Author: ipgocorp

DALLAS, TX – Pure Multi-Family REIT LP announced that it has entered into an agreement to acquire a 368 unit Class “AA” luxury apartment community, located in the Oak Lawn sub-market of Dallas, Texas, for a purchase price of $71.0 million.

The Property, located at 4210 Fairmount Street, Dallas, Texas, was constructed in 2015 and consists of 368 luxury apartments averaging 829 square feet. The Property is a unique Class “AA” trophy property in a prime, infill location.

Developed by a well-known Texas and national real estate developer, this distinct property features market-leading unit interior finishes and amenities rarely found in competitive properties, including: a dog park, a dog wash station, a community grill, bocce areas, wine racks, keyless entry, spa showers, Sonos audio technology packages, electric vehicle charging stations, a professional wellness studio with CrossFit inspired equipment and more.

Positioned in the Maple/Oak Lawn neighborhood, the Property gives residents access to some of the trendiest and most fashionable areas in Dallas for young professionals. This urban destination features a truly unique setting in one of the city’s most vibrant locations that is filled with restaurants, bars and entertainment destinations.

The Property is situated in the heart of the very desirable Maple/Oak Lawn neighborhood that is experiencing significant growth. This trendy pocket, just east of the Dallas North Tollway, is in the process of undergoing a massive transformation that includes the development of the Maple Avenue Restaurant District, construction of high-end single family homes and townhome style condos, and an increasing affluent demographic base.

The purchase price of $71.0 million represents a stabilized going-in capitalization rate of 5.27%. The acquisition of the Property is subject to the satisfaction of customary conditions precedent and is expected to close in mid-September, 2016. Pure Multi-Family intends to fund a portion of the purchase price of the Property with cash from Pure Multi-Family’s recently announced property dispositions, its equity financing completed in July, 2016, and new mortgage financing.

Steve Evans, CEO, said, “We continue to improve the quality and age of our portfolio with opportunistic sales of our older properties, such as the recently announced profitable sale of Fairways, the net proceeds from which are expected to be used to acquire this brand new luxury asset. The Oak Lawn sub-market is one of the highest demand sub-markets for young professionals in Uptown Dallas, featuring easy access to major traffic arteries, employment centres and retail and entertainment districts. The property is an exceptional newly-constructed luxury property that attracts young professionals, and features attention to detail that is unrivaled in the marketplace. We believe the combination of high demand for the Oak Lawn district and the property’s unparalleled high-end amenities will position the property extremely well for future growth.”

LITTLE ROCK, AR – Abode Properties announced it successfully assumed the HUD ensured loan associated with the Metropolitan apartments in Little Rock, Arkansas, and are now the owners and operators. Metropolitan is a luxury 260 unit mid-rise community featuring one, two, and three bedroom units. The community provides an upscale, urban living experience with alluring riverfront and downtown views.

“Abode Properties is excited to add the Metropolitan to its portfolio. It’s an absolutely breathtaking complex with outstanding amenities and easy access to all of the wonderful attractions in Little Rock and surrounding area,” commented Daniel J. Moos, Chairman and CEO of Abode Properties. “With views of the Arkansas River, proximity to the River Market District and easy commute to Bill and Hillary Clinton National Airport, the property is in the perfect location for its residents to take advantage of Little Rock’s active and vibrant community.”

Metropolitan offers an extensive menu of amenities which include two resort style pools, courtyards, a recreation and billiards room, 24 hour fitness center, internet coffee café, as well as garage parking and onsite security. Each unit boasts granite countertops, alarm systems, walk-in closets, and full size washer and dryers.

Little Rock was ranked one of the Top 65 “Best Cities to Start a Career” in 2015. “Though this is an impressive ranking, we firmly believe Little Rock is one of the upper tier cities in the nation for starting one’s career,” added Mr. Moos. The area continues to experience strong job growth and was also named the “Most Livable City” in 2014.

SAN DIEGO, CA – JLL Income Property Trust, an institutionally-managed, daily valued perpetual life real estate investment trust, announced the acquisition of Dylan Point Loma in San Diego. The property is a newly-developed, ultra-luxury 180 unit coastal apartment community that is walking distance from the Pacific Ocean. With no new apartments developed in this market within the last 30 years, Dylan Point Loma sets a new standard for luxury living with exceptional tenant amenities. The purchase price was approximately $90 million and was financed at approximately 45 percent loan-to-value with a ten year fixed rate loan at 3.83 percent.

LaSalle ranks the San Diego downtown and coastal close-in apartment market as one of the top five target markets for core apartment investing in the U.S. This market is perennially among the most supply constrained in the U.S. where vacancies have averaged below 4 percent during the past ten years, compared to the national average apartment vacancy of 5.5 percent. San Diego is also a top-ranking market in terms of rent growth and LaSalle’s Market Tracking System forecasts continued strong rent growth driven by low vacancies, steady job growth in San Diego’s technology, tourism, biotech and defense sectors, and limited new construction. Currently, San Diego has one of the lowest apartment vacancy rates in the country at 2.5 percent, with vacancies in the Point Loma submarket reaching 2 percent.

“Dylan Point Loma exemplifies our core apartment investment strategy,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “We committed to this investment over a year ago and will complete the property’s lease up in keeping with our “lease to core” apartment strategy. This property’s in-fill coastal location, extraordinary community amenities, designer architecture and barriers to new competition make it an excellent addition to our growing portfolio of diversified core, income-producing properties around the country.

“This is our seventh investment in the multifamily property sector bringing our apartment allocation to approximately $370 million in gross assets and 20 percent of our overall investment portfolio,” Swaringen added. “After being underweight in apartments from 2012 to 2014 and also executing a timely exit from the student housing sector, we are now rebuilding this as a meaningful component of our portfolio.”

Dylan Point Loma’s designer-selected, resort-inspired amenities create the perfect ambience for luxury apartment living in San Diego. Its upscale townhome residences with attached garages, 6,000 square foot community clubhouse, resort-style saltwater pool and spa with cabanas and luxury lounges, fitness equipment, volleyball court, barbeque areas, beautiful landscaping and plentiful open spaces provide an exclusive resort community atmosphere unique to the northern beachfront neighborhoods of San Diego.

WESTBOROUGH, MA – Toll Brothers, the nation’s leading builder of luxury homes, through its Toll Brothers Apartment Living subsidiary and its joint venture partner The Davis Companies, an integrated real estate investment, development and management firm, announced the opening and launch of leasing at Parc Westborough, a 249-unit luxury apartment community located in Westborough, MA. The development’s luxury one, two, and three bedroom apartments provide top-notch onsite amenities, as well as convenient access to area dining, shopping, and recreation.

The community offers an unmatched array of resort-style amenities including a saltwater pool with a sundeck, an outdoor fire pit, lounge, and grilling area, a resident lounge and game room, a fitness center with an interactive cardio room, and a pet spa. Each residence includes plank flooring, stainless-steel appliances, granite kitchen countertops, and a washer and dryer. Select homes also include exterior patios or balconies.

Parc Westborough is located less than two miles from the Westborough MBTA commuter rail station. Just 45 minutes outside of Boston, the town of Westborough sits at the intersection of the Mass Pike, Route 495 and Route 9, offering residents access to a number of top-ranked schools, extensive public services and ample, verdant outdoor space including the ski resort at Wachusett Mountain.

“We’re extremely excited to open our first luxury rental apartment community under the Toll Brothers Apartment Living brand in the Boston area and to partner with The Davis Companies,” said Charles Elliott, Managing Director of Toll Brothers Apartment Living. “This project has been incredibly well received, and we are looking forward to continuing our expansion in the residential rental market and across the Boston metro area.”

“Parc Westborough provides convenient, luxurious living in Westborough,” said Gary Hofstetter, Senior Vice President of Asset Management at The Davis Companies. “We enjoyed partnering with the esteemed Toll Brothers’ team to enhance Metro West resident life with this best-in-class apartment community.”

CORPUS CHRISTI, TX – Corpus Christi Councilmember and Mayor Pro Tem Colleen McIntyre (D-4) will join representatives from the Federal Home Loan Bank of Dallas (FHLB Dallas), Wells Fargo, and Prospera Housing Community Services for a groundbreaking ceremony for the Glenoak Apartments.

The event will take place at 9:30 a.m. Thursday, August 11, 2016, at 711 Glenoak Drive in Corpus Christi, Texas. The media is encouraged to attend.

The groundbreaking ceremony will celebrate the beginning of the reconstruction of the 68-unit affordable multifamily apartment community, located in the Flour Bluff area of Corpus Christi.

Prospera Housing Community Services received a $476,000 Affordable Housing Program (AHP) grant from FHLB Dallas and Wells Fargo in 2015, which provides gap funding for the $14 million project.

AHP grants are available annually through FHLB Dallas member institutions such as Wells Fargo to assist in the development of affordable owner-occupied and rental housing for very low- to moderate-income households located across FHLB Dallas’ five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas.

This year, FHLB Dallas awarded $7.8 million in AHP grants to 27 projects that will result in 1,499 new or renovated housing units.

ORLANDO, FL – Florida’s housing market reported more new listings, higher median prices and fewer days to a sales contract during the second quarter of 2016, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 76,748 in 2Q 2016, up 1.4 percent over the 2Q 2015 figure.

“In the second quarter of 2016, Florida continued to add new jobs, which attracts new residents, encourages economic growth and strengthens the housing market,” said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “Traditional housing sales increased statewide over the three-month period, while sales of distressed properties continued to decline. In another positive sign, new listings for single-family homes over the three-month-period rose 2.9 percent year-over-year, while new condo-townhouse listings rose 3.3 percent.”

The statewide median sales price for single-family existing homes in 2Q 2016 was $220,000, up 10 percent from the same time a year ago, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $163,000, up 5.2 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 31,699 during 2Q 2016, down 2.7 percent compared to 2Q 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 42.2 percent while short sales for single-family homes dropped 36.7 percent. Meanwhile, traditional sales for condo-townhouse units rose 6.9 percent and traditional sales for single-family homes increased 14.4 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“Existing home sale prices throughout most of Florida’s metro areas are continuing to exhibit robust year-over-year growth,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “This growth is attributable to simple economics, which is to say that demand is strong and supply is currently limited. The inventory of homes for sale at the more affordable end of the price spectrum – which includes the vast majority of distressed properties – continues to decline significantly, and new construction has not come close to making up the difference.”

In 2Q 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 42 days for single-family homes and 50 days for condo-townhouse properties.

Inventory was at a 4.3-months’ supply in the second quarter for single-family homes and at a 6-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 3.59 percent for 2Q 2016, significantly lower than the 3.96 percent average recorded during the same quarter a year earlier.

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

NEW YORK, NY – Mortgage rates were little changed despite a strong jobs report for July, with the benchmark 30-year fixed mortgage rate remaining at 3.56 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The larger jumbo 30-year fixed moved to a record low for the second consecutive week at 3.58 percent, while the average 15-year fixed mortgage rate inched higher to 2.84 percent. Adjustable mortgage rates were slightly higher, with the 5-year ARM rising to 3.04 percent and the 10-year ARM climbing to 3.47 percent.  

There was little movement and no clear trend in mortgage rates this week, with various products posting slight declines, minor increases, or no change at all. This comes despite the release of a better-than-expected employment report for July that also saw upward revisions to the job growth of the two previous months. The low level of long-term bond yields, to which mortgage rates are closely related, in the face of bullish economic data shows the market’s skepticism about a Federal Reserve interest rate hike before December. Unless, or until, Fed Chair Janet Yellen sends a different message, mortgage rates appear to be range bound.

At the current average 30-year fixed mortgage rate of 3.56 percent, the monthly payment for a $200,000 loan is $904.80.

SURVEY RESULTS

30-year fixed: 3.56% — unchanged from last week (avg. points: 0.23)
15-year fixed: 2.84% — up from 2.83% last week (avg. points: 0.19)
5/1 ARM: 3.04% — up from 3.01% last week (avg. points: 0.27)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. The consensus, according to 70 percent of the panelists, is that mortgage rates will remain more or less unchanged over the next week, while 20 percent forecast a decline. Just 10 percent predict an increase in mortgage rates over the next seven days.

(RECAP: Low interest rates and an improving job market have created a wave of prospective first-time homebuyers, but they’re being stymied by a dearth of available starter homes. Nationwide, the inventory of homes costing $250,000 or less fell more than 12 percent between June 2015 and June 2016, according to the National Association of Realtors. The shortage stems from higher labor, land and building permit costs that have caused construction companies to focus on higher-end homes that bring more profit. In addition, institutional investors are snapping up affordable homes by the thousands in select markets nationwide and converting them to rentals. Over the past four years, the number of entry-level homes for sale – defined as those priced in the lower third of a local market – has fallen by 34 percent.)

FORT WORTH, TX – Olympus Property continues to expand their DFW portfolio in 2016 with the acquisition of Mansions at Woodbridge (renamed Olympus Woodbridge) in Sachse, Texas and The Davis in Fort Worth, Texas. Together these assets will be kicking off Olympus Property’s sixth fund, WW Olympus Property VI, LLC.

Built in 2014, Olympus Woodbridge is a Class “A” garden-style community comprised of 381 units situated on over 18 acres. The property is particularly attractive to residents due to its close proximity to two of DFW’s largest employment centers—the CityLine Development and the Telecom Corridor. In addition, Olympus Woodbridge is located in the highly desirable Wylie ISD, an “Exemplary” school district in Texas.  Olympus Woodbridge is the final property to be added to Olympus Property’s fifth fund.

“Woodbridge offers its residents one of the highest quality products in the entire DFW metroplex with an excellent cash flow to our partners,” said Anthony Wonderly, co-founder of Olympus Property.

Completed in 2016, The Davis is a Class “A” garden-style community comprised of 392 units situated on over 23 acres. The location of The Davis is ideal with easy access to I-30, Hwy 114 and DFW Airport. The community is located within walking distance of American Airlines headquarters and directly influenced by the vast DFW Airport Employment zone delivering a $37 billion economic impact to North Texas.

“We are confident The Davis offers Olympus Property and our partners a tremendous opportunity to acquire a premium asset in an exceptional location at a discount to market,” said Chase Bennett, Senior Acquisitions Manager of Olympus Property.

Woodbridge and The Davis are available to accredited investors in Olympus Property’s sixth fund, WW Olympus Property VI, LLC. The investment structure will provide investors an opportunity to diversify among numerous multi-family assets providing immediate cash flow in strong markets throughout the United States.

HOUSTON, TX – MORGAN, a leader in upscale multifamily development, construction and property management, has opened Pearl Washington, its latest luxury apartment development in Houston. The midrise is conveniently located at the corner of Washington Avenue and T.C. Jester Blvd., surrounded by Washington Avenue’s restaurants and nightlife, Memorial Park and the popular Houston Heights neighborhood. Downtown Houston and the Galleria/Uptown are only three miles away.

Pearl Washington contains five stories, with 322 one, two, and three-bedroom units over two levels of garage parking. All units, which range from 652 square feet to 1,443 square feet, have balconies.

The apartment community features MORGAN’s premium Pearl amenities, including open floor plans, high-end wood style floors, quality unit finishes, USB charging ports, Nest thermostats, a business café, state-of-the-art fitness club and private fitness studio. Residents also can enjoy a Vegas-inspired swimming pool with private cabanas and an expansive sun deck overlooking Washington Avenue and downtown. In addition, there are two more courtyards with hammock swings, a bocce ball court, grilling areas, and a dog park.

“Since we started construction on Pearl Washington two years ago, the neighborhood has become an increasingly more attractive place to live,” said Vice President of Development Philip Morgan. “With a front door on Washington Avenue, the property is within walking and biking distance to many destinations, including restaurants, bars, coffee shops and Memorial Park. In addition to convenience, we are excited about the type of upscale, eco-friendly amenities that our Pearl brand provides. Residents can have it all at Pearl Washington.”

The community was co-developed with LCB Holdings, Inc., and Wells Fargo provided the construction financing.