is on course to surpass $2.5 billion in investment potential to address challenges facing urban neighborhoods while delivering superior risk-adjusted returns for its investors.

“While best known as an actress and producer, Eva Longoria’s most important roles are those of a devoted philanthropist, entrepreneur and advocate for women and Latino community issues,” said Bobby Turner, Principal and CEO of Turner Impact Capital. “Her ambition and dedication to providing and fostering opportunities for minority communities, coupled with her unique insight and personal story, fit seamlessly with our social impact strategies and make her a perfect partner for our mission.”

Longoria is a longstanding supporter of a variety of philanthropic causes, and created the Eva Longoria Foundation to help Latinas build better futures for themselves and their families through education and entrepreneurship. Longoria is also an accomplished businesswoman. Her production company, UnbeliEVAble Entertainment, has produced hit shows for several television networks, and she has served as spokesperson for a variety of top businesses, including L’Oréal Paris.

“Communities, the environment, worker productivity and household well-being all suffer when affordable housing is not in close proximity to jobs. In addition, the fact that 1 in 4 renter households spend over 50% of their income on rent is not sustainable,” Longoria said. “I am thrilled to partner with the Turner Impact Capital team to highlight the great promise of urban investment in underserved communities, an issue close to my heart. Turner is pioneering a financially sustainable and scalable approach to building a stronger future and a more prosperous, inclusive country.”

The Turner Multifamily Impact Fund seeks to address the housing affordability crisis by preserving the workforce-housing status of the properties it acquires and by implementing an innovative and novel business model that drives both shareholder and stakeholder value.

“Through the design and implementation of resident-serving programs centered around education, healthcare, and security, and the implementation of environmentally sustainable programs and practices,” Turner explains, “we can create a ‘pride in rentership’ that will in turn drive operating efficiencies and profitability for ownership without having to increase rents on a group of tenants who earn too much to qualify for subsidized housing, but not enough to afford higher-cost apartments or home ownership in the communities proximate to where they work.”

Investors in the Turner Multifamily Impact Fund managed by Turner Impact Capital include Citi Community Capital, the University of Michigan endowment, the Rockefeller Brothers Foundation, and other organizations seeking a social return, as well as a financial return, on their capital.

In addition to its multifamily strategy, Turner Impact Capital currently has two additional investment strategies to help address some of the country’s most pervasive social issues through real estate and infrastructure-related solutions. The firm’s targeted education strategy – the Turner-Agassi Charter School Facilities Fund, a partnership with tennis legend Andre Agassi – seeks to meet the growing demand for quality charter school facilities, improving the educational achievement and life outcomes for underserved students. The firm is also developing a health care strategy in order to address the significant demand for quality health facilities that deliver affordable and proximate patient-centered medical services to underserved communities.

“Turner Impact Capital’s investment strategies directly benefit a broad cross-section of urban residents, including Latinos, the youngest and one of the fastest-growing demographic groups in the United States,” Longoria said. “Despite their potential, Latinos disproportionately lack housing opportunities and face overwhelming economic challenges. The work of Turner Impact Capital supports the most effective interventions in breaking the cycle of poverty: promoting excellence in our schools and bringing new investment to our cities.”

Bobby Turner said he believes Longoria’s role as an investor and ambassador will enable the firm and its partners to touch even more lives in America’s most economically challenged cities while demonstrating the effectiveness of market-driven solutions.

RALEIGH, NC – Officials of The Preiss Company, the nation’s third largest, privately-held, student housing owner-operator, announced that it had formed a joint venture with a private investment group to acquire two student housing complexes in Raleigh, N.C., for an undisclosed amount. The transaction brings to seven the number of properties transacted by Preiss year-to-date. Both student housing units, the 440-bed College Inn and the 288-bed University Village at 2505, will continue to be operated by The Preiss Company.

“Preiss previously was a joint venture partner in these properties,” said Donna Preiss, founder and CEO of The Preiss Company. “Our former partner had achieved its objectives with these assets and wanted to harvest the return on their investment.

“We have a diverse number of strategic partners with different investment criteria. This allowed us to work with another of our investor partners to acquire these assets which still have great upside,” she said.

“Coming into 2016, Preiss set a goal of adding 10 properties,” she noted. “We have the largest pipeline in our history and could exceed that goal by as early as this summer. Based on our current rate of acquisitions, we will have an exceptional year, perhaps a record. There are a large number of properties on the market, ranging from those that would benefit from major renovation/repositioning to those that need more focused management. There also remains opportunities to develop new properties. Financing remains attractive, and we see continued demand growth. We continue to believe this is an excellent time to be investing in student housing.”

Acquired Properties

College Inn—Located at 2717 Western Blvd, the 440-bed facility is housed in a four-story building on a three-plus-acre-site. Conveniently situated across from North Carolina State’s Main Campus and close to its Centennial Campus, the property features a large club house with a computer lab and study rooms, fitness center and game room. Fully furnished rooms include plank wood floors, washers and dryers.

Preiss will oversee a substantial rooms upgrade of College Inn with an expected start date during the fourth quarter of this year. Elements include new lighting, appliances, cabinets, countertops and furniture. The clubhouse and building exteriors, as well as landscaping, will be enhanced.

University Village at 2505—Located at 2505 Red Lodge Place, less than a mile from the Centennial Campus, the complex consists of four, four-story buildings housed on approximately nine acres. The gated community has a club house with Internet café, fitness center and self-serve Starbucks coffee bar, as well as a resort-style swimming pool and sand volleyball court. Each fully furnished, four-bedroom suite has a common social area, private bedrooms and bathrooms and walk-in closets. The rooms offer state-of-the-art interior finishes, including stainless steel appliances, granite countertops and plank wood flooring. The property provides a free shuttle to the Main and Centennial Campuses, as well as resident events. University Village 2505 was developed by Preiss in 2012 specifically for student housing.

“Upon completion of the renovation to College Inn, these two complexes will be in excellent physical condition. Both properties will benefit from the significant operational economies of scale we have in Raleigh,” she said. “We own and or operate 14 student housing complexes in the city and work closely with our student residents and North Carolina State University to provide quality housing and a great college experience.”

(RECAP: An 80-unit apartment complex for seniors age 55 and above could be ready for tenants to move in by Labor Day at Mintbrook, the development of single family homes and townhouses off Marsh Road at Route 28 in Bealeton. Mintbrook Senior Apartments is being developed by The Humanities Foundation, a not-for-profit organization that provides affordable housing. As a non-profit, the Humanities Foundation secures federal low-income tax credits. That financing requires that the housing only goes to those who earn less than 40 to 60 percent of the area median income. The three-story complex now under construction will have one and two-bedroom apartments.)

MCLEAN, VA – How does investing in Multifamily properties today compare to past quarters? Is it a favorable time to invest in Multifamily properties? The New Freddie Mac Multifamily Apartment Investment Market Index is a free online analysis tool that combines key multifamily-specific economic indicators to spot trends and provide insight into investment conditions in select major metros and nationally over time.

“It is important that investors and other industry stakeholders stay on top of the shifting multifamily investment environment with the latest trend analysis and market insight that AIMI provides,” said Steven Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling.

Updated quarterly, AIMI portrays how the relative value of investing in multifamily properties changes over time by combining three factors important to market observers and investors — rental income, multifamily property price growth and multifamily mortgage rates — to create a view of investment conditions in certain markets and nationally.

The relative value of investing is estimated by comparing the growth in net operating income (NOI) to the growth in property debt service. Mortgage rates and growth rates in property prices are used to determine changes in the debt service, while rental income growth (which includes changes in rent growth and vacancies) is used to determine changes in NOI.

AIMI also features commentary on the national market and on each of the 13 metros it tracks. Insights could include how the three variables are impacting the markets, a summary of current values and trends, and macroeconomic factors such as employment growth and housing construction.

Guggenmos added, “Together with our internal analysis, AIMI offers investors a unique insight into understanding the multifamily investment landscape. AIMI gives investors an opportunity to combine a few of the market drivers and track trends.”

When comparing AIMI’s values over two quarters for a specific metro, an increase implies the value of investing was more favorable, while a decrease implies a less favorable investment.

For example, since AIMI’s current value for Atlanta is 111 and previously was 131 during the first quarter of 2011, then the relative value of investing in Atlanta’s multifamily properties is less favorable now than it was in the first quarter of 2011.

Nationally, AIMI is at 107 as of the fourth quarter of 2015. The national index has been trending down over the past several quarters due to the increase in property values exceeding the growth in NOI, while mortgage rates remained relatively flat. The cost of investing has become more expensive, indicating it may be more difficult to find attractive investment opportunities in the market.

AIMI also provides a sensitivity table that shows how the Index value changes based on changes in the underlying variables.

The 13 metro areas AIMI tracks are: Atlanta, Austin, Chicago, Dallas, District of Columbia, Houston, Los Angeles, New York, Orlando, Philadelphia, Phoenix, San Francisco and Seattle.

SUFFOLK, VA – The Bainbridge Companies would like to announce the opening of Bainbridge 3200 Apartments, located in the heart of the Harbourview area of Suffolk, Virginia. This 228-unit multifamily development opened its first building in March and is expected to be completed by August 2016.

Suffolk has a long, rich history within the Hampton Roads MSA of Virginia. “The City of Suffolk government and planning staff have done a tremendous job driving economic growth in North Suffolk by putting into place smart development policies and maintaining a long-term vision for the area. As a result, the area is seeing a strong influx of diversified retail, institutional office, medical, and restaurant developments making Suffolk a very desirable place to live and work,” says Charles Persons, developer for The Bainbridge Companies and a native of Suffolk.

Bainbridge 3200 Apartments is one of the premier places to live in the Hampton Roads area with its close proximity shopping centers, dining, highways, and employment drivers of Downtown Norfolk, Huntington Ingalls Shipyard, the Port of Virginia, and the region’s numerous military installations.

“Bainbridge is focused on improving the quality of life for residents in all of our communities through thoughtful design with high-end amenities and added services” said Ginger Ackiss, Senior Director of Development for Bainbridge. “Bainbridge 3200 offers unparalleled finishes in the market and an exciting lifestyle within a walkable community.”

These luxury 1, 2 & 3 bedroom apartments have all the first-class features synonymous with The Bainbridge Companies; high ceilings, open floor plans with wood-style flooring throughout the living areas, walk-in bedroom closets, and luxurious kitchens complete with islands, granite countertops, and top of the line appliances. Added benefits for residents are the 5 by 5 foot walk-in showers with dual shower heads.

Residents will also enjoy the state of the art fitness center complete with TRX strength system, commercial gym-quality cardio equipment with built-in televisions, and yoga room. Outside, options include lounging at the resort-style pool with cabanas, grilling out poolside, or relaxing by the outdoor fireplace and watching a football game. Pets are welcome at Bainbridge 3200, which features a spacious dog park with a Fido fountain.

Bainbridge 3200 also has a large, tastefully decorated clubhouse with 70-inch screen TV’s to stream movies and video games, a sports bar-style entertainment wall to view multiple games at once, a retro arcade machine, and a business center with 27-inch all-in one machines.

FORT WORTH, TX – Downtown Fort Worth, Inc. has released its 2015 State of Downtown Report, a yearly publication that offers in-depth analysis of Downtown’s primary real estate performance indicators and economic, social and education data.

According to data from the report, Downtown has maintained a 91.9% average retail occupancy rate and experienced an 89.9% increase in clothing store sales since 2006.  Findings from the report also indicate a growing demand for Downtown housing. Apartment occupancy remained above 96.5% for the year. Investment in Downtown housing is expanding, currently 2,532 residential units are planned or under construction which is a 73% increase in downtown housing inventory.

Downtown Fort Worth is the largest employment center in Tarrant County, generating over $3 billion in payroll with more than 48,150 total jobs.

“The State of Downtown in 2014 illustrated that performance in retail, hospitality, multifamily and condominiums continued positive trends.  High occupancies and increasing prices suggested fertile ground for new development and we saw that development take root in 2015,” said DFWI Researcher, Arrie Mitchell.

“Demand for downtown real estate is expanding in all sectors,” said Jack Clark, President at Red Oak Realty and DFWI Chairman.  “In the pipeline we have 14 residential developments, 3 hotel developments, 56,000 square feet of new retail and a 25 story tower bringing 304,000 square feet of office and retail space.  It’s an exciting time to be a part of Downtown.”    

The State of Downtown is produced by Downtown Fort Worth, Inc. (DFWI) and Fort Worth Public Improvement District #1 (PID) to help communicate the underlying economic trends shaping our center city.  The data is compiled throughout the year by Arrie Mitchell, DFWI’s Director of Research.    

To download the 2015 State of Downtown report, visit www.dfwi.org