PHOENIX — Hunt Real Estate Capital has provided a $7 million bridge loan for the acquisition of Hawthorne Court at Ahwatukee, a seniors housing property located in the Ahwatukee area of Phoenix. The borrower is a joint venture partnership between Pasadena, Calif.-based CALCAP Real Estate Advisors and Greg Roderick, president and CEO of Frontier Management. Brady Johnson, Kathryn Burton Gary and Michael Jones of Hunt Real Estate Capital originated the 24-month loan, which features interest-only payments for the entire term. Built in 2000 and renovated in 2016, Hawthorne Court features 44 memory-care units in a mix of private and semi-private rooms, all with private bathrooms. On-site amenities include an outdoor courtyard and patio, dining room, lounge area, activity room, beauty salon and open-concept sitting space. The seller was Senior Resource Group, represented by Blueprint Healthcare Real Estate Advisors.
Chad Thomas Hagwood, senior managing director and Southeast regional manager at Hunt Real Estate Capital, believes times are changing. Hagwood asserts a change in perception is what originally made multifamily such a popular investment years ago. He believes another change is necessary to address our nation’s housing and affordability crises. Hagwood sees manufactured housing as being a partial solution to these challenges. Like the broader multifamily market, this specialty product has suffered from an image problem in the past. While lenders have been willing, borrowers haven’t always been sold on the product. Hagwood is confident that the industry will come around, however, as increased competition leads to creativity — and an opportunity may be staring investors right in the face. Watch the video to hear more about Hagwood’s predictions for 2019.
BIRMINGHAM, ALA. — Arbor Realty Trust Inc. has provided a $61.2 million bridge loan for AT&T City Center, a 30-story office building in Birmingham. Joseph Charneski of Arbor Realty Trust originated the loan for VCP City Center, which bought the building in November 2018 for $31 million. The borrower plans to use the funds to convert the 617,453-square-foot building into a mixed-use building, offering residential, retail and office space. The loan also covered acquisition costs for the borrower.
GREENSBORO, N.C. — Hunt Real Estate Capital has provided a total of $21 million in acquisition and renovation financing for Village 1373, a 332-unit apartment complex in Greensboro. The asset consists of 17 two-story buildings that were built in 1987 and 1996. RJ Guttroff of Hunt Real Estate Capital said the undisclosed borrow plans to rebrand the property and implement more than $4 million worth of upgrades. Interior upgrades will include granite countertops, new cabinets, stainless steel appliances, wood-vinyl plank flooring, painting and new fixtures. Exterior improvements will include new signage, security gate, landscaping, replacing and painting exterior siding, replacing sliding glass doors and windows, asphalt repairs, roof access repairs and amenity upgrades to the fitness center, clubhouse and pool area, including the addition of a dining area with grills. The property was 90 percent occupied at the time of sale.
DEDHAM, MASS. — EagleBridge Capital has secured a $17.8 million construction loan for Dior, a four-story, mixed-use development in Dedham. Located at 910-928 Providence Highway, the 46,525-square-foot property consists of 48 one- and two-bedroom residential units as well as 9,700 square feet of street-level retail space. The apartments will feature Energy Star rated stainless steel appliances, drawer microwaves, custom cabinetry and quartz counters. Brian Sheehan and Ted Sidel of EagleBridge secured the financing on behalf of the undisclosed borrower through an undisclosed Massachusetts financial institution. Terms of the financing were not disclosed.
COLLEGE STATION, TEXAS — HFF has arranged a $27.5 million loan for the refinancing of 100 Park at Century Square, a 249-unit multifamily community in College Station. The property is located near Texas A&M University within the 60-acre Century Square mixed-use development. Floor plans consist of studio, one- and two-bedroom units and amenities include a pool, fitness center and an outdoor lounge. Colby Mueck, Timothy Joyce, Stephen Skok and Stuart Hepler of HFF arranged the loan on behalf of the borrower, a joint venture between Houston-based Midway Cos. and Chicago-based Harrison Street, through an affiliate of Granite Point Mortgage Trust Inc.
CHICAGO — Cohen Financial, a division of SunTrust Bank, has arranged a $16.8 million loan for the acquisition of the Ivy Hotel in Chicago’s Streeterville neighborhood. The 16-story boutique hotel is located at 233 E. Ontario St., adjacent to the Magnificent Mile. The hotel offers 63 rooms and a rooftop bar. Cohen Financial arranged a two-year, floating-rate loan with Prime Finance. The borrower, a joint venture between Avantgarde Capital and Anderson Hospitality Holdings, plans to make capital improvements to the property.
Seniors housing seemed to rule the roost among attendees at MBA’s CREF 2019. Mark Gould, national production manager at M&T Realty Capital Corporation, thinks he knows why. The obvious answer would be the aging Boomer population, which will continue to require additional services for some time. However, Gould believes it’s more than demographics. He asserts that a tangible evolution has taken place among seniors housing operators that has made these dwellings more attractive to the elderly and their children. As demand shifts, opportunity abounds. Gould believes construction and permanent financing will remain active as these operators continue to perfect their communities. Watch the video for more insights on seniors housing finance from Gould.
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Alliant: Communication is a Commodity in Today’s Lending Environment
Communication and transparency are always top priorities for commercial lenders and borrowers. Paul Letourneau, manager of commercial lending at Alliant Credit Union, believes these are the true skills lenders should leverage in today’s market. Letourneau knows we’re long in this cycle — and he says that’s not a bad thing. There is still a great need for capital, but with that demand comes the competition among suppliers. This, Letourneau asserts, has caused lenders like credit unions to make sure their relationships with mortgage brokers and sponsors are as strong as possible. The ability to remain competitive while disciplined is no easy task. Letourneau believes this starts with strong communication between all parties. Watch the video for more insights from Letourneau. Alliant Credit Union is a content partner of REBusinessOnline. Click here to view articles written in conjunction with Alliant.
NEW YORK CITY — Madison Realty Capital (MRC) has provided a $14.5 million loan to refinance a mixed-use property in Brooklyn. Located at 1357 Flatbush Ave., the seven-story, 37,133-square-foot, mixed-use building includes 36 apartment units as well as 7,000 square feet of retail space. Madison Realty Capital provided the financing to Hello Living, a developer and repeat MRC borrower. Terms of the financing were not disclosed.