Author: ipgocorp

PLAINFIELD, NJ – RealtyMogul.com, one of the leading online marketplaces for real estate investing, announced that it closed an $860,000 equity investment in a 23-unit multifamily property in Plainfield, New Jersey – located just 25 miles outside of New York City. The sponsor for the acquisition is Clairmont Group LLC, a New York based diversified real estate company that is engaged in acquisition, development, management and advisory services.

The property, a 100 percent-occupied apartment building, is located near the commuter hubs of New York City and Newark, New Jersey. It is in close proximity to employment centers and public transportation and is surrounded by numerous multifamily drivers. RealtyMogul.com investors were offered the opportunity to help finance the acquisition by contributing equity capital.

“This property offers in-place cash flow as well as value-added opportunities that will come through renovation,” said Jilliene Helman, CEO of RealtyMogul.com. “The sponsor’s forward-looking approach, coupled with the property’s upside potential, makes this a prime opportunity for our savvy investor base.”

“We are excited to work with RealtyMogul.com as our capital partner and are looking forward to working with them on many deals in the future” said David Lubin, founder and managing partner of Clairmont Group LLC. “Our goal is to identify unique opportunities for our investors that offer capital preservation with attractive risk-adjusted returns and create long-term value through execution and hands on management in a strong New York metro market.”

The sponsor will leverage the investment to implement a renovation and operational improvement plan for the property. The acquisition aligns well with Clairmont Group’s strengths and experience, given its focus on tri-state area Class B multifamily acquisitions and its prior experience in managing similar rehab projects in New York metro area.

“Our investors are clearly demonstrating an appetite for access to high-growth sectors and markets, and we’re proud to deliver such opportunities,” added Helman.

ANDOVER, MA – Wood Partners, a national leader in real estate development and acquisition, is now leasing units at its new multifamily community, The Slate at Andover. The 224-unit property, which was built on the former Rolling Green Golf Course, is located in the highly-desirable town of Andover. The site includes two four-story buildings, one which is now open for leasing and the other which will complete construction this summer.

“The Slate is a unique community situated just three miles from the heart of downtown Andover, offering residents a distinct communal feel where they can live, work and play,” said Carolyn Zern, vice president of development for Wood Partners. “From empty-nesters to young families to working professionals, The Slate at Andover was designed to appeal to a range of residents looking for a luxury living experience that stands out within the region.”

Interior finishes include granite countertops, subway tile backsplashes, stainless steel appliances and wood cabinets in the kitchens, upgraded lighting and plumbing fixtures, and wood-plank style flooring, offering residents a sophisticated backdrop for living. Bedrooms include expansive walk-in closets with custom organization systems, and both residential buildings include a fitness center with cardio and weight-training equipment.

Designed to foster a strong sense of community, the property includes a separate clubhouse with a clubroom, business rooms and gaming area, a heated salt-water swimming pool, and an expansive patio with outdoor grills and fireplace. The property also has a dog run, a custom-built playground and sports courts.

Located 2.7 miles from central Andover and less than 45 minutes from downtown Boston, The Slate offers quick access to I-93, connecting residents to excellent local schools, several major employers and surrounding dining and retail in the greater Andover region.

“Given its excellent location, top-grade interiors and superior amenities, we are consistently attracting a range of audiences from singles who value top-of-the-market finishes and amenities and easy access to Boston, to young families who are looking for a sense of community and space, as well as empty nesters who are ready to downsize from their houses, but still desire to stay in the beautiful environs of Andover,” said Zern.

Wood Partners has begun leasing at The Slate at Andover. Construction of the second residential building is scheduled for completion by summer 2016.

(RECAP: Loudoun’s affordable housing problem is no secret. But the problem is partly self-inflicted. Loudoun’s Affordable Dwelling Unit (ADU) program sets price restrictions on 12.5 percent of units in certain rezoning requests for new developments, but the rules don’t line up with what is required for grants from VHDA or HUD. This means that the money for the housing programs only goes so far—and as anyone who has tried to rent or buy in Loudoun on a moderate income can tell you it doesn’t go far enough. Other jurisdictions can double their money or better by leveraging grant funds. In the past 10 years, VHDA has sent $358 million to Northern Virginia, but only five percent of that, under $18 million, has gone to Loudoun. All of that was to projects led by the non-profit Windy Hill Foundation outside the county’s ADU program. But an initiative introduced by Supervisor Suzanne M. Volpe (R-Algonkian) directs the county staff to make quick-fix technical amendments to the county’s ADU ordinance to allow for state and federal grant money.)

LOS ANGELES, CA – TruAmerica Multifamily and an affiliate of Berkshire Group have acquired Career Lofts, a newly constructed 142-unit Class A apartment community in Laguna Niguel, CA in an off-market transaction. 

“The purchase of this well-appointed, class A asset represents a truly unique opportunity given the high-income, underserved submarket of South Orange County,” said Greg Campbell, TruAmerica Senior Managing Director of Acquisitions. “Class A assets, especially of this quality, are not often available and are particularly rare in the region.  Very little product has been delivered south of Irvine in the last couple of decades, which has created pent-up demand for Class A product in cities like Laguna Niguel,” he said.    

Developed by United American Properties, Career Lofts, which TruAmerica will rebrand as Skye at Laguna Niguel, is only the second institutional grade multifamily project to be constructed in the submarket in more than 20 years. Skye is located at 28100 Cabot Road along California State Route 73.  It features a mix of one- and two-bedroom floor plans, resort-style swimming pool and spa, rooftop lounge and fitness center, and business center with conference facilities. 

One of the most active buyers of multifamily assets in the United States, TruAmerica invests in high quality amenity rich Class A properties in neighborhoods where homeownership is unaffordable as well as Class B properties that can be renovated to create higher quality and affordable rental units for working class families and young professionals.

“Berkshire is pleased to expand its presence in Southern California and is actively pursuing additional opportunities to grow in the region.  Residents at Skye have an easy commute to the heart of the robust Orange County employment engine in the greater Irvine/Newport Beach area at a more manageable boutique scale than what is typically found in most larger multifamily complexes in the region,” noted Eric Schrumpf, Senior Vice President, Multifamily Acquisitions, Berkshire Group.  “The intimate size of the project, extraordinary amenity package and proximity to desirable retail and regional transit options should ensure that Skye will be a popular choice for renters starved for high quality product.”

Principal Steve Fried and Associate Seth Hall of Mesa West Capital assisted with the financing. “Skye at Laguna Niguel gave us an excellent opportunity to finance a beautiful Class A multifamily product in a core market for a very active sponsor in TruAmerica,” said Hall.  

ELKTON, MD – Lowe Enterprises Investors (LEI), in joint venture with a foreign investment client, has acquired the 260-unit Stonegate Apartments at 4301 Stone Gate Boulevard in Elkton, Maryland. The 19.3-acre community is centrally located on the Maryland/Delaware border and is less than one mile from I-95. The property’s location, three miles from the University of Delaware, offers excellent connectivity to nearby employers and regional employment centers throughout the Maryland and Delaware metro area.

“Stonegate is one of the premier communities in the Elkton/Newark submarket. With limited new multifamily property development in the area, Stonegate offers an attractive opportunity to improve the property with upgrades and renovations. The area offers access to a number of major employment areas, with downtown Philadelphia, downtown Baltimore, the Aberdeen Proving Ground and the growing University of Delaware all nearby,” said Andy Sands, managing director of Lowe Enterprises Investors.

Stonegate Apartments features 26, two and three-story buildings spread across the richly landscaped property creating a park-like setting with a small central lake. The community offers one- two- and three-bedroom residences, all with washer/dryers, decks and walk-in closets. Many units have been lightly renovated, with new cabinet fronts, flooring, lighting, white appliances and plumbing fixtures. LEI will invest approximately $2.4 million in additional improvements that includes completing the remaining unit upgrades, renovating kitchens and bathrooms, adding stainless steel appliances, and replacing doors and fixtures throughout the property. LEI will also upgrade the clubhouse and common areas. Stonegate’s many popular amenities include a resort-style swimming pool and deck, business center, fitness center and tennis courts.

The Stonegate community is located just off Interstate 95, three miles from University of Delaware and its new 272-acre Science, Technology and Research (STAR) Campus which will be a major employment center when completed. Currently, nearly 25 percent of Stonegate residents are employed by the University. The property also offers easy access to retailers, restaurants and conveniences.

LEI’s acquisition team was led by John Gaghan. Greystar has been retained to provide property management services. Hunt Mortgage secured debt for the transaction. JLL represented the seller, TA Associates.

The transaction is the latest in LEI’s active expansion of its multifamily investment portfolio in select markets across the country. In the surrounding area, the firm’s portfolio includes the 228-unit Christina Mill apartment property in Newark, Delaware acquired in 2014. Most recently, LEI acquired the 210-unit Fairways of Naperville in Naperville, IL outside of Chicago. Other recent acquisitions include the 264-unit Hawthorne at Bridford apartment community in Greensboro, NC and the Hamilton Ridge Apartments, a 178-unit apartment community in Raleigh, North Carolina. LEI continues to seek multifamily and commercial acquisition and development opportunities nationwide.

NEW YORK, NY – SL Green Realty, New York City’s largest commercial property owner, announced that it has closed on the purchase of a 20 percent interest in the newly completed “Sky” residential tower, located at 605 West 42nd Street in Midtown, Manhattan.

SL Green was granted an option to purchase the interests at an agreed upon valuation in July 2014 when it originated a $50 million mezzanine loan on the property to The Moinian Group, the project’s developer. The mezzanine loan was repaid prior to the closing of the transaction announced today.

Sky is located close to the Hudson River, in Manhattan’s Midtown West. The visually-striking, 71-story, 927,358-square-foot property, which features 1,176 rental units, stands just a few blocks from New York’s theater district, the High Line, Hudson River Park and Chelsea’s concentration of art galleries. Included in its on-site amenities are two skydeck pools, a full-service spa, a professional-size basketball court, a private park, and a children’s playground, along with a full array of tenant services.

SL Green Co-Chief Investment Officer David Schonbraun commented, “SL Green has built a strong relationship with The Moinian Group and we have collaborated on several investments with great success. We are delighted to add Sky to our portfolio of residential investments in a deal that demonstrates the multifaceted, upside potential of our debt and preferred equity platform.”

ORLANDO, FL – Florida’s housing market reported more new listings, higher median prices and fewer days to a sales contract during the first quarter of 2016, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 57,913 in 1Q 2016, slightly up (0.3 percent) over the 1Q 2015 figure.

“In the first three months of 2016, traditional housing sales rose in Florida while distressed property sales continued to decline – which underscores stability in the state’s housing sector,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “Another positive sign: New listings for single-family homes over the three-month-period rose 4.5 percent year-over-year, while new condo-townhouse listings rose 6.6 percent.”

The statewide median sales price for single-family existing homes in 1Q 2016 was $203,500, up 11.8 percent from the same time a year ago, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $153,000, up 5.5 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 24,534 during 1Q 2016, down 6.1 percent compared to 1Q 2015. The closed sales data reflected fewer short sales – and rising traditional sales – over the three-month period: Short sales for condo-townhouse properties declined 36.9 percent while short sales for single-family homes dropped 33.2 percent. Meanwhile, traditional sales for condo-townhouse units rose 3.6 percent and traditional sales for single-family homes increased 15.9 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“This quarter marked the fourth consecutive quarter that the median sale price for single-family homes in Florida experienced an annual growth percentage in the double-digits,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “But I’d caution that the growth rate in the overall median sale price does not directly equate to the growth rate in the value of all homes. In truth, much of the increase in the median price statistic has been a result of the increasing scarcity of distressed homes and other properties that sell in the most affordable price ranges.

“For example, over the past couple of years, the median sale price among non-distressed homes has steadily been growing at a much more modest rate – in 1Q 2016, by just under 3 percent. This is much more akin to the traditional growth rates we were used to seeing 10 years ago.”

In 1Q 2016, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 53 days for single-family homes and 54 days for condo-townhouse properties.

Inventory was at a 4.5-months’ supply in the first quarter for single-family homes and at a 6.3-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.74 percent for 1Q 2016, slightly up from the 3.72 percent average recorded during the same quarter a year earlier.

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

(RECAP: Investors gunning for an interest rate hike by the U.S. Federal Reserve may be looking in the wrong direction, as millennials have more control of rates than the central bank, the head of a U.S.-based investment firm told CNBC. “The Federal Reserve no longer sets interest rates in the U.S.— 25-35 year-olds set interest rates,” Bill Smead, CEO and CIO of Smead Capital Management, told CNBC on Monday. He said this was because, for first time in 60 years, most Americans had not taken out a mortgage by the age of 30. The average first-time homebuyer in the U.S is now 33-years-old, according to a survey from 2015 by real estate marketplace Zillow. A cycle of house buying, credit demand and interest rate rise could be set in motion once 25-35 year-olds settle down and raise families.)

(RECAP: The average cost for home builders to comply with regulations for new home construction has increased by nearly 30% over the last five years, according to new research from the National Association of Home Builders. Regulatory costs such as local impact fees, storm-water discharge permits and new construction codes, which have risen at roughly the same rate as the average price for new homes, make it increasingly difficult for builders to pursue affordable single-family construction projects, the group argues. Other recent surveys have also suggested that builders are contending with steeper costs than they have in the past. A study this week from housing research firm Zelman & Associates found that local infrastructure “impact fees” have increased by 45% on average since 2005 in 37 key home building markets across the country, to about $21,000 per home.)

MORGANTOWN, WV – Core Spaces, a Chicago-based real estate development and management firm known for its innovative student housing, has acquired a three-year old, 420-bed community at Beechurst Avenue and Third Street, about a quarter mile northwest of the downtown campus of West Virginia University in Morgantown.

Originally called Beech View Place Apartments, the facility will be rebranded State On Campus Morgantown. The company will implement a significant capital improvement program, which will include adding a state-of-the- art fitness center replete with steam room and sauna and a full overhaul of the interior courtyard to include a hot tub and areas for grilling and socializing. Renovations are expected to start this summer and will be completed by late fall.

“This property is consistent with our strategy of acquiring well located assets with some degree of value-add,” notes Brian Thompson, Core Spaces’ Director of Acquisitions. “Beech View was well built. We are simply infusing our own DNA to reposition, strengthen the management and create long-term value. It will be a great asset for us once the dust settles.”

According to Ben Modleski, Chief Operating Officer of the company, “Our goal with the Morgantown community and with all of our Hub on Campus communities is to find a great location in the heart of the city where students are just minutes from campus and also can have convenient access to shops, restaurants and local attractions. Then we develop or remodel a unique student housing property with unparalleled amenities that fit into students’ current lifestyles and meet all of their needs.”

Mr. Modleski noted that the Morgantown community is Core Spaces’ second acquisition after recently acquiring a student housing community near Colorado State University in Fort Collins.

For State On Campus Morgantown, Core Spaces is developing a Hub On Campus-style, world-class fitness center and Spa with extensive cardio equipment, free weights, Crossfit, stand-up tanning facilities, a steam room and a sauna. In the common areas, the firm is adding a wide variety of luxuries with all of the touches of home, including a hot tub, fire pits, barbecue grills, and inviting outdoor gaming and lounging areas.

In addition, a new computer lab will be created with new computers, printers, multiple group study areas and individual study spaces. Finally, the leasing offices, lobby and reception area will be redesigned and repositioned to provide better “flow” and a more welcoming environment for students and visitors.

Mr. Modleski noted that when the renovations are complete, State On Campus Morgantown will be well positioned to be the premier student housing destination in the market.