Author: ipgocorp

ATLANTA, GA – Admiral Capital Group and Wood Partners announced that they successfully completed the sale of 3833 Peachtree, a 222-unit multifamily property located in Atlanta, Georgia.

Admiral Capital and Wood Partners, as a joint venture, originally acquired 209 of the 240 units in the broken condominium conversion project in 2012. The investment provided an opportunity to acquire a well-located asset in need of value-add capital at a discount to replacement cost.

During its ownership, Admiral repositioned the property to enhance its appeal as a premier community within the highly sought-after Atlanta submarket of Buckhead. A new outdoor pool and cabana area were installed, including outdoor lounge areas. Additionally, the lobby, fitness center, and conference areas were upgraded to complete the “live, work, play” environment tenants were seeking. In addition to the capital spent on common areas, Admiral and Wood Partners purchased an additional 13 units during the hold period.

“3833 Peachtree was another successful execution for Admiral,” said Daniel Bassichis, Co-Founder of Admiral Capital Group. “Atlanta has experienced very strong job growth, and we will continue to invest in this market.”

“We are thrilled with the execution of our business plan on 3833,” stated David Robinson, Admiral Co-Founder. “It has been very rewarding to be a part of transforming this property into such a high quality community for the residents.”

Wood Partners Director Curtis Walker added, “We are proud of our work to breathe new life into 3833 Peachtree. From adding unique design features to buying back condo units, the team executed a complex plan for a successful investment.”

Both the buyer and seller were represented by Jones Lang LaSalle’s Atlanta team.

The sale represents the eighth realization for Admiral in its first value-add real estate fund, Admiral Capital Real Estate Fund, L.P. (“ACRE I”). Admiral has three remaining ACRE I assets under management including two multifamily properties (Kent, Washington and Manhattan, New York) and one hotel property in Fort Worth, Texas. Additionally, 3833 Peachtree is one of several Atlanta area communities in Wood Partners’ portfolio.

LOS ANGELES, CA – CBRE Capital Markets’ Debt and Structured Finance team has arranged $75.3 million in financing for the acquisition of a six-property, 1,520-unit multifamily portfolio located in North Carolina and South Carolina.

Steve Heffner, Nate Sittema, and Kristen Reilley of CBRE’s Charlotte office arranged the financing on behalf of Middle Street Partners. The 10-year, fixed-rate loans were provided by Freddie Mac.

“Five out of the six properties are located in Columbia, a stable multi-family market that is very familiar to Middle Street Partners,” Reilley said. “This acquisition presented a perfect opportunity to acquire assets that are consistent with Middle Street Partner’s strategic focus, and the Freddie Mac financing created the best option to generate yield for their investors.”

The properties included in the transaction are:

Chason Ridge, located at 600 Scotia Lane, Fayetteville, North Carolina; 252 units.

Forestbrook, located at 2805 Shadblow Lane, West Columbia, South Carolina; 180 units.

Gable Hill, located at 310 Ross Road, Columbia, South Carolina; 180 units.

Hampton Greene, located at 500 Gills Creek Parkway, Columbia, South Carolina; 304 units.

St. Andrews Commons, located at 1340 Longcreek Road, Columbia, South Carolina; 336 units.

Waterford, located at 1340 Longcreek Road, Columbia, South Carolina; 268 units.

The Class B, garden-style apartment complexes are conveniently located near major interstate systems and employment hubs, and provide affordable living options for all employment income brackets. With no immediate plans for renovations, the units will remain attractive housing options within a diverse and stable economy including government, education, insurance, financial services and healthcare.

In 2015, the Columbia market absorption of 800 units was in line with the total new deliveries of 952 units. The overall Columbia market has 2,995 units under construction and 1,936 units proposed. The majority of the new supply remains focused in the Downtown Columbia submarket and primarily consists of Class A+ communities allowing the properties in the portfolio to differentiate themselves.

(RECAP: Not only is student loan debt delaying first-time homebuyers, it is delaying them for a long time. Seventy-one percent of non-homeowners with debts from student loans said the burden of those monthly payments was keeping them from buying a home. More than half said it would likely continue do so for more than five years, according to a new study by the National Association of Realtors and SALT, a consumer literacy program provided by nonprofit American Student Assistance. Student debt is also keeping 4 in 10 graduates from moving out of a family member’s house. The survey of 3,000 people conducted in April covered only those who are making on-time payments on their student loans.)

(RECAP: Because the federal government’s solution to America’s housing problems has been so successful… The Department of Education and the Department of Transportation are joining with HUD in a behemoth effort by the Obama administration to force inner-city diversity on America’s suburbs. In what amounts to social engineering on steroids, a de facto regional annexation of America’s suburbs, the federal agencies are adopting a strategy that allows them to dictate to states and local communities how to set up schools, housing and mass transit, The Daily Caller reported. HUD Secretary Julián Castro, Education Secretary John King and Transportation Secretary Anthony Foxx sent a “Dear Colleague” letter last week informing state and local leaders the HUD’s Affirmatively Furthering Fair Housing rule is being expanded to the other two federal agencies to help achieve racial diversity goals in residential, commercial and school site development.)

DALLAS, TX – Many metro apartment markets that were on a downward trend for much of the past year showed signs of strengthening annual effective rent growth in May, and some of the hottest markets cooled off a bit.

The end result, according to Axiometrics, the leader in apartment and student housing market intelligence, was that national rent growth continued to moderate slightly, ending May at 3.8%, compared to April’s 3.9% and the 5.0% of May 2015.

“This decrease in the rent-growth rate falls in line with Axiometrics’ latest forecast, which predicts more moderation this year,” said Jay Denton, Axiometrics’ Senior Vice President of Analytics. “It’s important to note that rent growth is still above the long-term average, and that the decrease from the heights of the past two years is all a part of the cycle.”

The metros were the top story, as some markets that had experienced some rent-growth decline got a nice boost in May. For example:

Anaheim, which had been lagging the other Los Angeles-area metros, had the largest month-to-month increase in annual effective rent growth among Axiometrics’ top 50 markets, based on number of units.

St. Louis, which dropped by 300 bps from July 2015-February 2016, regained its velocity in May with the second highest month-to-month increase.

Virginia Beach had negative rent growth in November 2015, but surpassed 2.5% in May.

And Washington, DC, on a consistent upswing from the lows of 2013 and 2014, had its highest annual effective rent growth since August 2012.

On the other hand, some of the nation’s top markets sustained significant moderation in May, though they are still quite robust compared to other markets.

Sacramento, which continued to record the highest rent growth in the nation among the Axiometrics top 50, had the second largest decrease in its rate.

Portland, OR, which was No. 1 until Sacramento dethroned it in March, had the third largest decrease.

However, the double-digit rent-growth rates achieved by both those markets recently were unsustainable in the long run, and their current figures are certainly making property owners and investors happy.

May’s occupancy rate of 95.2% was, when extended two decimal points, a slight increase from April and a slight decrease from May 2015.

Sacramento No. 1, but Below Double Digits

Sacramento recorded the highest annual effective rent growth among Axiometrics’ top 50 markets in May for the third straight month, though, as mentioned above, the metro moderated from its peak. Still, its 9.7% rent growth is quite strong. None of the top 50 reached double-digit rent growth in May.

Phoenix has risen from No. 5 last month to the No. 2 spot with 8.0% rent growth, while Seattle remained in third place at 7.8%.

MIAMI, FL – Newport Property Construction has been tapped by Starwood Capital Group to complete two South Florida multifamily renovation projects including high-end luxury apartments at the Miami Beach Roney Palace, and hundreds of units at Palm Trace Landings in Davie, Florida.

The South Florida firm was contracted by Starwood Capital Group after the leading global investment firm acquired a portfolio of 23,262 apartment units in a deal reported in October 2015. In South Florida, Starwood now owns 33 properties with 10,742 units.

“Newport Property Construction has the combined advantage of having a strong track-record in apartment repositioning, as well as experience as owners/operators of properties,” said Jose More, Director of Operations and founding partner at Newport Property Construction, Ltd. “With more than 13,000 multifamily units completed – in both high-end luxury and affordable housing – we are the ideal partner to support Starwood’s South Florida endeavors.”

Roney Palace is a 563 unit condominium attached to the One Hotel and Spa located on Collins Avenue, in the heart of Miami Beach. Newport will be renovating more than ten units for ownership with each unit’s sell price topping $1M.

Palm Trace Landings, located in Davie, Florida, is a 414 unit property that will undergo complete interior renovations that will include new kitchens, bathrooms, appliances, flooring and paint. The project will be completed in phases as tenant leases expire.

Newport Property Construction has completed hundreds of multifamily reconstruction projects in Florida alone, and has repositioned more than 13,500 units across 10 states.

(RECAP: The most difficult step for most first-time home buyers, according to research from the National Association of Realtors, is gathering the funds for a down payment. In housing markets such as the Washington region, saving money to purchase a home can be doubly hard: Not only are homes expensive, requiring more cash for even a minimal down payment, but rents are also high, making it tougher to save at all. Fortunately, there are a variety of homeownership programs to help buyers, including some open to people who have purchased before and others limited to first-timers. Michele Watson, director of homeownership programs for VHDA in Richmond, says that in addition to taking home-buyer classes, which often are required for those seeking down payment aid and special loan programs, prospective buyers should check online for their state and local government housing office and housing finance agency.)

COLUMBUS, GA – Flournoy Development Company and Atlanta, GA based Thrive Senior Living announce the development Thrive at Green Island, an assisted living and memory care community in Columbus GA. Flournoy will act as the lead developer on the project, and Thrive Senior Living will operate the community.

Thrive at Green Island will be the first of its kind in Columbus, offering a very unique and innovative approach to senior living. Focusing on resident engagement in connectivity in a resort-quality environment, Thrive at Green Island will use a blend of technology, highly trained care teams, and southern hospitality to create a senior living experience “like you’ve never seen before”.(TM)

Thrive at Green Island will include all of the amenities expected when senior living communities come to mind, but will feature some unexpected offerings as well. The Wellness Center, for example, will feature advanced pneumatic fitness equipment designed for seniors, which have large touch-screen controls, and easy access for those with limited mobility.

The 70 unit community will feature meeting and entertainment venues, healthcare facilities, a spa, salon, and world class dining. Licensed as an assisted living community, Thrive at Green Island will cater to seniors ranging from those who are completely independent, to those who need more care. There will be two separate and distinct neighborhoods within the community, one for Assisted Living and an adjacent Memory Care area dedicated to serving residents with varying levels of dementia. Using specialized technology and a focus on engaging each resident at their level of cognitive ability, Thrive’s highly trained care team aims to give meaning and a high quality of life to residents and to their families.

“There are some very passionate and gifted people in Columbus caring for seniors in somewhat dated environments. We look forward to seeing both the caregivers and our future residents Thrive in an environment that is radically different – using technology and some very innovative tools to improve quality of life in a huge way,” says Jeramy Ragsdale, founder and CEO of Thrive.

Tom Flournoy of Flournoy Development Company says, “We are proud to announce the development of Thrive at Green Island. A place where the latest in senior care technology will be used to provide state of the art assisted and memory care service delivered in an environment specifically designed to enhance the engagement and wellness of seniors in our hometown of Columbus. Through our collaboration with Thrive Senior Living, we will help fill the growing need for quality, residential care for seniors in our community.

Located at the intersection of River Road and Mobley Road on the northwest side of Columbus, the community will break ground in late 2016 and open in late 2017. A welcome center will open for future resident and team member inquiries in the spring of 2017.

Flournoy Development Company is one of the largest private developers of institutional quality apartments in the United States. Founded in 1967, the vertically integrated development company has completed the construction of more than 41,000 apartment units. In 2015, Flournoy Development Company was ranked number 19 among the nation’s top developers by the National Multifamily Housing Council.

Thrive Senior Living is an owner, operator, and developer of world-class senior living communities throughout the US. Recognized as one of the fastest growing and most innovative companies in the senior living industry, Thrive serves over 1,000 residents in 18 communities, and provides employment for over 500 team members.

PORTLAND, OR – Resource Real Estate Opportunity REIT II, a non-traded real estate investment trust sponsored by Resource Real Estate, announced the acquisition of the Breckenridge Apartment Homes in Portland, Oregon.

Breckenridge is a 357-unit garden style multifamily residential community built in 1985 and consisting of 270,240 net rentable square feet. The property offers amenities including a clubhouse, a business center, a fitness center, a swimming pool and Jacuzzi, and private balconies and patios for residents. Breckenridge, which has not been previously renovated, is expected to benefit from an extensive value-add strategy that includes new capital to improve the exterior of the property and to upgrade the common areas and individual units to a more modern look and feel.

Portland, Oregon is one of the healthiest and most diverse economies in the United States and has established itself as both a technology and export hub in the Northwest. Breckenridge is well located within the affluent West Hills submarket, a central location with convenient access to some of the most desirable employers in the area and within the highly ranked Beaverton School District. Breckenridge sits within five minutes of both Providence St. Vincent Medical center, which is the second largest employer in Portland, as well as the Sunset Corridor, which boasts over 4.5 million square feet square feet of office space that predominately houses high-tech companies. Breckenridge provides residents with easy access to Portland’s light rail system, major highways and its extensive bus system.

Kevin Finkel, President and COO of Opportunity REIT II, said, “We are very pleased to be able to execute the purchase of Breckenridge on behalf of Opportunity REIT II and its investors. Portland is among the best cities in the U.S. for attracting young, creative and educated people. Due to its talented labor pool, Portland has seen the breadth of its job opportunities grow as key employers have followed the labor talent in sectors like high-tech, healthcare and apparel. As a result of this population and employment growth, Portland’s apartment market has grown significantly as well, ranking third in the nation for effective rent growth in 2015. We expect that Breckenridge will benefit from the strong market conditions as well as our planned extensive renovation program.”

(RECAP: On May 26, Representative Jordan (R-OH), chairman of the conservative House Freedom Caucus, introduced the Welfare Reform and Upward Mobility Act, which would prohibit Congress from funding means-tested housing programs and in their place create a single state block grant for housing activities. The legislation would cap appropriations for the block grant from FY 2017 through FY 2022 at FY 2016 appropriations levels, and then cut an additional 10 percent annually from 2023 until 2028, culminating in a 50 percent reduction in funding from their total FY 2016 level. The bill would repeal and replace with the block grant the following federal housing programs: Section 8 tenant-based and project based rental assistance, public housing, the HOME Investment Partnerships program, McKinney-Vento Homeless Assistance Grants, the Section 202 Housing for the Elderly program, the Section 811 Housing for People with Disabilities program, the Native American Housing Block Grant program, the Section 101 Rent Supplement Program, the Section 236 Rental Assistance Payments program, the Rural Housing Insurance Fund, and all assistance programs provided by the Rural Housing Service.)