Author: ipgocorp

MORRISTOWN, TN – FOURMIDABLE, a national real estate company, has opened four new communities in Tennessee, each of which adds to the inventory of affordable housing in the state.

Each 64-unit community features luxury floor plans that include modern kitchens and in-unit washers and dryers, a community fitness center, clubhouse, and swimming pool, as well as free Wi-Fi for all units and a community business center.

“We are so proud to help provide great affordable apartments to well-deserved people in the state of Tennessee,” said Michael Schocker, President of FOURMIDABLE. “These communities are beautiful, with great amenities that will make it a remarkable place to call home.”

FOURMIDABLE currently manages a total of 12 communities throughout Tennessee plus an additional community under construction in Somerville with an anticipated opening of late 2016.

Each of the new FOURMIDABLE communities were financed in part through federal tax credits awarded by the Tennessee Housing Development Authority as part of the Low Income Housing Tax Credit program.

FOURMIDABLE is a national real estate management and brokerage company that specializes in managing, marketing and leasing market rate, tax credit, senior and family government assisted, public housing and rural development apartment communities. Founded in 1975, FOURMIDABLE currently manages 78 communities in eight states, with more than 8,000 units under management.

(RECAP: Redfin Chief Executive Glenn Kelman calls it Landlord Nation, a group of mom-and-pop investors who have seized on low mortgage rates and robust rent growth to plow savings into rental properties. Together, they’ve lifted the percentage of single-family houses used as rental properties to stratospheric heights, even as many would-be first-time homebuyers struggle to reach ignition. Wall Street firms, among the first to recognize the opportunity, poured billions of dollars into single-family homes. But by 2014, rising home prices led the largest single-family investors to scale back the pace of acquisitions and, in time, to start selling off homes to trim their portfolios. Now smaller landlords are emerging in Wall Street’s wake, taking advantage of low mortgage rates and steady rent growth, as well as property management infrastructure built to serve the larger investors.)

SAN JOSE, CA – ROEM Corporation announced the opening of its Oak Grove Apartments, a $34 million development in San Jose providing 134 units of permanently affordable housing to low-income families earning at or below 60 percent of the Santa Clara County area median income. 

Located at 5568 Lexington Avenue on what was formerly the Hitachi Global Storage Technologies campus, Oak Grove Apartments is part of a 295-acre master-planned community that will include condominiums, apartments, attached townhomes, many pocket parks, and a large 10-acre park with a baseball field.  

“San Jose has one of the most expensive rental markets in the country,” said ROEM Corporation Executive Vice President Alex Sanchez. “As our city planners continue to address affordability issues at a policy level, ROEM remains focused on financing and building critically needed affordable housing that is transit-oriented and close to jobs. Oak Grove encapsulates what developers can do best for areas struggling with the rising costs of rent: provide amenity-rich, sustainable homes for San Jose’s families and individuals.”

Oak Grove Apartments consists of a five-story apartment building wrapped around a multi-story 149-space parking garage. Amenities include a community room with kitchen, computer room, children’s outdoor play area, gym, laundry facility, and outdoor courtyard.

ROEM is dedicated to building sustainable housing and is currently pursuing LEED Gold certification for Oak Grove Apartments. In addition to being constructed with sustainable building methods and materials, Oak Grove Apartments includes a number of ‘green’ features to ensure the development’s long-term energy-efficiency and sustainability. These include: water-efficient fixtures; efficient landscape design using native species and zero turf; Energy Star appliances; high efficiency windows; solar PV system; and exceeding Title-24 building energy efficiency standards by 19 percent.

“We are thrilled that Oak Grove Apartments will be home to families who may not otherwise be able to find suitable housing in San Jose,” said Jay Abeywardena, Director, Citi Community Capital. “As the issue of affordable housing reaches critical levels, Citi continues to be committed to financing properties like this one.”

Oak Grove Apartments development is being financed through four percent Low Income Housing Tax Credits and tax-exempt bond financing. Citi Community Capital provided a permanent loan of approximately $17.8 million. Funding was also provided by Alliant Capital, Ltd. Pacific Housing is a partner on the project. The architect is Architects Orange and the general contractor is ROEM Builders, Inc.

TALLAHASSEE, FL – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, has announced plans for a complete redevelopment of one of its off-campus communities, Players Club, at Florida State University (FSU) in Tallahassee, Fla.

“The location of Players Club is still ideal and it gives us an opportunity to redevelop the community to achieve favorable investment returns,” said EdR president Tom Trubiana. “Our market research shows strong demand at FSU for a highly-amenitized community at this prime location.”

The Players Club first opened in 1993 as a 336-bed community near the FSU campus. When the redevelopment is complete in summer 2018, the community will provide 596 beds that include state-of-the-art features and amenities.

Redevelopment and construction costs are expected to be $37.5 million.  Construction will begin in May 2017 following the 2016-17 academic year. The new Player’s Club will open in summer 2018 in time for the 2018-19 school year.

The new community will be a mix of two- and four-bedroom apartments as well as four-bedroom townhomes. Each apartment will have bed-bath parity. Amenities will include a new pool, aqua lounge, dog washing station, in-room washer/dryer, granite countertops and robust internet and Wi-Fi throughout the community.

Florida State University’s total enrollment in 2015 was 41,473 and has been steadily expanding over the last five years. FSU comprises 16 colleges and more than 360 programs of study and was rated in the top 50 of public universities in U.S. News and World Report‘s 2016 rankings.

PHOENIX, AZ – Madison Realty Companies, a private real estate firm sponsoring alternative investment offerings, purchased two senior care facilities in Arizona’s metro Phoenix area for $14.8 million on behalf of Delaware Statutory Trust investors last month.

“Our niche is buying properties smaller than the REITs have historically acquired,” said Madison Realty’s principal and co-manager, Gary Langendoen. “We aim to provide higher than REIT returns while offering potential upside through operating efficiency, expansion, conversion, or a combination of the three.”

Madison’s business model is to increase the levels of care to add value to the properties over time. Built in 2013 and 2011, the Mesa and Apache Junction properties are in excellent condition with room for growth in ancillary services and staff training. Co-manager Matthew Arnold, who works alongside Mr. Langendoen spearheading management and operational improvements at the newly acquired properties, comments on the local market, “Phoenix is a large retirement area and our target constituents are retirees who are now in their 80’s and need assistance with their everyday activities.”

The properties, which together serve as the company’s second DST offering this year, have a loan-to-value ratio of 41.9% with 25-year amortization and a fixed rate of 4.75% for a 7-year, no interest-only term.

Madison Realty Companies is a full service real estate investment management company founded more than 20 years ago. It currently owns and manages 24 senior living properties, six of which have been acquired in the last eight months alone.

NEW YORK, NY – Mortgage rates reversed course following a less-than-stellar report on economic growth, with the benchmark 30-year fixed mortgage rate dropping to 3.56 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.27 discount and origination points.

The larger jumbo 30-year fixed established a new record low, falling to 3.62 percent, and remains higher than the average conforming rate for the sixth week in a row and just the ninth time in the past year. The average 15-year fixed mortgage rate set a new three-year low, sliding to 2.83 percent. Adjustable mortgage rates were lower as well, with the 5-year ARM dropping to 3.01 percent and the 7-year ARM inching lower to 3.25 percent.  

Mortgage rates fell to the second lowest level of the year following the lackluster report of economic growth throughout the first half of 2016. Gross Domestic Product, the broadest measure of economic output, increased at an annualized pace of just 1.2 percent in the second quarter – about half of the expected pace of growth – while the first quarter result was revised lower to just 0.8 percent. While reports on consumer spending and manufacturing have painted a better picture, markets reacted to the headline du jour. But up next is the monthly employment report which typically garners more headlines than any other economic report all month long, so further mortgage rate volatility could be in the offing.

This time last year the average 30-year fixed mortgage rate was 4.10 percent, which carried a monthly payment of $966.40 on a $200,000 loan. At the current average rate of 3.56 percent, the monthly payment for the same size loan is $904.80, resulting in savings of $61 per month for a homeowner refinancing now. 

SURVEY RESULTS

30-year fixed: 3.56% — down from 3.63% last week (avg. points: 0.27)

15-year fixed: 2.83% — down from 2.89% last week (avg. points: 0.22)

5/1 ARM: 3.01% — down from 3.08% 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. Just over half of the panelists – 54 percent – expect mortgage rates to remain more or less unchanged over the next week, while 38 percent forecast an increase. Just 8 percent predict further declines in mortgage rates over the next seven days.

(RECAP: Dozens of residents living at the Fay Towers in Jackson Ward are excited that phase one of the development project is near completion; these residents say they have been living in filth and disarray for years. The project, that’s being financed through a public-private partnership, allows Richmond Redevelopment and Housing to leverage private debt and equity to redevelop two currently standing buildings and to build an entirely new unit in Jackson Ward. Phase one of the project is the Highland Park Senior Apartments, located in the Highland Park community and less than two miles from Fay Towers. Phase two includes building a new unit in Jackson Ward. The site is less than 10 minutes away from Fay Towers. The building will consist of 72 units, one bedroom, one bathroom units, onsite parking and new amenities. Phase three is the Baker School redevelopment that will include converting classrooms into brand new apartments.)

HOLLYWOOD, CA – 5800 Harold, a brand new architectural apartment building in Hollywood, has now opened, delivering beautifully designed spaces that comprise a modern union of art and architecture. The community boasts an array of upscale amenities, including rooftop penthouse terraces with panoramic views. If you are lucky enough to snag one of these residences, the expansive outdoor spaces offer views of the urban core, the Hollywood Hills, Hollywood Sign, the Griffith Observatory, and DTLA.

The amenities showcase 5800 Harold’s unique combination of architecture and art. Community features include a secured lobby with a 50 ft. art installation, electronic entry with intercom, 360-degree rooftop lounge with barbeque, refrigerator, surround sound system, Room-H entertainment lounge with fully stocked chef’s kitchen and dining area, and courtyard with tranquility fountains. Residents will also enjoy assigned and secured parking, storage lockers, bike storage, and electric car charging stations. The conveniences don’t stop there, 5800 Harold was sustainably built and also provides 24-hour laundry and dry cleaning delivery, complimentary Wi-Fi in lounge spaces, a complimentary coffee and tea station, as well as curated social events.

Offering studios, 2-bedroom, 3-bedroom, and penthouse floorplans, the residences were built with top-of-the-line materials. Residence features include keyless electronic entry, full size LG washers and dryers, ample storage, large walk-in closets, USB charging ports, lighting dimmers, and acoustic fortification on floors and ceilings. With 9’0+ ceilings, large 3-panel indoor/outdoor sliding doors, GE stainless Steel kitchen appliance packages, wide plank flooring, modern European plumbing fixtures, custom modern European cabinetry, porcelain tile in bathrooms, and under cabinetry lighting, there is no doubt these residences are upscale.

5800 Harold was developed by Tanner & White Properties, an emerging leader in the development of upscale multifamily residential and mixed-use properties. Joshua White, with Tanner & White, described the community’s residents as “creative thinkers, entrepreneurs, and other visionaries working across a range of industries. They value individuality, personal experience, authenticity, and diversity. Tanner & White’s detail-oriented and carefully crafted point of view anchors everything we do at 5800 Harold.”

PITTSBURGH, PA – EdR, one of the nation’s largest developers, owners and managers of high-quality collegiate housing communities, announced that it has started construction on a student housing community adjacent to both the University of Pittsburgh (Pitt) and Carnegie Mellon University (CMU) with joint venture partner Park7 Group.

The community, which will be owned 80 percent by EdR and 20 percent by Park7, will be developed by Park7 and managed by EdR upon completion in summer 2018.

The $106 million development will be built on what is currently a parking lot one block north of both the Pitt and CMU campuses. It will consist of 723 beds in studio, one-, two- and three-bedroom configurations featuring in-unit washer/dryers, granite countertops and robust internet and Wi-Fi throughout the building. The building will also feature 381 structured parking spaces and 10,000 square feet of retail space.

“The University of Pittsburgh’s expanding enrollment rate and academic reputation make it an ideal fit for the EdR portfolio,” said Randy Churchey, EdR chief executive officer. “This community will also fill a housing void on that end of campus, which will make it a win for the students and the university as well.”

With a 2015 enrollment of nearly 29,000, the University of Pittsburgh is regularly rated as a top tier U.S. public research university and ranked as the No. 24 public university in the country in U.S. News and World Report‘s 2016 rankings.  

Carnegie Mellon University boasts 19 Nobel Prize laureates among its faculty and alumni. It has a total enrollment of 13,650 students and was ranked 23rd nationally in U.S. News and World Report‘s latest rankings.

“Three years in the making, this urban high-rise is the largest and certainly one of the most important properties in Park7’s bourgeoning pipeline of developments,” said Ron Gatehouse, president and chief executive officer of Park7. “Having grown up near Pittsburgh and watched it flourish in recent years, I’ve been wanting to do something near these schools for a long time.”

(RECAP: Much hand wringing has occurred over the fact that millennials are putting off what used to be one of the main achievements of adult life: buying a home. This ownership-interruptus has been attributed to everything from fast-rising home prices to towering student loan debt to the ultra strict credit requirements to score a mortgage. But it might have a lot to do with their fear of commitment as well. About 20% of those between the ages of 18 and 34 are likely to be afraid of the long-term obligation (30 years, for the full term of a typical mortgage) that buying a home with a partner represents, according to a recent NerdWallet survey. But commitment wasn’t the only thing survey respondents were scared about. About 71% of participants of all ages expressed other concerns ranging from the home needing repairs, their not having enough money left over for other expenses, and the sheer magnitude of the financial commitment of becoming a homeowner.)