Author: ipgocorp

MESA, AZ – MC Companies is no stranger to real estate and multifamily housing in the Southwest. Now, they announced the purchase of The Place at El Prado (formerly: Whispering Meadows Apartments) in Mesa, Arizona. This real estate transaction is valued over $34 million dollars and is adding to the already impressive MC Companies Portfolio.

The Place at El Prado is centrally located in Mesa with beautiful, sprawling grounds, upgraded units and modern amenities. This 430-unit property is ideally located in the re-emerging Fiesta District of Mesa. Two miles south of the event-oriented and pedestrian-friendly area known as the Downtown Mesa District, this area is exploding with major development.

“We’re very excited to have The Place at El Prado join our portfolio,“ says Director of Acquisitions, Charles Koznick. “Acquiring this property aligns with MC Companies’ strategy to acquire multi-family assets that we believe have unrealized value potential.”

While significant capital has already been invested in common area improvements, MC is poised for the implementation of apartment interior renovations. MC Companies will continue repositioning the apartment interiors with a comprehensive renovation program that includes upgrading the appliances, refinishing the cabinet boxes and installing new cabinet doors, and much more.

Residents at this apartment community can choose from a variety of floor plans, including one bedroom, two bedroom, and three-bedroom floor plans. The grounds are well maintained, and are spotted with barbecue areas, two swimming pools, and a new dog park.

Aside from the property itself, the proximity of The Place at El Prado to Mesa Community College, local art galleries, restaurants, businesses and entertainment centers, ties into the MCLife brand. MCLife is about all things local. The MCLife 5-5-5 was created with the belief that residents, and prospective residents, want to know about the neighborhood they are moving to. On all of the MCLife regional websites, there are the 5 Best Places to Eat, the 5 Best Places to Shop and the 5 Best Places to Play around each community.

Mesa is a melting pot of creative folks from all walks of life, cultures and ages. MC Companies is excited to bring The Place at El Prado into the community as Mesa emerges as the “place to be” in the Valley for smart, creative people.

CITRUS HEIGHTS, CA – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has arranged the sale of Montage Apartments, a 636-unit garden-style multifamily community located in Citrus Heights, California. The $74 million sales price equates to more than $116,000 per unit.

“Sacramento MSA’s strong economic fundamentals are encouraging multifamily property investors,” said Stan Jones, IPA executive director. “Job and population growth are expected to more than double the pace of the national average during the next six years. Private sector growth has been especially strong during the past 10 years, and in the last five years alone, more than 86,000 private sector jobs have been added to the local economy.”

Jones, together with IPA executive directors Philip Saglimbeni and Salvatore Saglimbeni, represented the seller, FPA Multifamily LLC, and procured the buyer, JRK Investors Inc.

“Previous ownership invested more than $7 million in Montage Apartments in order to beautify the community and differentiate it from the competitive set,” added Philip Saglimbeni. “Over $3.5 million was invested in systematic unit interior renovations spread across more than 500 units, which has resulted in an approximate 27 percent return on invested capital.”

Marcus & Millichap’s Kenneth N. Blomsterberg, first vice president investments, Tony DeLoney, associate, and Spencer Moyer, associate, assisted in the transaction.

Built in 1987 on 28.7 acres at 12801 Fair Oaks Blvd. in Citrus Heights, the property is 17 miles from California’s state capitol and Sacramento’s central business district. There are more than 285,000 jobs and a working population with over $83,000 in average annual household income within 10 miles of the community. The Sunrise Mall, Marketplace at Birdcage and Citrus Town Center shopping areas are all under two miles away.

NEW YORK, NY – Trepp, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its June 2016 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate moved noticeably higher in June, as the rate was pushed up by loans that reached their maturity date but were not paid off. The delinquency rate for US commercial real estate loans in CMBS is now 4.60%. The rate has increased 25 basis points from May, but is 85 basis points lower than the year-ago level.

In June, CMBS loans that were previously delinquent but paid off with a loss or at par totaled almost $900 million. Over $500 million in loans were cured last month, and over $2 billion in loans became newly delinquent. However, over $13 billion in loans were paid off in June, which gave the remaining delinquent loans an increased weight.

“For most of 2016, the expectation and the reality has been that most maturing legacy loans would ‘muddle through’” said Manus Clancy, Senior Managing Director at Trepp. “In June, we saw the first evidence of loans failing to obtain refinancing weigh on the delinquency rate. We expect that trend to continue throughout the rest of 2016.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased along with the overall delinquency rate. The rate of seriously delinquent loans inched up 24 basis points for the month, now 4.48%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.83%.

By property type, delinquency rates for all but one of the five major sectors increased in June. The multifamily delinquency rate fell one basis point to 2.35%, so apartment loans remain the best performing major property type. The retail sector underwent the largest increase out of all major property types, as that delinquency rate moved up 36 basis points to 5.72%.

PHOENIX, AZ – TruAmerica Multifamily has made its largest investment in Arizona with the acquisition of Scottsdale Springs, a 644-unit institutional quality multifamily community in Downtown Scottsdale, AZ.  TruAmerica acquired the property from NY-based Abacus Capital Group in an off-market transaction valued at $80.9 million.

Located at 7791 East Osborn Road, Scottsdale Springs is the third acquisition in Arizona in the past nine months for TruAmerica, whose portfolio in the Grand Canyon State now totals 1,567 multifamily units in Phoenix and Chandler.  The Los Angeles-based real estate firm has invested approximately $225 million in Arizona since it entered the market in 2014.  Last month, the firm acquired Villa Blanco, a 379-unit community in Tempe for $56.7 million. 

“Unlike many of the other major Western markets, Phoenix is still in the prime of its post-recession economic growth,” said TruAmerica Senior Managing Director of Acquisitions and Dispositions Greg Campbell.  “Phoenix is forecasted to lead the nation in job growth over the coming years and is further aided by the growing demand by Millennials to target ‘Sun Belt’ markets.  Downtown Scottsdale is Phoenix’ strongest submarket and is emerging as one of the most dynamic technology employment markets in the Western United States.  Consequently, we continue to seek out sound investment opportunities here.”

Built in 1980, Scottsdale Springs features a mix of one-, two-, and three bedroom floor plans ranging in size from 680 to 1,440 square feet in one of the few low-density garden style multifamily environments in Scottsdale.  Community amenities include three resort-style pools, dog park, clubhouse, outdoor kitchens and barbecue areas.  TruAmerica will invest an additional $10 million on a comprehensive renovation program that will transform the property to create a luxury living environment that will still be affordable for working class families and individuals.   Facilitated by TruAmerica’s in-house construction management team, improvements will include interior upgrades to all residential units, the construction of a highly amenitized clubhouse with state-of-the-art fitness center, media and business center as well as a new rooftop lounge overlooking a redesigned resort-style pool. 

“When completed, residents will benefit from an amenity package unparalleled in the submarket at this price point and, more importantly, post-renovation rents will be well below that of the newest Class A product in Downtown Scottsdale,” added TruAmerica Chief Operations Officer Lynn Owen.  

Tyler Anderson and Sean Cunningham with CBRE’s Phoenix office negotiated the transaction on behalf of the seller.  

“Scottsdale Springs features some of the lowest rents in Downtown Scottsdale and presents a truly unique opportunity to dramatically increase net operating income through interior and common area improvements,” said Cunningham.  “Additionally, Downtown Scottsdale is substantially built out with minimal sites available for future multifamily development.”

BOCA RATON, FL – TGM Associates announced the acquisition of TGM Oceana, a two building mid-rise apartment community with 160 units and 10 deep-water boat slips, located in Boca Raton, FL.

The four-acre community spans the entire width of Boca Raton’s barrier island boasting 100 feet of beach frontage and 10 boat slips on the Intracoastal Waterway.  The property offers generously sized units with an average size of 1,090 square feet.  All units feature granite counters, ceramic tile throughout all living spaces, patio/balcony, washer and dryer, walk-in closets, and pristine ocean or intracoastal water views from select units.  The community provides residents with an unparalleled amenity package that includes private ocean beach access, swimming pool, intracoastal patio with boat dockage and BBQ area, fitness center, on-site kayaks and paddle boards, and covered parking.  The 10 boat slips are available for transient and seasonal rental to both residents and non-residents. 

TGM Oceana’s location in the southeastern part of Palm Beach County provides convenient access to job centers in both Palm Beach and Broward counties.  Boca Raton boasts over 17.2 million square feet of office space.  The city possesses one of the largest concentrations of employment in Florida.  Boca Raton offers residents beaches, golf courses, museums, universities, upscale shopping, and a variety of restaurants and nightlife.      

“We are very excited to bring TGM Oceana into our multifamily portfolio. TGM Oceana will complement our existing TGM Communities in Florida well.  The property’s location proximate to a diverse array of employment, high quality retail, vibrant night life, and world class recreational amenities makes TGM Oceana one of the most desirable residential locations in South Florida” said Zach Goldman, Managing Principal and Director of Operations for TGM Associates, a SEC-registered real estate investment advisory firm based in New York City.  TGM Oceana is managed by TGM Associates’ management brand, TGM Communities.  TGM also owns and manages on the west coast of Florida; TGM Bermuda Island in Naples, TGM Malibu Lakes in Naples, and TGM Palm Aire in Sarasota, FL.  In late 2015, TGM sold Vintage at Abacoa and Floresta both in Jupiter, FL.

TGM Oceana, formerly known as Villa Oceana, was owned and managed by Chicago, IL based Laramar.  The broker on the transaction was Hampton Beebe, Executive Managing Director at ARA Newmark.     

AUSTIN, TX – MORGAN, a leader in upscale multifamily development, construction and property management, has opened its latest Pearl luxury apartment community. Situated in southwest Austin at Rialto and Southwest Parkway, Pearl Lantana contains 444 units with one, two and three bedrooms that range from 660-1576 square feet.

“From its location along Southwest Parkway, Pearl Lantana provides unparalleled views of the Barton Creek Greenbelt and downtown Austin’s skyline,” said Development Associate Seth Borland. “The property’s close proximity to downtown and to an ever-growing roster of employers nearby gives residents convenient access to work, as well as a relaxing, low density, park-like setting at home.”

Pearl Lantana features the luxury brand’s premium interior amenities, such as open floor plans, high-end wood style floors, quartz countertops with tile backsplash, gas appliances, full size washers and dryers, tankless hot water heaters, under-mount sinks, walk-in closets, USB outlets, and patios or balconies. The resident amenity areas are solar powered and include an expansive resident e-lounge and cafe, and a platinum athletic club with a private spin bike studio. An electronic package locker system has been provided for resident convenience and package security.

Outdoors, Pearl Lantana amenities include three extensive pool areas — complete with sundecks, an infinity-edge pool, a lap pool and adjacent hammock spaces — a covered kitchen, a large enclosed dog park, and natural footpaths throughout the property.

NEW YORK, NY – Mortgage rates keep dropping as post-Brexit uncertainty weighs on financial markets, with the benchmark 30-year fixed mortgage rate now at 3.52 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 was down more modestly, to 3.64 percent, but established a new record low. However this rate is higher than the average conforming rate for just the fifth time in the past year. The average 15-year fixed mortgage rate slid to a fresh 3-year low of 2.85 percent. Adjustable mortgage rates moved to new 3-year lows as well, with the 5-year ARM retreating to 2.95 percent and the 10-year ARM settling at 3.33 percent.

The recent market upheaval over the surprise Brexit vote continues to benefit mortgage shoppers nicely. While the U.S. stock market has largely recovered its losses, look no further than the yield on benchmark 10-year Treasury notes for evidence of how skittish investors remain. With the 10-year Treasury yield establishing a new record low this week, mortgage rates have been pulled along for the ride. Mortgage rates are closely related to the yields on long-term Treasuries. The current average 30-year fixed mortgage rate of 3.52 percent ties the second-lowest level on record and a point not seen since May 2013.

This time last year the average 30-year fixed mortgage rate was 4.14 percent, which carried a monthly payment of $971.04 on a $200,000 loan. At the current average rate of 3.52 percent, the monthly payment for the same size loan is $900.32, resulting in savings of more than $70 per month for a homeowner refinancing now. 

SURVEY RESULTS

30-year fixed: 3.52% — down from 3.61% last week (avg. points: 0.27)

15-year fixed: 2.85% — down from 2.89% last week (avg. points: 0.21)

5/1 ARM: 2.95% — down from 3.01% last week (avg. points: 0.28)

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. More than half of this week’s panelists – 56 percent – expect mortgage rates to keep falling while just 11 percent forecast a rebound. One-third predict that mortgage rates will remain more or less unchanged in the coming week.

(RECAP: A federal agency says the Portsmouth Redevelopment and Housing Authority erred in awarding a legal contract to a firm that ranked lower than another and hasn’t spent some of its $1.4 million in reserves to pay for badly needed Section 8 vouchers. HUD asked to be paid back for any money spent on the legal contract so far, according to an April 27 letter obtained by WAVY-10, which reported on it Tuesday. The Pilot obtained copies of the letter from a city spokeswoman Wednesday. The agency visited the authority in mid-March and raised concerns that it had more than enough money to pay for Section 8 vouchers but noted some families had been on the waiting list for “a number of years although funding for assistance is and remains available.” HUD, in its letter, says it generally wants to see an authority have no more than 6 percent in reserves. Portsmouth’s authority will have 12.5 percent by the end of this year and 15.7 percent by the end of next year.)

ASHBURN, VA – Cortland Partners announced that it has closed on a deal to acquire Stoneridge Apartments, a 630-unit apartment community located in Ashburn, VA in Loudoun County. The transaction signals the multifamily investment and management firm’s first foray into the Washington D.C. market as part of an aggressive growth strategy spanning the Southeast and beyond.

Stoneridge presents a unique opportunity for Cortland to expand its portfolio while also entering a new core market that has demonstrated consistent rent growth. Stoneridge, built in 2001, will undergo extensive interior and exterior renovations and upgrades as part of Cortland’s asset repositioning strategy.

Stoneridge is strategically located within a 30-minute commute to Washington D.C. and is less than a mile from Loudoun County’s newest mixed-use destination, “One Loudoun,” which offers a multitude of critically acclaimed dining options, shops and entertainment venues. Upon completion of the renovation, the community will offer spacious 1, 2 and 3-bedroom luxury apartments boasting premium finishes and quality amenities catering to all ages, including two full-size swimming pools, a resident clubhouse and fitness center, communal lounges and grilling areas, and outdoor children’s playgrounds. Renovations are slated to begin in November 2016 and continue through 2018.

“This recent acquisition supports our ongoing strategy of acquiring and repositioning end-cycle properties and transforming them into communities that offer residents a superior living experience at a more affordable price,” said Steven DeFrancis, Cortland Partners Founder and CEO. “We identified Stoneridge as an excellent opportunity to take a well-located, institutional quality asset and add value through high-quality renovations and a strategic repositioning.”

Headquartered in Atlanta with properties in Georgia, Florida, North Carolina, Colorado, Louisiana, Texas, Florida and Ohio, Cortland Partners was recently named to the National Multifamily Housing Council’s list of the “Top 50 Largest Apartment Owners,” and for the first time, the “Top 50 Largest Apartment Managers.”

“We’ll continue to explore additional opportunities to purchase quality, like-kind multifamily assets in the Washington D.C. metro area and bolster our portfolio in what’s truly an exciting new market,” said DeFrancis.

PITTSBURGH, PA – Preferred Apartment Communities announced that it converted a portion of the outstanding principal balance of its real estate loan investment into an approximate 96% equity ownership interest in a joint venture that owns a 272-unit apartment community in Pittsburgh, Pennsylvania named City Vista. 

PAC’s 96% equity ownership interest is held by one of its indirect, wholly-owned subsidiaries. The developers will retain the remaining equity ownership interest in the joint venture, and PAC will manage the business and operations of City Vista.

 “We are excited about City Vista and the Pittsburgh market. This is a great asset with excellent long-term potential value,” said Leonard A. Silverstein, PAC’s President and Chief Operating Officer. 

In connection with the conversion, City Vista was refinanced, utilizing a mortgage loan from Jones Lang LaSalle Multifamily for approximately $36.0 million and has a fixed interest rate of 3.68% per annum with a ten-year term. PAC received proceeds from the refinancing of approximately $6.6 million to pay down the remaining outstanding principal and interest balances of its real estate loan investment.

Jones Lang LaSalle Multifamily intends to assign the loan to Freddie Mac within 60 days.

Preferred Apartment Communities was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, it enters into forward purchase contracts or purchase options for to-be-built multifamily communities and makes mezzanine loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties.