|
Realty News ReportRealty News Report Multi-Family Magazine |
|
Contact editor at realtynewsreport@aol.com |
|
|
Philippines Investor Revs Up Plan LONG BEACH, Calif. – A private investor from the Philippines, planning a push in the Long Beach market, has taken title to a 17-unit apartment building for $1.8 million at a 7.3 percent cap rate. The deal closed escrow in 21 days. The buyer of record is Baratow LLC of Palos Verdes Estates, Calif., and the seller was 1762 E. Third St. LLC of Anaheim, Calif. The property is situated just four blocks from the beach.The complex, positioned at 1762 E. 3rd St., will be paced through extensive renovations inside and out, according to Robert Stepp in the West Los Angeles office of Hendricks & Partners, who arranged the sale. As added insight, Stepp said "we are seeing more foreign investors buying properties these days because of the weak dollar and current exchange rate." ............................................................................................ Balfour Beatty, Florida Atlantic U Sign $123 Million Housing Plan BOCA RATON, Fla. – Balfour Beatty Capital Group Inc. and Florida Atlantic University have inked an agreement to expand the on-campus student housing component. The $123 million plan calls for 1,216 additional beds, creating a phase one for Innovation Village on the main campus. Development and management will be fulfilled through joint ventures of affiliates of Balfour Beatty Campus Solutions LLC and Alabama-based Capstone Development Corp. The Newtown Square, Pa.-based Balfour Beatty also has agreed to buy $3.4 million of tax-exempt bonds to help fund the project. Additional tax-exempt bonds and Build America Bonds are backing the expansion. At completion, the campus' housing component will total 3,662 beds. Pierce Goodwin Alexander & Linville, headquartered in Alexandria, Va., is the architect of the project, which has been designed to LEED Silver standards. Balfour Beatty Construction LLC is the general contractor. The student housing units are slated for delivery in August 2011. Innovation Village is envisioned as a blending of recreation, residential and retail. The first phase of housing is earmarked for upper-level and graduate students. The mix will consist of one-, two-, three- and four-bedroom apartments in two buildings. The seven- and eight-story structures, totaling 489,000 sf, will be connected by a courtyard with recreational and green areas. Other amenities will include a convenience store, computer lab, fitness center and multipurpose meeting area. "This is a great opportunity to build upon the existing traditions of Florida Atlantic University by expanding the on-campus housing options for today's students utilizing the PPP (public-private partnership) model," said Bruce Robinson, president and CEO of Balfour Beatty Capital Group. ............................................................................................ Cook Road Project Sold HOUSTON - Timber Hollow Apartments (282 units), located at 8000 Cook Road in Houston, have been purchased by a local partnership that will spend $2 million on a complete renovation with a new management team. The property was only 82% occupied at closing. Financing was provided by a local bank at 75% total loan to cost.
............................................................................................ NY Mellon Bank Sells Empty Complex SAN ANTONIO – Agape Marbach Manor, a local investment group, has acquired the 123-unit Marbach Manor, a boarded-up complex near Lackland Air Force Base in northwest San Antonio. The seller of the foreclosed property at 7203 Marbach Rd. is the Bank of New York Mellon Trust Co.'s Houston division. Mike Miller in the San Antonio office of Hendricks & Partners marketed the holding for the bank. The gated complex, sitting on 5.5 acres, consists of 14 two-story buildings, with six floor plans from efficiencies to three-bedroom units. Apartments range from 590 sf to 1,257 sf. Key to the sale is the asset's location in the northwest submarket. It is situated close to Loop 410, Texas 151 and US Hwy. 90, just 10 minutes from the downtown. Also close by is the 1,900-acre Port San Antonio, an inland port for industrial and logistical users, and the 1,200-acre Southwest Research Institute's headquarters. ............................................................................................ 154-Unit Project Ready to Go STOUGHTON, Mass. – Atlanta-based Wood Partners LLC has secured a $12 million construction to develop the 154-unit Alta at Indian Woods Apartments. Boston-based Wainwright Bank & Trust Co. has funded the project for an 8.6-acre tract along Route 138. Anthony Cutone, a Boston director for Holliday Fenoglio Fowler LP, arranged the financing for the developer, whose point man in its Concord, Mass., office is Richard Dickason. Alta at Indian Woods has 25 percent of its units reserved for affordable housing. The apartment mix will be one- and two-bedroom units, averaging 865 sf apiece. Amenities will include a clubhouse with fitness center, clubroom, business center and barbecue area with gas grills. ............................................................................................ Two-Asset Package Sells in Central Texas SAN MARCOS, Texas – An Evanston, Ill.-based investment group has scooped up the 77-unit Les Chateaux and 128-unit Meadows Apartments, both within walking distance of Texas State University. The seller is San Marcos Meadows Apartments Ltd. of Austin. Les Chateaux is located at 1000 N. LBJ Dr. and the Meadows at 222 Ramsay. San Marcos Green Investors LLC is the buyer of record. Mike Miller and Will Caruth in the San Antonio office of Hendricks & Partners brokered the sale. The Meadows, developed in 1975, has studio units of 412 sf and one- and two-bedroom apartments of 562 sf and 788 sf, respectively. Les Chateaux, built in 1963, is a mix of one-, two- and three-bedroom apartments, ranging from 562 sf to 975 sf. ................................................................................................ Oregon Investors Ink 77-Unit Sale BEAVERTON, Ore. – A private investor from Portland, Ore., has acquired the 77-unit Willow Creek Apartments for $4.8 million from Willowcreek Investors of Oregon LLC of Hillsboro. The sale of the complex at 903 SW 185th Ave. in Beaverton was arranged by Ira Virden, an investment specialist in Portland for Marcus & Millichap Real Estate Investment Services. The mix is all two-bedroom units, each 985 sf. ................................................................................................ Atlanta Developer Readies $58.8 Million Plan ATLANTA – Place/BV Student Housing Fund LLC has secured construction capital for the 477-bed-unit Tailor Lofts in Chicago. The $58.8 million project is slated for delivery in August. Tailor Lofts, rising in the heart of Chicago's West Loop, will feature 135 furnished units in a pocket with access to more than 20 area colleges and universities. The fund is a joint venture between Atlanta's Place Properties and Chicago-based Blue Vista Capital Management LLC. BVP Managers LLC is the fund manager. "Downtown Chicago is a vibrant student housing market and Tailor Lofts will fill the void of quality, purpose-built student housing in the market. The project is exceptionally located to serve the metro Chicago colleges and universities," said Bob Clark, executive vice president of Place Management Group LLC. ................................................................................................ Austin Auction Yields $7.3 Million AUSTIN – Thirty-one condos in Sabine on Fifth have brought more than $7.3 million in an auction by Kennedy Wilson. More than 500 people attended the auction, sparking a bidding war for the one- and two-bedroom units in the 10-story building. "It was a win-win for the seller and for buyers. Buyers found newly developed condos in the heart of Austin’s entertainment district at great prices, and the seller was pleased that all homes offered sold in just one day while exceeding price expectations," said Rhett Winchell, president of the Los Angeles-based auction group. ................................................................................................ Project Sells for $31 Million WASHINGTON, DC - The Washington, D.C. office of HFF (Holliday Fenoglio Fowler, L.P.) handled the sale of Gables Rothbury, a 204-unit multi-housing community in Montgomery Village, Maryland.
Avalon Bay Communities, Inc. purchased the property for $31.25 million, all cash.
................................................................................................ Units Sell for $15.1 Million DAVIS, Calif. - Hendricks & Partners announced the sale of Stonegate Village, located at 2950 Portage Bay West in Davis, Calif. The 148-unit apartment community was sold for $15,100,000.
HUD Loan for 160 Units In $7.6 Million ReFi INDIANAPOLIS, IN – The Indianapolis office of HFF (Holliday Fenoglio Fowler, L.P.) arranged a $7.6 million refinancing for Auburn Hill Apartments, a 160-unit multi-housing complex on the west side of Indianapolis, Indiana.
................................................................................................. 18 Units Sell For $3,375,000 LOS ANGELES – Marcus & Millichap Real Estate Investment Services announced the sale of 1428 Kelton Avenue, an 18-unit Apartment property located in Los Angeles, according to Justin White, Regional Manager of the firm’s West Los Angeles office. It sold for $3,375,000. ............................................................................ Forest City, Bernstein Form JV for 1,340 Apartments WASHINGTON, D.C. – Forest City Enterprises Inc. has sold a 50 percent stake in a trio of residential properties, totaling 1,340 units, to Bernstein Management Corp. for $34 million. The assets are all located in the new partner's homeport, the Washington, D.C. metro. In a press release, Cleveland-based Forest City said the deal carries a 6.5 cap rate based on 2009 net operating income from the properties. The portfolio consists of the 549-unit Grand in North Bethesda, Md., 385-unit Lenox Club in Arlington, Va., and 406-unit Lenox Park in Silver Springs, Md. Forest City will continue to lease and manage the trio. Its minority investors in the assets weren't impacted by the JV transaction, according to the release. "The creation of this joint venture is an important step in our strategy of capturing value and generating liquidity from within our portfolio," said Charles A. Ratner, Forest City's president and CEO. "The continuing strength of the multifamily rental market in the Washington, D.C. area, and the quality of these assets, together with early signs of an economic recovery, made this the right time to bring this venture to fruition." ............................................................................. Florida Investor Gets 40 Units ST. PETERSBURG, Fla. – A limited liability company from Carmel, N.Y., has sold the 40-unit Ambassador for $1.37 million to a buyer from Reddington Beach, Fla. The complex, situated at 440 50th Ave., drew several offers during a three-week marketing period. "We chose a buyer who was in an all-cash position who only needed a short inspection period. The deal was closed within 25 days from the effective date," said Francesco P. Carriera, an investment specialist with Marcus & Millichap Real Estate Investment Services in Tampa. He and Nicholas Meoli, also an investment specialist, marketed the holding. The Ambassador, developed in 1969, is situated on a 1.23-acre tract. It has 11 one-bedroom units with 625 sf apiece and 29 two-bedroom apartments, each 750 sf. ............................................................................. Project Goes for $132,000 Per Unit NORTH HOLLYWOOD, Calif. - Hendricks & Partners announced the sale of Simpson Avenue Apartments, located at 7526 Simpson Ave. in North Hollywood, Calif. The 44-unit apartment community, built in 1990, was sold for $5.8 million or $132,000 per unit. Hendricks & Partners represented both the buyer and seller.
............................................................................. Sold: 238 Units in Austin AUSTIN – A local investor has acquired the 238-unit Shady Oaks South Apartments from a Houston-based partnership. The complex is situated at 4320 S. Congress Ave. in a neighborhood known locally as SoCo. The 75 percent-leased one- and two-bedroom units range from 627 sf to 838 sf. According to Internet research, monthly rents start at $640 and end at $840. Norman Eastwood, an investment specialist in Dallas for Marcus & Millichap Real Estate Investment Services, marketed the holding for the seller. .................................................................................... Oregon Complex Brings $1.1 Million PORTLAND, Ore. – The 17-unit Cedarbook has been bought by an investment group from California for $1.1 million at a cap rate of 6.5 percent. Bartmasser Family Investments LLC acquired the complex at 5102 SW 45th Ave. in Portland from a local investment group, RDP Properties LLC/Pounder Properties Cedarbrook LLC. Grayson Pounder in the Portland office of Phoenix-based Hendricks & Partners received three offers as a result of a two-week marketing period. Built in 1969, Cedarbrook's units range from 450 sf to 825 sf. The complex is located close to Hillsdale and Multnomah Village. .................................................................................... Two Complexes Fetch $2.9 Million NEWPORT BEACH, Calif. – The Olson Trust of Seal Beach, Calif., has acquired two multifamily properties, each with six units, in the city for $2.97 million from Farmers & Merchants Trust Co. The just-sold complexes are Bedford Apartments at 1601 Bedford Lane and Buckingham Apartments at 1069 Buckingham Lane. All units are two-bedroom floor plans. Steven C. Brombal in the Newport Beach, Calif., office of Hendricks & Partners represented the buyer of the CB Richard Ellis-marketed deal. According to the buyer, the selling cap rates were 4.14 percent for Bedford, which brought $1.46 million, and 4.09 percent for Buckingham, which fetched $1.51 million. The seller provided a seven-year, interest-only loan at a 6 percent fixed rate on a 60 percent loan-to-value ratio. .................................................................................... 21 Units Trade for $5.4 Million WEST HOLLYWOOD, Calif. – A California-based limited liability company has paid $5.4 million for the 21-unit Harratt Apartments, a class A, non-rent-controlled asset just 140 feet from the fabled Sunset Strip. Verdugo GF LLC of Sherman took the deed to 8819 Harratt St. from Harvest Research & Investment Inc. of Beverly Hills, Calif. Brent Sprenkle in the West Los Angeles office of Hendricks & Partners represented the seller. According to the marketing brochure, it is "extremely rare" in West Hollywood to have a non-rent-controlled property. Three units in the four-story building are part of the city's Inclusionary Housing, which are reserved as affordable housing. Harratt Apartments abuts the London Hotel, home to the famous restaurant of Chef Gordon Ramsey. Also nearby is the UCLA campus. The complex sits on a street-to-street lot totaling 16,000 sf. Two-bedroom apartments constitute 86 percent of the mix, with units of 1,031 sf and rents of $1,921 per month. The one-bedroom units are 820 sf apiece, with their monthly rents set at $1,289. The Harratt Apartments, developed in 1989, feature a grand lobby, with elevator, and gated parking for residents. .................................................................................... Houston Apartment Vacancies Going Up HOUSTON – The Houston economy will begin to improve this year after low oil prices and mass layoffs at area Fortune 500 companies weighed on the market in 2009, according to the 2010 National Apartment Report by Marcus & Millichap. Nonetheless, the construction of new units will outpace demand, pushing vacancy higher and widening concessions. “The Heights and Inwood/Northwest Houston submarkets should outperform the metro due to their proximity to employment centers and limited availability of housing alternatives for local residents,” says Brent Smith, regional manager of Marcus & Millichap’s Houston office. “In addition, high-growth Fort Bend County will attract job seekers, supporting demand for top-tier units.” Following are some of the most significant aspects of the Houston Apartment Research Report: · Job growth is anticipated to resume this year as payrolls expand by 54,000 positions, a 2.1 percent gain. · After nearly 12,900 apartments came online last year, development is expected to slow to 5,600 units in 2010, expanding marketwide inventory by 1.2 percent. · Despite a 0.8 percent increase in apartment demand, vacancy will tick up 30 basis points to 12.6 percent this year due to supply additions. Last year, vacancy spiked 220 basis points. · Asking rents are projected to finish 2010 at $737 per month, a 1.2 percent loss. Effective rents, meanwhile, are expected to retreat 2.7 percent to $656 per month. Also included in the report is the firm’s annual National Apartment Index (NAI), a snapshot analysis that ranks 44 apartment markets based on a series of 12-month forward-looking supply and demand indicators. Houston moves up four places this year to No. 28. Washington, D.C., retained the top spot in the NAI for the second consecutive year, as ongoing government spending will fuel metrowide hiring and apartment demand. San Diego, No. 2, rose four places due to expectations for resumed employment and household growth. New York City, which ended 2009 as the tightest apartment market in the country, jumped five places in the index to No 3. Despite tight vacancy, rents in Minneapolis-St. Paul, No. 4, continue to contract, causing the market to slip one spot this year. Job growth in Philadelphia will lag the nation in 2010, easing the metro down three places to round out the top five. .................................................................................... Tate Takes Freddie Refi MYRTLE BEACH, S.C. -- HFF arranged $9 million in financing for Alta Surf Apartments, a 216-unit multi-housing complex in Myrtle Beach, S.C. . HFF directors Brian Carlton and Ike Ojala worked on behalf of the Miami-based borrower, Tate Capital Real Estate Solutions, LLC, to secure the seven-year, fixed-rate loan through HFF’s Freddie Mac (Federal Home Loan Mortgage Corporation) Program Plus Seller/Servicer relationship. The loan was made under Freddie Mac’s Capital Markets Execution (CME) program and Freddie Mac intends to securitize the loan in the near future. One of Tate Capital’s entities acquired the property all-cash in late 2009. Completed in 2007, Alta Surf Apartments is 88 percent occupied and community amenities include a resort-style swimming pool, clubhouse, fitness facility, billiards room, laundry facility, car wash, storage units and detached garages. The property is located at 101 Breakers Drive in Myrtle Beach .
....................................................................................... Fla. Units Sold for $740,000 DeLAND, Fla. - Marcus & Millichap Real Estate Investment Services has announced the sale of Wellington Apartments, a 24-unit apartments property located in DeLand, Florida, according to Bryn D. Merrey of the firm’s Tampa office. The price was $740,000.
............................................................................... Dallas Deal Done DALLAS – The Dallas office of HFF (Holliday Fenoglio Fowler, L.P.) announced that it has closed the sale of Preston Bend, a 255-unit multi-housing complex in far North Dallas. The HFF investment sales team was led by senior managing directors Bill Miller and managing director Roberto Casas, who exclusively represented the seller, Equity Residential. Richard Hoffmann, president of Anterra Realty Corp,, assisted a private investor from California, who purchased the property for an undisclosed price. Situated on a nine-acre site at 18790 Lloyd Drive, Preston Bend has immediate access to President George Bush Turnpike in far North Dallas and is close to the Dallas North Tollway, North Central Expressway, Interstate 35 and LBJ Freeway. The 96% leased property has one- and two-bedroom units averaging 726 square feet each. Community amenities include a tennis court, sport court, fitness facility, car care center, playground and swimming pool. “Preston Bend has a fantastic location within the recognized Plano Independent School District close to the Baylor Regional Medical Center of Plano and Legacy Business Park, which is home to major employers such as EDS, FritoLay, JCPenney and Cadbury Schweppes,” said Miller. “The stabilized asset is a solid B property, in a good location, which helped drive investor interest. The buyer has a great reputation and transaction history, which helped facilitate a smooth transaction,” added Casas. Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. Equity Residential owns or has investments in 494 properties totaling 136,843 units in 23 states and the District of Columbia. www.equityresidential.com. Anterra provides multi-family services to individuals and financial institutions in the areas of property and construction management, brokerage, due diligence and loan underwriting. Based in Dallas, Anterra currently manages over 5,000 units of apartments ranging from Class A to D properties in all the major cities in Texas.
.................................................................................. $53 Million Deal Reaches Goal Line DENVER – As reported in mid-December 2009, Behringer Harvard and its Dutch pension fund partner have closed on the $53 million acquisition of 4550 Cherry Creek, a 24-story residential building with 288 units. "4550 Cherry Creek is a luxury high-rise multifamily community near the key employment centers of a major metropolis that is one of America's most livable cities," said Mark T. Alfieri, COO of the Dallas-based Behringer Harvard Multifamily REIT I Inc. The building is midway between downtown Denver and the Denver Tech Center. Alfieri added that Denver been weathering better than many other U.S. cities. "We believe this acquisition represents a quintessential buying opportunity that will provide exceptional value over our anticipated holding period," he said. The one-, two- and three-bedroom units range from 938 sf to 1,881 sf. Monthly rents start at $1,028 and stretch to $3,000, according to Internet research.The Cherry Creek neighborhood is a 26-block district with exclusive residences, high-rise office buildings, condominiums and townhouses set in a vibrant cultural and entertainment corridor. The JV's new deed has views from most floors of the downtown skyline and Front Range of the Rocky Mountains. Behringer Harvard's joint venture partner is PGGM Private Real Estate Fund. In the past two years, the JV has acquired 6,165 apartments in 22 multifamily properties in 11 U.S. states. .................................................................. Houston Investor Wins 98-Unit Villa Nueva HOUSTON – A local partnership has outmaneuvered eight other would-be buyers chasing the 98-unit Villa Nueva Apartments. Listed for $1.57 million, the vintage complex was on the market 90 days. Brian Janak, investment specialist for Marcus & Millichap Real Estate Investment Services in Houston, said the buyer made the close with help from a local regional bank at nearly 75 percent loan-to-value financing. The seller of the 40-year-old complex, positioned on 2.4 acres at 827 Oak St., was a financial institution from Pennsylvania. Janak said the new owner will jump into repairing 25 down units to get them back on line, renovate the balance over time and provide "a safer community and a better property to the blue-collar tenant base that resides there." .................................................................. 150 Units Sell at 6.8% Cap Rate LEXINGTON, Ky. – A local limited liability company has paid $5.5 million for the 150-unit Lexington, opening the play at a 6.8 percent cap rate on in-place net operating income. The seller of the 3308 Montavesta Dr. holding was Montevesta Associates LP, an affiliate of Alexander Properties Group Inc. of Atlanta. The buyer of record is the Reserve at Merrick LLC, who plans to invest more than $1 million into a retooling plan. The plan also includes a new name for the property. Todd Stofflet, Rick L. Vidrio and Rick Brace in the Michigan office of Hendricks & Partners represented the seller. The buyer's broker was Hendricks & Partners' strategic partner, Jeff Stidham of Stidham Commercial Partners. According to Internet research, the Lexington's one-, two- and three-bedroom units range from 545 sf to 1,342 sf. Monthly rents are $515 to $990. In another Hendricks & Partners' sale, the 67-unit Windsong Villas at 1202-14 N. Broadway in Escondido, Calif., sold for $7.7 million to Windsong Apartment Homes LP of Encinitas, Calif., which assumed a $4.9 million loan to make the close, according to a press release. Steve Huffman and Allen Chitayat in Phoenix-based firm's San Diego office represented the seller, Windsong Villas LP/Consolidated Equity LP of San Diego. .................................................................. Sold: 36-Unit Sonoma Terrace BRYAN, Texas – A local buyer has laid claim to the 36-unit Sonoma Terrace, taking the deed to the 94 percent-leased asset in a face-off against a dozen other would-be buyers. Nick Fluellen, associate vice president for Marcus & Millichap Real Estate Investment Services in Dallas and associate Will Tolliver marketed the holding at 611 S. Ennis St. for an owner from Novato, Calif. The listing drew 13 offers in 10 days, driving a closing in less than 60 days.The brokers have sold 10 multifamily properties in Bryan since 2007. "Each of those offerings has drawn significant activity with numerous offers, and this was no different," Tolliver said. "This transaction serves as evidence that even in this marketplace, well-priced assets will garner a great deal of interest." Built in 1969 near the historic downtown, the seven-building complex underwent more than $155,000 of improvements. At sale time, the brokers said renovations were 75 percent complete. Sonoma Terrace's two-bedroom units are 1,050 sf apiece. .................................................................. Oakmont Apartments Sold TAMPA, Fla. - Marcus & Millichap Real Estate Investment Services announced the sale of Oakmont Apartments, a 30-unit apartment in Tampa, according to Bryn Merrey, Regional Manager of the firm’s Tampa office. The asset commanded a sales price of $1.8 million. Francesco P. Carriera and Nicholas Meoli, investment specialists in Marcus & Millichap’s Tampa office had the exclusive listing to market the property on behalf of the seller, a bank/financial institution. Michael Harris, an associate with Marcus & Millichap's Special Assets Services division assisted Carriera and Meoli in the transaction. .................................................................. Project Sold for $223 PSF HUNTINGTON BEACH, Calif. -- Harborscape Apartments, an 88-unit, 73,972-square foot apartment community in Huntington Beach has been sold. The sales price of $16.5 million represents $187,500 per unit, $223 per square foot and a cap rate of 5.4 percent. John Nguyen, a vice president investments and a director of Marcus & Millichap’s National Multi Housing Group in Newport Beach, and Sheil Stampwala, a multifamily investment specialist, also in Newport Beach, represented the seller, a private investor PGGM Adds $300 Million To Behringer Harvard JV DALLAS – PGGM Private Real Estate Fund is anteing up another $300 million for its joint venture relationship with Behringer Harvard. In two previous tranches, the Dutch pension fund has contributed $200 million to the locally based investment group for its acquisition of multifamily properties in the U.S. To date, Behringer Harvard Multifamily REIT I has amassed a 4,741-unit portfolio, buying 17 upscale properties in 10 states from the co-investment till. The JV's focus has been major metropolitan areas, including Washington, D.C., Las Vegas, Atlanta, Dallas, Houston, Denver, Fort Lauderdale and Los Angeles. "We believe that PGGM's decision to increase its investment in our U.S. multifamily platform is a vote of confidence in the quality of the diversified portfolio we have built together thus far," said Mark T. Alfieri, executive vice president of real estate for the Dallas-based investment group. Behringer Harvard, as before, will be the driving force for acquisition, asset management and disposition services, legal and accounting services and property management. ............................................................................. Campus Apartments Expands Portfolio PHILADELPHIA – In back-to-back transactions, Campus Apartments LLC has secured third-party management rights to 14 properties with 5,865 beds owned by six separate owners. The student housing projects are located in Alabama, Georgia, Idaho, Kentucky, Michigan, New York, North Carolina, South Carolina, Tennessee and Texas. "Our experience and knowledge of student housing are the most important factors contributing to the recent growth of our third party management portfolio," said David Adelman, president of the Philadelphia-based company. ............................................................................. JV Takes Over Waterford Place ARLINGTON HEIGHTS, Ill. – The 280-unit Waterford Place has been sold to a partnership that made the close with a 10-year, fixed-rate loan from Freddie Mac. The asset was 94 percent leased at sale time. Holliday Fenoglio Fowler LP director Matthew Schoenfeldt arranged the financing for Waterford Apartments LLC, a partnership between Legacy Real Estate Development LLC of Deerfield, Ill., and Tarson Investments LLC of Lincolnshire, Ill. According to HFF, the investment group is holding another $50 million of equity to deploy into income-producing real estate assets. The buyers paid $22 million to Capreit Inc. of Maryland, which owned the 313 Happfield Dr. complex since 1998, Internet research shows. The 21-building Waterford Place has one- and two-bedroom units averaging 774 sf. About half of the units had been renovated by the seller. "The Chicago suburban multi-housing market remains strong as limited new construction and previous condominium conversions have created high occupancy rates and increasing rents," said Matthew Lawton, executive managing director of the HFF team who brokered the sale of the Waterford Place. "With limited new supply on the horizon, owners have turned to large scale renovation projects in order to capitalize on demand for higher end units." ............................................................................. REIT Pays $38.6 Million for 277 Units SANTA ROSA, Calif. – After placing the contract in mid-October 2009, Behringer Harvard Multifamily REIT I Inc. has closed on a 277-unit complex in the Sonoma Valley for $38.65 million. The Dallas-based REIT has acquired the Acacia on Santa Rosa Creek at 4656 Quigg Dr. from an affiliate of Shea Apartment Communities of Aliso Viejo, Calif. According to an SEC filing, the buyer has had $300,000 of earnest money resting against the property since Oct. 14 and then ponied up another $900,000 prior to the closing. Behringer Harvard, speeding through a frenzied buying spree with and without joint venture partners, assumed a $26.9 million loan to close the deal. The balance has been funded through IPO proceeds. "Acacia on Santa Rosa Creek presented us with an attractive opportunity to acquire a well-performing multifamily community located in a highly desirable place to live," Mark T. Alfieri, the REIT's COO. "We expect this asset to benefit from the resilient demand for multifamily housing in Sonoma County. Rental demand in the area is driven by a fast-growing population of young adults and a median home value that still exceeds half a million dollars." The 15-building asset, developed in 2003 on an 11.6-acre tract, has direct access to Mission Boulevard and Highway 12. The mix has one-, two- and three-bedroom floor plans, ranging from 630 sf to 1,271 sf. Internet research shows rents of $1,095 to $1,750 per month. ............................................................................. $21.2 Million Wins 254-Unit Deed SAN BERNARDINO, Calif. – An affiliate of Strata Equity Group has taken title to the 254-unit Broadstone Serrano, paying $21.25 million to a major insurance company for its keys. The complex at 1930 W. College Ave. was built in 1987 and extensively renovated in 2007-08. It reportedly was the only market-rate, class B asset with 100 or more units to sell in the Inland Empire during 2009. The property is within a half mile of Cal State San Bernardino, which has more than 17,000 students. Paul Runkle in the Inland Empire office of Hendricks & Partners and Ralph DePasquale in the Chicago office of Hendricks & Partners represented the seller. Strata Serrano LLC made the close with 65 percent loan-to-value financing from Freddie Mac, according to the dealmakers. ............................................................................. 44 Units Change Hands AUSTIN – A limited liability company from Houston has bought the 44-unit Garden Path Apartments in North Austin. Kent Myers, an investment specialist for Marcus & Millichap Real Estate Investment Services in Austin, represented the local seller. Jason Heard, a specialist on the firm's Fort Worth team, represented the buyer of the mix of one- and two-bedroom apartments at 8017 Gessner Dr. Financing arranged by Michael Laurencelle, an associate of Marcus & Millichap Capital Corp. ............................................................................. Re-Fi for $156 Million The Chicago office of HFF (Holliday Fenoglio Fowler, L.P.) announced it has arranged a $156 million refinancing for an eight-property, 2,306-unit multi-housing portfolio in Indiana , Kentucky , Tennessee and Virginia . HFF director Matthew Schoenfeldt worked on behalf of NTS Realty Holdings Limited Partnership (“NTS”) and its wholly-owned subsidiaries to secure the 10-year, 5.4 percent fixed-rate loan through Freddie Mac. The loans, which will be serviced by HFF, are securitized through Freddie Mac’s Capital Markets Execution (CME) program. Loan proceeds will be used to retire existing life company mortgages and commence a program of targeted capital improvements at the Class-A properties. Hendricks Sells 175 Units KENT, Wash. - Summerwalk Apartments, located at 22440
55-Plus Age Project Purchased PHOENIX - Behringer Harvard acquired San Sebastian, an age-restricted multifamily community, through a strategic alliance with Phoenix-based Alliance Residential. San Sebastian provides 134 apartment homes on a three-acre site at 24299 Paseo de Valencia in Laguna Woods, an affluent area in Orange County, Calif. approximately 35 miles southeast of Los Angeles. "San Sebastian represents a strategic complement to the substantial presence we are building in the southern California multifamily market," said Mark T. Alfieri, Chief Operating Officer of Behringer Harvard Multifamily REIT I, Inc. ......................................................... Multifamily Market's Pendulum Swings Toward Development By Connie Gore DALLAS – Tracking shifts in the multifamily market, experts believe 2010 is the year for development. The latest research shows the market is on a trajectory for demand and rent growth beginning in 2011. "We are in the beginning of a vacancy recovery this year," said Hessam Nadji, managing director of research for Marcus & Millichap Real Estate Investment Services. "Everything is getting staged in 2010 for a tremendous run in 2011 and 2012." Nadji pointed out that economists are predicting a "tepid" year so there is a need to "play it safe" in planning, particularly since it's still unknown what will happen when government stimuli/incentives burn out. Even in markets like Austin, where record deliveries have occurred, there will be pockets of opportunity, said Nadji, who was part of a Webinar sponsored by Dallas-based Humphreys & Partners Architects LP. Austin and Texas' other major metros will continue to battle high vacancy issues, with all ranked in the 15 worst markets in the nation. Nadji's early 2010 research shows Dallas/Fort Worth's vacancy averages 9.5 percent; San Antonio, 10.4 percent; Austin, 10.6 percent and Houston, 12.6 percent. Dallas, Houston, Atlanta and Phoenix all suffer from oversupply, the researcher stressed. "There is a huge vacancy overhang, but you can find opportunity almost anywhere," Nadji said, citing Austin as a prime example. Its worst period is now over, with new product delivered and its fundamentals, including job growth, aligned to perform in 2011. Grandbridge Real Estate Capital LLC senior vice presidents John Fenoglio and Philip Melton walked the estimated 1,000 listeners through funding options, including the return of equity and mezzanine backing to the marketplace. "We're starting to pick up a pulse," Fenoglio, one of Houston's leading names in the financial sector. Fenoglio said equity and mezz lenders aren't operating with allocation mandates, but they are at least now willing to discuss projects. Private equity and "country club" equity also are back in the game, showing a strong "hometown bias" for projects that they entertain. The caveat is the deal must have an unleveraged return in cost of 9 percent or better on "real rents, realistic absorption and true costs," he said. "Pro formas don't work." Doug Bibby, president of the National Multi Housing Council, laid out the work that's still to be done at the federal level, including implementing policies that lead to a balanced housing supply. "What got us into this mess was disjointed policy….home ownership at any cost," he said. "There is a need for balance as we go forward." Mark Humphreys, CEO of the architectural firm, said the industry buzz is 2011 and 2012 could result in record rental years. "2010 is the year to get ready for that demand," he said.................................................................. Investor Sells California Units LOS ALAMITOS, Calif. – Wagon Wheel Village Inc. of Jackson, Wyo., has sold the eight-unit Remington Court for $1.45 million to the Vititow Family Trust of La Habra, Calif. Located at 11210 Reagan St., the complex has six two-bedroom units and one unit each with a studio floor plan and one bedroom. It also features 11 garages. Steven C. Brombal and Peter Hauser in the Newport Beach, Calif., office of Hendricks & Partners negotiated the sale. ................................................................. Apartment REIT Opens 2010 With $17.4 Million Contract By Connie Gore DUNCANVILLE, Texas – Grubb & Ellis Apartment REIT has signed a letter of intent to buy the 216-unit Bella Ruscello Luxury Apartment Homes for $17.4 million from its developer. The complex, now 97.4 percent leased, was built in 2008 on 10.6 acres at 250 E. Highway 67 by the Carbon Cos. in Richardson, Texas. According to the would-be buyer's SEC filing, the agreement was inked with $150,000 of earnest money and a plan to close the deal in the first quarter. Stanley J. Olander Jr., president and CEO of the Santa Ana, Calif.-based REIT, said the development "will be an excellent addition" to the portfolio. "This is a well-occupied and well-equipped community that will further diversify our REIT portfolio and provide additional value to our stockholders," he added. The gated complex has one- and two-bedroom units from 655 sf to 1,074 sf. Internet research shows rents start at $674 per month and run up to $1,150. Bella Ruscello's amenity package includes a fitness and business centers, a running and bike trail and direct access to a five-acre waterview park. In the SEC filing, the seller of record is Duncanville Villages Multifamily Ltd., which is affiliated with North Texas-based Carbon Cos. Bella Ruscello is managed by Carbon Thompson Residential Management. ................................................................. 308-Unit Beach Place Fetches $31.2 Million SUNNY ISLES, Fla. – Sky Development has collected $31.25 million from sale of the 308-unit Beach Place Apartments to a fund operated by Jamestown Properties. The 93 percent-leased asset, situated on seven acres at 17098 Collins Ave., is within walking distance of the Intracoastal Waterway and Atlantic Ocean. Beach Place Apartments consists of four six-story buildings with one- and two-bedroom units averaging 901 sf apiece. Holliday Fenoglio Fowler LP director George Vail, associate director Jaret Turkell and real estate analyst Scott Wadler marketed the holding. The winning bid of $101,000 per unit came from an Atlanta-based firm funded by German investors. "The transaction closed in under one week with flawless execution - a tribute to the buyer, seller and their respective counsel and advisers," Turkell said. "That the ultimate buyer of this unique property was a prominent investment group backed by European capital is a testament to how the international community views greater Miami and Sunny Isles as a very desirable venue for long-term investments." Vail added that the "high barrier-to-entry location and the recent high quality renovations" position Beach Place Apartments as a prime candidate for a condominium conversion or to continue as a "strong rental location." ................................................................. $4.7 Million Takes 135 Units FAYETTEVILLE, Ark. – The Bank of Fayetteville has passed the 135-unit South Creekside to ALS Management LLC of Springdale, Ark., for $4.7 million. Built in 1967, the complex sits on 8.28 acres at 900 N. Leverett Ave., just four blocks from the University of Arkansas. South Creekside is the closest non-university-owned multifamily properties to the campus. John Clayton, Aaron Hargrove and Tim McKay of Hendricks & Partners' Central South team brokered the sale of the five-building complex. The mix of one-, two- and three-bedroom units, ranging from 670 sf to 880, sf, rent for $375 to $650 per month. ................................................................. Texas Multifamily Team Reports Buying Interest on Upswing By Connie Gore DALLAS – If two sales in Dallas and San Antonio are any indication of the future, the hard times could be easing for the multifamily market in parts of Texas, according to an investment sales team for Marcus & Millichap Real Estate Investment Services. "In the past 90 days, we have seen transaction velocity increase. Investors are stepping off the sidelines because we are at or near the bottom of the downward pricing trend and there has been a lack of for-sale product on the market during the past 18 months," said Will Balthrope, vice president of investments and senior director in Dallas for the firm's multi-housing group. The pair of recent sales drew a combined 95 offers. "We are beginning to see the results of pent-up demand from buyers that have raised capital to purchase distressed assets, but are not finding good quality assets at deep discounts," Balthrope continued. "They are beginning to move today on quality real estate." The 258-unit Delante at 1001 Lake Carolyn Parkway in the Las Colinas submarket was paced through 50 tours, with 44 offers rolling in for its Dallas-based developer. The three-year-old complex was bought by Slosburg Cos. of Omaha. Balthrope said the class A property was "tracked closely by almost every buyer in the country." He and Ryan Epstein, associate director for Marcus & Millichap's multi-housing group, represented the seller in the free-and-clear trade. The Delante is a mid-rise with one- and two-bedroom units ranging from 722 sf to 1,622 sf. Its monthly rents go from $979 to $2,599. In San Antonio, the 312-unit Colonnade at 9898 Colonnade Blvd. was bought by FSC Realty of Beverly Hills, Calif. Balthrope and Epstein marketed the class A complex for Greystar Real Estate Partners, receiver for Midland Loan Servicing, garnering offers from 51 of the 52 would-be buyers who toured the property. The Colonnade was developed in 1994 on a 12-acre tract in the 63-acre Colonnade Business Park, a development mix near Interstate 10 that also includes office, hotel and retail space. The one- and two-bedroom units range from 648 sf to 1,194 sf. Internet research pegs its rents at $670 to $965 per month. ................................................................. Deal Closes for 399 Units in San Antonio SAN ANTONIO – A Centennial, Colo., investor has sold 399-unit Spanish Trace Apartments near Park North Mall and Loop 410 to San Antonio Green Investors LLC of Evanston, Ill. The complex, located at 7226 Blanco Rd., was developed in 1969. Units average 759 sf, a mix of studios, one-, two- and three-bedroom designs from 448 sf to 1,403 sf. Monthly rents start at $399. Mike Miller in the San Antonio office of Hendricks & Partners represented the seller, North Park Apartments LLP. ................................................................. Bank Sells Class A Project in St. Louis ST. LOUIS – Southern Commercial Bank has sold the partially completed Lehman Place on the Park in St. Louis' historic Dogtown neighborhood to a limited liability company, with Capstone Development Group LLC as part of the buy side. The 14 residential units and 7,444 sf of retail space at 6400 Wise Ave. were marketed for $3.29 million. Ken Aston in the St. Louis office of Phoenix-based Hendricks & Partners brokered the sale for the St. Louis bank. Lehman Place is situated 1.5 miles south of Forest Park, south of one of the city's most treasured resources. It's also just minutes from the Washington University, Central West End and Clayton. The gated complex features condominium-mapped units with bamboo flooring, maple cabinetry, high ceilings and private garages with elevators. The two- and three-bedroom units range from 983 sf to 1,870 sf. Residential rents start at $1,050, according to Internet research. ................................................................. 388 Units Sell for $3.3 Million FORT WAYNE, Ind. – The 388-unit Twin Oaks Apartments have traded for $3.3 million or $8,505.15 per unit in an exchange between private investors from Roseville, Calif., and Great Neck, N.Y. The complex, situated at 2754 E. Paulding Rd., was 75 percent leased at sale time, according to Alon Shnitzer in the Phoenix office of Marcus & Millichap Real Estate Investment Services. He and Richard Glinski in the firm's Denver office, and Colin Atkinson and Brent Silcox in the Indianapolis office represented the California-based seller. The buy side was brokered by Peter Flis in the brokerage firm's Sacramento office. ................................................................. Broadstone Ranch Financing SAN ANTONIO, Texas - Bryan Leonard, senior vice president and managing director and Robert Jordan, vice president of NorthMarq Capital’s (NorthMarq) San Antonio Regional office arranged first mortgage financing of $13.028 million for Broadstone Ranch, a 252-unit multifamily property located in San Antonio. Financing was based on a 10-year term with 24-months interest only followed by a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac. “Our local presence and market expertise together with our national platform were the key ingredients to successfully funding this acquisition loan for our client,” Leonard said. ................................................................. 333-Unit Broadstone Parkway Moves to USAA Real Estate ADDISON, Texas – USAA Real Estate Co. has bought the 333-unit Broadstone Parkway and 39,167-sf commercial component in North Dallas from Bank of America. The complex at 5005 Galleria Dr. was completed in 2008 by Phoenix-based co-developers Opus West and Alliance Residential. The trio of four-story buildings was 93.7 percent leased at sale time."This investment represents an opportunity to acquire a core urban infill mixed-use project that will further diversify and strengthen our portfolio," said Pat Duncan, chairman and CEO of the San Antonio-based investment company. Duncan pointed out that more than 72 percent of the units are one-bedroom floor plans, "capturing high demand among the area's young, educated workforce." The mix of one-, two- and three-bedroom units range from 644 sf to 1,698 sf. Monthly rents range from $1,060 to $2,150. The class A complex is outfitted with a two-story athletic center and cardio theater, movie lounge, relaxation garden and resort-style pool, all within walking distance of the Galleria Mall. .................................................................
Behringer JV Completes 177-Unit Buy IRVINE, Calif. – Behringer Harvard Multifamily REIT I Inc. has made good on its plan to buy the 177-unit Calypso Apartments and Lofts in Orange County for $49 million. The class A complex sits on 3.7 acres at 2801 Alton Parkway, just a half mile from the one million-sf District at Tuscan Legacy, three miles from the John Wayne Airport and 38 miles southeast of Los Angeles. "We believe that the relatively high cost of single-family housing in the surrounding area positions this multifamily community for attractive rent growth and value appreciation," said Mark T. Alfieri, COO of the REIT, which has PGGM Private Real Estate Fund, an investment vehicle for large Dutch pension funds, as its partner in an ongoing buying spree. This month, the partners have deployed more than $200 million in loans and outright sales to acquire 1,465 units in California, Colorado, Oregon and Washington D.C. The Calypso has studios and one- and two-bedroom apartments, ranging from 605 sf to 1,448 sf. According to Internet research, rents start at $1,495 and max at $2,695. The buyer, citing Property and Portfolio Research, said Orange County is expected to achieve the strongest recovery in apartment values and net operating income in the next five years of the 54 markets that it tracks. The REIT's portfolio now consists of 5,466 units in 19 multifamily complexes in 11 states. .................................................. Texas Investors Close 44-Unit Deal AUSTIN – In a swap between Texas investors, a new owner is in control of the 44-unit Southwood Apartments in south central Austin. Underwriting the sale of a complex, situated on slightly more than one acre at 1801 Fortview Rd., is a historically high occupancy. According to the sales brochure, the asset hovered 93 percent occupancy when it came to market for nearly $2 million. Fortwood Apartments LLC of Austin got 41 one-bedroom units, each 525 sf, and a trio of two-bedroom apartments with 750 sf apiece. Rents average $604 per month. Ellen Muskin and George Deuillet III in the Austin office of Phoenix-based Hendricks & Partners represented the seller, Jermyles Properties LLC of San Marcos, Texas. Dave Bair of Prudential Texas Realty brokered the buy side. With location always a consideration, Southwood is positioned less than 10 minutes from downtown Austin, four miles south of the University of Texas at Austin and three miles from St. Edward's University, a private college. It's also close to Zilker Park, Lady Bird Lake Auditorium Shores and Barton Springs. .................................................. 10-Unit Complex Changes Hands ALAMEDA, Calif. – A 10-unit complex has fetched $1.4 million in another California exchange. Douglas Himan, vice president of Marcus & Millichap Real Estate Investment Services, and colleague John Joines, both in the Oakland office, represented the local partnership that sold the 2236 San Jose Ave. property. Helena Ma from HKH & Associates of Oakland, Calif., represented the buyer. Developed in 1965, the complex contains three one-bedroom units and seven two-bedroom floor plans. The property is located on the fringes of the downtown and two blocks from public transportation. .................................................. UPDATE Behringer Harvard JV Completes $65 Million Tower Purchase PORTLAND, Ore. – As reported earlier this month, Behringer Harvard Multifamily REIT I Inc. and its Dutch partner, PGGM Private Real Estate Fund have taken title to the 352-unit Cyan/PDX in downtown Portland for $65 million. The joint venture buyer has two more contracts pending in Denver and Irvine, Calif. The just-bought Cyan is a 16-story tower at 1720 SW 4th Ave. that delivered earlier this year, with lease-up still underway."We are pleased to acquire an asset that offers a transit-oriented location, superior walkability and sustainability as well as modern amenities and architectural significance," said Mark T. Alfieri, COO of the Dallas-based REIT. "Cyan represents the future of the multifamily asset class." The mix of one-, two- and three-bedroom units average 636 sf, with 5,700 sf in its retail component. Among its sustainable design features are an ecologically friendly roof, native plantings and rainwater harvesting. The developer is working its way through LEED Gold certification. Cyan sits close to Portland State University and Pettygrove Park on the CBD's southwestern edge, boasting easy access to interstates 405 and 5 and US Hwy. 26. The development includes on-site bicycle parking facilities and is close to streetcar, MAX light-rail and TriMet bus lines. .................................................. Sold: 64-Unit Teson Garden HAZELWOOD, Mo. – Millsap LLC of Grover, Mo., has acquired the 64-unit Teson Garden Apartments from a couple in Del Mar, Calif. The 12-building complex at 2 Teson Garden Walk was 98 percent leased when it hit the market earlier this year, according to Internet research. Although the price isn't being disclosed, dealmakers said the trade was consummated at an 8.27 percent cap rate on the holding's 2008 actual numbers. Paul Cunningham in the St. Louis office of Hendricks & Partners negotiated the sale for Gary and Karen Lee of Del Mar. "The sellers' willingness to creatively assist the buyers in getting their financing secured was key to this sale," Cunningham said. "The buyers are getting a stable complex in a good neighborhood, with the opportunity for real rent upside as they perform capital improvements." Teson Garden is a mix of one- and two-bedroom units near Hazelwood West High School, a community park and Truman State Park. Its location also is within a 10-minute drive of Lambert International Airport. Internet research shows rents of $475 and $595 per month. .................................................. $350 Million Beacon Gets ULI Honor JERSEY CITY, N.J. – The $350 million Beacon has been named 2009 project of the year by the New Jersey District Council of the Urban Land Institute. Metrovest Equities was honored for the ongoing conversion of the former Jersey City Medical Center into a mixed-used project. The Beacon is considered the largest residential restoration project in the nation and largest in the history of New Jersey. The Beacon is comprised of 10 art deco buildings developed in the 1930s during the reign of Jersey City Mayor Frank Hague. The 14-acre medical center, shuttered in 1988, was bought in 2003 by Metrovest Equities. Metrovest is converting the property into 1,200 luxury residential units and 80,000 sf of retail space, performing adaptive reuses of many buildings listed on the New Jersey State and National Register of Historic Places. The first phase has delivered 315 condominiums, now more than 90 percent sold and occupied, and 45,000 sf of interior amenities. The second phase is the 17-story Mercury Lofts, which have 25 units ranging from 2,994 sf to 6,665 sf. Also, work is underway on 66,000 sf of retail for children's education and recreation, including sports training. "The Beacon is perhaps the most important development in Jersey City as it demonstrates that you can successfully redevelop outside of the small band of property along the waterfront," said Robert Antonicello, executive director of the Jersey City Redevelopment Agency. "This ambitious process, led by our talented and committed project team and a host of skilled professionals and consultants, has resulted in a viable new use for an underutilized property that has already yielded significant economic benefits to the city, helped spearhead new revitalization efforts in the area and created a truly unique living experience for more than 500 residents to date," said George Filopoulos, president of the New York-based Metrovest Equities. .................................................. El Paso Group Gets 201 Units For $2.2 Million in REO Sale PHOENIX – The 201-unit Camelback Vista has drawn $2.2 million in an REO sale by La Jolla Bank to LB & LB Partners LLC of El Paso. The eight building complex sits on a 4.68-acre tract at 2930 W. Camelback Rd. The mix contains 92 studio units of 450 sf each, 106 one-bedroom apartments with 690 sf apiece and a trio of 700-sf, three-bedroom units. Mark Forrester and Ric Holway with Phoenix-based Hendricks & Partners negotiated the sale for La Jolla Bank. At sale time, occupancy was 26 percent. .................................................. $55, 000 Per Unit Takes PA Complex POTTSTOWN, Pa. – A limited liability company from Ambler, Pa., has taken title to the 20-unit Elliott Place for $1.1 million. The sale, moving start to finish in 62 days, sold at an 8.3 percent cap rate and 98 percent of the ask. Ken Wellar and Zachary Pierce in Marcus & Millichap Real Estate Investment Services' Philadelphia office marketed the holding at 124 King St. for the local private investor. "We were able to generate a tremendous amount of investor interest surrounding this offering," Pierce said, citing nearly 30 property tours and seven solid offers. "The eventual buyer paid cash and closed quickly because he knew he was in a competitive situation." The 90 percent-leased complex consists of 16 one-bedroom and four two-bedroom apartments. The asset also features an indoor parking garage. .................................................. Invesco Buys 280-Unit Avalon WESTBOROUGH, Mass. – Dallas-based Invesco Real Estate, acting for a pension fund client, has grabbed the reins to the 280-unit Avalon at Flanders Hill from AvalonBay Communities Inc. The complex was 97 percent leased at sale time. The complex, situated at 1 Homestead Blvd. near the junction of interstates 90 and 95, has one-, two-, three-bedroom units and lofts, ranging from 746 sf to 1,573 sf. According to Internet research, AvalonBay had rents set at $1,330 to $1,940 per month. "The greater Boston residential market has performed relatively well throughout the recent economic downturn," said Joshua Siegel, Invesco's acquisition officer. "Strong fundamentals, limited existing inventory and a lack of new development will combine to make this a quality investment for our client." Developed in 2002, the asset features an indoor basketball court, fitness center, swimming pool and playground. Some units have fireplaces and direct-entry garages. Simon Butler and Biria St. John of Cushman & Wakefield Inc. represented the Alexandria, Va.-based seller. .................................................. Off-Market Move Takes 24-Unit Asset SHERMAN OAKS, Calif. – Putting a $6.4 million off-market offer on the table, a local limited liability company has pocketed the deed to the 24-unit Benefit Court Apartments. The asset was 96 percent leased at sale time. Benefit GF LLC took the deed to 14430 Benefit Court from a limited liability company from Manhattan Beach. The sale price breaks down to $268,750 per unit for two-bedroom apartments built in 1987 near Ventura and Beverly Glen boulevards. The complex is situated within walking distance of the Village at Sherman Oaks. "The property traded hands solely to facilitate a partnership matter" said Ed Fischer, a Hendricks & Partners broker in the North Los Angeles office. "The buyer moved quickly with a short contingency period, strong track record and equally strong desire to own the property." Fischer teamed with Hendricks & Partners' Vince Norris to sell the holding. Norris added that the buyer closed with cash and secured Fannie Mae financing in less than 30 days. The brokers said the new owner, who has several trophy properties in the area, plans on renovating the complex and holding it for the long term. "This sale supports the theory that there is always demand for well-located, well-managed assets," Norris said. .................................................. 10 Units Sell for $2.4 Million PASADENA, Calif. – Ty Yeh Properties LP of Long Beach, Calif., has paid $2.4 million in cash or $306.51 per sf for 10 two-bedroom apartment in Madison Heights. Kevin Lutz and Kevin W. Hurley in the Pasadena office of Hendricks & Partners represented the seller of 812 S. Marengo Ave., Eight Twelve LLC of Westlake Village, Calif. Marengo Apartments sold at a 4.59 percent cap rate.The marketing team said the 29-year-old complex attracted several offers, with the nod going to the all-cash bid. The asset is situated within walking distance of Old Town and Paseo Colorado. The complex, with 750-sf units, features 15 tuck-under parking spaces. Monthly rents average $1,446. .................................................. Painted Trails Brings $15.6 Million GILBERT, Ariz. – Fairfield Properties LP has sold the 196-unit Painted Trails for $15.6 million to Painted Trails Holdings LLC of Logan, Utah. The San Diego-based seller had Alon Shnitzer, a director in Marcus & Millichap Real Estate Investment Services' national multi-housing group and associate vice president, marketing the two-year-old development at 4255 E. Pecos Rd. The sale price breaks down to $80,000 per unit or $83.59 per sf. Painted Trails is a mix of one-, two- and three-bedroom apartments, ranging from 827 sf to 1,098 sf. As one of the city's newest developments, its rents go from $799 to $1,490 per month, based on Internet research. .................................................. Atlanta Developer Working $24 Million Student Project SAN ANTONIO – Place/BV Student Housing Fund LLC has closed on the land and construction loan for the 440-bed Avalon Place near the University of Texas at San Antonio. Work is under way on the developer's third project in the Alamo City. The Atlanta-based fund has penciled a July delivery for the development at 6676 UTSA Blvd., which is across the street from the UT campus. Avalon Place's 246 units will be a mix of one-, two- and four-bedroom units. The fund's managers are BVP Managers LLC, a joint venture between Place Cos. of Atlanta and Chicago-based Blue Vista Capital Management LLC. "Avalon Place, along with High View Place and Hill Country Place, gives us a dominate position in the UTSA market," said Bob Clark, executive vice president of Place Management Group LLC. .................................................. Bulk Condo Sale, Traditional Sale Reel In $21 Million PHOENIX – A Canadian-based investment group has paid $4.8 million for 78 condos in the 240-unit Riverwalk in the East Phoenix/Papago Park submarket. In California, a 136-unit complex sold for $16.1 million. The condos were offered in a bulk sale by Riverwalk 240 LLC of Miami. The buyers of the condos at 5345 E. Van Buren St. were Optimus Riverwalk LLP, Japhda Riverwalk LP and Strongwater Investments America of Calgary. Marc Forrester and Ric Holway of Phoenix-based Hendricks & Partners represented the seller. Riverwalk was developed in 2000 on an 11.5-acre tract, close to Loops 101 and 102 and the Hohokam Expressway. The bulk sale encompassed the remaining one- and two-bedroom units, mostly leased through six- to 12-month terms, and included 12 detached garages. Floor plans range from 752 sf to 1,112 sf.Prior to the residential market's collapse, condos were selling for $163 per sf to $197 per sf. The bulk sale realized less than $80 per sf. In another Hendricks & Partners-orchestrated sale, the 136-unit Rancho Las Brisas at 3699 Barnard Dr. in Oceanside, Calif., has sold for $16.1 million to Lone Tree Empire LLC of San Francisco. Steve Huffman and Dick Bassett in the San Diego office of Hendricks & Partners represented the seller, Terra Las Brisas LLC of Evanston, Ill. Rancho Las Brisas, built in 1974, consists of 11 two-story buildings on 7.2 acres. The one- and two-bedroom units range from 815 sf to 1,015 sf. .................................................. Condos Fetch $129,167 Each HOLLYWOOD, Fla. – The 24-unit Mediterranean at Young Circle has brought $129,167 per unit, trading to a limited liability company from Dania Beach, Fla. The complex at 1800 Jackson St. started out as boutique condominium when construction began in 2005 and stalled in August 2007 when purchase contracts expired, according to Still Hunter III, first vice president in Marcus & Millichap Real Estate Investment Services' Fort Lauderdale office. "By this time the market for condominiums had mostly evaporated and as the contracts expired, the buyers walked away and the lender commenced foreclosure proceedings due to lack of sales," he said. Hunter and Evan Kristol, a senior vice president of the brokerage firm, represented the seller, a limited liability company from West Palm Beach, Fla. The buyer's broker for the $3.1 million acquisition was Elliot Shainberg in the firm's Miami office. Shainberg said the new owner plans to start an aggressive leasing campaign for the one-, two- and three-bedroom units. "The leasing should be a quick process given the property's superior visibility on US Hwy.1/ Federal Highway in Young Circle/ Downtown Hollywood," he added. .................................................. Behringer Harvard Multifamily JV Reworks Loans for Majority Stakes WASHINGTON, D.C. – Through an investment restructuring, Behringer Harvard Multifamily REIT I Inc. and its Dutch pension fund partner, PGGM Private Real Estate Fund, has secured more than 75 percent interest in two class A complexes, totaling 648 units, in the Washington, D.C. metro. Meanwhile, the REIT has signed $167 million of purchase options for properties in California, Colorado and Oregon. The 414-unit Bailey's Crossing, about 90 percent finished, consists of a seven-story building and a trio of three- and four-story buildings. The complex sits at 3602 S. 14th St. in Alexandria, one west of the intersection of Interstate 395 and Route 7 in Fairfax County, Va. The 234-unit 55 Hundred at 5500 Columbia Pike in Arlington, Va., is about 99 percent done. The 10-story building includes 7,000 sf of street-level retail. "Bailey's Crossing and 55 Hundred are core assets located in a metro area that is coveted by the global real estate investment community," said Mark T. Alfieri, COO of the Dallas-based REIT. "Acquiring substantial interests in assets of this quality is a major achievement for our REIT. We believe these assets are strategically positioned to benefit from future population growth in the D.C. metro area." In its SEC filing, Behringer Harvard said the restructuring motive for 55 Hundred was "to reduce the overall leverage in the projects, obtain a 14 percent preferred return on any additional capital that will be contributed and remove the projects from the financial uncertainty of Fairfield Residential LLC, the developer….and to obtain control of the projects and to extend the terms of the senior loans." The SEC filing noted that all goals were accomplished. To achieve the 55 Hundred restructuring, the JV contributed $17.6 million of equity in exchange for a first priority return of 14 percent and converted an existing $20.3 million mezzanine loan into equity capital for a second priority return of 9.5 percent. Both returns will be compounded quarterly. Prior to the move, 55 Hundred's $69.8 million senior loan had $61.2 million of outstanding debt. The reworked loan reduced the principal to $52.7 million. Also, the maturity date was extended to Nov. 23, 2013 with a one-year extension option. For Bailey's Crossing, the JV contributed $29.1 million of equity in cash for a 14 percent first priority return. The restructuring converted a $22.5 million mezzanine loan into equity capital and a second priority return of 9.5 percent. The returns will be compounded quarterly. Bailey's Crossing was shouldering a $110.7 million senior loan, of which $82.1 million was outstanding, according to the SEC filing. The reworked terms reduced the loan's maximum to $74.7 million. Other moves deployed $23.6 million of equity capital to the $82.1 million mortgage, reducing the senior loan to $58.5 million of outstanding debt and $16.2 million still to be funded. The senior loan's maturity date for Bailey's Crossing was bumped to Nov. 30, 2011, with a three-year extension option as part of the terms. The 55 Hundred restructuring was aided with $9.7 million of proceeds from the REIT's initial public offering. The REIT kicked in $16 million of IPO funds to repackage Bailey's Crossing. The SEC filing also detailed the REIT's plans to acquire the 325-unit Cyan in Portland, Ore., for $65 million; 288-unit Cherry Creek Tower in Denver for $53 million; and 177-unit Calypso Apartments and Lofts in Irvine, Calif., for $49 million. .................................................. 330 Houston Units Bought by Behringer Harvard HOUSTON - Behringer Harvard has acquired the developer’s ownership interest in The Eclipse, a 330-unit multifamily community at 1725 Crescent Plaza in Houston. This investment was made through a joint venture of Behringer Harvard Multifamily REIT I and PGGM Private Real Estate Fund, an investment vehicle for large Dutch pension funds. “This desirable community is located in the heart of the Energy Corridor, home of many of Houston’s largest oil- and gas-related employers,” said Mark T. Alfieri, Chief Operating Officer of Behringer Harvard Multifamily REIT I, Inc. “Since construction was completed this year, the property has leased up at an impressive pace. We expect further office and retail construction to increase demand for luxury apartment homes in the area over the next few years.” The Eclipse features a club room, swimming pool, business center, fitness area, theater and game room. The community is near George Bush Park, a 7,800-acre park with facilities for baseball and soccer, an equestrian area, shooting center, pavilions, model airplane field and trails for hiking and biking. Houston’s population growth continues to outpace the national average. By 2011 to 2013, Houston is expected to enjoy an economic recovery that will be one of the strongest among the 54 metropolitan areas tracked by Property and Portfolio Research. The portfolio of Behringer Harvard Multifamily REIT includes investments in 17 multifamily communities in 10 states providing a total of 4,937 apartment homes. .................................................. Goldman Sachs Invests $61 Million Into Building 568 Affordable Units NEW YORK – Goldman Sachs Urban Investment Group will park $61 million with the New York Equity Fund (NYEF) to seed an initiative to preserve more than 500 affordable rental homes for low-income New Yorkers. It is the fund's largest single investment in its 20-year history. The fund is a joint venture of the Department of Housing Preservation and Development, Enterprise Community Investment Inc. and Local Initiatives Support Corp. (LISC) In the past two decades, NYEF has invested $1.6 billion into city efforts to build and preserve affordable rental units for residents earning less than 60 percent of the area's median income or less than $46,800 for a family of four. The Goldman Sachs investment will be applied to revitalization efforts for 568 units in Harlem, Brooklyn and the Bronx. "At a time when economic pressure has constrained city resources and impacted so many families, the Goldman Sachs investment will have a clear and immediate impact," said Michael Rubinger, president and CEO of LISC. Enterprise and LISC will make the Goldman Sachs' capital available to developers of affordable housing. The two housing organizations also will provide expertise and technical assistance for the development of the units. ........................................................... Brass Real Estate Acquires 292-Unit Broadstone Ranch SAN ANTONIO – Brass Real Estate Funds has acquired the 292-unit Broadstone Ranch in northwest San Antonio from San Francisco-based McMorgan & Co. The four-year-old complex, situated on 13.6 acres at 5203 UTSA Blvd., is located midway between Interstate 10 and the University of Texas at San Antonio and close to USAA's campus and the South Texas Medical Center. "Broadstone Ranch is a luxury class A asset located next to one of the fastest-growing universities in Texas," said Will Balthrope, vice president of investments and senior director of the national multi-housing group for Marcus & Millichap Real Estate Investment Services. "The property will provide upscale student living for this captured tenant base." He teamed with Ryan Epstein, a multifamily specialist in the brokerage firm's San Antonio office, to sell the holding. The local buyer's new asset has 132 one-bedroom units, 84 two-bedroom apartments and three dozen three-bedroom floor plans, ranging from 568 sf to 1,301 sf. According to Internet research, Broadstone Ranch's rents range from $730 to $1,550 per month. ........................................................... $1 Million Wins Five-Unit Building PHILADELPHIA – A limited liability company from Great Neck, N.Y., has paid slightly more than $1 million for a five-unit apartment building in Philadelphia's Rittenhouse Square. The apartment building has a 50-50 split of four one- and two-bedroom units and a single studio floor plan. "The property traded in the low six percent cap rate range and for $204,000 per unit which proves that well-located properties will still trade at premium no matter what turmoil the economy is experiencing," said Ken Wellar, investment specialist in the Philadelphia office of Encino, Calif.-based Marcus & Millichap Real Estate Investment Services, who represented local seller. "Properties like this simply don't trade hands too often." The buyer's broker was Adelaide Polsinelli in Marcus & Millichap's Manhattan office. ........................................................... Sterling University Peaks Changes Hands BOULDER, Colo. – The 96-unit Sterling University Peaks has been sold to a Denver-based partnership, University Communities LLC, marking this year's first student housing sale in the state. The 97 percent-leased complex at 2985 E. Aurora Ave. is within blocks of the University of Colorado at Boulder. The seller is FPA Sterling Associates LLC, an affiliate of Fowler Property Acquisitions of San Francisco. Sterling University Peaks, all two-bedroom units, was developed in 1965. Pat Stucker and Mark Favro of Cushman & Wakefield of Colorado Inc. marketed the holding for Fowler. "There are very few transactions completed in a limited growth market such as Boulder," Stucker said, "however we were very fortunate to be able to complete a sale which accomplished both the buyer and seller’s objectives." ........................................................... Encore Eyes Q1 Groundbreaking BURLESON, Texas – Dallas-based Encore Multi-Family will break ground in January on a 200-unit development in south Fort Worth. The Encore at Alsbury will go up on a 12.25-acre tract with direct access to Interstate 35W. The transit-oriented development's completion is penciled for first quarter 2011.Encore Multi-Family is a subsidiary of Encore Enterprises, which is backing a development pipeline for similar class A projects predominately in the Southwest and Southeast in the coming years. "The multifamily market segment represents a compelling growth opportunity for our company and our Burleson development is representative of other projects we are developing around the country," said Dr. Bharat Sangani, chairman and co-founder of Encore Enterprises. "With its fast-growing population, easy access to Fort Worth and the planned rail line, the Burleson TOD is a natural fit for our newest property." According to market data, Burleson's population has grown by 65 percent in the past nine years.JHP Architecture of Dallas designed the Alsbury. Amenities will include a 6,183-sf, resort-style clubhouse, WiFi, coffee bar and traditional must-haves such as a pool, fitness center and business center. "We are excited to be a part of this sustainable urban community project. The property's convenient location on the I-35W corridor and emphasis on urban living will promote a healthy, balanced lifestyle for the residents of Tarrant and Johnson counties," said Steve Mentesana, president of Encore Multi-Family. ........................................................... 270-Unit Asset's Refi Nets $14 Million CORPUS CHRISTI, Texas – Wood Partners LLC has secured $13.9 million from Freddie Mac in a refinancing of the 270-unit, class A Alta Bayside Apartments. Holliday Fenoglio Fowler LP director Matt Kafka arranged a seven-year, adjustable rate loan for the 15-acre development at 1701 Ennis Joslin Rd., just east of South Padre Island. Alta Bayside boasts 96 percent occupancy in its 10-bulding mix of one-, two- and three-bedroom units averaging 1,088 sf. The two-year-old complex's amenities include a clubhouse, game room with billiards and reserved boat parking. Internet research pegs rents at $825 to $1,450 per month. According to HFF's press release, the Atlanta-based developer will use the Freddie Mac funds to retire Alta Bayside's construction loan. HFF will service the new loan. ........................................................... 39 Units Command $4 Million VISTA, Calif. – Limited liability companies from California have exchanged the 39-unit Westwind for $4.05 million. Steve Huffman and David Andrews in the San Diego office of Hendricks & Partners packaged the deal for Westwind Equities LLC of Beverly Hills. The buyer of 171-80 Nettleton Rd. was LHI LLC of Poway. Westwind, developed in 1989, contains 11 studios, 27 one-bedroom units and a single two-bedroom apartment. The complex includes 42 one-vehicle garages. ........................................................... 36-Unit Complex Sells in Phoenix PHOENIX – The 36-unit Royal 8th Avenue has sold to a local limited liability company for $975,000. MLM 8th Ave. Phoenix LLC took the deed to 4435-35 N. 8th Ave. from DK Real Estate Holdings LLC, also from Phoenix. Brian Smuckler, vice president in Marcus & Millichap Real Estate Investment Services' Phoenix office, represented the seller, with senior associate Jeff Seaman at his side to handle the buy side. ........................................................... Koreatown Units Sell for $1.3 Million LOS ANGELES – A private investor from Beverly Hills, Calif., has invested $1.28 million into a 20-unit residential building in Koreatown. Jonathan Nikfarjam and Robert Leveen, investment specialists in West Los Angeles for Encino, Calif.-based Marcus & Millichap Real Estate Investment Services sold the asset for a private investor from Arcadia, Calif. Built in 1923 and renovated four years later, the building at 147 N. New Hampshire Ave. has direct access to downtown Los Angeles and the 101 and 10 freeways. ........................................................... The Houston Apartment Market: By Richard Zigler The local multifamily market has, not surprisingly, been hit hard by the economic downturn. Suffice it to say that when plans were made for the nearly 14,000 units completed in 2009 (and almost 12,000 still under construction), nobody anticipated that high-flying Houston would lose over 100,000 jobs in the span of a year. Massive job losses always seem to come as a surprise, a bit of psychological dissonance that allows people to believe that economic problems elsewhere won't impact them. Shedding 100,000 jobs in a year is hardly unprecedented in the Houston market, and there always seems to be tens of thousands of apartments under construction when the job market plunges here. Until the job market turns around -- and although the worst appears to be over -- it may be some time before hiring accelerates, apartment demand will remain subdued. To date, many lenders have been reluctant to foreclose, preferring a strategy that has been dubbed "extend and pretend". With the government ratcheting up pressure on banks to get their balance sheets in order, will banks continue to "delay and pray"? How long until the anticipated flood of foreclosures hits? We have already seen significant foreclosure activity in the Class C arena, but less so in Class A. Expect to see the number of foreclosures increase in the Class A market in 2010, albeit not at the level that many had projected. Flushing out the distress will certainly cause a great deal of pain for many investors, but is ultimately what is needed for a widespread recovery in the investment market. Savvy buyers will find that opportunities exist today to acquire desirable assets at prices lower than we have seen in years, taking advantage of discounted prices while the "smart money" remains on the sidelines. If you are buying today, however, make sure to plan on two to three years before revenue recovery begins in earnest. Mr. Zigler is a Houston-based real estate consultant with expertise in market analysis, due diligence, and property evaluation. He has been helping investors make better real estate decisions since 1998. Richard can be reached at rezigler@yahoo.com. ........................................................... 183-Unit Asset Earns $24 Million Refi FULLERTON, Calif. – Cornerstone Real Estate Advisers LLC has secured $24 million from Freddie Mac, collateralizing the refinance with the 183-unit City Pointe Apartments in North Orange County. The new capital replaces maturing debt held by Cigna Investments. The class A City Pointe at 130 E. Chapman Ave. has five stories of residential units, street-level retail space and a parking garage. Developed in 2004, the apartments, averaging 875 sf each, are 95 percent occupied. Internet research puts rents at $1,499 to $2,050 per month. Holliday Fenoglio Fowler LP senior managing director Dana Brome and senior real estate analyst Carlos Febres-Mazzei arranged the five-year, adjustable-rate loan through Freddie Mac's Capped ARM Program for the Hartford, Conn.-based investment company. ........................................................... Marcus & Millichap Sells 18 Units
. .................................................................... Kendallwood Fetches Nearly $18 Million WHITTIER, Calif. – A tenant-in-common partnership has paid $17.75 million for the 120-unit Kendallwood to NNC Kendallwood LLC, a single-asset entity with Phoenix ties. The seven-building complex, built in 1971 on 4.18 acres at 10522 Santa Gertrudes Ave., is considered one of the city's top-ranked multifamily properties, according to a Hendricks & Partners' press release. Peter Hauser and Shane Shafer in the firm's Newport Beach and North Orange County offices, respectively, handled the sales campaign. In the release, the brokers added that "the Kendallwood purchase represents a quality asset acquisition for long-term ownership benefits." The TIC partnership is led by Tom Coates of Southern California. Internet research shows Kendallwood's one- and two-bedroom units rent for $1,250 to $1,500 per month. The complex includes a fitness center, spa and barbecue area. .............................................................................................. 10 Units Bring $122,500 Each LONG BEACH, Calif. – A private investor from Westminster, Calif., has acquired the 10-unit Broadway Downtown for $1.22 million. Kishor Narsai was up against two other would-be buyers for the seller-financed opportunity to buy the 1614 E. Broadway Ave. property, which was on the market just 25 days. Robert Stepp in the West Los Angeles office of Phoenix-based Hendricks & Partners handled the sale for Lawrence E. Guesno Sr. and Carol A. Guesno of Long Beach. Stepp said the deal closed with a 21-day escrow at a 7.11 percent cap rate. The cash-on-cash return for the Broadway Downtown transaction is estimated to be 9 percent. .............................................................................................. Behringer Harvard Completes First of Two Multifamily Buys By Connie Gore ORANGE, Conn. – Behringer Harvard Multifamily REIT I has closed on the first of two contracts that it has resting against properties in Connecticut and California. The Dallas-based REIT has paid $25.5 million for the 168-unit Avalon Orange to AvalonBay Communities Inc. The class A complex is situated at 75 Prindle Hill Rd. on a 9.6-acre wooded tract in the affluent suburb, just nine miles southwest of New Haven."Since its construction in 2005, this multifamily community has sustained a high level of occupancy and stable income," said Mark T. Alfieri, COO of Behringer Harvard Multifamily REIT I. The buyer immediately renamed the six-building holding to Grand Reserve Orange. The REIT also has the 277-unit Acacia on Santa Rosa Creek in Santa Rosa, Calif., under contract for $38.65 million. That deal, secured by $1.2 million of earnest money, is in the REIT's pipeline as a loan assumption accounting for $27.1 million of the purchase price, according to an SEC filing. Behringer Harvard reported to the SEC that the Grand Reserve Orange was acquired with funds from its initial public offering. The complex has a mix of one-, two- and three-bedroom apartment homes, ranging from 761 sf to 1,332 sf. Internet research shows monthly rents start at roughly $1,410 to more than $2,100. The Alexandria, Va.-based seller developed the property with a wetland preserve, incorporating a scenic boardwalk into the design. It's also located a half-mile from Boston Post Road, less than five miles from the 1.3 million-sf Connecticut Post Mall and one mile from Interstate 95. .............................................................................................. Three Multifamily Sales Cross Finish Lines VANCOUVER, Wash. – Private buyers in Washington, Florida and Colorado have laid out a combined $4.73 million for 85 units. The largest sale was $1.89 million for the 36-unit Mountains at 3400 NE 66th Ave. in Vancouver. Ira Virden in Marcus & Millichap Real Estate Investment Services' Portland office and Greg Wendelken with the Seattle team negotiated the bank-ordered sale to a Vancouver investor. In Fort Lauderdale, $1.64 million bought the 32-unit Holly Heights Apartments at 900 NE 14th St. Marcus & Millichap associate Joseph P. Thomas and senior associate Felipe J. Echarte represented the sellers, all private investors from New York and Boca Raton, Fla. Thomas also secured the buyer, a limited liability company from Davie, Fla. Marcus & Millichap Capital Corp. associate directors Michael McCleary and Bill D. Papagno arranged the Fannie Mae financing. In Denver, a local seller picked up $1.2 million from a local investor for a 17-unit complex at 1671 Cook St. Greg Price in Marcus & Millichap's Denver office represented the seller. The $70,588 per unit closing is being touted as one of the highest per unit sales this year in Central Denver. .............................................................................................. Denver Investors Ink 39-Unit Trade DENVER – A 39-unit apartment complex has sold for $2.45 million in an exchange between private investors from the city. According to Marcus & Millichap Real Estate Investment Services, the new owner of the building at 6 Lincoln St. intends to renovate the units as they roll. Boutique Apartments of Denver has been retained to manage the property. Greg Price in Marcus & Millichap's Denver office negotiated the sale. .............................................................................................. 10 Units Sell in L.A. LOS ANGELES – A Los Angeles County investor has sold a 10-unit multifamily asset, with underground parking, to a local buyer. Situated at 743 N. Sweetzer Ave., the building has a eight one-bedroom units and a pair of two-bedroom apartments. Rents are $1,321 and $1,736 per month, respectively. Kimberly Roberts-Stepp of the Charles Dunn Co. in Los Angeles represented the seller and Coldwell Banker Commercial handled the buy side. Internet research shows the controlled-access complex was fully leased. The asset sits north of Melrose Avenue and east of La Cienega, with Beverly Center, Cedars-Sinai and retail all close by the garden-style building. .............................................................................................. Trustee Sells Spanish View Towers' Site LAS VEGAS – Douglas Wilson Cos. has reported that the unfinished Spanish View Towers, with an estimated completion cost of $660 million, has been sold in a stalking horse bid process on behalf of the U.S. trustee. One Cap Mortgage Corp. held trust deeds valued at roughly $36 million, including interest and fees. Tigg Mitchell, director of brokerage services for San Diego-based Douglas Wilson Cos., said the sale is one of the largest this year of a multifamily land transaction in Las Vegas. The brokerage firm also handled due diligence and entitlement assessments. Spanish View Towers' construction was halted in July 2006 when its developer, Tower Homes, was embroiled in a mechanics' lien lawsuit. The 14.3-acre site is fully excavated and holds a partially constructed underground parking garage. The site is entitled for 390 residential units and 29,000 sf of street-level retail space in three 27-story towers. .............................................................................................. California Investors Close 18-Unit Sale MARTINEZ, Calif. – A private investor from Santa Rosa, Calif., has paid $1.15 million for the 18-unit Casa Adobe Apartments in the downtown to a partnership from Hayward, Calif. Kevin Turner, senior vice president for Marcus & Millichap Real Estate Investment Services in Oakland, Calif., represented the seller of the four-building complex at 1230 Pine St. Built in 1927 and 1930, the complex has eight studios, 10 one-bedroom apartments and 9,646 sf of retail space. The asset is situated within walking distance of Martinez City Hall, the Amtrak station and the Main Street shopping corridor. .............................................................................................. Post Investment Group Grabs 738 Units in Two Texas Cities By Connie Gore AUSTIN – Using the distressed market to grow its portfolio, Post Investment Group LLC has acquired 738 units in Houston and Austin in a pair of unrelated transactions. The Los Angeles-based buyer has gained an inroad to the capital city while boosting its spending to nearly $80 million since midyear. Lined up for re-brandings are the just-bought 300-unit Longhorn Station Apartments at 2005 Willow Creek Dr. in Austin and 438-unit Serrano Apartments at 14723 and 14726 West Oaks Plaza Dr. in Houston. Both complexes were 30 percent occupied at sale time, said Jason Post, president of the investment group. He confided that the deals will add $40 million of capitalized value to the portfolio after renovations are done. The Austin pick-up was bought for $15,000 per unit in an off-market deal with Des Moines-based Principal Financial Group as the REO lender in a seller-financed deal with a three-year, fixed-rate loan for Post. The Houston purchase, which cost in the low $50,000 per unit, was tantamount to a short sale, with the buyer assuming a discounted loan placed by special servicer, ING Clarion, according to Post. Post Investments' contrarian move in June 2008 has paid off in today's financial world. The buyer went dormant and stayed that way for one year, emerging again last June for a Dallas acquisition. Post said he's invested nearly $80 million since the re-emergence. "We'll continue to be active in 2010 in both distressed and core-plus/value-add markets," Post stressed. The search is on for properties in Phoenix, Tucson, the Inland Empire, Los Angeles, the Carolinas and all major metros in Texas. The 28-building Longhorn Station Apartments, built in 1974, is situated on a 10-acre infill tract just three minutes from the downtown and six minutes from the University of Texas at Austin. The submarket is dominated by student residents, with Longhorn Station "a weak link" in the pocket, according to Post. "We plan on addressing that issue," he said. Post will rename the complex and invest about $10,000 per unit into redoing unit interiors, facelifts of all buildings and amenity overhauls. "It's really about bringing it back to marketability conditions," he said, assigning a pre-renovation label of class B minus on the asset. Post expects stabilization will take 18 to 24 months to achieve. Then, he said a decision will be made about refinancing or selling. Longhorn Station is a mix of efficiencies and one- and two-bedroom units, ranging from 400 sf to 912 sf. Post-renovation rents are projected at $500 to $770 per month. The Houston purchase, also bought out of foreclosure, was tied up in bankruptcy court nearly two years, with several other would-be buyers' offers falling out of contract. Serrano Apartments was part of New Orleans-based MBS Cos.' bankruptcy. Post said his company's picking up the remaining four years of an original 10-year loan at a 4.69 percent, fixed-rate interest. The special servicer arranged the financing, with Post completing the deal within two months. "We went hard Day 1," the buyer said. Post said Serrano's turn-around plan calls for a $6,500 per unit investment and replacing all roofs, damage still lingering from Hurricane Ike in 2008. The 23-building, class A complex, built in 1998 by Fairfield Residential, sits on 26 acres on Houston's west side. Its name too will be changed and it too will need 18 to 24 months to reach stabilization. It and the Austin complex will be managed by BH Management of Des Moines, Post's overseer for most of its portfolio. Serrano Apartments has one-, two- and three-bedroom units from 775 to $1,436 sf, factoring out to a 961-sf average. Post-renovation rents are forecast at $802 to $1,500 per month. Post's acquisition criteria calls for 250 or more units and price tags north of $20 million. "But, we're willing to come down for distressed acquisitions," Post said, adding that the latest sales are prime examples of its flexible buying plan. .............................................................................................. Units Sold for $3,088,000 PASADENA, Calif. - Hendricks & Partners announced the sale of 260-264 Alpine Street in Pasadena, Calif. ................................................................................................. Brokers Hit Triple, Sell 290 Units PHOENIX – In a triple run of back-to-back deals, 290 units have sold in the Greater Phoenix area.. The largest closing in the stack was the 256-unit La Mesa Village at 655 S. Mesa Dr., which traded for $5 million or $19,531 per unit. The 23-year-old complex was half occupied at sale time. Alon Shnitzer in the Phoenix office of Marcus & Millichap Real Estate Investment Services ran the sales campaign for the national bank. The winner of the marketing blitz was a private investor from Los Angeles, who was represented by Kevin Struve, a director in the brokerage firm's Ontario, Calif., office. Brian Smuckler, vice president, and Jeff Seaman, senior associate, also in Marcus & Millichap's Phoenix office, sold the 22-unit Sunny Haven at 806 E. Carol Ave. in Phoenix for $450,000. The seller was Newstart DMD LLC of Phoenix and the buyer, James and Twanette Ritorto of Glendale, Ariz. Seaman and Smuckler also sold the 12-unit Taylor Apartments at 2146 E. Taylor St., also in Phoenix, to Helios Properties LLC of Tampa in a sale by Milwaukee-based Bayview Loan Servicing. The asset, trading for $120,000, was completely vacant at sale time. .............................................................................................. Presidential Towers Work Begins CHICAGO – Waterton Residential is digging into an overhaul of Presidential Towers, a two million-sf mix of retail and residential units that it acquired two years ago in the West Loop. The initial phase is part of a 10-year renovation plan for the landmark quartet of towers. "Because there are so many convenient amenities inside Presidential Towers, it has long been referred to as the 'city within a city,'" said Phyllis Kempton, community manager of Presidential Towers at 555 W. Madison St. The redevelopment project is kicking off with leases in hand with Fitness Formula Clubs and Yolk restaurant. The existing fitness center will be expanded to 52,000 sf on two levels to accommodate the new operator. Plans also call for a three-story glass-enclosed atrium, indoor and outdoor swimming pools, whirlpool, sundeck and FFC Spa, Juice Bar Café. The Yolk restaurant will be the third location in the city for the restaurateur. It has leased space on the Clinton Street side. Peter Vilm, co-founder of Chicago-based Waterton Residential, said the work that's just started is "designed to open up our retail facilities to the growing West Loop day and nighttime population while providing our residents with best in class reception and common area amenities." CB Richard Ellis Group Inc. is overseeing the retail leasing. The shop space is slated for occupancy in fall 2010. The 2,346-unit residential component features studios and one- and two-bedroom apartments ranging from 471 sf to 1,101 sf. Monthly rents start at $972 and end at $2,494.
....................................................... Yancey-Hausman Moves to Multi-Fam Yancey-Hausman Interests, Inc., a Houston-based commercial real estate services firm, announced the creation of a new multifamily division to be headed up by Houston native John Faulk. “The creation of the multifamily division is part of our growth plan to diversify and compliment our already existing full-service commercial real estate services. I am excited about this opportunity to enter the multifamily market under the leadership of John Faulk,” said Yancey-Hausman Chief Executive Officer Arnie Altsuler. ...................................................... St. Louis Listing ST. LOUIS - Joe James of Marcus & Millichap is marketing Sunswept Apartments in St. Louis. Built in 1972 and consisting of 334 units, this property, located in the northern suburb of Florissant, is a value-add opportunity. This unique opportunity offers the investor an value-added opportunity by “repositioning through renovation”. The property has below market rents and occupancy. ....................................................................
150 Units Sold in Houston HOUSTON - Hendricks & Partners handled the sale of the 150-unit Chateau Village, 3815 Fuqua Street West in Houston.. Chateau Village is a HUD/HAP property and the last in a three-property portfolio to sell. The buyers are planning to use tax credits (Section 42 LIHTC) and City of Houston grant money for the purchase and also for rehab. Chateau Village marks the first purchase for the Buyer in the Houston market. The Seller was Commercial Partners Exchange, LLC as Q1 for Chateau Village Apartments, Ltd. of Keswick, VA. The Buyer was Houston Leased Housing Associates I, Limited Partnership of Plymouth, MN. The transaction was negotiated by Kevin McCarthy and Jeff Eisenhardt of Hendricks & Partners on behalf of the Seller. .................
Bank Sells Partly Finished Complex LOS ANGELES – Gateway Business Bank of Cerritos, Calif., has sold an 80 percent-completed apartment complex in Chinatown to Super A Logistics Services LLC. The 29-unit project is going up at 700-704 N. Hill and 709-711 N. Yale streets. The project consists of a four-story building and duplex. Michael Hibbert of Los Angeles-based Charles Dunn Co. said the acquisition was made at below-replacement cost, with the seller sweetening the deal by financing the purchase and construction loan to finish the work. The Chinatown project is a mix of one- and two-bedroom apartments slated for completion in the spring. ........................................................ Multifamily Market Showing Life Nationally, Not D/FW By Connie Gore DALLAS – Despite "green shoots" at the national level, a panel of leading multifamily brokers in Dallas/Fort Worth had little optimism to share about their sector. Values will continue to erode, perhaps as much as a 30 percent adjustment for multifamily assets, said Will Balthrope of Marcus & Millichap Real Estate Investment Services in Dallas. "If you don't need to sell, I wouldn't. That being said," he added, "it's a great time to buy." Balthrope was joined by Jeff Price of the Apartment Group and Bill Miller of Holliday Fenoglio Fowler LP at the monthly meeting of the DFW Apartment and Investment Brokers at Prestonwood Country Club in North Dallas. The trio did agree that 2010 will bring a slight market improvement or at least a leveling off, with the landscape getting somewhat better in 2011. Meanwhile, the National Multi Housing Council's latest quarterly survey of sector conditions showed the third quarter has brought increased sales activity and improvements in the availability of debt and equity. According to the Washington, D.C.-based organization, the sales volume index hit its highest level in four years and financing indexes were the highest in three years. Of its quarterly readings, only the vacancy index continued to erode although it had improved slightly from the last quarter. "The broad improvements in sales volume and debt and equity financing suggest the transactions market may finally be thawing," said Mark Obrinsky, NMHC's chief economist. "Nearly half (45 percent) of respondents indicated that the gap between what sellers are asking for and what buyers are offering—the bid-ask spread—has narrowed." Freddie Mac and Fannie Mae remain the primary lenders for the industry, the Dallas/Fort Worth panelists pointed out. Price added that Wells Fargo is going to put a 75 percent non-recourse loan into the market in early 2010 to compete with the federal agencies for the available business.The availability of capital and vast pools of investment dollars waiting to be deployed still haven't been enough to jump-start a strong rally of sales in Dallas/Fort Worth or really elsewhere in Texas, they all agreed. There are properties up for sale that are attracting a high number of offers, but they also are carrying "distressed" labels in some fashion, oftentimes as an owner's tactic to sell one so it can rescue another property. "Most buyers don't want a distressed deal," Price emphasized. "They want to buy from a distressed owner." Miller added that "the perception in the market is that if you put your deal in the market, there's something wrong with it." The networking group's annual ritual is to single out the best and worst markets in the metroplex before it adjourns for the year. The panel agreed the region's best markets are Las Colinas, Legacy, In-town and Uptown and the Galleria. The worst markets are the Skillman-LBJ Freeway corridor and North Arlington.Nationally, NMHC's Obrinsky said demand is continuing to slip despite the slight uptick in its Market Tightness Index. "It still indicates higher vacancies and lower rents," he concluded. And that validated Price's observation that Dallas/Fort Worth has yet to hit bottom in the multifamily sector. Property concessions remain one of the biggest obstacles. "We need to wean ourselves of excessive concessions," he advised the mix of industry professionals. ........................................................ 326-Unit Asset Draws $100 Million ARLINGTON, Va. – Equity Residential has paid nearly $100 million for the 326-unit Metropolitan at Pentagon Row, a 95 percent-leased piece of real estate built in 2004. "The sale of Metropolitan at Pentagon Row signifies that there is tremendous demand for best-of-class multifamily properties in metro Washington, D.C.," said Dave Nachison, a Holliday Fenoglio Fowler LP director in the nation's capital city. "Investors clearly hold Washington in the highest regard among very few recognized 'core' investment markets nationally and globally." He teamed with HFF director Alan Davis to market and sell the holding at 1401 S. Joyce St. for Hartford, Conn.-based Cornerstone Real Estate Advisers. Nachison pointed out that the listing lured offers from institutional and private equity circles near and far, including off-shore investors. The Chicago-based buyer's new asset features a virtual 24/7 concierge, 24-hour front desk and call center in addition to all the high-end amenities, including a rooftop residents' lounge, to add to its appeal with renters. "Adjacent to the Nordstrom and Macy-anchored Fashion Center at Pentagon City and leading lifestyle retail at Pentagon Row, the neighborhood amenity base is among the very best in the region," Nachison added. Metropolitan at Pentagon Row is a mix of studio and one- and two-bedroom units averaging 870 sf. Internet research shows rents start at $1,465 and stretch to nearly $6,000 per month. ........................................................ Prescott Realty's Shelby Finds Leasing Niche By Connie Gore DALLAS – Making its mark as the newest development in its submarket, the 55-unit Shelby has topped 60 percent occupancy and filled its only retail space within one month of its grand opening. The allure is a location within walking distance of Southern Methodist University, DART's Mockingbird Station, the under-construction George Bush Library and abundant retail, restaurant and entertainment venues. Developed by Dallas-based Prescott Realty Group, the Shelby located at 5609 SMU Blvd. sits on a 26,000-sf tract between Central Expressway and Greenville Avenue in a neighborhood now dubbed University Crossing. The one- and two-bedroom apartments average 1,050 sf. Rents range from $1,125 to $2,450 per month. Construction began in October 2008, a project with four residential floors with elevator access, 3,750 sf of street-level retail and two levels of parking. Prescott Realty has targeted young adults with the product, which includes bike racks to further leverage its urban-infill location. "We are trying to make it as urban friendly as possible," said Taylor Stone, Prescott's managing director. "It's a walkable area. We've tried to cater to that experience." The amenity package includes a lifestyle deck with outside fireplace and flat-screen television. Several retailers were in the race for the retail space, but Twisted Root Burger Co. came out on top. Its calendar is marked for a spring opening."We continue to see extraordinary leasing interest in the area and to have Twisted Root Burger Co. as an anchor for our Shelby project adds a much needed dimension of a high-quality retail restaurant to an under-served corridor near SMU," said Mark Henderson, Prescott Realty Group managing director for retail. Stone pointed out that the Shelby is the forerunner for several more residential projects planned in the next three to five years for the area. The Shelby was designed by WDG Architecture Inc. of Dallas. Prescott leased the retail and seated Greystar Management Co., also from Dallas, to fill and oversee the residential component. ........................................................ Two Washington, D.C. Projects Sold WASHINGTON, D.C. – The Washington, D.C. office of Holliday Fenoglio Fowler, L.P. announced that it has closed the sale of and arranged acquisition financing for 5100 Connecticut Avenue Northwest and 2620 16th Street Northwest, multi-housing communities totaling 92 units in Washington, D.C.
22 Units Sold for $1,231,667 LENNOX, Calif. - Marcus & Millichap Real Estate Investment Services has announced the sale of 5000 and 5006 Lennox Boulevard, a 22-unit apartment property located in Lennox , Calif., , according to Justin C. White, Regional Manager of the firm’s West Los Angeles office. The asset commanded a sales price of $1,231,667.
This property was constructed in 1940 and the price per square foot is $125. ....................................................................... Bascom Sells 357-Unit Villas DALLAS – The Bascom Group of Irvine, Calif., has sold the 357-unit Villas at Montierra in northeast Dallas to a private buyer from California. Occupancy was 92 percent at sale time. The 30-day marketing produced 28 offers for Bascom's turnaround move, which involved an extensive renovation in 2007 when it was acquired. The 25-year-old complex at 1721 John West Rd. is a mix of one- and two-bedroom apartments, ranging from 465 sf to 1,012 sf. Monthly rents start at $347 and trek up to $695. "There was substantial interest in this deal from the first day we had it on the market. We had a realistic seller committed to meeting the market, and that was clearly articulated to the investment community. We saw buyers respond favorably," said Nick Fluellen, associate vice president in Dallas for Marcus & Millichap Real Estate Investment Services. He and associate Will Tolliver represented the seller. The high number of would-be buyers usually means "you stand a good chance of crossing the finish line," Fluellen added. "Despite all of the speed bumps and hurdles that we are constantly facing in most transactions, this was a very smooth deal." George Miller with Marcus & Millichap in Seattle represented the buyer. Alex Inman, a Dallas-based mortgage broker for Marcus & Millichap Capital Corp., secured the financing for the buyer. ..................................................................................... Trades Finished in Ohio, Arizona COLUMBUS, Ohio – Private investors in Ohio and Phoenix have scooped up multifamily properties in their homeports. In Columbus, a local buyer paid $1.1 million for the 116-unit Hawthorne Hall at 2251 Garnet Place in the southeast submarket. In Phoenix, the 10-unit Alice Apartments at 207 E. Alive Ave. traded for $225,000. Hawthorne Hall, built in 1972, contains one- and two-bedroom apartments and two- and three-bedroom townhouses. The asset was 30 percent occupied at sale time.J. Rosenbusch and Matt Gockstetter, vice presidents for Marcus & Millichap Real Estate Investment Services in Columbus, represented the seller, Winthrop Realty. According to a press release, the asset needs $600,000 of capital improvements. Marcus & Millichap Real Estate Investment Services' Phoenix team of vice president Brian Smuckler and senior associate Jeff Seaman represented the seller of the Phoenix complex, Newstart DMD LLC of Calabasas, Calif. ..................................................................................... Abacus Buys 492-Unit Enclave PETALUMA, Calif. – Abacus Capital Group LLC has secured a seven-year loan at a fixed-rate interest for the 492-unit Enclave at Adobe Creek, formerly Lakeville Resort. The Freddie Mac loan for the 94 percent-leased complex at One Lakeville Circle was arranged by Mona Carlton in the Dallas office of Holliday Fenoglio Fowler LP. The collateral is a mix of one-, two- and three-bedroom apartments averaging 939 sf. The complex boasts five swimming pools, basketball courts, tennis courts and other fitness- and family-oriented amenities for residents. HFF is servicing the acquisition loan. ..................................................................................... 11-Year Owner Sells 91-Unit Highland Oaks IRVING, Texas – A limited partnership has acquired the 91-unit Highland Oaks Village from its 11-year owner, who extensively remodeled the asset just last year. Highland Oaks, built in 1970 at 2119 W. Irving Blvd., has one- and two-bedroom units averaging 1,082 sf, with 70 percent as two-bedroom floor plans. Internet research shows monthly rents range from $445 to $750. "Like every transaction in the current market, this was not an easy deal to get to the finish line. We were fortunate to have a patient seller and a quality buyer who was absolutely committed to jumping over every hurdle thrown at them," said Nick Fluellen, associate vice president for Marcus & Millichap Real Estate Investment Services in Dallas. He represented the local seller while Will Tolliver, also in Dallas, seated the buyers at the closing table. According to the dealmakers, Highland Oaks' upside lies in rent increases and expense reduction. ..................................................................................... Work Starting on 116-Unit Affordable Project ARLINGTON, Va. – The Views at Clarendon Corp. will start work next month on a 116-unit multifamily project, aimed at providing some relief for the city's affordable housing shortage. The Views at Clarendon is a public-private partnership with Arlington County, VHDA and the developer. The development site is a half block from the Clarendon Metro Station.The Washington Smart Growth Alliance has designed the Views as a smart growth project, with the developer eyeing at least LEED Silver certification for the finished product. The design calls for eight stories of apartments on top of the two-story Church at Clarendon and the county's largest daycare center. The plan calls for 46 market-rate apartments and 70 affordable units, of which 12 will be reserved for low-income households. The mix will have studios and one-, two- and three-bedroom apartments. The church's landmark steeple is being retained. The project also will include 120 underground parking spaces for residents. "The Views really captures Arlington's vision of creating an inclusive community even in the high-cost metro corridor," said Barbara Favola, chairman of the Arlington County board. Co-developers for the Views are Greenbelt, Md.-based Bozzuto Development Co. and Chesapeake Community Advisors. Bozzuto Construction Co. is the general contractor. At completion, Bozzuto Management Co. will be the overseer. The Arlington Partnership for Affordable Housing has acted as consultant. The groundbreaking will be held tomorrow. ..................................................................................... $13.5 Million Wins Wilshire Prize LOS ANGELES – Working the deal as a short sale, a Hendricks & Partners' team has sold the 47-unit Perino's Luxury Apartments for $13.47 million in cash. The listing drew 19 all-cash offers in a short spin on the market. Robin Ossenbeck and Karoline Sauls in the brokerage firm's Los Angeles office represented the developer, who had the construction lender's nod for a short sale if the deal could be closed within 30 days on an all-cash basis. The brokers took the deal for the mixed-use property at 635 S. Norton Ave. across the finish line in two weeks. The buyer's identity is being kept under wraps. The four-story building, completed in early 2008, sits in the prestigious Hancock neighborhood of Wilshire Center and sports Wilshire Boulevard frontage as an added location incentive. Perino's Luxury Apartments, sitting on the famed restaurant's near one-acre tract, features a two-story lobby, office space and 126 underground parking spaces in addition to the usual bells and whistles like a WiFi lounge and party room. The one-, two- and three-bedroom units range from 700 sf to 1,550 sf, commanding rents of $257 to $3,862 per month. An owner's penthouse suite with 3,200 sf is tagged at $4,500 per month. The building, featuring three non-permitted units, is tentatively condo mapped. According to the marketing flyer, the new owner has five years on the condo map pact before it comes up for renewal. ..................................................................................... 10-year Note on 300 Units William Haley, Vice President of NorthMarq Capital’s Houston Regional office, arranged an $8.68 million first mortgage for the Waterford at Valley Ranch, a 300-unit multifamily complex located in Irving, Texas. Financing was based on a 10-year term with a 30-year amortization schedule and was arranged for the borrower, Waterford at Valley Ranch LLC, by NorthMarq through its relationship with Alliant Capital LLC, a Fannie Mae/DUS lender. ..................................................................................... 206-Unit Asset Sells in Less Than Month LOS ANGELES – Putting all cash on the line, SA Properties Holdings LLC has banked the deed to the 206-unit Flat in an REO sale that closed within weeks of the lender taking control of the asset. Grubb & Ellis senior vice presidents Phillip Sample and Chris Cooney were the lead brokers for Chinatrust Bank USA. The seller's team included senior vice presidents Chris Caras and Mike Shustak, senior associate Sandi Mann and vice president Ed Rosenthal. Sonya Moreno, managing partner of SA Properties Holdings in Los Angeles, handled the buy side. The 93 percent-leased complex at 750 S. Garland Ave. was on the market for $27 million. The sale price wasn't available, but Grubb & Ellis is touting it as one of the city's largest REO sales so far this year. Internet research pegs the all-studio unit mix rents for $1,250 to $1,800 per month. Chinatrust's marching orders were to sell the asset before the third quarter ended. "Certainly, having a buyer with the ability to quickly close all-cash on this complex asset was key to our success," Sample said, acknowledging "navigating the foreclosure, bankruptcy and subsequent sale of the asset was extremely complicated" given the time constraints. ....................................................... 272 Units Sold in Houston Deal HOUSTON - Houston-based Optimum Williamstown LLC purchased the 272-unit Williamstown complex, located at 9200 Bissonnet Street in Houston.
Behringer Harvard Picks Up 408 Units at Steep Discount FORT MYERS, Fla. – Using senior mortgage debt as an inroad, a partnership led by Dallas-based Behringer Harvard Opportunity REIT II Inc. has taken control of the 408-unit Palms of Monterrey, a resort-style development on 28 acres in Lee County. In an SEC filing, the buyers reported paying $25.4 million plus closing costs for the $65.8 million note. The 17-building complex, developed in 2001 at 15250 Sonoma Dr., was en route to a condo conversion when the bottom fell out of the market. Samuel A. Gillespie, the REIT's COO, said the senior debt was secured to cover conversion costs."However, changing market conditions subsequently interfered with the borrower's plans and the completed condominium units were never sold," he said."This situation enabled us to acquire the senior mortgage debt at a discount and refocus the property as rental apartments." The REIT's Tampa-based partners are DeBartolo Development LLC and Christian Tyler Properties LLC. In its SEC filing, the buyers reported paying $25.4 million to the FDIC, receiver for Corus Bank, which had originated a $69 million loan on March 21, 2006, to acquire the complex and convert its units. The borrower of record was BTS Monterrey Holdings LLC, which also had taken out an $8.7 mezzanine loan against the property. The original note matured March 19, 2008, and a loan amendment to extend was never executed, according to the SEC filing. Not only wasn't the conversion completed, but no units were ever sold. Under its partnership agreement, Behringer Harvard, using capital from its current offering, got 90 percent ownership of the asset, with the balance divvied between its partners. The gated development has one-, two- and three-bedroom units, ranging from 1,008 sf to 1,496 sf. Monthly rents are $799 to $1,124, according to Internet research. The Palms of Monterrey is positioned close to Fort Myers Beach and Sanibel and Captiva islands. It's also less than one mile from HealthPark Medical Center and the Tanger Outlets. ........................................................ 16 Units Sell in San Diego SAN DIEGO – A local private investor has spent $1.36 million for the 16-unit Highland Avenue Apartments in the City Heights neighborhood. Enriqueta Mendoza took the deed to 4095 Highland Ave. from Bay Vista Developments LLC of San Jose, Calif. Internet research shows city council in 2005 approved a utility waiver to convert the one- and two-bedroom rental units into condos. The low-rise building was developed in 1970 on a 12,497-sf tract. David Andrews in the San Diego office of Hendricks & Partners represented the seller. ........................................................ 172 Units Fetch $23.5 Million FOUNTAIN VALLEY, Calif. – Advanced Real Estate Services of Lake Forest, Calif., has paid $23.5 million for the 172-unit Serena Vista, a 39-year-old complex just one block from the 640-acre Mile Square Park in Orange County. The seller was Security Properties Inc. of Seattle, which banked $137,119 per unit about one year after investing $5,100 per unit into a renovation. The complex, situated at 10300 La Hacienda Ave., sold at a 6.25 percent cap rate with a 6.75 percent cash-on-cash return, according to a press release by Hendricks & Partners. "The driving force for the sale was the fact that the building was below replacement cost in an in-fill area with no new 100+ apartment buildings having been built in the past 13 years," dealmakers said. The buyer assumed Fannie Mae debt to make the close. Joe Leon in the Newport Beach office of Hendricks & Partners and Shane Shafer in the firm's North Orange County office brokered the transaction. Serena Vista's units average 831 sf. Internet research shows the one- and two-bedroom mix rent for $1,255 to $1,795. ........................................................ Texas Buyer Gets 124-Unit Windsor Village SAN ANTONIO – A Central Texas investor has claimed the deed to the 124-unit Windsor Village, a gated development just six miles from Fort Sam Houston and the Brooke Army Medical Center. Scott Weems in the San Antonio office of Phoenix-based Hendricks & Partners and Ellen Muskin in the Austin office represented the seller, SA Windsor Village Apartments LP of Santa Rosa, Calif. The buyer of the 5341 Gawain Dr. property was Calton Investments Inc. of Boerne. The 20-building complex, built in 1984 on a four-acre tract, has studios and one- and two-bedroom units, ranging from 440 sf to 840 sf. Rents are $449 to $684 per month. ........................................................ $2.45 Million Claims 44 Units HOLLYWOOD, Fla. – The 44-unit Monroe Apartments in the Hollywood Hills submarket has sold for $2.45 million in an exchange between private investors from Hallandale, Fla. The complex, located at 3505 Monroe St., contains studios and one- and two-bedroom units. "The Monroe Apartments is a well-maintained asset in a strong Broward County submarket. The buyer will be able to add value to the property through aggressive lease-up at market rates," said Joseph Thomas, an associate in Fort Lauderdale for Marcus & Millichap Real Estate Investment Services, who represented the seller. Elliot Shainberg, an associate in Miami for the Encino, Calif.-based brokerage firm, represented the buyer. ........................................................ Humphreys & Partners' HUD Pipeline Holding 1,206 Units DALLAS – Locally based Humphreys & Partners Architect LP is working a HUD pipeline with five projects, totaling 1,206 units in Texas, Louisiana and Illinois. In the design stage in Texas are three-story breezeway developments of 236 units in Lewisville and 208 units in Lubbock plus a combo "Big House" and "e-urban" signature project with 250 units planned for El Paso. In O'Fallon, Ill., a developer has a 232-unit "Big House" design working through the federal agency's pipeline. The fifth in-design development, also a "Big House," calls for 280 units in Lafayette, La. ........................................................ Dinerstein Gets $27 Million To Build 700-Bed Project TUSCALOOSA, Ala. – The Dinerstein Cos. of Houston has secured $27.12 million of construction capital to develop a 700-bed student housing project near the University of Alabama. The family-owned development company has ticketed August 2011 for the completion of the Sterling Crimson Apartments, which are planned for the corner of 10th Avenue and 14th Street on the university's southern edge. Holliday Fenoglio Fowler LP associate director Cameron Cureton arranged the loan. "Student housing remains one of the bright spots in the industry and continues to receive construction financing albeit challenging," Cureton said. "Reports from the NMHC are showing enrollment is up at universities across the country and the demand for student-housing has not decreased, despite the downturn in the economy." Sterling Crimson Apartments will have 316 units with one-, two-, three- and four-bedroom floor plans. Each unit will be fully furnished, including a 42-inch plasma TV in every living room. The complex's clubhouse will feature an Internet café with a coffee bar, fitness center with a spinning room for biking fitness enthusiasts, tanning salon and resort-style pool. ........................................................ 256 Units Sell in Seven Weeks
FORT WORTH – In a seven-week spin, a private investor from New York has gained control of a 256-unit complex in west Fort Worth in a bank-ordered sale. The upside lies in the 40 percent vacancy. The just-sold property is the 20-building Falls at 9001 S. Normandale St. Built in 1974 on a 15-acre tract, the class C complex has efficiencies and one-, two- and three-bedroom units ranging from 530 sf to 1,363 sf. Monthly rents start at $365 and climb to $785. Samuel Herskovits with Marcus & Millichap Real Estate Investment Services in Dallas represented the buyer, who owns other complexes in Dallas/Fort Worth. The sale went from contract to closing, including financing, in seven weeks. "Doing a rehab, filling it up and putting in some good, quality tenants, that alone should do him well," Herskovits said. The rehab will get underway immediately. The new owner self-manages his properties. ........................................................ NMHC Surveys Recession's Impact on Sector's Wages WASHINGTON, D.C. – In a new market survey, the National Multi Housing Council has found apartment firms have reined in salaries and perks to keep budgets in line. The surveyed firms are budgeting a 3 percent increase in salaries for executives and 2.8 percent for exempt non-executives and employees. Last year, executives averaged 3.3 percent hikes. NMHC and Watson Wyatt Data Services compiled responses from 105 leading apartment firms with roughly 50,000 employees in the U.S. "It goes without saying that apartment firms are cutting operations expenditures across the board, from corporate offices to individual apartment communities," said Betsy Feigin Befus, vice president of employment policy and counsel for the Washington, D.C.-based organization. "NMHC's research shows that many companies are trimming salaries along with bonus and incentive pay as part of their cost containment plans." Average salaries for this year and 2008, by category, are top property management executive, $247,600 for 2009 and $264,200 in 2008; top acquisitions executive, $160,000 versus $246,000; top construction executive, $225,600 versus $249,900; property manager of 100 to 300 units, $48,400 versus $47,200; maintenance technician, $32,500 versus $31,000; and leasing consultant, $27,900 versus $28,000.
Standard Pacific's 140 Lofts Pass to Behringer Harvard MARINA DEL REY, Calif. – Behringer Harvard Multifamily REIT I Inc. and Phoenix-based Alliance Residential acquired the 140-unit Redwood Lofts from Standard Pacific Homes. The development was on the market for $70 million, which factors out to $500,000 per unit or $383 per sf. Chicago-based Moran & Co. had been marketing the asset for the Southern California-based builder, which undertook the 2.6-acre project at 4055 Redwood Ave. as a merchant build situation. The mix of lofts, being re-branded to Forty55 Lofts, ranges from 919 sf to 1,631 sf. The complex sits in a rental pocket with average rates ranging from $2,575 to $2,980 per month. The units are condo mapped, but a deed restriction bars conversion for 10 years, according to the marketing flyer. "This high-quality multifamily community is located in one of the best-performing submarkets in Southern California," said Mark T. Alfieri, COO of the Dallas-based REIT. "With its coveted Westside location, we expect Redwood Lofts to generate strong interest from young professionals who appreciate fine living without the responsibilities of homeownership. The units are move-in ready and we plan to begin lease-up immediately." Forty55 Lofts sit four miles northwest of the Los Angeles International Airport. The complex's residents also have direct access to a 22-mile bike path stretching between Malibu to Redondo Beach. Other close-by amenities are the 470,000-sf Villa Marina Marketplace, which was purchased last year by J.H. Snyder Co. and RREEF, Third Street Promenade and Westwood Village. Marina del Rey is one of the largest man-made ports, with 6,000 boat slips and four yacht clubs. ........................................................ LEED Project's First Phase Opens McKINNEY, Texas – Fore Property Co. has cut the ribbon on first phase of the 216-unit Greenhaven, a class A multifamily development designed to LEED for Homes Silver certification standards. Greenhaven's construction began in early 2009, a 10-building design on 11.2 acres at 8690 Virginia Parkway. Completion is penciled for February. The one-, two- and three-bedroom units range from 675 sf to 1,362 sf.BGO Architects Inc. of Dallas has designed the complex to be Green Built Texas certified and Energy Star certified in addition to the US Green Buildings Council's LEED standards. CANV Construction Inc., an affiliate of the Westlake Village, Calif.-based developer, is the general contractor. Sanchez & Associates of McKinney was the project's civil engineer and IESI, also of McKinney, is the recycling partner. TexEnergy Solutions of Irving is the developer's LEED specialist. "At Greenhaven, we are working hard to make it easy for our residents to live green," said Brad Miller, a partner in the development company. The "green" features will result in reduced energy and water costs through high-efficiency fixtures and fittings, a state-of-the-art irrigation system with a self-contained weather station and eco-friendly materials. The architect and LEED specialist project the buildings will be 20 percent more efficient than comparable structures designed to 2004 standards. Miller estimated residents' carbon footprints will be lowered by roughly 280 tons per year. "That is the equivalent of taking 70 cars (at 30 MPG) off the road each year. The residents will use about 900,000 gallons less water each year," he said, "and will save $1.6 million in energy costs over the next 20 years by achieving LEED certification." ........................................................ $14.5 Million Lands Bravado Deed KENT, Wash. – Multifamily investor Gurmeet Singh has paid $14.45 million for the 249-unit Bravado on 27th, tipping his portfolio to nearly 650 units in South King County. The complex, bringing in $58,000 per unit, is ticketed for repositioning through a renovation in the next few years, according to the Hendricks & Partners dealmakers for the sale of the 25701 27th Place S. property. Mesa West Capital, a Los Angeles-based lender, took over the complex in December 2008 and drove occupancy to 90 percent before bringing the Bravado to market. Singh formed Bravado Apartments LLC for the purchase.Kenny Dudunakis of the Seattle office of Hendricks & Partners represented Mesa West. Jim McConville of Prudential Northwest represented Bravado Apartments LLC. Based on Internet research, the one- and two-bedroom units range from 600 sf to 850 sf and rent for $599 to $799 per month. The asset is situated close to Interstate 5, Highway 99, Highline College, Sea-Tac International Airport and South Center Mall. ........................................................ 61-Unit Complex Fetches $4.3 Million PUYALLUP, Wash. – Country Gables Apartments LLC has acquired a third property in the city, paying $4.3 million for the 61-unit Katmandu. The transaction was sealed at 4.46 percent cap rate. The deal's brokers said the asset is located in a submarket with cap rates of 7 percent to 8 percent, resulting in the trade being one of the most aggressive cap rate deals of the year. Katamandu, located at 1205 7th St. SE, has been ticketed for extensive renovations by the Tacoma, Wash.-based buyer, according to Tim Ufkes in the Seattle office of Hendricks & Partners. He and Phil Oester in the firm's Portland office represented the seller, Yuksel Inc. of Kent, Wash. ........................................................ 351 REO Units Sell for $2 Million COLUMBUS, Ohio – A local investor has bought the 351-unit Carlin Manor in an all-cash deal for $2 million. The seller was Centerline Servicing Inc. of New York. The asset is situated at 1900 Sunny Court in the Morse Road submarket. Developed in 1967, the 55 percent-leased complex has one-, two- and three-bedroom units and two-bedroom townhouses. Internet research shows monthly rents begin at $409. According to a press release, the asset needs $1.5 million of capital improvements. J. Rosenbusch and Matt Gockstetter, vice presidents of Marcus & Millichap Real Estate Investments Services' Columbus office negotiated the sale. .................................................................... San Antonio @ $43,956 Per Unit
........................................................ ReFi for Briarwood
............................................. Miami Deal Goes For $50,625 Per Unit NORTH MIAMI, Fla. – Marcus & Millichap Real Estate Investment Services, announced the sale of La Paloma Apartments, a 24-unit apartment building in North Miami Beach, according to Greg Matus of M&M's Ft. Lauderdale office. The sales price was $1,215,000 or $50,625 per unit.
........................................................................ Investor Buys 199 Condos For Return to Rental Pool RIVERVIEW, Fla. – An in-state private investor has acquired 199 of 432 condominiums at Allegro Palm for $6.25 million or $31,407 each. The seller is the FDIC, acting as a receiver for Corus Bank. Marcus & Millichap Real Estate Investment Services' senior vice president Evan P. Kristol and first vice president Still Hunter III in the Fort Lauderdale office negotiated the sale between the FDIC and the Weston-based buyer of the 5501 Legacy Crescent Place condos.The 199-unit acquisition included 32 detached garages, 11 carports and 22 storage units. According to a press release, the new owner will return the units to their original intent, rental properties. Allegro Palm was built in 2000 and operated as an apartment community until March 2005 when it was sold to a condo converter. "The buyer will benefit from the opportunity to operate the units as rentals and enjoy the cash flow until the for sale market returns," Kristol said. ............................................................... Churchill Estates Moves Closer to Its Opening DALLAS – Churchill Residential has wrapped up interior design work at its 175-unit Churchill Estates at Lake Highlands, a luxury development for the 55-year-old and over crowd. According to the North Texas-based developer, the leasing center opened earlier this month and units are poised to come on line at 8501 Lullwater Dr. The mix of one- and two-bedroom units in six floor plans ranges from 575 sf to 1,150 sf. An Internet rental site pegs the monthly tab at $2,240 to $3,675 for a development featuring a bistro, movie studio, billiards room, wellness center, cardio-fitness room and a salon and spa. Other amenities include two dining rooms, wine room, art studio and wellness library. Dallas-based Faulkner Design Group was the project's interior designer. "The goal of our interior design team was to create an authentic Mediterranean-style community," said Stephanie Dunn, Faulkner Design Group project manager for Churchill Estates at Lake Highlands. The goal was accomplished by incorporating natural stone applications, rich wood tones and custom wrought iron detailing. Galier, Tolson, French Architects of Bedford, Texas, designed Churchill Estates at Lake Highlands. KWA Construction of Dallas is the general contractor. ............................................................... Oregon Complex Sells for $7.3 Million ALOHA, Ore. – The 120-unit Willow Springs Apartments has sold for $7.35 million to a limited liability company from Prescott, Ariz. The deal closed at a 7.7 percent cap rate. John Nicolas and Trevor Nelson with Marcus & Millichap Real Estate Investment Services in Portland represented the seller of 3240 SW Doyle Place, Willow Creek Commons Apartments LP of Portland. Nicolas also represented the buyer, Willow Springs Holdings LLC. ............................................................... Turner JV Gets 2nd Pendleton Project CAMP PENDLETON, Calif. – Turner Construction Co. and TB Penick & Sons Inc. have landed a $109 million design-build contract from the U.S. Marine Corps to develop four bachelor enlisted quarters on the base. Just two months ago, the JV was awarded a $104 million contract for a similar project. The $109 million development will house more than 1,500 Marines and will include multi-purpose space and laundry facilities. Completion is planned for August 2011. ............................................................... Multifamily Market's Struggle Unlikely to End Before 2012 By Connie Gore DALLAS - The multifamily market has yet to hit bottom, but as the saying goes it could always be worse. "It's interesting what has become good news," said Ron Witten, president of Dallas-based Witten Advisors LL. Dallas/Fort Worth and the three other Texas metros may be faring better than most of its peers, but the dark days are far from over. If Witten's on target, the market will bottom out in 2010. Until then, he said "we'll see more upside surprises because our expectations are so low." The nation's Top 5 absorption leaders are Houston, Raleigh, N.C., Dallas, Charlotte, N.C., and Columbus, Ohio. At the bottom of the ladder are Seattle, Detroit, Oakland, Calif., Philadelphia and Phoenix at dead last. In the past year, only seven markets had any rent gains, a list that includes Houston and San Antonio. Other cities with gains are Baltimore, Cincinnati, Indianapolis, Norfolk and Columbus. Witten said it will be late 2011 or 2012 before the apartment market is back on track. The dichotomy, though, is the number of teardowns nationwide and lack of new development will result in a smaller inventory when the market rights itself than the country has today, according to Witten. "The hope is on the horizon if we can get the economy headed in the right direction. And, I think it is," Witten told the packed room at the DFW Apartment and Investment Brokers monthly breakfast meeting at Prestonwood Country Club in North Dallas. The multifamily sector has moved into a period of slow construction and it will stay that way through 2011, creating a three-year vacuum of the fewest number of starts since post-World War II, according to Witten. The projection covers the entire spectrum – affordable, tax credit and market rate. Construction lending has slowed, but it's not stalled, thanks to Fannie Mae and Freddie Mac. Witten sees bright investment spots in Austin, Denver, Atlanta and San Jose, Calif. As for Dallas/Fort Worth, he believes it will be one of the leaders in the recovery process. Until that happens, the North Texas market is poised for a 4 percent rent loss this year, a small loss next year and only modest gains in 2011 and 2012. Occupancy has fallen below 90 percent, down roughly 3.5 percent from its historical average. Witten said that too will return to its normal level in 2012. "As bad as things are in the multifamily business, they could clearly be worse," Witten said. "Today, there is an uneven playing field that purely favors home ownership. That drag on the apartment market goes away as we get further into the recovery." ............................................................... Complex Draws $212,500 Per Unit SIERRA MADRE, Calif. – Honey Nation LLC of Arcadia, Calif., has paid $1.27 million or $212,500 per unit for a six-unit apartment building near Santa Anita Mall. The seller of 74 E. Sierra Madre was Demetrio D. and Susanna Cannata, trustees of the Cannata Living Trust, also from Arcadia, who won the deal with 100 percent down. The deal closed escrow in 45 days, delivering the keys at a 4.24 percent cap rate.Kevin Lutz and Robert Chui in the Pasadena office of Hendricks & Partners represented the seller. Angela Chang of Coldwell Banker represented the buyer. The building sits on slightly less than a quarter acre and close to the 210 and 605 freeways. The individually metered mix has two one-bedroom/one-bath units of 750 sf; three two-bedroom/two-bath units of 950 sf; and a three-bedroom/two-bath unit with den of 1,300 sf. Rents are $1,025, $1,300 and $1,500 per month. ............................................................... Post Properties Pursuing $59 Million ATLANTA – Post Properties Inc. hopes to bank $59 million from the sale of 3.5 million shares of common stock up and a 525,000 overallotment. The plan earmarks $39.4 million of net proceeds to pay off a mortgage against the 361-unit Fallsgrove and $4 million for the prepayment penalty. The offering is expected to close Tuesday. J.P. Morgan Securities Inc. and Wells Fargo Securities LLC are the joint book-running managers for the offering. Atlanta-based Post Properties said any unspent balance will be used for general corporate purposes, including projects in its development pipeline or stock repurchase. Fallsgrove, situated at 102 Fallsgrove Blvd. in Rockville, Md., is part of a master-planned community of single- and multifamily properties and retail. Post's high-end complex has one- and two-bedroom units with fireplaces and sunrooms. In an SEC filing, Post Properties reported the Fallsgrove loan matures Nov. 1, 2011. It has a fixed-rate interest of 6.1 percent. ............................................................... $4.1 Million Recaps Stalled Project NATIONAL CITY, Calif. – Harborview is back on track for an early 2010 completion, thanks to a $4.1 million construction loan that recapitalized the stalled project. Pedcor Commercial Development secured the three-year loan through Embarcadero Bank. Holliday Fenoglio Fowler L.P. associate directors David Ross and Zach Koucos arranged the financing for the project at 404 E. 8th St. At completion, Harborview will have 75 apartments and 12,000 sf of office and retail space. According to a press release, Pedcor plans to operate the units as rentals until the condo market rebounds. "We were thrilled to have the opportunity to work with PCD," Ross said. "The issues that inherently accompany any foreclosure combined with the development, construction and lease-up risk made this assignment particularly challenging in today's risk-averse lending market." Harborview is designed with one-, two- and three-bedroom units. Pedcor's construction completion will add condo-quality finishes to the complex, situated close to Interstate 5 and downtown San Diego. ............................................................... Lightstone, HUD Renewing Pacts LAKEWOOD, N.J. – With four housing contracts up for renewal, the Lightstone Group has finalized one five-year renewal with HUD and expects to have the others in hand soon. The New York City-based owner's contracts impact 454 units of affordable seniors' residences in New York and New Jersey. The renewals all carry five-year terms."We are pleased to announce a five-year renewal of contracts with the US Department of Housing and Urban renewal," said Jack Cassidy of the Lightstone Group. "This reaffirms our commitment to providing high-quality affordable housing to our residents. Especially in this time of economic uncertainty, our services are needed more than ever." The locations are the 108-unit Bennett Manor Apartment in East Syracuse, NY; 100-unit Burrstone Apartment in New York Mills, NY; 108-unit Curtis Apartments in Watertown, NY; 100-unit Midtown Apartments in South Glens Falls, NY; and 128-unit Millpond Towers in Dover, NJ. ................................................... Make it a Dozen: Dallas Group Buys 12th Texas Project In the Last 15 Months HOUSTON - A Dallas-based investment group is making a significant number of multi-family investments in the Lone Star State. The latest purchase in its buying spree is the 266-unit Lenox Court, located at 10534 Beechnut in Houston.
Florida Investor Buys West Texas Complex SLATON, Texas – The 85-unit Century Heights and Windmill Lakes Apartments in West Texas has been sold to a limited partnership from Boca Raton, Fla., after facing off nearly a dozen other would-be buyers for the value-add deal. The four-building complex sits on a 3.1-acre tract at 1305 W. Woodrow Ave. The one- and two-bedroom units, developed in 1984, range from 532 sf to 866 sf. Rents go from $400 to $545 per month. The seller is a local limited liability company, which was represented by Hendricks & Partners brokers Greg Austin, Chip Nash and Jim Hearn in the Austin office and Tom Warren, Tom Burns and Jay Gunn in the Dallas office. Meredith Wideman of the Multifamily Brokerage Group co-brokered the sale, which did a 45-day run on the market before the seller selected the winning bid. The city is considered a suburb of Lubbock, home to Texas Tech. Slaton Regional Airpark is second only in traffic to Lubbock. ........................................................................ $3 Million Bags 182-Unit Asset PHOENIX – A limited liability company from Woodmere, N.Y., has put up $3 million in cash to take over the 182-unit Promenade. Built in 1984 at 2330-32 W. Glenrosa Ave., the complex was 58 percent leased when the deed changed hands. Michael Hubl, vice president and associate director for Marcus & Millichap Real Estate Investment Services' national multi-housing group, steered the marketing and sale of the foreclosed property for the Columbus, Ohio-based lender. ........................................................................ Leasing Begins for $135 Million Project LOS ANGELES – With construction on track for August 2010 occupancy, Urban Partners has started to court residents for the 421-unit University Gateway. The $135 million development, featuring 83,000 sf of retail, sits at 3335 S. Figueroa St., right on the doorstep of the University of Southern California campus. "This property is a step above the rest. It is close to campus, furnished with designer packages and has amazing amenities," said John Hrovat, developer for Los Angeles-based Urban Partners. University Gateway, rising eight stories, has been designed to house 1,642 students. The one- and two-bedroom apartments, ranging from 608 sf to 922 sf, are fully furnished with designer furniture packages and energy-efficient appliances. Campus Advantage Inc. of Austin, Texas, has been hired to manage the holding for Urban Partners. ........................................................................ Update Behringer Harvard Wraps Up One More CHERRY HILL, N.J. – With the ink barely dry on yesterday's deal, the Dallas-based Behringer Harvard Multifamily REIT I Inc. has completed the $40 million purchase of the 308-unit Burrough's Mill Apartment Homes. The five-year-old complex sits on 25.7 acres along Church Road, just seven miles east of Philadephia's center city. The 33-building complex has been under contract since August. The one-, two- and three-bedroom mix has units from 835 sf to 1,450 sf. The deed is rolling into a JV portfolio with PGGM Private Real Estate Fun, an investment vehicle for large Dutch pension funds. ........................................................................ Behringer Harvard Finalizes $96 Million Acquisition LOS ANGELES – Behringer Harvard Multifamily REIT I Inc. has closed on the 438-unit Gallery at NoHo Commons. The property has been under contract since August for $96 million. The 88 percent-leased complex, situated at 5416 N. Fairview Ave. on a 5.3-acre tract, abuts the North Hollywood Metro Station and sits at the epicenter of the NoHo Arts District, a 743-acre, city-backed redevelopment. "We were attracted to this opportunity to acquire an outstanding asset at a value well below replacement cost, " said Mark T. Alfieri, COO of the Dallas-based REIT. The two-year-old complex has four residential buildings, swimming pool and spa, social lounge, recording studio and fitness and business centers. The asset includes two five-story parking garages with a combined 778 spaces. Adding to its allure, NoHo Commons is positioned less than two miles from Warner Brothers, Universal, NBC, ABC and CBS. The one- and two-bedroom units rent for $1,820 to $2,875 per month, according to Internet research. In its latest SEC filing, the buyer said it paid the full amount in cash from IPO proceeds, but may later mortgage the asset. The seller is a California-based limited liability company.NoHo Commons has 115 units designated as affordable housing in a 40-year agreement with the California Redevelopment Agency. The agreement mandates below-market rental rates in exchange for the authority's $2 million annual subsidization, which is in place for another 20 years. The agreement has provisions for payment acceleration and the number of subsidized units, but stipulates that the owner must maintain some portion as affordable housing until 2048. The pending acquisition was noted by Realty News Report in a Sept. 11 story about the REIT's purchase of the 390-unit Waterford Place near San Francisco. NoHo Commons went under contract the same month as the 308-unit Burrough's Mill Apartment Homes in Cherry Hill, N.J., which carries a $40 million price tag. ........................................................................ 168-Unit Oak Grove Sells As Bond Status Unwinds CONWAY, Ark. – America First Real Estate Group has banked $3.75 million for the 168-unit Oak Grove Commons, a former tax exempt bond and tax credit holding. The buyer is Little Rock-based Bailey Properties LLC. John Clayton, senior investment adviser in Hendricks & Partners' Little Rock office, said the conversion from a tax-exempt bond property was "extremely fascinating to me as well as challenging." Clayton, who's developed and managed tax-exempt and tax-credit properties, explained that he knew the "front end" of financing such a trade, but "seeing the financing unwind proved to be invaluable as we began to market the property" for the Omaha-based seller. The 50-year-old Bailey Properties is a recognized long-term owner and manager of commercial real estate. Its footprint extends to Arkansas, Louisiana and Texas. ........................................................................ Conti Organization Readies $30 Million Buying Plan By Connie Gore DALLAS – After accruing nearly 2,000 apartments in 18 months, Dallas-based Conti Organization has jump-started talks with investors to seed its first fund. Conti president and founder Carlos Vaz and principal Stewart Hsu are working toward a $10 million equity raise for Conti Fund I LLC. If all goes as planned, the fund will close by year's end in time for Conti's 2010 buying plan to begin. "We feel pretty confident that we'll get it done by the end of the year," Hsu said. The $10 million of equity will be leveraged to triple the size of its buying power, he added. Conti's portfolio consists of nine properties in Dallas/Fort Worth and one in Houston, but none of those will be moved to the fund, according to Hsu. The same strategy that Conti used to acquire its existing properties will be applied to the fund. Hsu said they will continue to buy distressed properties with 200 units or more through direct negotiations with banks and lenders. He said the strategy has often produced deeds at 40 percent discount to the note. "We've got a good track record," Hsu stressed. "We've deployed this money successfully in the year and a half." He added the fund is a "response" to what larger equity investors want. Hsu emphasized that none of the existing properties are actively being marketed at this time. But, they are investments. "We will sell if we get the right price," he quickly added. ........................................................................ Local Investor Buys 160-Unit Complex IRVING, Texas – A local investor has claimed the 160-unit West Wind Apartments, taking the deed to the 29-year-old complex from its four-year owner. According to Dallas County tax records, the seller would have been Houston-based Apcar Investment. The complex, sitting on 7.2 acres at 1306 N. Nursery Rd., is a mix of one- and two-bedroom apartments. Internet research shows the apartments, ranging from 687 sf to 930 sf, rent for $579 to %749 per month. Will Balthrope in the Dallas office of Marcus & Millichap Real Estate Investments Services and Ryan Epstein in the San Antonio office represented the seller. The buyer is a limited liability company from Irving. ........................................................................ 26 Units Sell for $1.2 Million McMINNVILLE, Ore. – The 26-unit Brockwood Village has sold for $1.2 million in an exchange between private investors from Oregon. Situated at 730 SW Brockwood Ave., the complex is positioned just six blocks from restaurants and retail, including a grocery store. Also nearby are public schools of all grade levels, a community college and the Linfield College campus. Grayson Pounder in the Portland office of Hendricks & Partners marketed the one-bedroom units for Patsy L. Roth of Lafayette. The buyers are Robert J. and Andrea E. Lynch of Beaverton. ........................................................................ Leyendecker Goes West MIDLAND, Texas – The Leyendecker Group, a Houston-based firm founded by Charles Leyendecker, has announced that it will construct a 270-unit multifamily project in Midland in West Texas. The project will be managed by Leyendecker Management Services. Leyendecker, a long-time home builder and developer, has built a number of apartment projects in Texas in recent years. ........................................................................ Campus Habitat Completes Refi LILLINGTON, N.C. – Campus Habitat has refinanced a 224-bed student housing development adjacent to Campbell University. The five-year loan, at a 7 percent fixed-rate interest, was placed with Coastal Federal Credit Union.The transaction is the second one in a month for the New York City-based Campus Habitat. The Holliday Fenoglio Fowler LP team of Dave Keller, managing director, and David Ross, associate, arranged the refinancing of the property at 25 Landis Lane. The four-year-old, class A student housing project has 82 units in a mix of single, one-, two-, three- and four-bedroom units, totaling 224 beds. "Campus Habitat 9 is the only dedicated student housing asset in the Campbell University market and as a result is tremendously popular with students. However, the size of the University (9,400 students) and surrounding community (population 3,300) required HFF to be innovative and persistent in the placement and successful completion of this assignment," Keller said. ........................................................................ 2,759 Apartments Hit Market With Seller-Financing Option By Connie Gore PHOENIX – A call for offers will be made at month's end on a 2,759-unit, seven-property portfolio in a receivership sale with a seller-financing option as the incentive to buy, pending court approval. Touted as the largest lender-controlled apartment portfolio in the Western U.S., the properties are on the market in a take one, take some or take all scenario. "It depends upon what the buyer wants to do," said Mark Forrester in Hendricks & Partners' Phoenix office, whose co-quarterback for the sale is his long-time partner, Ric Holway. Two years ago, the seven complexes commanded $229 million, having come off one renovation and moving right into another. Then, hard times befell the owner and the apartment market, forcing the lender to seek court protection through a receivership. Last March, the court appointed San Diego-based Trigild to manage the portfolio and rebuild occupancies. Forrester said Trigild was facing occupancies of roughly 50 percent due to an exodus triggered by unpaid master utility bills. Through its management strategies and rent cuts, Trigild has occupancies now resting at 65 percent to more than 90 percent. "They're all coming back, but at different velocities," Forrester said. The complexes, built between 1973 and 1996, are primarily infill locations with drive-by curb appeal due to the extensive back-to-back renovations. "This is a classic example of a group of properties which were under-managed and were facing a difficult market. Today the properties are well positioned for a new owner to continue the positive trends that have been established and realize significant profits as the market recovers," said Don Hendricks, chairman and CEO of Phoenix-based Hendricks & Partners. Forrester said the seller-financing option comes with a low interest rate and high leverage, building in opportunity for buyer or buyers to weather the economy until the inevitable rebound. "It's the ideal situation for buyers who understand that the Phoenix market should cycle into a strong rebound," he said. "It's a very strong portfolio that's going to perform a lot better and the seller financing will allow it to do so." The properties span four cities in Maricopa County. The Chandler docket includes the 3200-unit Alante at The Islands at 222 N. McQueen Rd.; 374-unit Crosswinds at 868 S. Arizona Ave.; and 460-unit Laguna Village at 102 W. Palomino Dr. The sole property in Phoenix proper is the 395-unit Sienna Springs at 5120 N. 16th St. and the lone asset in Glendale is the 196-unit Tela Verde at 5020 W. Thunderbird Rd. The other two properties are situated in Mesa – the 582-unit Tuscany Palms at 901 S. Country Club Dr. and 432-unit Whispering Meadows at 1050 S. Longmore. Additional details are available at www.ArizonaLenderPortfolio.com. ........................................................................ San Antonio Investor Buys 80-Unit Stepping Stone SAN ANTONIO – Going from application to closing in 45 days, a local private investor has purchased the 80-unit Stepping Stone Apartments, sealing the $1.7 million deal with a $1.27 million loan from La Jolla Bank. Sean P. Bushe, regional loan officer for La Jolla, Calif.-based La Jolla Bank, said the financing cleared at a 75 percent loan-to-value ratio for Terravista Stepping Stone LP, which has several nearby properties in its portfolio. The value-add play is starting out with a 50 percent occupancy at the 7737 Skolout Dr. development. According to Internet research, the mix is one- and two-bedrooms, ranging from 490 sf to 814 sf. Ryan Epstein with Marcus & Millichap Real Estate Investments Services in San Antonio represented the seller, a lender that had foreclosed on the property in July. ........................................................................ Conti Breaks Into Houston, With 266-Unit Purchase HOUSTON – Dallas-based Conti Organization has picked up its first asset in the Greater Houston market, the 266-unit Lenox Court Apartments, which has been renamed to Villa Adora Apartments. According to Conti, the deed was acquired through a loan purchase of less than $3.45 million from a national insurance company. The southwest Houston asset is 46 percent leased. The new owner has pledged to invest more than $1.4 million into upgrading the 1980s-era complex at 10534 Beechnut St.Conti has been courting financial institutions with the offer to take non-performing, distressed assets off their books. The value-add buyer in the 18 months has become a recognized turn-around pro in North Texas, where its amassed 1,900 units. "This is what we do," said Carlos Vaz, president and founder of the investment group. "We take underperforming multifamily properties and breathe life back into them and the communities around them." Also on Vaz's agenda for this year is raising $10 million for a distressed multifamily real estate fund. ........................................................................ Vacancy Climbing in San Antonio SAN ANTONIO – In a new report, Marcus & Millichap Real Estate Investment Services is tracking the largest annual addition of multifamily units in San Antonio in a decade. The Encino, Calif.-based brokerage and research firm calculates that 4,900 apartments will deliver this year or 3,200 units more than 2008's grand total. The projects, slated to deliver by year's end, are forecast to drive vacancy up 240 basis points to 11.4 percent, an uptick identical to the final six months of 2008.Researchers pointed out that the "heavy construction activity will generate a supply/demand imbalance that will drag on rents. If the team's on target, asking rents will fall 1.6 percent to $6990 per month and effective rents will plunge 3.8 percent to $636 per month. In 2008, the San Antonio market generated gains of 2.5 percent and 2.3 percent, respectively. The Marcus & Millichap report pointed out the impact of the trends on the marketplace. "Softening fundamentals and a more restrictive lending climate have reduced metro-wide sales velocity, a trend likely to persist in the coming quarters," says J. Michael Watson, regional manager of the firm's San Antonio office. ........................................................................ Behringer REIT Makes Move On Atlanta, Buys 253 Units ATLANTA – Behringer Harvard Multifamily REIT I Inc. has disclosed its second acquisition this week – the 253-unit Mariposa Loft Apartments in Inman Park Village, positioned just two miles east of downtown Atlanta. "Atlanta is a magnet for young professionals, and Mariposa Loft Apartments offers the style, convenience and urban sophistication they prefer," said Mark T. Alfieri, COO of the Dallas-based REIT. Built in 2004, the eight-building Mariposa Loft Apartments sits on five acres at 100 Montag Circle. It was 96 percent leased at sale time. The one- and two-bedroom units range from 683 sf to 1,338 sf, with Internet research pegging the rent range from $995 to $1,657 per month. Amenities include a resort-style pool, fitness and business centers, media room and game room. The asset is managed by Riverstone Residential Group, a subsidiary of Dallas-based CAS Partners. The asset sits in one of the city's most popular in-town neighborhoods. Its neighbors include high-end single-family bungalows and townhouses, with nearby light rail and bus service to downtown and midtown employment centers. The REIT now owns 13 properties with 3,883 units in eight states. ........................................................................ DDG Purchases NYC Lots For $35 Million Condo Plan NEW YORK – DDG Partners LLC will start work by early October on a 10-unit, $35 million condominium project in the city's NoHo Historic District. The New York City-based developer has just closed on vacant land at 41-43 Bond St., the first in a series of middle-market acquisitions planned for the next six to 12 months. DDG was formed last spring "to take advantage of opportunities in the real estate market," according to a press release. Its principals are Joe McMillan, J.C. Keeler, Chris Prokop and Peter Guthrie, who are representing high net-worth family offices. The investment strategy targets deals from $10 million to $25 million and all property types."While we are tremendously excited about Bond Street, we also have a pipeline of projects that range from ground-up new construction, to partnering with existing lenders and developers on projects that are already underway," said Joe McMillan, CEO of DDG. "We're opportunistic, with in-house financial, development, construction, and legal expertise, which allow us to quickly analyze opportunities and respond aggressively where we see value." ........................................................................ Westland Refinances Two Assets LOS ANGELES – Westland Industries has secured $4.37 million for multifamily properties in the Los Angeles area, securing two cash-out financings with a 75 percent loan-to-value ratio. The Long Beach, Calif.-based borrower banked 10-year notes at 5.95 percent fixed-rate interest through Wachovia Multifamily Capital Inc. – FNMA. Holliday Fenoglio Fowler L.P. managing director Mark Wintner arranged the loans for the fully leased properties The 36-unit Burlington Avenue Apartments at 1320 S. Burlington Ave. is collateralizing a $2.12 million loan. The asset, completed in 1924, was renovated in 2007. The 33-unit Roxanne Apartments at 3939 Roxanne Ave. is securing a $2.25 million note. ........................................................................ L.A. Investors Pass 10-Unit Complex LOS ANGELES – Centinela BCM LLC has paid $1.25 million for a 10-unit complex, totaling 7,824 sf. Michael Hibbert, a broker in Charles Dunn Co.'s West Los Angeles office, represented the seller of 4442 S. Centinela Ave., the Fukumoto Family Trust of L.A. Banker Realty Exclusive represented the local buyer. "Although the property was in need of renovations, the buyer received a value-added 'up-leg' property with rental rates approximately 50 percent below market value," Hibbert said. ........................................................................ Behringer Harvard Stakes Claim To 390 Units in San Francisco DUBLIN, Calif. – Dallas-based Behringer Harvard Multifamily REIT I Inc. and its joint venture partner, PGGM Private Real Estate Fund, have pocketed the deed to the 390-unit Waterford Place, a 96.7 percent-leased asset positioned 35 miles east of San Francisco. "Our strategy is to take advantage of an investment environment that is providing opportunities to acquire core assets at values well below replacement cost," said Mark T. Alfieri, COO of Behringer Harvard Multifamily REIT I Inc. He cited the asset's quality and stabilization as dealmakers along with its location "in one of the most desirable cities in Alameda County." The six-year-old development consists of five four-story buildings adjacent to the 125,000-sf Shops at Waterford, with retail lineup that includes a grocery store. The one- and two-bedroom apartments range from 599 sf to 1,367 sf. Internet research shows the developer, Shea Properties of Aliso Viejo, spent $100 million on the development at 4800 Tassajara Rd. The REIT's portfolio now boasts 12 properties, totaling more than 3,630 units in 12 states. Its JV partner is a vehicle for real estate investments for large Dutch pension funds, which has committed $200 million, with the possibility of $300 million, for the Behringer Harvard REIT. In August, the REIT entered into an agreement to buy the 308-unit Burrough's Mill Apartment Homes in Cherry Hill, N.J. for $40 million, and the 438-unit Gallery at NoHo Commons in Los Angeles for $96 million, according to an SEC filing by the REIT. In June, it paid $29.2 million and assumed a $24 million mortgage for the 301-unit Verandah at Meyerland Apartments in Houston. ........................................................................ AMLI on 2nd Earns $32.2 Million Loan AUSTIN – The AMLI on 2nd, a 19-story mixed-use project in downtown Austin, has earned a $32.2 million loan from Freddie Mac for its Denver-based developer. The asset consists of 231 class A plus residential units atop 41,000 sf of street-level retail. Holliday Fenoglio Fowler L.P.'s Houston team of Scott Galloway, executive managing director, and Matt Kafka, director, arranged the seven-year loan, with an adjustable rate, for AMLI Residential Properties. AMLI on 2nd, located at 421 W. 3rd St., was developed in 2007 in the vibrant 2nd Street retail district and within walking distance of restaurants, entertainment venues and the Lady Bird Lake hike and bike trail. The residential component has one- and two-bedroom units. The amenity package includes a fitness center, sky deck with pool and barbecue grills, business center, resident lounge and garage parking for both residential and retail tenants. " "AMLI on 2nd is truly a first-class development with tremendous views of the entire city and a fantastic amenity package. The property is well-positioned to take advantage of its live, work, play location in the rapidly growing Austin CBD," Kafka said. ........................................................................ DLZ Buys 14 Units in Pasadena PASADENA, Calif. – DLZ Investment Inc., drawn by the asset's location and quality, has acquired 14 units near the heart of the prestigious South Lake Business District. The deed changed hands for $1.88 million, trading at a 6.81 percent cap rate. The Rowland Heights, Calif.-based buyer bought the property at 140 N. Wilson Ave. from Nancy B. Johnson and the Karyn Trust of Los Angeles. Kevin Lutz and Kevin W. Hurley in the Pasadena office of Hendricks & Partners represented the seller. Developed in 1957 and extensively renovated in 2004, the mix of one-bedroom units average 455 sf, with monthly rents set at $1,093. The complex hit the market as "a sound turn-key acquisition in a prime Pasadena location," as detailed in the marketing brochure. Further fueling the location is its proximity to the 210, 134 and 110 freeways and 11-mile drive to downtown L.A. ........................................................................ ACC, Freddie Mac Ink $125 Million Loan AUSTIN – American Campus Communities Inc. has secured $125 million of fresh capital, using eight student housing assets in the U.S. as the collateral. The Freddie Mac-funded credit facility has a five-year term and a LIBOR-based interest rate. According to a company press release, the Austin-based student housing giant will use proceeds for working capital and funding future acquisitions and property development. Included in deployment is its ACES pipeline, a 1,450-bed project at Northern Arizona University in Flagstaff, and projects at Washington State University and Arizona State University. Paula Poskon, a senior analyst for Milwaukee-based Robert W. Baird & Co., reported in July that American Campus Communities was on the cusp of securing the $125 million funding from Freddie Mac. She noted that the company was poised to pledge assets with a borrowing base of $100 million, "on which they expect to draw the full amount." ........................................................................ Multifamily Sales Close in New Jersey, Arizona PHOENIX – A pair of multifamily properties in Arizona and one in New Jersey have crossed the finish lines. The largest sale in the deal stack is the 77-unit Poco Jardin in Phoenix, which traded for $1.8 million.Poco Jardin, located at 4120 W. Osborn Rd., was sold by a local investor, Dorel Muresan, a local limited liability company. Michael Hubl, vice president for Marcus & Millichap Real Estate Investment Services in Phoenix single-handedly brokered the sale. Also, the 20-unit Tempe Manor at 1403 E. 8th St. in Tempe was passed by John P. Kobierowski and Julie A. Hysko, a pair of local investors, to DJMK Investments LLC. Brian Smuckler, also a vice president with Marcus & Millichap in Phoenix, represented both buyer and seller. Marcus & Millichap vice president Greg Babaian and investment specialist Spencer Weinberg in the New Jersey office sold a 12,400-sf building in Jersey City to an investment group with ties to the Midwest and New England. The building, completed in 1915, has 14 one-bedroom units and 4,078 sf of retail space on the ground floor. The seller was a local long-term owner. ........................................................................ Place Properties Gets Inroad With 856 Beds at Ohio State ATHENS, Ohio – Winning its first management contract in Ohio, Place Properties L.P. has snagged keys to the 856-bed Summit at Coates Run near Ohio University. Atlanta-based Place Properties has won project leasing for the first phase and preleasing rights for the second phase, which is slated to deliver before January 2010. The complex is located at 363 Richland Ave., just a short walk from Ohio University's campus and close to uptown and biking trails.The Summit at Coates Run's design features four private bedrooms, each with high-speed Internet and cable, study areas and private baths. Floor plans also feature fully furnished living rooms and luxury kitchens. "This management contract is a wonderful addition to the Place Properties management portfolio. This engagement aligns with our strategy to expand our business through the addition of management contracts, property acquisitions and development projects," said Bob Clark, the firm's executive vice president of finance and acquisitions. ........................................................................ $20 Million Refinance OK'd For 379-Unit River Terrace RIVER EDGE, N.J. – The 379-unit River Terrace Apartments in northeast New Jersey has earned a $20 million refinance for its owner, a single-asset entity controlled by a family trust and 12 other estates and trusts. River Terrace Associates secured a 10-year loan at a fixed-rate interest through Freddie Mac. The collateral is a 97 percent-leased complex at 144 Bogert Rd., just off a state highway and close to the George Washington Bridge. "River Terrace Apartments has historically maintained an occupancy rate in the mid-to-high 90's in part due to its location just off State Route 4, a major east-west thoroughfare with an abundance of commercial and retail amenities," said Tom Didio, senior managing director with Holliday Fenoglio Fowler L.P. He and real estate analyst Michael Oliver arranged the new financing. HFF will be servicing the loan. The complex contains one-, two- and three-bedroom units, averaging 844 sf. Monthly rents range from $1,195 to $1,490 for one- and two-bedroom apartments, with rates negotiable for three-bedroom floor plans as they become available, according to the management company's Web site. ........................................................................ Sold: 21-Unit Complex BETHLEHEM, Pa. – In an exchange between local investors, a 1920's-era complex has been sold for $987,500. The asset was 95 percent leased at sale time. Union Boulevard Apartments, situated at 42-55 Union Blvd., has 14 three-bedroom units and seven one-bedroom designs. The Marcus & Millichap Real Estate Investment Services' team of senior associate Ken Wellar and associate Matthew Wolf in the Philadelphia office brokered the transaction. ........................................................................ $5.9 Million Takes 141 Units DENVER – In an exchange between local limited liability companies, the 141-unit Cherry Creek Place has traded for $5.9 million.The complex, situated at 848 S. Dexter St., contains one- and two-bedroom units, ranging from 630 sf to 985 sf. Internet research shows monthly rents go from $590 to $915. Jordan Robbins, Dave Potarf and Dan Woodward, investment specialists in Marcus & Millichap Real Estate Investment Services' Denver office, ran the sale from start to finish. ........................................................................ Bay-Front Complex Sells for $3.2 Million CHULA VISTA, Calif. – The 38-unit Shawnwood Forest has sold for $3.2 million in an exchange between San Diego investment groups after five offers went on the table. The deal's sweet spot is a prime location close to the city's bay front, where a 200-acre redevelopment is under way to create a mix of uses with a projected $400 million economic impact. The complex, situated on 1.18 acres at 571-81 Arizona St., was marketed by Chris Rogers in the San Diego office of Phoenix-based Hendricks & Partners. Shawnwood Forest Apartments LLC sold the complex to Mark 1 L.P., which was represented by Chris Zorbas of Marcus & Millichap Real Estate Investment Services' San Diego office. Shawnwood Forest, developed in 1979, sits on a cul de sac, just off Broadway, a major thoroughfare for San Diego County's second-largest city. The mix is 35 one-bedroom units of 625 sf and three two-bedroom units, each 785 sf. Monthly rents are $937 and $1,157, respectively. ........................................................................ 400-Unit Greenbriar Sold in Houston HOUSTON – Bank of America has sold the 400-unit Greenbriar Park North in the Greenspoint submarket to a local investment group, Aldine Greenbriar Apartments LLC. The 31-building complex at 818 Richcrest Dr. sits on the east side of Interstate 45, within walking distance of Greenspoint Mall and a short drive from the Woodlands Mall, Bush Intercontinental Airport and several office buildings. Chip Nash, Greg Austin and Wade Schmitz in the Houston office of Hendricks & Partners and Tom Burns and Jay Gunn in the firm's Dallas office handled the sale for the lender. The complex, built in 1983 on 13 acres, has six one-bedroom floor plans, ranging from 573 sf to 712 sf, and four two-bedroom designs from 843 sf to 925 sf. Monthly rents start at $492 and cap at $702. ........................................................................ 18-Unit Deed Trades at 11% Cap LOS ANGELES – In a value-add play, Cardinal Investments LLC/DTS Holdings LLC of El Segundo, Calif., has scooped up an 18-unit multifamily asset in Hollywood's redevelopment pocket, closing the deal at an 11.14 percent cap rate for $1.65 million. The Berendo-Willow Brook Apartments were developed in 1921 in three buildings, each on its own lot at 1001 and 1005 N. Berendo St. and 4705 Willow Brook Ave. The seller, a local private investor, required the deal close in a take-all or none scenario, according to the marketing flyer from Hendricks & Partners' broker Brent Sprenkle in the West Los Angeles office. The layout of the land, though, means the buildings can be individually sold if the new owner wants. Berendo-Willow Brook Apartments are adjacent to the Los Angeles City College, which is in the midst of a $248 million renovation. The property is located near Santa Monica and Western boulevards, part of the 1,107-acre Hollywood Redevelopment Project spawned to revitalize the historic Hollywood core and retain its economic driver, the entertainment industry. The complex's 18 units are equally divided among one-, two- and four-bedroom designs with 600 sf, 750 sf and 950 sf, respectively. Rents are $934, $1,160 and $1,767 per month. ........................................................................ Realogics' Condo Bulk Buy Strategy Sells Out Project SEATTLE – Realogics Brokerage LLC has sold the remaining units in the 185-condo Parc in downtown Seattle's Belltown neighborhood, claiming its bulk buy method has resulted in the first sold-out condo project in the city in two years. "The sellout of any tower is always a milestone but it's far more significant today because it means that we're finally digesting the standing inventory," says Sam Cunningham, managing broker for locally based Realogics. Western & Clay LLC, the development arm of Intracorp Real Estate, met the market with "sharper pricing, financing incentives and other buyer perks," to sell the remaining units, according to Cunningham. "It's a win-win for buyer and seller in what has been a challenging marketplace for many, but not all projects downtown," he said. The Parc's doors opened in late 2008. Cunningham pointed out that there have been no condos come on line since 2007 during the early stages of the credit crunch. In Seattle and elsewhere, auctions have become commonplace as developers race to reduce their inventories before construction debt comes due. If Realogics' research is on target, there are hundreds of buyers trying to time the market. "We know that many buyers are eyeing their options from the sidelines - we want to build their confidence and make deals with new construction inventory," says Dean Jones, president and CEO of Realogics. "Our goal is to assemble buyers together and bring offers to projects in bulk. The concept is simple - the more we sell, the more they save." Realogics' condo bulk buy strategy is to assemble buyers and negotiate with developers for a volume discount contingent upon a group closing. The method provides the potential to sell many units at once, just like a real estate auction, but buyers are in control instead of the seller because of their bulk purchasing power, according to the company. ........................................................................ Developer Trips Green Light For Stalled Condo Project WASHINGTON, D.C. – Monument Realty is ready to forge ahead on the renovation of the 396-unit Potomac Place Tower, a project sidelined 11 months ago due the bankruptcy of its senior lender, Lehman Brothers Holdings Inc. The condominium project is located at 800 4th St. in the capital city's southwest submarket. "We have worked closely with our lender to sort out this very complicated situation and to bring the project back to the market. We are pleased to be in a position to pay contractors and vendors as well as resume sales," said Michael J. Darby, a founding principal of locally based Monument Realty. He praised the lender and its counsel for taking the time "to understand the complexities of this project and were able to appreciate the value in moving forward to completion." Monument Realty bought Potomac Place in 2001 as a rental property. In 2005, the owner added a 302-unit condo tower to the existing structure, which was built in 1959, and laid the groundwork for the conversion of all rental units to condos. The asset, positioned two blocks from the Metro, is part of a neighborhood undergoing a major redevelopment. The National Mall, Southwest Waterfront and Washington Nationals' new ballpark are within walking distance. Units range from studios to two-bedroom condos, bearing sticker prices in the $200,000 range. ........................................................................ Well Fargo Sells 96-Unit Value-Add HENDERSON, Ky. – Cornerstone Property Investments LLC of Shiloh, Ill., has stepped in as owner of the 96-unit Seven Oaks, a value-add play with a key piece of real estate tucked into a subdivision with single-family homes valued as high as $350,000. The deed changed hands for $1.7 million. According to a press release, the new owner anticipates a stabilized occupancy by spring 2010 at the 12-building complex on five acres at 771 Lakeview Dr. The seller was Wells Fargo Bank, a trustee for registered holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Pass-Through Certificates, Series 2005-C4 of Irving, TX. Leading the sales drive were Hendricks & Partners brokers Rick L. Vidrio, Rick Brace, Cary Scott Belovicz and Todd Stofflet in the Detroit office and Jay Gunn in the Dallas office. The complex was developed in two phases in the mid-1980s. The sales team said the buyer will renovate common areas and unit interiors as a steppingstone to a rent hike and improved cash flow that targets raising the asset's occupancy rate. Seven Oaks has 94 two-bedroom units, each 850 sf, that rent for $479 per month. The other mix includes a 688-sf one-bedroom unit and 900-sf three-bedroom apartment, which rent for $385 and $600 per month, respectively. ........................................................................ California Group Gains Control Of 288-Unit Woodland Heights By Connie Gore AUSTIN – The interstate-fronting Woodland Heights in north-central Austin has been sold to an investment group from Orange County, Calif., in a heated competition for the prime piece of real estate. The 288-unit complex at 8312 IH-35 North was 90 percent leased at sale time, said George Deuillet III, a senior investment adviser in Hendricks & Partners' Austin office. He and colleague Ellen Muskin handled the deed in lieu of foreclosure transaction. "We had lots of activity on it," Deuillet said, citing location and turnaround potential as the drawing card. The winner was Austin WH Apartments LLC, an affiliate of DTI Investments Inc., which came to the table with a portfolio of multifamily properties in the Austin metro. Bishale Patel and Forrest Bass of Houston Income Properties represented the buyer. Deuillet said the buyer's repositioning plan includes upgrades, inside and out. The last round of upgrades was done in recent years, with improvements to the clubhouse, pool and exterior, by the former owner, who had at least 10 years invested into the asset. The 21-building complex is situated at the I-35-U.S. Hwy. 183 crossroads, close to the doorstep of the Domain, boasting more than 700,000 sf of brand-name shops and restaurants in a four million-sf retail corridor of the capital city. At the closing, the asset's long-time rental restrictions were lifted, according to the marketing flyer. Woodland Heights, positioned on 9.75 acres, is a mix of one- and two-bedroom units from 536 sf to 960 sf. Rents range from $515 to $590 per month. ........................................................................ $3.1 Million Bags Trophy Address BEVERLY HILLS, Calif. – A private investor from Los Angeles has locked down a trophy location in the Golden Triangle, buying a 12-unit complex for just $3.1 million. The complex is situated at 320 N. Crescent Dr., within walking distance of the fabled Rodeo Drive, South Santa Monica and Wilshire boulevards and close to Los Angeles Country Club. The buyer, 320 North Crescent Drive LLC, intends to renovate units as they change over and hold the property long term, according to Hamid Soroudi, the Charles Dunn Co. broker who negotiated the transaction along with colleague Cari Widman. The seller is MRD Properties of Santa Monica, Calif. "The property sold at an exceptional price of 4 percent cap and 15 times gross," Soroudi said. "This is a testimony to the fact that prime-located properties do not decline in value, even in recession." ........................................................................ MC Cos., Aimco Pass 226 Units PHOENIX – MC Cos. has acquired the 226-unit Wickertree Apartments in North Phoenix, getting the deed at 91 percent occupancy from Denver-based Aimco Properties L.P. The complex, situated at 20003 N. 23rd Ave., is close to the junction of Interstate 17 and Loop 101. MC Cos., with headquarters in Scottsdale and Tucson, focuses on acquiring workforce housing. The new deal bumps the portfolio to 6,472 units in Arizona, Texas and Oklahoma. "The investment offering was solid and significantly below replacement cost, making it attractive to our investors," said Ken McElroy, co-principal and partner of MC Cos. The acquisition is considered a "straight management deal," said Lesley Brice, MC Residential CEO and partner. "We are not expecting any significant change in rents or occupancy (91% at close). We have identified several areas where expenses can be reduced and processes streamlined, which will improve cash flow." He added Wickertree is expected to be a "slow and steady" growth asset. Wicketree Apartments, developed in 1983, has one- and two-bedroom units ranging from 580 sf to 861 sf Monthly rents start at $599 for a one-bedroom apartment and $729 for two bedrooms. ........................................................................ TJAC Stakes Ground in Australia SYDNEY, Australia – TJAC International has secured a $23.73 million loan to develop a 44-unit multifamily complex with 2,500 sf of street-level retail in an in-town pocket in one of Australia's leading cities. The seven-story building, with two underground parking levels, will be situated at 15 Regent St. in Sydney. Holliday Fenoglio Fowler L.P. Anthony Cutone, a director in Boston, arranged the construction loan through CTL Capital LLC, which provided for a roll to permanent financing when the project's done. Andrew Mann, a managing partner at Boston-based Triad Group, represented TJAC International in the transaction. As reported earlier this month, Mann and Michael Sternberg picked up $72 million from CTL Capital to buy and renovate two multifamily properties in the Bloomsbury area of central London. The two partners this year have been focused on establishing international beachheads for a full-service firm that was founded in 1985 by the late Richard Sternberg. ........................................................................ Sold: 94-Unit Suburban Asset LEE'S SUMMIT, Mo. – Wimberly Construction LLC of Blue Springs, Mo. has bought a completely empty, 94-unit multifamily asset for $1.55 million in a heated race against other would-be buyers for the value-add opportunity. Jeff Lamott and Phillip S. Brimble in the Kansas City office of Phoenix-based Hendricks & Partners represented the special receiver for a lender that foreclosed after a one-year wait for the former owner to sell or refinance the Nancene apartments at 805 SW Mill St. It had operated as Section 8 housing for the past decade. According to the brokers, the county housing authority had relocated all Section 8 tenants prior to the foreclosure. The brokers' marketing blitz resulted in 45 inquiries, 22 interested buyers and nine purchase offers. In a press release, the brokerage team confirmed that Wimberly's price wasn't the highest, but the dealmaker was its shorter timeline for closing. The buyer's previous track record with the brokerage firm also provided leverage for the decision. ........................................................................ Single-Family Starts Pinching Multifamily Market's Pipeline By Connie Gore AUSTIN – The multifamily market is continuing to be undermined by the single-family sector, with construction starts down, rent falling and the outlook much the same for the next several years. "Weak market conditions and restrictive financing conditions will keep a lid on new construction for some time to come," said Richard F. Moody, chief economist and research director for Austin-based Forward Capital Group. His recent report showed multifamily construction permits fell to 102,000 and starts dipped to 91,000 versus 458,000 permits for single-family homes and 490,000 single-family starts. The multifamily market's construction level has fallen below that experienced during the early 1990's recession. And as Moody pointed out, the difference between now and then was developers had been more tempered in the current cycle than in the past. Although there are markets that can sustain more units, developers are being stymied by tougher financing conditions. The increase in single-family construction, pressure from lower priced foreclosures and the battered labor market stalling household formations are all leaving their mark on the multifamily market. "The differential between the costs of purchasing and renting a home in many markets has narrowed significantly," Moody wrote. "As such, rental vacancy rates have been rising while rents have been under pressure." Moody concluded that multifamily development for the rental market will remain at low levels for several more quarters. With fewer completions in the economist's crystal ball, he noted that "firmer economic and labor market conditions" in the next two or three years ultimately will lead to increased rental demand. With single-family sales on the rise, Moody pointed out the "wild card" is the first-time buyer's tax credit, which is slated to expire Nov. 30. "Should the credit be extended, an outcome certainly within the realm of possibility, builders may get more aggressive in turning out lower-priced units," he said. ........................................................................ $25.2 Million Loan Gets FNMA Clearance STANTON, Calif. – Beating the clock on maturing debt, Bertram Partners Inc. has landed a 10-year loan for $25.24 million from Wachovia Multifamily Capital Inc. – FNMA, with the 297-unit Continental Garden Apartments as collateral. Bertram's new fixed-rate debt with Fannie Mae is a conventional loan that was used to retire bond financing. David Bleiweiss, managing director of Holliday Fenoglio Fowler L.P., arranged the loan for the Laguna Hills, Calif.-based owner of the 99 percent-leased complex at 8101 Cerritos Ave. Continental Garden Apartments has 98 buildings in a mix of one-, two- and three-bedroom units averaging 1,000 sf. The asset is an affordable project with rents set at 60 percent of the area median income through regulatory agreements with the city and California Tax Credit Allocation Committee. "Despite the downturn in the economic climate, financing for multifamily properties has remained fairly steady, despite the credit squeeze for other property types," Bleiweiss said, citing available capital from both Freddie Mac and Fannie Mae. ........................................................................ Multi-Housing Investment Sales Team Joins HFF Houston HOUSTON--One of the most prolific multifamily investment sales teams in the nation is leaving CB Ricard Eillis to join HFF (Holliday Fenoglio Fowler, L.P.). Craig LaFollette, who was an executive vice president and senior member of the Houston Multi-Housing Properties Group at CBRE and a member of CBRE’s Institutional Group, will join HFF as senior managing director and will lead the nine-member brokerage team in the disposition of multi-housing assets in Texas and across the United States. The team has been involved in more than $6.0 billion in 350-plus multi-housing property transactions throughout the United States including multi-market portfolios as well as single-asset sales of Class A, B and C properties. Todd Stewart, a 25-plus year industry veteran, who was an executive vice president of the CBRE Houston Multi-Housing Properties Group, a member of CBRE’s Major Accounts Group and a senior member of the multi-housing team, will join HFF as a senior managing director. Todd Marix, with 20-plus years of multi-housing investment sales experience, will join the firm as a senior managing director. He was a senior vice president with the Houston Multi-Housing Group, a member of the Major Accounts Group and was involved with the disposition of assets in Texas and across the United States. Tre Banks, who will join the firm as a director, has specialized in multi-housing transactions since joining the Houston Multi-Housing Properties Group in 1997. He was responsible for financial analysis and business development and holds an MBA from Sam Houston State University. Chris Curry, who will join the firm as an associate director, was a
sales associate in the Multi-Housing Group in Houston, which he joined
in 2007. He was responsible for client development in the Class “C”
market in Houston and surrounding secondary and tertiary markets, and
was also a member of the Private Client Group. Prior to joining the
Multi-Housing Group, Mr. Curry was an analyst with United Title of Texas. UDR, Kuwait Finance House Rolling Out $450 Million JV By Connie Gore DENVER – UDR Inc., with select cities on its radar screen, has formed a joint venture with Kuwait Finance House to deploy up to $450 million into multifamily properties in high barrier-to-entry U.S. markets. UDR's focus in recent years has been southern and northern California, Florida, metropolitan Washington, D.C. and the state of Washington. Favorable job formation, low single-family home affordability supplement the high barrier-to-entry requirement for acquisition and development, as UDR pointed out in its latest SEC filing. The UDR-Kuwait Finance House JV is the most likely candidate to benefit from the Denver-based developer's project pipeline of 2,207 units, all wholly owned communities with construction budget of $359.5 million, according to the federal filing. In addition, UDR is holding several development tracts with a gross book value of $145 million. However, management noted it's unlikely to start work on any new projects this year. The JV has been put into motion with a 70 percent contribution from Kuwait Finance House to UDR's 30 percent piece of the $180 million equity pool. The partners expect to be fully invested within two years. New York-based Citigroup Global Markets Inc. arranged the joint venture. "This venture is a continuation of KFH group strategy that focuses on the real economy and we are optimistic that it will add value to all parties involved including our partners, clients, and shareholders especially since we are targeting an area of the market we are familiar with," Mohammad Sulaiman Al-Omar, CEO of Kuwait Finance House. The JV's acquisition strategy will target class A properties with a minimum value of $20 million and less than seven years old. Holds of up to seven years are part of the plan. "This venture will allow UDR to continue to expand its portfolio into high barrier to entry markets with judicious use of the company's capital and enhanced return potential through fees and promotes," said Tom Toomey, UDR's president and CEO. "UDR is looking forward to investing with its new partner during these opportunistic times." The UDR portfolio spans 44,990 units and 1,916 under development in 10 states and the District of Columbia. Based on the SEC filing, UDR is slated to buy another complex in Dallas as soon as construction wraps up. The purchase of the 289-unit complex for $29 million is slated to close before the third quarter ends. UDR and another partner also are in lease-up of a 305-unit complex in Dallas/Fort Worth in a continuation of a JV formed nearly two years ago. The UDR portfolio's largest concentration, though, is in the West, where Orange County has the lead over nine cities with 4,067 units in 13 communities. The Southeast region is UDR's second-largest, with Tampa's 3,278 units in 10 properties at the head of the pack and Orlando running a close second with 2,500 units in nine communities. The largest concentration in the Mid-Atlantic is Washington, D.C., where UDR owns 2,050 units in seven properties. There are no holdings in the Northeast, according to the SEC report. ........................................................................ 316-Unit San Tropez Fetches $29 Million SCOTTSDALE, Ariz. – The 316-unit San Tropez has sold for $29 million to an affiliate of Nevins Adams Lewbel Schell of Santa Barbara, Calif. The upscale multifamily asset was 93 percent-leased at sale time. San Tropez is located at 2700 N. Hayden Rd. beside the Coronado Golf Course and within walking distance of a concentration of retail, restaurant and entertainment space. The complex was sold by BEL-EQR I L.P. of Chicago, which had Tyler Anderson and Sean Cunningham with CB Richard Ellis in Phoenix leading the sales campaign. The buyer of record is NALS Arizona LLC. Built in 1989, San Tropez's one-, two- and three-bedroom units range from 812 sf to 1,275 sf. Internet research puts monthly rents at $870 to $1,350. The asset's amenity package includes a resort-style swimming pool, spa, sand volleyball courts and clubhouse with a fitness center. Units boast wood-burning fireplaces, Roman soaking tubs and designer interiors. ........................................................................ 7.5 Percent Cap Rate Backs Deal PORTLAND, Ore. – A local investment group has acquired a 14-unit apartment building for slightly more than $1 million, starting the reign with a 7.5 percent cap rate. The buyer of record is 5625 SE Gladstone LLC, which was represented by George McCleary of Reekie Properties in Portland. Situated at 5625 SE Gladstone St., the complex was sold by DJM Holdings III LLC and JWR Holdings LLC, a Portland-based joint venture. Representing the seller were Ira Virden and Pete Gassner in the Portland office of Marcus & Millichap Real Estate Investment Services. ........................................................................ Church Park Owners Secure $130 Million Refinance BOSTON – Church Park Apartments' owners have been cleared for a $130 million refinance from CW Capital LLC and Freddie Mac, getting a 10-year term and 5.51 percent fixed-rate interest. The 508-unit Church Park Apartments at 221 Massachusetts Ave., with 71,400 sf of retail space and a 540-space parking garage, at the heart of the Back Bay neighbors Boston's Symphony Hall and the I.M. Pei-designed Christian Science Plaza. Locally based CAS Financial Services, the asset management arm of Dallas-based CAS Partners, arranged the loan, signaling the fourth time since 1996 that it's arranged loans for the luxury development. "We are thrilled with the result of this transaction and the value we have created in the property over the last 40 years," said F. William Smith, president of Boyd-Smith Inc. and one of the Church Park's developers. Curtis R. Kemeny, CEO of Boston Residential Group, Bill Smith Jr., a vice president in Boyd-Smith, and F. William Smith are principals in the transaction. "This transaction speaks volumes about the high quality of the property and its management team," said Ed Sarno, the owner's CFO. Church Park Apartments has studios and one- and two-bedroom units in 545-sf, 630-sf and 954-sf layouts. Monthly rents run upward of $2,000 per month, according to Internet research. Todd Trehubenko, president of CAS FAS, pointed out that the team encountered a "myriad of challenges to obtain attractive financing terms in this troubled market" despite the high-profile, luxury nature of the project. "Accolades are in order here," said Richard N. Thielen of RINET Co. LLC, the limited partners' representative. "This is, and has been, a truly remarkable investment whose rate of return tops the charts of any passive real estate investment our firm has seen or recommended in the 35 years I've been in practice. Investors should be very proud of their investment." ........................................................................ $44 Million Loan Drives Start of 909-Bed Plan NORFOLK, Va. – Norfolk Housing LLC has jump-started construction on the 909-bed The District at ODU after receiving a $44 million senior loan from NAI Bluestone Real Estate Capital. The District at ODU's development site is within walking distance of Old Dominion University and close to East Virginia Medical School. The four-story building, designed with 307 units, slated to deliver in June 2010. Tim Bradley, senior associate for Philadelphia-based NAI Bluestone, said securing a $44 million loan in today's economic climate "speaks volumes about the strength of the project and the positive impact it will have on the surrounding student community."The NAI Bluestone loan is a variable rate bond representing 65 percent of the stabilized value. The terms calls for an interest rate below 4 percent during construction and a roll to permanent financing after completion in a 10-year term, sub-7 percent interest and 30-year amortization, according to NAI Bluestone's press release. "In today's credit starved market, it more important than ever to find solutions that bridge the gap between community development needs - in this case, the need for additional student housing options - and available financing," said Matthew McManus, chairman of NAI Bluestone Real Estate Capital. ........................................................................ $4.3 Million Buys 94-Unit Complex WEST PALM BEACH, Fla. – In an exchange among three private investors, a 94-unit Haverhill Garden Apartments has yielded $4.26 million at the closing table. The two sellers hail from West Palm Beach and Hollywood, Fla., and the buyer comes from Wellington, Fla. Marcus & Millichap Real Estate Investment Services' associates Daniel Cunningham and Derek Gibbs in the Fort Lauderdale office arranged the sale of the six-building complex at 1909 Haverhill Rd. The project, all two-bedroom units, was developed in 1981 on a 7.63-acre tract. "The investor will benefit from the property's immediate cash flow and upside potential," Cunningham said. "The building has historically high occupancy and is located near major commuter and business thoroughfares." ........................................................................ Refinance Clears for Campus Habitat VINCENNES, Ind. – New York-based Campus Habitat has completed a refinance of the 53-unit student housing project on the campus of Vincennes University. The loan was arranged by Holliday Fenoglio Fowler L.P. associate director David Ross, who secured a 10-year term at an adjustable rate with First Financial Corp. The loan amount wasn't available.Campus Habitat 5 Apartments, situated on 1.6 acres at 201 W. Saint Clair Place, has 47 two-bedroom units and six six-bedroom townhouses in five buildings. Units average 719 sf. Monthly rents start at $375 for shared bedrooms and $575 for private bedrooms, according to the borrower's website. Ross noted the complex underwent "extensive renovations" in August 2008. "This financing allows Campus Habitat to recognize the value created following their acquisition and repositioning of the asset," he said. ........................................................................ 67 Units Eyed for Short-Term Rentals PHOENIX –Coburn Hospitality Inc. has bought the 67-unit Casa Sonoran for slightly more than $1.2 million from Washington Federal Savings in Central Phoenix.. According to the deal's brokers, the Arizona company plans to operate the complex at 3545 E. Van Buren St. as short-term rentals. The complex, developed in 1963, consists of 66 one-bedroom/one bath apartments and one two-bedroom unit. Ryan Ash and Brian Smuckler, investment specialists in Phoenix for Marcus & Millichap Real Estate Investment Services, represented the seller. ........................................................................ AMLI Nails $38.4 Million Refi LITTLETON, Colo. – AMLI Residential Properties Trust has secured $38.4 million from Freddie Mac, using its 518-unit AMLI at Park Meadows as the collateral. Mona Carlton, a senior managing director in Dallas for Holliday Fenoglio Fowler L.P., arranged the financing, getting a seven-year term and adjustable interest rate to replace an existing loan against the 33.7-acre property at 10200 Park Meadows Dr. The 94 percent-leased complex is close to the Lincoln Light Rail and nine miles south of Denver. "Given its transit-oriented location and close proximity to popular shopping, dining and Denver's largest employment area, the Denver Tech Center, the property is expected to maintain its strong rent growth and low vacancy moving forward," Carlton said. AMLI at Park Meadows, completed in 2000, has one-, two- and three-bedroom units averaging 1,029 sf. Internet research puts starting rents at $724 per month. Amenities include a pool plaza with outdoor spa, putting green and private movie theater. ........................................................................ Zoso Changes Hands ARLINGTON, Va. – With residential lease-up now complete, Simpson Housing L.P. of Denver has bought the Zoso from its developer, Ed Peete Co. The one-year-old development has 114 residential units and 20,000 sf of ground-level retail and office space in the Rosslyn/Ballston corridor. The tony boutique project is situated at 1025 Fillmore St. in the city's Clarendon neighborhood, within walking distance of the metro station, specialty shops and restaurants. The location and luxury packaging "has made Zoso the most highly regarded ‘boutique’ apartment building in the sought after Rosslyn/Ballston corridor, commanding the highest rents in the market,” said Dave Nachison, a director in Holliday Fenoglio Fowler L.P.'s Washington, D.C. office. He and director Alan Davis represented the Arlington, Va.-based developer. The Zoso's residential component has one- and two-bedroom units averaging 941 sf. Its amenity package includes a Zen-style rooftop garden and terrace and secured underground parking garage. Monthly rents start at $2,035 and cap at $3,450. "Leasing of the commercial space is well underway at the property and will add terrific upscale amenities to complement the best-of-class building and neighborhood," Davis said. ........................................................................ Oregon Deed Trades for $1 Million KLAMATH FALLS, Ore. – A local limited liability company has paid $1.08 million for the 36-unit Shangri La, built in 1972 as HUD project-based Section 8 housing. The 1331 Avalon St. property was sold by Albert C. Angelo Jr., Craig E. Angelo, Gary Angelo and Larry Angelo -TIC (Shangri La Apartments Joint Venture) of Vancouver, Wash. Robert DiPietrae in the Seattle office of Hendricks & Partners represented the sellers. The broker said the deed changed hands in an all-cash transaction in a seven-month span, including time to process FHA financing. ........................................................................ NMHC's Survey Indicating Early Signs of Stabilization WASHINGTON, D.C. – The nation's struggling apartment market is starting to show early signs of stabilization, according to the National Multi Housing Council's latest quarterly survey. The survey covers occupancy, sales volume, equity finance and debt finance. With the exception of debt finance, the three categories reflected increased momentum although all four indices remained below the index benchmark of 50. "Apartment demand remains tethered to an economy that continues to shed jobs at a fairly rapid pace," said Mark Obrinsky, chief economist of the Washington, D.C.-based NMHC. "Financing is beginning to stabilize, but the market is still a long way from 'normal'." Obrinsky added that the new survey does suggest that transaction activity is "mainly being restrained by uncertainty" in property values and not necessarily financing constraints. "Only when this uncertainty fades are we likely to see a significant upturn in apartment transactions," he concluded. In a special question, NMHC found 67 percent of the respondents said potentially falling property values were choking off equity availability. Another 13 percent placed the blame on deteriorating market conditions due to the recession; seven percent said lower leverage by lenders has reduced expected returns; and three percent blamed transaction volume squarely on the lenders' leverage requirements because equity capital can't be stretched nearly as far as it once was. Some respondents, though, cited all of their peers' concerns as collectively contributing to the challenges in securing equity backing. The Market Tightness Index rose from 16 to 20, marking the eighth consecutive quarter that it's been below 50 and third straight quarter that it's ticked up somewhat. The Sales Volume Index jumped to 44 from 30, reflecting its highest level in 14 quarters. It was that index's 15th consecutive quarter below 50.
........................................................................ Houston Investor Plans Major Overhaul for 224-Unit Buy By Connie Gore HOUSTON – In a foreclosure market brimming with buyers, the 224-unit Chancellor in North Houston has sold to a local investor, who bested nearly a dozen offers to walk away with the deed. Chancellor Apartments LLC is starting the value-add play with 40 percent occupancy in a class C complex at 311 Parramatta Ave. "The purchaser will invest a significant amount of money to make the units leasable to turn that 40 percent into 90 percent," said Chip Nash, who teamed with Hendricks & Partners' colleague Greg Austin to sell the holding for Miami-based LNR Corp. The seller of record was JPMCC 2006-LDp9 Parramatta Lane Apartments LLC. The Chancellor Apartments was listed for $4.75 million, with the run at the market lasting not quite four months before the best and final kicked into motion. The closing was marked 2.5 months after the best and final weeded the pack from 10 to 12 offers down to three, with the outcome producing a price "within reason of the list," Nash said. Part of the contract-to-closing period was spent in securing financing. The deal was funded through Mainland Bank and Texas City Bank, according to the broker. "There are a lot of buyers who want to buy foreclosures," Nash said. "It's the perceived value in foreclosures." ........................................................................ 58 Myrtle Beach Condos on Auction Block MYRTLE BEACH, S.C. – J.P. King Auction Co. will pound its gavel Aug. 22 for 58 oceanfront condos in the new Holiday Sands at South Beach tower. The auction will start at 1 p.m. in the Myrtle Beach Marriott Resort & Spa at Grande Dunes. The auctioneer will start bidding at $69,900 for a one-bedroom condo with ocean view and $199,900 for a two-bedroom two-bath oceanfront unit. Original prices were $189,900 and $369,900, respectively. There are 23 oceanfront units and the balance has south side or north side ocean views. "The condos at Holiday Sands offer an impressive rental history," said Craig King, president and CEO of Gadsden, Ala.-based J.P. King. "This is an ideal opportunity to purchase an oceanfront property in the heart of one of the nation's most popular beaches." He also pointed out that financing is available. The Holiday Sands has two outdoor and indoor pools, indoor hot tubs, exercise rooms and indoor activity pool with a lazy river. It also features a 100-seat restaurant, conference room and 24-hour customer service. ........................................................................ Camden Still Building HOUSTON -- Camden Property Trust has issued an update on its new projects around the country. Camden has one joint venture community currently under construction and in lease-up: Braeswood Place in Houston, TX, a $48.6 million joint venture project that is currently 43% leased. Camden has two additional joint venture communities currently under construction in Houston, TX: Camden Travis Street, a $39.0 million project, and Belle Meade, a $33.2 million project. Both projects are scheduled for initial occupancy later in 2009. .Camden currently has five wholly-owned apartment communities completed and in lease-up: Camden Potomac Yard in Arlington, VA, a $104.8 million project that is currently 84% leased; Camden Summerfield in Landover, MD, a $62.6 million project that is currently 93% leased; Camden Orange Court in Orlando, FL, a $45.5 million project that is currently 81% leased; Camden Whispering Oaks in Houston, a $27.4 million project that is currently 92% leased; and Camden Dulles Station in Oak Hill, VA, a $72.2 million project that is currently 67% leased. The Company also had two joint venture communities which were completed and in lease-up: Camden College Park in College Park, MD, a $127.9 million project that is currently 84% leased; and Camden Amber Oaks in Austin, TX, a $35.0 million project that is currently 62% leased. The firm recently sold Camden West Oaks, a 671-home apartment community in Houston for a total of $28.7 million. ........................................................................ Vantage Buys 776-Unit Complex PLAINSBORO, N.J. – In its inaugural acquisition, Vantage Mid-Atlantic has gained control of the 776-unit Fox Run Apartments in a first-time partnership with New York-based Angelo Gordon's private equity real estate arm and an inroad to New Jersey. Vantage Mid-Atlantic, a division of Vantage Properties of New York, was set up earlier this year to invest in residential and mixed-use properties, including workforce housing. In a press release, Neil Rubler, president and CEO of Vantage Properties, pointed out that Fox Run Apartments is situated in a market with many Fortune 500 companies, future home of the Princeton Medical Center and is close to Princeton University. Vantage owns and operates nearly 10,000 residential units in 150 buildings in New York City. ........................................................................ Booming Multifamily Market Unlikely for Several Years AUSTIN – The multifamily market is destined to remain depressed through 2012 and beyond if present conditions persist, including public policy initiatives emanating from Washington, D.C.. In a new report, Richard Moody, chief economist for Austin-based Forward Capital LLC, said the market's well being has been undermined by a construction freefall, doubling up and home-buying incentives. "Should the lower level of multifamily construction seen over recent months persist for an extended period, as we expect will be the case, the result could be considerably tighter conditions in the rental apartment market in the years 2012-15 than may be imaginable given today's economic and housing market headlines," he wrote. From 1998 to 2008, multifamily construction averaged 300,000 units nationwide. The paradigm shift from rental to for-sale led to fewer units coming on line, allowing developers to recover from higher construction costs and move on more quickly due to a booming economy and a political climate with policies that favored homeownership. It would have been "significantly more difficult to do on rental units as the necessary rents would have priced many units out of many markets," Moody said. Moody, citing the U.S. Census Bureau, pointed out that the lag time from permit to completion averaged 15.3 months in 2008 for multifamily projects. For 20 or more units, the average was 16.8 months. "Thus, the longer the current slowdown in multi-family permits and starts is sustained, the further out into the future the slowdown in multi-family completions will persist," Moody said. "There are, of course, several factors that will govern the performance of the market for rental apartments over coming years, ranging from the current glut of total housing units, current and expected credit market and economic conditions, demographics, and public policy." In many markets, Moody concluded there is "little rationale for expanding supply." Developers will be hard-pressed for construction capital because lenders will "carefully scrutinize" projections of rising occupancy and effective rents "when current market trends are moving in the opposite direction." He was quick to point out that there will be projects that qualify and lenders willing to step up, but the volume will remain low. On a bright note, Moody said Generation Y, born between 1981 and 1999, offers promise. "At over 75 million strong, members of Generation Y are now moving into prime years for household formation and will be a considerable source of demand for rental housing over coming years," he said. "Clearly, however, to the extent that members of Generation Y go forth and form their own households, there will be a sizeable boost to the demand for rental housing over the next several years." But even at that, the multifamily market probably should brace for more public policy initiatives, similar to the $8,000 tax credit, being put into place to encourage homeownership. "As such, policy choices can be expected to siphon at least some of what would otherwise be increased demand for rental housing over coming years," Moody predicted. The tax credit is set to expire at year-end, but Moody believes there is a good chance it will not only be extended but also expanded, possibly by increasing the amount or making all buyers eligible. "Moreover, even if the tax credit expires as scheduled, other forms of intervention will remain, such as the mortgage interest deduction, and others could be introduced over coming years," he said. "To the extent this does happen, it will translate into less growth in demand for rental housing than would otherwise be the case." .......................................................................................................... Seven-Unit Sale Leads City's 2009 Deals SHERMAN OAKS, Calif. – Moorpark Premier Properties LLC has collected $2.3 million from the sale of a seven-unit complex, the highest per unit price in a trade to date this year. The cap rate at closing was 5.34 percent. The buyer was 15146 Moorpark Street of Santa Monica, Calif., which put up $328,000 per unit and met the Los Angeles-based seller's full ask. The transaction was negotiated by Ed Fischer of the North Los Angeles office of Hendricks & Partners on behalf of the seller. .......................................................................................................... $1.6 Million Buys 16 Units LOS ANGELES – A private investor from Beverly Hills, Calif., has paid $1.62 million for a 1960s-era complex with 16 units, totaling 12,468 rentable sf. Tony Azzi with Marcus & Millichap Real Estate Investment Services in West Los Angeles represented the seller of 903 N. Hudson Ave. The buyer is a private investor from Malibu, Calif. .......................................................................................................... Legacy Wins Golden Nugget For West Hollywood Project LOS ANGELES – In a seven-month spin, Legacy Partners Residential Inc. has hit 98 percent occupancy at 7950 W. Sunset, a 183-unit mix of apartments and townhomes with 13,282 sf of ground-level retail in West Hollywood. Adding to the project's accolades is a Golden Nugget Award in the "outstanding mid-rise" category from Pacific Coast Builders. The project features an infinity edge swimming pool, with spa, sundeck and Wi-Fi access, along with 360-degree views of the Hollywood Hills. Other amenities are a rooftop sky lounge, sports lounge, interior Zen garden and 3,100-sf professional-grade health and fitness center."Throughout the leasing process, our property management and development team achieved success by adapting to the constantly changing rental market," said Scott Morrison, senior vice president for the Foster City, Calif.-based developer. "You will never again see a multifamily development featuring the amenities and finishes found at this community."The mix contains 28 studios, 81 one-bedroom and 74 two-bedroom units, ranging from 590 sf to 1,238 sf. Rents start at $2,100 and cap at $4,600 per month. The project team for 7950 W. Sunset was Legacy Partners Residential Inc., developer and property management; Legacy Partners Builders Inc., general contractor; AIG Global Real Estate, financial partner; Guaranty Bank, lender; Thomas P. Cox Architects Inc., architecture; HRP Landdesign, landscape architecture and design; Fuscoe Engineering, civil engineering; Natural Graphics, graphics and signage; and Faulkner Design Group, interior design. .......................................................................................................... California Sales Continue LOS ANGELES – The California market, ripe with multifamily deals, has driven the trades of nine-unit and five-unit assets for $1 million each in unrelated transactions. A local investor pocketed the deed to a nine-unit complex at 4244 Slauson Ave. in L.A. and a buyer from Albuquerque claimed the five-unit asset at 906 San Clemente in San Clemente. Marcus & Millichap Real Estate Investment Services' teams in West Los Angeles brokered the transactions. The Los Angeles asset, positioned on 12,458 sf, was built in 1948 and renovated in 1999. It sold for $134.78 per sf. Robert Leveen in the brokerage firm's West Los Angeles represented the seller, who is a developer by trade. The San Clemente complex, built in 1964, brought $334.93 per sf. Josh Keimach and Robert Narchi represented the local seller, a private investor. .......................................................................................................... Bank Gets $1.7 Million for 88 Units GLENDALE, Ariz. – A local investor has scooped up the 88-unit Glen Park in a receivership sale from Irwin Union Bank for $1.7 million or $19,318 per unit. The class C complex of 10 buildings was developed in 1972 at 6301 N. 64th St. The mix of one-, two- and three-bedroom units average 795 sf. Ric Holway of Phoenix-based Hendricks & Partners represented the local bank in the sale. .......................................................................................................... Sacramento Deed Turns for $18.4 Million SACRAMENTO, Calif. – A limited partnership of San Francisco-based Reliant Group has paid $18.4 million for the 188-unit Lofts, a mix of 80 percent market-rate rents and 20 percent affordable housing. The complex, situated on 9.4 acres at 3351 Duckhorn Dr., was sold by The Lofts LP, a Nevada-based partnership of Pacific West Cos. LLC and Hearthstone Housing Foundation. Mark J. Feldman in the San Francisco office of Phoenix-based Hendricks & Partners brokered the transaction for the four-year-old development. The Lofts, a mix of two- and three-story buildings, has an overall weighted average unit of 1,096 sf. The 13-building complex is 65 percent weighted by two-bedroom flats and lofts and 35 percent as one-bedroom flats in 18 floor plans. The grounds include 64 direct access garages and 90 detached garages. .......................................................................................................... Altman Eyes Distressed Market BOCA RATON, Fla. – The Altman Cos. has launched a distressed property services division, underwriting the plan with a co-investment strategy with private investors to acquire and reposition financially stressed multifamily assets. Altman Distressed Property Services will focus on assets with 150 to 400 units in the $10 million to $30 million investment range. "The Altman Distressed Properties Team, supported by the full strength of the company's 333 associates, has the expertise to underwrite, rehab, market and manage distressed properties, acting as a full service developer, or provide incisive analysis and support initiatives as a consultant for lenders and investors," Joel Altman, chairman and CEO of the Boca Raton-based Altman Development Cos. Last month, the Altman Cos. was appointed receiver for a 190-unit fractured condominium conversion property in Key West, which will be rehabbed and repositioned, according to a press release. Since its inception in 1968, the Altman Cos. has developed, bought and managed more than 20,000 multifamily units in Florida, Michigan, Illinois, Tennessee, Georgia, Texas and North Carolina. "The Altman Distressed Properties Team, supported by the full strength of the company's 333 associates, has the expertise to underwrite, rehab, market and manage distressed properties, acting as a full service developer, or provide incisive analysis and support initiatives as a consultant for lenders and investors," Altman said in the release. .......................................................................................................... 288-Unit Complex Fetches $12.7 Million LANSING, Mich. – An out-of-state buyer has grabbed title to the 288-unit Runaway Bay for $12.7 million. Lansing-Oxford LP, a Maryland partnership managed by Denver-based AIMCO, was the seller. The complex was developed in 1987 at 1011 Runaway Bay on the city’s west side. The one- and two-bedroom units range from 676 sf to 1,000 sf, with monthly rents going from $579 to $889, according to Internet research.The seller’s team consisted of Rick L. Vidrio, Kevin P. Dillon, Rick Brace, Andrew Bayster and Cary Scott Belovicz, all in the Detroit office of Phoenix-based Hendricks & Partners. The sales team is keeping the buyer’s name under wraps, but has described the new owner as “an investor interested in stabilized properties with prime locations in strong employment markets.” Lansing’s diversified employment base factored into the buying decision, with the city’s economy supported by the state government, GM's new Delta manufacturing facility, Cooley Law School and Michigan State University. .......................................................................................................... John Fenoglio Arranges Loan HOUSTON—Grandbridge Real Estate Capital LLC (Grandbridge) recently funded a first mortgage secured by Lakewood Apartments, a 256-unit, Class B garden-style multifamily community in Tomball, a community near Houston. The fixed-rate acquisition originated by John Fenoglio on behalf of Tomball Apartment Company, LLC, was funded by Grandbridge and sold to Fannie Mae..
.......................................................................................................... $17 Million Deal Closes in 75 Days LEXINGTON, Ky. – In a 75-day spin, PRG Real Estate of Philadelphia cleared all hurdles, including the assumption of a below-market loan, to acquire the 356-unit Chinoe Creek for $17 million from Resource Real Estate Inc. Todd Stofflet, Rick L. Vidrio, Rick Brace and Cary Scott Belovicz in the Detroit office of Phoenix-based Hendricks & Partners fielded nine offers in a 60-day marketing for the upscale property at 3522 Creekwood Dr., a 19-building complex surrounded by high-end residential and retail development in one of the city's most established multifamily markets. The seller, also Philadelphia headquartered, bought Chinoe Creek in 2003 from Denver-based AIMCO in a sale arranged by Stofflet and Vidrio. Chinoe Creek, developed in 1985 on a 22-acre tract, is a mix of one- and two-bedroom apartments in four floor plans, ranging from 676 sf to 1,000 sf. ...................................................... HUD's Lending Uptick Fueling Other Demands DALLAS – With HUD loans in greater demand, architectural firms have been thrust onto the front lines as multifamily developers ready their projects for the agency's processing pipeline. "With HUD as the primary lender for new construction, developers are competing for attention to speed the loan process. It's critical that developers and their architects understand the HUD-221(d)(4) requirements to save as much time as possible from application to approval," says Mark Humphreys, CEO of Dallas-based Humphreys & Partners Architects L.P. To date this year, the firm has designed 36 new HUD projects, some of which are moving through the agency's pipeline and others about to begin the process. Its 15-year track record totals 42 HUD-funded projects, of which nine are now under construction. Although is HUD the primary go-to for construction funding, its capital is only available in submarkets that can prove demand: 91% occupancy or higher and few, if any, concessions. Last year, HUD approved 100 loans, totaling $1.07 billion, for 15,359 units nationwide in its new construction programs. Of last year's volume, 91 were HUD-221(d)(4) loans that deployed $1.04 billion into building 14,544 units in high-occupancy markets. "We are seeing a significant increase in requests for new construction loans through the HUD-221(d)(4), HUD-220 and HUD-231 programs. Our overall loan volume across all HUD/FHA programs is also increasing, and we expect to close three to four times more than we closed last year," says Bruce Minchey, senior vice president/National FHA Program Manager of Cleveland-based KeyCorp Real Estate Capital Markets Inc. This year, as in years past, about 65% of KeyBank's $400 million of pending transactions are new construction HUD/FHA loans. To meet the demand, Minchey says he's hired several underwriters. "We're doing our best to stay on top of it," he says. Among the advantages to a HUD-221(d)(4) loan is the roll to permanent financing as soon as construction wraps up, minus mandates for occupancy hurdles or debt coverage ratios. The permanent package is assumable for qualified borrowers. ....................................................... $14 Million Sale Marks 2009 First CAMARILLO, Calif. – Closing out a five-year hold, Essex Portfolio Properties has sold the 106-unit Mountain View Apartments for $14 million to a local investment group that hasn't bought a multifamily holding in nearly two decades. It was the largest sale this year in Ventura County in terms of unit count and the first in several years in the City of Camarillo. The Palo Alto, Calif.-based REIT had the Hendricks & Partners' team of Dean Zander and Vince Norris working the sale of its holding at 659 Las Posas Rd. According to the brokers, the buyer, Camarillo Mountain View LLC, offered the "highest certainty of closing due in part to their close ties" with the city and "long-term ownership philosophy." The new owner, Camarillo Mountain View LLC, is planning minor cosmetic upgrades to the 30-year-old Mountain View Apartments. "Mountain View is one of the premier apartment communities in this city," said Jeff Root, a Camarillo resident and managing partner of Camarillo Mountain View LLC. "We are confident of the long-term prospects of Camarillo and feel this will be an excellent investment." In a press release, the brokers confirmed it's been nearly 20 years since the family acquired a property, adding it's a signal of a reemergence of the private sector to an area long dominated by institutional owners. The brokers said the listing generated offers from private families, regional investors and national operators. Mountain View Apartments sits on roughly five acres just north of the 101 Freeway. It is a mix of one- and two-bedroom units in four floor plans from 625 sf to 929 sf. In-place rents range from $950 to $1,455 per unit. "The buyer recognized a unique opportunity to purchase an institutional-sized asset in a market with very low ownership turnover combined with affordable rental rates in an excellent location" Zander said. "The seller was aware of today's underwriting and fundamentals and acted accordingly." ....................................................... East Coast Fund Buys La Vista COLUMBUS, Ohio – A receiver has sold the 258-unit La Vista Townhomes in the Westerville submarket to an East Coast real estate fund. The complex, built in 1978 at 6797 Springhouse Lane, was 80 percent leased at sale time. The asset was sold by receiver, McKinley, with the loan being serviced by Midland Special Servicing. To make the close, the East Coast fund assumed the $4.75 million loan and kicked in cash to cover immediate property repairs, said the deal's brokers. The complex, all two-bedroom units, was sold by J. Rosenbusch and Matt Gockstetter, multifamily sales specialists for Marcus & Millichap Real Estate Investment Services in Columbus. ....................................................... 55-Unit Asset Garners $4 Million DIXON, Calif. – The 55-unit Ty-Del Phase I and II, an affordable housing complex, has been sold for $4 million to an unidentified buyer by Ty-Developments of West Sacramento. Situated at 445 W. Chestnut St. on 4.1 acres, Ty-Del's mix is one- and two-bedroom units with 680 sf to 792 sf, respectively. Rents are $775 and $900 per month. Al R. Inouye and Steven A. Nelson in the Sacramento office of Phoenix-based Hendricks & Partners represented the seller. ....................................................... 138-Unit Asset Sells for $14 Million LODI, Calif. – The 138-unit Lakeview Apartment Homes has commanded $14 million from RPM Co./Manchester Renovation Partners LLC, which took the deed from Chicago-based Equity Residential Inc. The 25-building complex was built in 1984 at 1510 and 1511 S. Mills Ave., a mix of single-story cottage and two-story walk-ups poised to undergo renovation by the new owner. Units average 993 sf, one of the largest sizes available in the city. Mark J. Feldman in the San Francisco office of Hendricks & Partners brokered the sale, seating a buyer whose offices overlook the property. The deal closed at an 8.29 percent cap rate. According to Feldman, it's first sale this year with more than 100 units in Lodi. ....................................................... Humphreys & Partners Gets Eight Top Industry Awards DALLAS – Humphreys & Partners Architects L.P. has scooped up eight major industry awards in a recent round of nationwide competitions. The Dallas-based firm earned a 2008 Multifamily Executive Award for project of the year in the low-rise category and 2008 Best in American Living Awards for its design of the Boardwalk at Town Center in the Woodlands near Houston. The Metropole, also in Houston, won a 2008 Aurora Award at the recent Southeast Builders Conference. The National Association of Home Builders handed a 2009 Pillar of the Industry Award to the Carlyle in Minneapolis, with the Humphreys' design earning an accolade as the best high-rise condominium project in the U.S. The firm also won a 2009 Pillar for best adaptive reuse of a condominium project with its Century Plaza in Phoenix, which picked up a 2009 Gold Nugget Award at the Pacific Coast Builders Conference as well. The Home Builders Association of Greater Dallas accorded a 2009 McSam Award on the Villas of Hillcrest in Dallas as the best multifamily rental community and another one on Lake Park Estates, also in the metroplex, as the best architectural design for townhome or condominium under $300,000. ....................................................... Post Banks 365-Unit Greentree By Connie Gore CARROLLTON, Texas – Los Angeles-based Post Investment Group, grabbing its second deed in a week, has outmaneuvered eight other would-be buyers to win bragging rights to the 365-unit Greentree Apartments. The complex is situated on slightly more than 18 acres at 1120 MacArthur Dr., just one block north of the George Bush Toll Road and right around the corner from a repositioned shopping center. The class B complex's historical occupancy, Carrollton's public school system and a DART light-rail station coming in 2010 right down the road seeded the high interest, according to Tom Burns, associate partner in Dallas for Phoenix-based Hendricks & Partners. Post Investment Group "stepped up above the crowd and paid a fair price," Burns said. The mix of one- and two bedroom units, averaging 829 sf, was 96.1 percent occupied at sale time. Burns said Post's upside lies in rent hikes following a renovation. Post intends to pump $4,000 per unit into interior upgrades. Units are quoted at 87 cents per sf, but the effective rate is closer to 81 cents per sf, said Burns, who teamed with Hendricks' partner Tom Warren and associate partner Jay Gunn to represent the seller, AIMCO/Greentree Associates of Denver. The buyer was represented by Hendricks' partner Jim Hearn and associate partner Greg Austin, both in the Houston office. Greentree Apartments, built in 1983, has units with wood-burning fireplaces and walk-in closets in a setting with three swimming pools, 24-hour fitness center and lighted basketball court. Burns said the listing did a 45-day run on the market before the call for offers. Post Investment Group secured new financing to make the close. BH Management of Dallas has been hired to oversee the complex. Post Investment Group plans to buy $200 million of multifamily properties in the next 18 months. It took a bye from buying last year, returning to the market with the recent purchase of the 296-unit Vista del Lago at 9191 Garland Rd. near White Rock Lake in Dallas. .............................................................................................. CAS Partners Adds Services DALLAS – CAS Partners, with its eye on property performance, has launched a business unit to support marketing and media services of multifamily properties in its portfolio. The platform addition will provide advertising, custom branding, strategic marketing and media management. "CAS Marketing and Media Services is a vital component of our property management services platform," said Toni Portmann, CAS Partners CEO. "In addition to the industry's most dynamic creative services offering, this new business unit uses leading edge marketing technology and business intelligence to improve property performance by driving occupancy and revenue with scalable marketing solutions." Riverstone Residential's team of regional marketing experts will deliver CAS Marketing and Media Services to clients. Workshops and a marketing toolbox are included in the support platform, aimed at planting seeds for property managers to re-envision strategies and maintain high occupancy levels. The CAS platform includes a Marketing Watch List. "It provides property managers with techniques to address their property's changing needs," said Katherin Dockerill, CAS Partners chief marketing officer. "Through focused marketing strategies, participants in this program learn approaches that draw more traffic, sign more leases, and, in turn, increase occupancy." The Dallas-based company also has CAS Marketing Consulting, targeting properties with leasing challenges due to rapidly changing market conditions or competitive pressures. The CAS product suite includes custom property Web sites and social media marketing. .............................................................................................. Post Buys First Class A Complex By Connie Gore DALLAS – Eyeing $200 million of acquisitions in the next 18 months, Post Investment Group LLC has bagged the first class A complex for its portfolio, the 296-unit Vista del Lago in the White Rock Lake submarket of Dallas. The investment group and a Los Angeles-based private asset management company bought the 26-year-old complex at 9191 Garland Rd. from Equity Residential LLC of Chicago. A renovation is in the works to position it "for growth as the economy rebounds," said Jason Post, president of the Los Angeles-based investment group. "It has been our experience that the primary rental driver is interior aesthetic renovation, upgraded beyond that of market comparable." Underwriting the purchase decision is a submarket with no product slated to come on line for five years and a historic occupancy hovering 95 percent. Jack Erhman, a Post principal, said the group is shifting its transactional strategy, with Vista del Lago as its first class A buy. "The depressed capital environment has left real estate not only as a contrarian play, but removed numerous investment-grade buyers from active participation," he said. "The resulting bidder void has enabled Post to pursue higher quality assets at return metrics otherwise associated with significantly inferior product, thus allowing us to mitigate operational and residual exposure to our investors." The Vista del Lago acquisition is Post's first since July 2008, with financing coming from Fannie Mae in a loan from Arbors Commercial Realty of New York. "Regardless of our available equity and appetite, Post remains committed to identifying assets with a viable strategic platform and at realistic market valuations," Ehrman explained. "While the bid-ask gab does seem to be narrowing, concessions still need to be made for owners looking to actively divest into this market." The complex is a mix of one and two bedrooms in floor plans from 850 sf to 1,222 sf. Internet research shows monthly rents range from $775 to $1,095. .............................................................................................. $83,000 Per Unit in Portland PORTLAND, Ore. - Nusser Living Trust bought 10 units at 8500 SW Canyon Lake in Portland for $830,000 as part of a 1031 exchange. Chris Lio and Cole Roffman of Marcus & Millichap represented the seller, Robert and Earlene Gasper.
|
Eight Units Sell For $2.3 Million LOS ANGELES – A local investor has acquired eight units on the Beverly Hills line, paying $2.37 million or $296,875 per apartment for upscale rental mix. The 7,811-sf apartment building at 1132 S. Bedford St. was sold at 95 percent of its list price. Lowy/Garner LLC is starting out with an 88 percent-leased building. Ramin Gheitanchi of Los Angeles-based Charles Dunn Co. represented the seller, Missouri Properties LLC. Prudential California Realty negotiated the buy side.
Four Townhouses Get $1.7 Million BAY PARK, Calif. – A local limited liability company has collected $1.69 million for a quartet of two-bedroom townhouses in a seaside community just minutes from beaches and downtown San Diego. Chad Bramwell in the San Diego office of Phoenix-based Hendricks & Partners marketed the holding at 5422 Lauretta St. for Lauretta Street LLC. The buyer was Rickflor Properties Inc. of Arcadia, Calif. Developed in 2008, the townhouses have 1,280-sf and 1,400-sf floor plans. Monthly rents are $1,800 and $1,900. The developer passed the deed with the final condo map in place, according to the brokerage firm's marketing flyer.
California Units Sold by Hendricks The 122-unit Mission Terrace complex in Escondido, Calif. has been purchased for $10.7 million. The seller was Juniper Village, LP of Los Angeles. .
Post Sells Pair Post Properties has sold its 434-unit Post Ridge project in Atlanta for $44.8 million. The buyer is an entity affiliated with Centennial Holding Company, LLC of Atlanta. CB Richard Ellis, Inc. brokered the transaction. Post also sold it 364-unit Post Forest project in Fairfax, Va. for $57.5 million. Pantzer Properties of New York was the buyer. Holliday Fenoglio Fowler brokered the sale. Said David P. Stockert, CEO and President of Post, “Completing these two sales in a difficult transaction environment reflects the quality of the assets and the strength of the Post brand. Net proceeds will be used to bolster our balance sheet and our cash balances, enhancing the company’s financial strength and flexibility through the current economic cycle.”
|
| top |