DELAND, FLA. — Hunt Capital Partners has provided $13.4 million in low-income housing tax credits (LIHTC) for the development of The Pines, a 100-unit affordable housing community in DeLand, roughly 50 miles north of Orlando. Hunt Capital Partners structured the funding through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 27, on behalf of the project developer, Roundstone Development LLC. The Pines will offer a mix of one- to four-bedroom units, all set aside for households earning up to 40 and 60 percent of the area median income (AMI). Five units will have a preference for “Special Needs Households,” or households consisting of families considered to be homeless, survivors of domestic violence, persons with disabilities or youth aging out of foster care. Community amenities will include onsite management, a clubhouse with a community kitchen, business center, library, fitness center, laundry room, swimming pool and a playground. The development cost for the project is $18.6 million. Bradley Construction Co. Inc. is the general contractor for the project, Brian Rumsey is the architect and Sunchase American Ltd. is the property manager. Construction on The Pines began in December and is slated for completion in January 2019.
LAS VEGAS — BKM Capital Partners has purchased Hughes Airport Center, a 13-building, multi-tenant industrial complex in Las Vegas, for $92 million. The properties are situated in the industrial pocket between McCarran International Airport and interstates 15 and 215. Hughes Airport Center contains 3.3 million square feet of Class A industrial space and Class B office space. The 420-acre, master-planned business park has access to nearby retail and entertainment amenities like Town Square shopping center, Las Vegas Premium Outlets South, Tahiti Village, Callaway Golf Center, Bali Hai Golf Club and Sunset Park. The business park has recently undergone a slew of improvements, including new paint to building exteriors, asphalt and parking lot repairs, roof repair, and upgraded landscaping, monument signage and tenant signage. Rents at Hughes Airport Center typically range between $0.90 per square foot and $1.30 per square foot. Notable tenants at the center include Geotab, CanvasPop, Medical Transportation Management, Climatec, Credit One Bank, North American Video, LabCorp of America and Harman International. Hughes Airport Center marks BKM’s fifth industrial park acquisition in the Las Vegas Valley. “This is a best-in-class asset, the largest of its scale in the Las Vegas airport submarket and our firm’s biggest transaction to …
PLANO, TEXAS — NXT Capital has provided a $32.5 million loan for the acquisition of a 278-unit, Class B apartment community in Plano. The undisclosed property features multiple pools, on-site laundry services, a tennis court, picnic area and a mail center. Suzanne Jones of NorthMarq Capital placed the loan with NXT Capital. Loan terms and the borrower were not disclosed.
WASHINGTON, D.C. — The Mortgage Bankers Association (MBA) forecasts the volume of commercial and multifamily mortgages maturing in 2018 will decrease by 42 percent. According to MBA’s 2017 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes, 6 percent, or $102.2 billion, of the $1.76 trillion in mortgages held by non-bank lenders and investors will mature in 2018, down from the $175.9 billion that matured in 2017. “Because many commercial and multifamily mortgages are 10-year loans, and few loans were made in 2008 during the onset of the credit crunch, mortgage maturities will be 42 percent lower in 2018,” says Jamie Woodwell, vice president of commercial real estate research at MBA, a national real estate finance association based in Washington, D.C. “2017 marked the official end of the so called ‘wall of maturities.’” The loan maturities vary by investor group: 2 percent of mortgages held by Fannie Mae, Freddie Mac, the FHA and Ginnie Mae will mature in 2018; 4 percent of life insurance companies’ outstanding mortgages will mature in 2018; 7 percent of loans held in CMBS will come due this year; and among mortgages held by credit companies and other investors, 22 percent will mature in 2018. Woodwell points out …
MINNETONKA, MINN. — Dougherty Mortgage LLC has provided a $30.6 million Fannie Mae loan for the refinancing of Residences at 1700 in Minnetonka. The 115-unit apartment property offers convenient access to retail space such as restaurants, coffee and banking. Dougherty’s Minneapolis office originated the loan on behalf of the borrower, 1700 Plymouth LLC. The 12-year loan features a 30-year amortization schedule.
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.