Author: ipgocorp

MIAMI, FL – Dome Equities announced its acquisition of Alta Mira, a Class-A apartment community in North Miami, the firm’s eighth Florida property. Built in 2014, Alta Mira has 240 units, and is conveniently located between Downtown Miami, Fort Lauderdale and Doral, which provides access to over 58 million square feet of office and industrial space. The property sits across from North Miami’s Whole Foods, is near the Aventura Mall, Target, Miami Shores Country Club, as well as within a five-mile radius of four universities. The community consists of one, two and three bedroom units with an average square footage of 932.      

Dome’s value-add strategy for Alta Mira includes installing vinyl plank wood flooring throughout each unit, granite countertops, upgraded sinks in kitchens and bathrooms, a subway tile backsplash in kitchens, gated access, exterior repaint, enhanced landscaping, and poolside cooking facilities. 

“North Miami’s encouraging demographic trends, business environment, and expansive medical facilities will continue to catalyze further demand for high quality rental apartments in the area,” said Eric D. Jones, Dome Equities’ Chief Investment Officer. “We are thrilled to bring Dome’s expertise of providing value-add improvements for communities nationwide to Alta Mira.”

Dome’s real estate portfolio totals nearly $1.27 billion, of which 94% are apartment properties located in 20 metropolitan areas in the United States.

Jones further stated, “Greater Miami’s population is growing twice that of the national rate, and coupled with near term job growth, will augment Dome’s positive return profile.”

Alta Mira is jointly owned with a Florida headquartered multifamily operator and will be professionally managed by the operator. Alta Mira represents the eighth joint venture between Dome and the multifamily operator. The Alta Mira apartments are the newest asset in the North Miami/Bayshore submarket.   

GREENWICH, CT – The Richman Group, one of the nation’s largest residential real estate investment, development and asset management firms, has introduced a new division to develop, construct and manage luxury rental residences in key U.S. markets under the Richman Signature Properties brand. The new properties will add an upmarket offering to The Richman Group’s robust portfolio of geographically diverse rental communities around the country.

The new brand is dedicated to reimagining rental living with an emphasis on individuality, social connectivity, preferred signature amenities and a resident-focused culture. Rich services, attractive designs, and value-added benefits from a carefully curated list of partners that complement and enhance residents’ lifestyles at all Richman Signature Properties.

According to The Richman Group Chairman Richard Richman, the company tapped into a strong foundation of knowledge in residential real estate and genuine understanding of what residents are looking for in establishing the Richman Signature Properties division. “We identified a major opportunity to respond to the current real estate market’s compelling demand for luxury rental properties by creating more than just a temporary living space for renters. We wanted to create a home,” said Richman.

Richman Signature Properties will have nearly 15 luxury rental communities in its collection within the next two years located in desirable major residential markets including: South Florida; Tampa/St. Petersburg; Dallas; Denver; San Diego and Los Angeles-metro area. The first properties to join the upscale collection of Richman Signature Properties are located in Florida and include The Sedona, Tampa; Epic at Gateway Centre, St. Petersburg; and Palm Ranch, Davie.

Each community offers residents a variety of comfortable floor plans and upscale design options to accommodate renters’ needs along with resort-style amenities, such as swimming pools with cabanas, full-service fitness centers, walking paths, stylish clubhouses, business centers with meeting spaces, dog parks with pet spas, and much more. Additionally, Richman Signature Properties is partnering with like-minded lifestyle brands to empower its residents to Live Easier, Live Healthier or Live Prettier for the ultimate signature living experience.

“At Richman, we build and invest in quality properties for the long haul, and our Richman Signature Properties are designed for a growing segment of customers that recognize both the value and longevity now provided by luxury rental residences,” said Kristin M. Miller, president of The Richman Group Development Corporation. “We’ve designed our properties with preferred signature amenities and exclusive services to appeal to Millennials and Gen-Xers who seek flexibility, choice and convenience to complement their lifestyle and make them feel at home.”

Richman Signature Properties slated to open this year include Grady Square and Aurora in Tampa (Westshore and Downtown respectively), Portico and Azura in South Florida, and Parc at White Rock in Dallas. Additional upcoming communities include Infinity LoHi in Denver, Library Tower and F11 in San Diego, Sage at Cerritos in the Los Angeles area and Biscayne 27 in Miami.

(RECAP: HUD awarded $42 million in grants to provide housing counseling for families attempting to navigate the home buying process. According the the HUD, these “housing counseling grants and the additional funding they leverage will assist more than 1.4 million households find housing, make more informed housing choices, or keep their current homes.” Of this money, $40 million will go directly to existing counseling agencies and organizations. The remaining $2 million will be used to train and certify individual housing counselors.)

SAN JOSE, CA – With the near completion of 200 new, affordable housing homes, the $46 million Charlotte Park Apartments in San Jose, Calif., is a great example of ROEM’s expertise in building a high quality affordable residential rental community located within a market-rate development. In this case, ROEM Corp. satisfied most of the affordable housing requirement of the Hitachi master-planned community, with ROEM Builders, Inc., acting as both general contractor and construction manager.

“While inclusionary housing policies provide a major source of funding for affordable housing, they can significantly reduce a developer’s return and create long-term obligations,” said Alex Sanchez, Executive Vice President of ROEM Corporation. “Our market-rate developer partners recognize the benefits of having ROEM act as their third-party general contractor. We assume their affordable housing obligations and pay the in-lieu fees while designing and building high-quality affordable housing that seamlessly blends with their market-rate housing. About 430 of our more than 3,000 new affordable housing units completed since 2000 were built by ROEM for a market-rate developer.”

Located on the former Hitachi Global Storage Technologies campus, Charlotte Park 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. Charlotte Park is situated near the intersection of Cottle Road and Highway 85, and within walking distance from the Blossom Hill Caltrain station and the Cottle and Santa Teresa light rail stations. This $46 million development with the construction and permanent financing provided by Citi is affordable to families that make 60 percent or less of the Santa Clara County Area Median Income and provides an amenity-rich residential experience.

“Charlotte Park provides a safe haven to those who are being squeezed out of quality housing in Silicon Valley,” said Jay Abeywardena, Director at Citi. “We are excited to help support this initiative and believe this project will have a meaningful impact on the community.”

Charlotte Park Apartments gained an efficiency of management thanks to two other ROEM developments – Oak Grove Apartments and LEX Apartments – being constructed simultaneously within about a half-mile radius. Although these are separate projects managed by separate teams, ROEM was able to share resources from time to time because of their close proximity.

“With Alliant’s investment of nearly $15 million, Charlotte Park Apartments will provide an additional 200 units of much needed safe and affordable housing to the San Jose Area,” said Brian Goldberg of Alliant Capital, Ltd. “We are proud to be a partner in the development of this property and excited for the residents who will benefit from it for years to come.”

With ROEM’s emphasis on sustainability, Charlotte Park will be pursuing USGBC LEED Gold certification. Because both solar thermal heating and solar photovoltaic power sources are being installed, Charlotte Park has the potential to save up to 85% on utility bills when compared to electric water heating. Per LEED standards, all apartments have high-efficiency flush toilets and faucets as well as “Evolve Roadrunner” showerheads that are thermostatically controlled. In addition, Charlotte Park integrates efficient landscape design by using native species and zero turf on a lot designed to capture and treat all stormwater.

The amenity-rich, four-story apartment building (with 230-parking space garage) includes a courtyard with outdoor barbecue, dining area, tot lot and lounge area; community room with media alcove, kitchen and entertainment area; storage area; homework and computer room; and laundry facilities. Apartments will be equipped with Energy Star refrigerators and dishwashers, blinds, carpet, coat closets, and electrical four-burner stove/ovens.

With completion slated by the end of June, Charlotte Park is already fully leased.

ROEM Development Corporation, ROEM Builders, Inc., and their affiliated entities are a full-service development and construction organization that has specialized in the acquisition, planning, financing, new construction, renovation and asset management of market-rate and affordable housing throughout California for more than 30 years. Ranked in Affordable Housing Finance magazine’s Top 50 Affordable Housing Developers of 2015 list and a registered member of USGBC and Build It Green, ROEM is dedicated to creating wholesome communities that are not only sustainable but also designed smarter to ensure that residents are healthier, happier and safer. ROEM has completed more than 3,000 affordable housing units with more than 1,000 units currently under construction.

NEW YORK, NY – The risk of class-A overbuilding is rising in some submarkets, Fitch Ratings says. The concentration of high-end construction in 12 metro areas is intensifying and new supply in the student housing sector continues to break records. However, we do not expect the stress in multifamily asset performance to have an overall impact on ratings.

The majority of new multifamily construction is concentrated in just 12 metro areas. By far, the most common type of construction is in the class-A segment in the higher rent neighborhoods. Asking rents increased by 4.6% in 2015 and are forecast to increase by 3.4% in 2016 according to Reis reports. If the pace of rent increases continues to fall, this concentration could compound downward rent pressure on rents in those areas. Currently, however, the impact of new supply is relatively muted, as asking-rent gains remain strong and vacancy rates are still low (although increasing).

Metro areas with exposure to the oil and gas industry may carry an additional risk. Dallas and Houston, two of the markets with large amounts of new multifamily construction, have diversified their markets in the wake of past energy market crises. That has muted the impact of the current declines in the energy sector so far. However, the longer term impact remains to be seen.

New supply in the student housing subsector has reached record levels in recent years. In 2015 approximately 48,000 beds were delivered and a similar amount is forecast for this year. While individual properties have begun to exhibit performance deterioration due to occupancy declines, we expect overall student housing vacancies will hover around 2% for 2017. We have seen some properties with increased expenses, deferred maintenance, and/or average rent declines.

We believe some of these pressures may be related to superior and newer properties that have entered their submarkets during the rise in construction, as well as declining enrollment at certain institutions. The American Association of Community Colleges found distance-education enrollments accounted for nearly all recent student growth at two-year institutions from fall 2013 to fall 2014. Over the longer run, the trend toward off-campus learning options may lower overall demand for student housing.

Vacancy rates in the multifamily sector have risen by small increments but are forecasted to remain benign overall. Reis reports that the overall vacancy rate increased to 4.5% as of first-quarter 2016 from 4.4% as of fourth-quarter 2015. Reis forecasts a modest increase to the overall vacancy rate to 5.2% in 2020 from the current 4.5% as new supply enters the market.

BETHESDA, MD – Walker & Dunlop announced that it has completed the purchase of a $3.8 billion commercial mortgage servicing portfolio from a subsidiary of Oppenheimer Holdings for a final closing price of $44.6 million.  The acquired portfolio, comprised of 480 permanent loans insured by the U.S. Department of Housing and Urban Development (HUD), has a weighted average servicing fee of 17 basis points.  Annual servicing revenue from the acquired portfolio is projected to be approximately $6.4 million. 

Of the 480 loans, 361 loans, with an unpaid principal balance of $2.7 billion, are secured by multifamily properties.  The other 119 loans, with an unpaid principal balance of $1.1 billion, are secured by seniors housing and healthcare properties.  The portfolio is geographically diverse with loans in 43 states, the District of Columbia and the U.S. Virgin Islands. 

The loans in the portfolio have a weighted average note rate of 3.99% and an average age of 44 months. The average remaining life of the portfolio loans is 31 years.  Given the relatively low average note rate and remaining maturity of the portfolio, the Company expects limited prepayments of loans over the coming years.

The portfolio brings with it $230 million in escrow balances and no loss-sharing risk to Walker & Dunlop.  With the addition of this portfolio, the Company will immediately begin interacting with our new customers in the process of servicing their loans and meeting their future financing needs.  Walker & Dunlop’s HUD servicing portfolio is projected to exceed $9.3 billion at the end of Q2 2016, making the Company the largest servicer of HUD Multifamily/Healthcare loans in the United States.  

(RECAP: If you are looking for an upbeat assessment of consumer sentiment regarding housing, a recent survey by the MacArthur Foundation is not the place to go. Its most recent survey of housing attitudes shows many Americans feel that home ownership is increasingly out of reach and close to a third of respondents don’t think the housing crisis is over. In the 2016 How Housing Matters Survey, Americans overwhelmingly consider stable, affordable housing as essential to economic security for families, tying with saving for retirement at 85 percent, behind only having a good job at 90 percent. Yet 81 percent of respondents believe housing affordability is a problem and six in 10 called it a serious problem. Sixty-eight percent believe it is more challenging to secure affordable housing today than it was for previous generations, a belief held across all educational, income, regional and demographic cohorts.

VININGS, GA – Toronto-based Sutter Hill Acquisition Corporation has acquired The District at Vinings Apartments in Metro Atlanta for $68.75 million. Sutter Hill intends to spend up to $7 million renovating the 464-unit multifamily community, which is located on almost 38 acres in the heart of the Vinings area. The transaction closed June 16, 2016.

The District at Vinings Apartments is located at 2800 Paces Ferry Rd S.E., Atlanta, 30339, less than three miles from SunTrust Park — the new stadium for Atlanta’s Major League Baseball team, the Braves — and The Battery Atlanta, which is expected to be one of the nation’s top sports, shopping and entertainment venues. The apartments are also near Home Depot headquarters, the Cobb Energy Performing Arts Center, the Cobb Galleria and quaint Vinings Village.

“This is a dominant asset in a dominant location,” said Sutter Hill Acquisition President and CEO Karim Kanji. “It also has a walkability score in the 90s, which is unusual for most properties in Atlanta.”

Stonemark Management will manage the pet-friendly community and supervise the renovations — which will include a state-of-the-art clubhouse, expanded fitness center, enhanced landscaping and upgraded exteriors. The existing walking trails, fountains and decks already enhancing the community’s many lakes will also be expanded and improved. The interiors of the individuals apartments have granite countertops, new appliances, vinyl plank flooring and new lighting.

“We believe the strength of the location and the physical improvements that the owner is planning will make this property even more desirable,” said Stonemark President Walt Lamperski.

The Sutter Hill Group of Companies is a family-owned, global real estate investment company, based in Toronto, with holdings in Canada, the U.S. and Europe. Sutter Hill currently owns 1,264 apartment units in Atlanta, with an asset value of $150 million.

The Stonemark Group focuses on the acquisition, financing, ownership, management and disposition of multifamily real estate investments in the Southeast, Texas and Virginia. The group includes Atlanta-based Stonemark Equities and Stonemark Management.

ATLANTIC CITY, NJ – The New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta joined local officials and community leaders to celebrate the grand opening of The Meadows, an affordable rental community for workforce families in Atlantic County. Developers on the project are Atlantic City Housing Authority, Urban Redevelopment Agency and Conifer Realty, LLC. The community is located just blocks from the beach and boardwalk, at 900 Mediterranean Avenue, on the corners of North Maryland Avenue and Mediterranean Avenue.

The HMFA, an affiliate of the Department of Community Affairs (DCA), awarded the affordable housing project 4% Low Income Housing Tax Credits (LIHTC) which is expected to generate more than $9.9 million in private equity and $14.6 million in construction and permanent financing. Additionally, the affordable apartment enclave was awarded more than $5.7 million in federal Community Development Block Grant (CDBG) Disaster Recovery dollars through the Fund for Restoration of Multifamily Housing (FRM) Program. The FRM Program was created in the aftermath of Superstorm Sandy and provides qualified housing developers subsidies in the form of zero- and low-interest loans to finance the development of affordable housing in the nine counties the federal government designated as the most impacted by the storm.

“Families throughout Atlantic County will now enjoy a choice of 90 brand new affordably priced rental apartments at The Meadows. This community is a prime example of our ongoing efforts to help replenish housing stock lost to Superstorm Sandy across nine of the state’s hardest hit counties,” said DCA Commissioner Charles A. Richman, who also serves as Chairman of the HMFA.

The 80,000-square-foot Meadows community offers workforce families a choice of spacious one, two and three bedroom flats and two and three bedroom townhomes with modern amenities and on-site management and maintenance.

“We are very pleased to be able to provide the financing for this newest affordable rental community for families in Atlantic County. This is a seashore resort area where typical rental home costs can easily spiral out of reach for working families,” points out HMFA Executive Director Marchetta. “The Meadows provides an affordable answer for these families and the community’s convenient, downtown Atlantic City location offers added advantages for those who enjoy the walkability aspect of this famous resort.”

All apartments feature fully equipped kitchens with Energy Star rated appliances and fixtures, including dishwasher and garbage disposal. Plenty of closet space is provided in all floor plans and patio/porches are available.

Amenities include a community garden, fully equipped fitness room, computer lab and ample parking. Professional on-site management and 24-hour maintenance are also included.

Residents of The Meadows are within walking distance of restaurants, the Tanger Outlets, various public transportation routes and the Atlantic City Casino District. Furthermore, the Atlantic City Expressway, Route 30 and Route 40 – all of which provide access to various New Jersey and City of Philadelphia points — are all located one mile from the site. The Meadows is also close to schools, shopping centers, parks, churches and medical facilities.

Priority for residency was given to Sandy-impacted individuals during the first 90 days of lease-up at the affordable apartment complex. The 90-day priority period ended May 1, 2016, and The Meadows is 100% occupied. Currently there is one Sandy-impacted resident living there. Individuals who are interested in learning more about the project and its rental units may call (856) 662-1730.

The nearly $28 million total development cost of this community will provide affordable housing opportunities for workforce families and will continue to have a positive economic impact on the Atlantic County community. HMFA estimates that The Meadows has generated more than $44 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project supported approximately 265 direct and indirect/induced full-time equivalent jobs, and more than $1.6 million in state and local taxes. Now complete, the project continues to add value to the community by providing approximately $4.9 million in ongoing economic output, 28 direct and indirect/induced full-time equivalent jobs, and $278,200 in state and local taxes annually.

Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.

BOCA RATON, FL – Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale of Arbor Oaks Apartments, a 360-unit luxury multifamily community in Boca Raton. The $77 million sales price equates to nearly $214,000 per unit.

“Built in 1995 by Altman Development Corp., Arbor Oaks has a market-leading amenity package, an ideal site layout and outstanding design features that maximize lake views,” says Steve Witten, an executive director of IPA’s Northeast and Florida team.

“Multifamily properties in Boca Raton’s rental market with extensively updated interiors are in high demand,” adds Still Hunter III, an executive director of IPA’s Northeast and Florida team. “The prior owner of Arbor Oaks Apartments updated many units at various levels, and the new owner has a great opportunity to enhance value by continuing to improve the updated units and bring the remaining apartments to a high standard.”

Hunter, Witten and Victor Nolletti, also an IPA executive director, represented the seller and procured the buyer.

“The community has a density of less than 14 units per acre, which gives it an inviting, neighborhood feel,” said Hunter. “Prohibitive land costs and lack of available sites make it impossible to duplicate.”

Arbor Oaks Apartments is a gated community with 18 residential buildings and a clubhouse that surround a lake. The property features a mix of one-, two- and three-bedroom apartments, including flats and townhomes. The average unit size is 1,105 square feet.

With frontage on U.S. 441, the property is located at 9817 Arbor Oaks Lane in the western part of Boca Raton. There is about 1.8 million square feet of retail space and 20 restaurants within a mile of the community. The West Boca Medical Center is directly across the street and Florida Atlantic University is within six miles.