INDEPENDENCE TOWNSHIP, MICH. — Love Funding has provided a $20.2 million HUD loan for the construction and permanent financing of Encore at Deerhill in Independence Township. The 92-unit multifamily property will be located near the northern Detroit suburb of Clarkston. The two-bedroom units will include attached garages. Bruce Gerhart and David Strachan of Love Funding originated the loan through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program. Fairview Construction Inc. is developing the property. KMG Prestige Inc. will manage the property. A timeline for completion was not disclosed.
SAN DIEGO — Michael Fratantoni, chief economist at the Mortgage Bankers Association (MBA), fully expects the U.S. national unemployment rate to fall well below 4 percent this year — possibly as low as 3.6 percent — leading to an acceleration in wage growth, inflationary pressures and, ultimately, higher interest rates. Nationally, the unemployment rate stood at 4.1 percent at the end of January. “This is an extraordinarily tight job market,” said the veteran economist, who pointed out that 17 states are approaching record low unemployment rates. His comments came Sunday afternoon during a special economic outlook session at MBA’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2018 at the San Diego Marriott Marquis & Marina. The four-day conference, which concludes tomorrow, has drawn more than 3,300 attendees. Fratantoni appeared on stage with Jamie Woodwell, the association’s vice president of commercial real estate research. Woodwell provided analysis on the state of the property markets and trends in commercial/multifamily mortgage loan originations. Wage pressures mount According to the Bureau of Labor Statistics, average hourly earnings for workers on private nonfarm payrolls were 2.9 percent higher in January 2018 than in January 2017. “We’ll be between 3.5 percent and 4 percent for …
BOSTON — Avison Young Capital Markets has arranged a $47 million bridge loan for the gut renovation and repositioning of the Custom House Block and John Hancock Counting House located at 62-70 Long Wharf and 58-60 Long Wharf, respectively, in Boston. David Krasnoff and Michael Buckley of Avison Young secured the financing for the borrower, Capital Properties. The borrower plans to fully rehabilitate the properties, including converting the Custom House Block building into a modernized office space. The John Hancock Counting House is occupied by the Chart House restaurant.
WASHINGTON, D.C. — The Mortgage Bankers Association (MBA) projects commercial and multifamily mortgage originations will decline slightly in 2018, ending the year at $549 billion, down 3 percent from 2017. Looking further into its crystal ball, MBA forecasts origination volume to remain relatively flat in 2019. “There is a strong mix of both headwinds and tailwinds in the commercial real estate finance markets right now,” says Jamie Woodwell, vice president of commercial real estate research at MBA, a national real estate finance association based in Washington, D.C. “Our sense is that for commercial and multifamily mortgage borrowing and lending, the net effect is likely to be close to a wash.” Rising interest rates, slowing NOI growth, pressure on capitalization rates and fewer loan maturities are some of the factors that will be holding the real estate finance markets back, points out Woodwell. At the same time, continued economic growth, large amounts of investment capital looking for a home, plus the recent passage of the Tax Cuts and Jobs Act, may all propel the transaction markets forward, adds the veteran researcher. “The magnitude and opposing impacts of some of these changes, however, raises the level of uncertainty,” emphasizes Woodwell. Meanwhile, commercial/multifamily …
NATIONAL CITY, CALIF. — Walker & Dunlop Inc. (NYSE: WD) has structured an $82 million loan for Paradise Village, located just outside of San Diego in National City. Built in 2009, Paradise Village consists of seven four-story buildings and 394 units of independent living, assisted living and memory care. The 10-year loan provided a two-year period of interest-only payments and a 30-year amortization schedule for Generations Senior Living. The financing replaced a previous construction loan and provided cash to enable the financing of an adjacent, newly developed memory care facility. The transaction for the Class A community represents Fannie Mae’s first Green Rewards loan backed by a seniors housing property, according to Walker & Dunlop. Jeff Ringwald and Bill Jackson led the Walker & Dunlop team.
EDINA, MINN. — Dougherty Funding LLC has arranged a $54.1 million construction loan for the Market Street redevelopment in the 50th and France neighborhood of Edina. A joint venture between Buhl Investors and Saturday Properties plans to develop 100 luxury apartment units, approximately 33,000 square feet of street-level retail space, 271 stalls of underground parking and a community plaza. The lender was not disclosed. Construction is scheduled to take place in two phases beginning in August, according to the Minneapolis Star Tribune.
CLEVELAND — KeyBank Real Estate Capital has provided $14.9 million in Fannie Mae financing for the acquisition of three affordable housing properties located in North Carolina, Texas and Wisconsin. One of the properties, Aspenwood Glen, is a 120-unit property in Milwaukee. The large majority of the one- and two-bedroom units at the property are reserved for tenants earning 30 to 60 percent of the area median income. John Gilmore IV and Jeff Rodman of Cleveland-based KeyBank originated the loans on behalf of the borrower, Harmony Housing, which is a nonprofit organization dedicated to providing safe and clean affordable housing throughout the United States.
WOODBURN, ORE. — Lancaster Pollard has arranged an $8.8 million HUD refinancing for Heartwood Memory Care Community in Woodburn. The 48-bed community offers exclusively memory care services. The owner sought long-term financing after a successful opening in 2014. The new FHA-insured structure allowed the borrower to refinance senior and mezzanine construction financing into a non-recourse, 35-year, fixed-rate loan. Matt Lindsay and Casey Moore led the transaction for Lancaster Pollard.
MEDFORD, ORE. — Contemporary Healthcare Capital has arranged a $2.8 million mezzanine loan to affiliates of Sapphire Health Services. The loan will help finance the acquisition of two assisted living facilities in Medford. Contemporary’s senior lending partner on the transaction was Sunwest Bank of Irvine. The combined loans of approximately $11.8 million were used for the acquisitions of West Wind Enhanced Care, a licensed assisted living facility serving residents afflicted with traumatic brain injuries, and Ridgeview Assisted Living Facility, a community serving a younger population of residents with developmental or neurological challenges.
NEW YORK CITY — NKF Capital Markets has arranged an $81 million loan for the acquisition and redevelopment of 25-11 49th Avenue, a 135,000-square-foot warehouse located in the Long Island City area of Queens. The borrower is a partnership between New Jersey-based development and management firm Normandy Real Estate Partners and two New York-based investment firms, Keystone Equities and Drake Street Partners. Dustin Stolly and Jordan Roeschlaub of NKF Capital Markets secured the loan through Deutsche Bank. The redevelopment calls for a full repositioning of the two-story, loft-style warehouse, which will be converted into an 11-story office building totaling 238,000 square feet. Nine stories will be built atop the existing structure, which is located within the area’s factory district. “This property is ideally located near main transportation hubs, which represent part of the growing appeal of this neighborhood,” says Stolly. “This is an excellent opportunity for tenants that will allow them to recruit and retail quality talent.” The financing will also be used to implement a capital improvement plan, which will target the office entrances, lobby and common areas and outdoor roof deck. New elevators and HVAC systems, as well as new security and electronics system, are also included in …