BILLINGS, MONT. — Dwight Capital has provided a $37.7 million HUD 221(d)(4) construction loan for InterUrban Apartment Homes Phase II, a proposed multifamily expansion project in Billings. The borrower is Montana-based Stock Development. Situated on more than 10 acres, the community will feature six three-story, garden-style buildings and a one-story clubhouse. The 216 units will offer patios, soundproofing, in-unit washers/dryers and smart home packages, which include remote access to HVAC, lighting and security. The buildings will be constructed to National Green Building Standard Bronze guidelines, which enabled the borrower to qualify for a Green Mortgage Insurance Premium Reduction set at 25 basis points. Brandon Baksh of Dwight Capital originated the transaction for the borrower. Dwight Capital also provided a $24.4 million HUD 223(a)(7) loan for the first phase of the property in April 2020.
MARRIOTT-SLATERVILLE, UTAH — St. John Properties has broken ground on 12th Street Exchange, a 19-acre business park located at 1200 South and S 1900 West in Marriott-Slaterville, approximately 35 miles north of Salt Lake City. Once completed, 12th Street Exchange will offer 170,000 square feet of commercial flex/R&D and retail space. This project is St. John Properties’ fourth Utah development and its first project north of Salt Lake City in Weber County.
GLENVIEW, ILL. — Dermody Properties has completed its acquisition of the 232-acre former corporate office campus of Allstate Corp. located on Sanders Road in Glenview, roughly 22 miles northwest of downtown Chicago. While the acquisition price was not disclosed, REBusinessOnline reported last year that the transaction would be valued at $232 million. Dermody plans to redevelop the property into a 10-building logistics park. The redevelopment, named The Logistics Campus, will span 3.2 million square feet upon completion, with flexibility to accommodate additional build-to-suit development. Construction on Phase I of the project is scheduled to begin immediately and will include five buildings totaling 1.2 million square feet. The initial phase of development is slated for completion in 2023. “This redevelopment project stands at the intersection of two significant and durable trends — work from home and e-commerce,” says Douglas Kiersey Jr., president of Dermody Properties. “The conversion of the office campus — with buildings dating back to the 1960s and 1970s — into modern logistics buildings offers many benefits to the community.” The site is located adjacent to Interstate 294 and southwest of the Willow Road interchange, which will allow for efficient access to O’Hare International Airport. The project benefits from …
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Shortage of Tax Credits, Higher Interest Rates Plague Affordable Housing
Forty-year-high inflation rates that are outpacing wage growth and eating away at personal income are exacerbating already outsized resident demand for affordable housing financed by the federal Low-Income Housing Tax Credit (LIHTC) program. But it seems that obstacles to supplying new units to meet that demand are only multiplying. Those range from a shortage of housing tax credits needed to fund new supply to resistance to multifamily development at the local level. Meanwhile, higher mortgage rates are making home buying more difficult and expensive. In turn, that is creating more apartment renters, thereby putting upward pressure on rental rates. In September, for example, the average monthly rent price nationwide hit $1,759, an increase of 7.8 percent from the prior year, according to Realtor.com’s monthly rental report. That’s also nearly 25 percent higher than September 2019, the organization reports. What’s more, from 2015 through 2020 — long before mortgage rates spiked — the U.S. lost 4.7 million apartment units with rents less than $1,000 per month, according to U.S. Apartment Demand Through 2035, a report by the National Multifamily Housing Council and National Apartment Association. “Demand for affordable units is only going to become more acute between now and the end of …
PHILADELPHIA — Locally based developer Exeter Property Group is nearing completion of an adaptive reuse project that converted a former church at 1701 Race St. in Philadelphia’s Logan Square neighborhood into a 271-unit multifamily tower. Designed by Solomon Cordwell Buenz, the 23-story building is known as One Cathedral Square and houses studio, one-, two- and three-bedroom units, as well as ground-floor retail space. Amenities include a fitness center, rooftop kitchen and lounge, coworking spaces and Amazon package lockers. Leasing began this summer, and rents start at roughly $1,700 per month for a studio apartment.
LAKEWOOD RANCH, FLA. — A joint venture between Ryan Cos. US Inc., PGIM Real Estate and ParkSprings Development has begun construction on Renata at Lakewood Ranch, a 502-unit multifamily project within the 33,000-acre master-planned Lakewood Ranch community, which is located between Sarasota and Tampa. The project, which will span 37 acres, is slated for completion in 2024, with preleasing to start next year. Renata at Lakewood Ranch will consist of a series of four-story walk-up apartment buildings comprising a mix of one-, two- and three-bedroom floor plans with an average unit size of approximately 985 square feet. Amenities will include resort-style pool, spinning room, yoga room, free weights, bar games, a golf simulator, putting green, dog spa and dog park, lawn sports, multiple barbecue areas, walking trail around the property’s central lake, sand volleyball courts, conference and office rooms for remote workers and a private beach. Ryan and ParkSprings are co-developers, and Ryan is the general contractor. PGIM Real Estate is the equity partner on the deal, and Wells Fargo is providing debt financing. Renata at Lakewood Ranch is Ryan’s third project within Lakewood Ranch.
MIAMI — Housing Trust Group (HTG) and AM Affordable Housing have broken ground on Tucker Tower, a $44 million affordable housing community in Miami for seniors aged 62 and older. Located at 9940 W. Hibiscus St. in the city’s Perrine neighborhood, the eight-story property’s apartments will be reserved for income-qualifying residents who earn at or below 25, 30 and 60 percent of area median income (AMI), with rents ranging from $457 to $1,317 per month. Amenities will include a fitness center, business center with computer stations, swimming pool, pet grooming station, lighted pathways along accessible routes and a library. The property is scheduled to deliver in early 2024. The project team for Tucker Tower includes general contractor BDI Construction; engineer HSQ Group LLC; architect Corwil Architects; landscaper Witkin Hults; and interior designer B. Pila Design Studio. Tucker Tower is the fifth affordable housing collaboration between HTG and AM Affordable Housing, a nonprofit developer founded by former NBA player Alonzo Mourning. Capital sources for Tucker Tower include $28.4 million in 9 percent Low Income Housing Tax Credit (LIHTC) equity syndicated through Raymond James and purchased by Bank of America; a $30 million construction loan from Bank of America; a $9.5 million …
CHARLOTTE, N.C. — Northwood Investors LLC has added two new tenants to Metropolitan, a mixed-use development and lifestyle shopping center located in Midtown Charlotte. The new concepts include Yuliya’s Ice Cream, a locally based, woman-owned ice cream company founded by Belarusian immigrant Yuliya Shvinhelskaya. The eatery will open at Metropolitan, its first brick-and-mortar shop, in early 2023. The other concept is Removery, the largest specialized provider of tattoo removal services. The company operates nearly 100 locations. Other newcomers to Metropolitan include European Wax Center, Open Rice and Clean Your Dirty Face. In addition to new tenants, Northwood Investors is unveiling the refresh of Metropolitan’s exterior that includes new signage, enhanced lighting along the bike path, colorful banners along Charlottetowne Avenue and South Kings Drive, metal and fabric garage screens and vertical wood and warmer colors throughout. Other upcoming renovations include updated landscaping and interior furnishings.
RESTON, VA. — Comstock Holding Cos. Inc. has signed mini-golf retail concept Puttshack to anchor Phase II of Reston Station, an 80-acre mixed-use project underway in Northern Virginia. Located near the Wiehle-Reston East Metro Station at 1850 Reston Row Plaza in Reston, Puttshack will be the project’s first active entertainment venue when it opens in summer 2025. The more than 29,000-square-foot space will feature four nine-hole mini-golf courses equipped with Puttshack’s proprietary Trackaball technology that keeps track of patrons scores as they play. The venue will also have a full dining menu and hand-crafted cocktails, as well as multiple bars and private event spaces for parties and business outings. Chicago-based Puttshack recently completed a growth capital round of $150 million from funds managed by BlackRock and continued support from Promethean Investments to help fuel the operator’s expansion plans.
HAVERHILL, MASS. — Locally based design-build firm Dacon Corp. has completed a 135,000-square-foot manufacturing facility in Haverhill, located north of Boston, that is a build-to-suit for Memphis-based Monogram Foods. The facility houses several temperature-controlled storage spaces, as well as production areas and offices. Paradigm Properties developed the facility, which is primarily dedicated to pre-assembled sandwich manufacturing and is ultimately expected to employ about 350 people.