LOS ANGELES — West Hollywood Community Corp. has broken ground for the development of Mariposa Lily, an affordable multifamily property located in the Pico-Union neighborhood of Los Angeles. Mariposa Lily will feature 40 residential units of affordable and permanent supportive housing, as well as a manager’s apartment. HED designed the infill seven-story property, which reflects an art-deco style.
PHOENIX — Ready Capital has arranged $19.2 million in financing for the acquisition, renovation and stabilization of a Class B apartment community located in Phoenix’s Biltmore submarket. Upon purchase, the undisclosed sponsor will implement a capital improvements plan to renovate the interiors of the 117 units, upgrade the façade and improve landscaping. Ready Capital closed the non-recourse, interest-only, floating-rate loan with a 36-month term, two extension options and flexible prepayment. The financing is inclusive of a facility to provide future funding for capital expenditures.
The past few years have seen a surge in interest in single-family rental (SFR) and build-for-rent (BFR) spaces in commercial real estate. Traditionally the domain of small- and medium-sized investors, the SFR/BFR space has begun to attract institutional investors. BFR, in particular, can often offer higher occupancy levels and rents while promising lower capital and operating costs than traditional multifamily housing. Keaton Merrell, managing director, Capital Markets, Walker & Dunlop, spoke to REBusinessOnline about debt and equity in BFR, as well what to know when it comes to agency involvement. First, Merrell briefly clarifies the terminology: “Oftentimes, people use SFR and BFR interchangeably. They are two totally separate asset classes and are looked at differently by capital. SFR is defined as a cluster of homes in various geographies that are pooled together for investment purposes. BFR is purpose-built housing within contiguous rental communities, much like traditional multifamily properties.” For a more in-depth look at the SFR and BFR in general, read more on the asset class here. REBusinessOnline: What is the current state of debt and equity capital in the market when it comes to BFR? Merrell: I will start with equity and then move on to debt. The equity that is coming into the …
MIAMI — The Estate Cos. (EIG), a private developer of multifamily properties, has sold Soleste Twenty2 in west Miami for $97 million. The locally based developer completed the eight-story luxury apartment community in February 2020. An entity doing business as Westdale Twenty2 LLC purchased the 338-unit community. The buyer is an affiliate of Westdale Real Estate Investment Management, according to South Florida Business Journal. “This transaction stabilized during the difficult times of COVID-19, which further affirms the solid fundamentals of our business plan and our ability to perform for our investors,” says Robert Suris, managing principal at The Estate Cos. “We are glad Westdale will own and capture the value of this amazing asset moving forward.” Located at 2201 Ludlam Road, Soleste Twenty2 is situated 9.1 miles south of Miami International Airport and 17 miles west of South Beach. The property was approximately 95 percent occupied at the time of sale. Soleste Twenty2 features studios, one-, two- and three-bedroom units with stainless steel appliance packages, porcelain floors and designer-tiled bathrooms. Rents range from the $1,500s for studio apartments to the $2,600s for three-bedroom units. Community amenities include a pool deck with spa and private cabanas, relaxation lounge with saunas, athletic …
COLUMBIA, MD. — The Howard Hughes Corp. has broken ground on Marlow, a 472-unit residential property in the Merriweather District in downtown Columbia. The Dallas-based developer is targeting initial occupancy to begin in the fourth quarter of 2022. The seven-story Marlow will span 510,000 square feet, including 32,000 square feet of retail space and approximately 14,000 square feet of amenity space. Amenities will include a fitness center, golf simulator and a dog park. The property will also have a work-from-home lounge equipped with workspaces and private conference rooms. Marlow will have feature patios, promenades, a courtyard, pools, lawn areas and private alcoves, as well as an 800-square-foot rooftop sky lounge.
HOUSTON — Arbor Realty Trust Inc. (NYSE: ABR) has provided a $30 million acquisition loan for PARC at 505, a 486-unit apartment community located on the north side of Houston. The property offers one-, two-, and three-bedroom apartment homes, as well as lofts, flats and townhomes. According to Apartmentlist.com, amenities include a pool, fitness center, business center, volleyball court, playground, clubhouse, dog park and package handling services. Alexander Kaushansky of Arbor’s New York City office originated the loan. The borrower was not disclosed.
HOUSTON — New York City-based Ready Capital has closed a $14.4 million loan for the acquisition, renovation and stabilization of a 240-unit, Class B multifamily property in the south Galveston County submarket of Houston. The undisclosed sponsor plans to implement a capital improvement plan to renovate unit interiors, including countertop and appliance upgrades, new light fixtures and updated cabinets. The loan carried a 36-month term, floating interest rate, two extension options and a flexible prepayment structure.
RICHFIELD, MINN. — Dwight Capital has provided a $22.2 million HUD-insured loan for the refinancing of Gramercy Park Cooperative at Lake Shore Drive in Richfield, an inner-ring suburb of the Twin Cities. The 157-unit senior living community rises 12 stories on 1.7 acres. Amenities include a library, fitness room, hair salon, community room, grocery store, individual storage space and exterior gardens. Josh Sasouness of Dwight originated the 223(a)(7) loan on behalf of the undisclosed borrower.
PATERSON, N.J. — BAW Development has broken ground on the redevelopment of Hinchliffe Stadium, an athletic venue in the Northern New Jersey city of Paterson that was originally built in 1932 as the home field of the New York Black Yankees of the Negro Leagues. Once the redevelopment is complete, the site will house a 7,800-seat venue with an upgraded field and seating areas, as well as a 75-unit affordable seniors housing complex, a 12,000-square-foot restaurant and event space, a 5,200-square-foot preschool and a 314-space parking garage. The ballpark, which fell into disrepair in the late 1990s and has been largely unused since then, is most often associated with Paterson native Larry Doby, the first player to break the American League color barrier in 1947. BAW Development is the lead developer and majority owner. RPM Development Group is BAW’s development partner. Construction is being funded, in part, through local, state and national funding via historic tax credits, low-income housing tax credits, new market tax credits and a bond issued by the Passaic County Improvement Authority. Goldman Sachs also recently provided $60 million in construction financing.
PHILADELPHIA — Black Bear Capital Partners has arranged a $17.5 million loan for the refinancing of a portfolio of five multifamily properties totaling 239 units in Philadelphia. The properties are located at 4619-4621 Chester Ave.; 4601 Chester Ave.; 419-429 S. 48th St.; 241 S. 47th St.; and 4416-18 Osage Ave. Peapack-Gladstone Bank provided the loan, specific terms of which were not disclosed, to New Horizons Housing, an owner-operator of more than 800 units in Philadelphia and Columbus, Ohio. Emil DePasquale, Brandon Harris and Phil Bowman of Black Bear Capital Partners arranged the financing.
