Apartment rents and multifamily asset values are rising while vacancy remains low in Connecticut’s New Haven and Fairfield counties. Young professionals and commuters are moving out of suburban areas to reside in downtown locations so they can take advantage of transit-oriented, live-work-play environments. Costly single-family housing is another factor contributing to new residents seeking rentals rather than buying homes. There is a strong demand for apartments, which keeps vacancy low and prompts new development in the region, so much so that delivery of multifamily housing units this year will more than double those built in 2013. Demand however, outweighs the new supply and the current, record-low vacancy levels will be unaffected. Average prices for apartment assets in New Haven and Fairfield counties rose 3 percent over the last year to $169,000 per unit as the overall quality of listings improved. While the region experiences strong rent growth and higher yields than the likes of New York City and Boston, more foreign investors and institutional buyers continue to emerge with sights set on multifamily assets; and in particular, top-tier assets with more than 250 units in primary markets. Properties near Metro North commuter rail stations and employment centers will generate elevated …
PHOENIX – The 176-unit Indian Wells apartment complex near Phoenix has sold to Sonoma Valley LLC for $9.6 million. The community is located at 975 South Royal Palm Road. It was built in 2001. Bill Hahn, Jeffrey Sherman and Trevor Koskovich of Colliers International’s HSK Multifamily Southwest Team, represented both the buyer and seller, CSFB 2004-C5 Apache Apartments, in this transaction.
SANTA MONICA, CALIF. – A 16-unit apartment building in Santa Monica has sold to Unison Investment Company for $6 million. The community is located at 1901 6th Street. It was built in 1969. Unison was represented by John Chu of New Life Properties. The seller, 1626 North Fuller LLC, was represented by Kimberly Roberts Stepp of Charles Dunn Company.
SAN ANTONIO — Capital One Multifamily Finance has provided a $63.3 million fixed-rate Freddie Mac loan for the acquisition of Artessa at Quarry Village, a 280-unit luxury apartment community in San Antonio. Brian Sykes of Capital One originated the transaction. Intercontinental Real Estate purchased the property and granted Capital One the rights to represent Freddie Mac. Completed in 2009, Artessa is located in Alamo Heights, located six miles from downtown San Antonio. Artessa offers one-, two-, and three-bedroom units, and was 95 percent occupied as of October 2014. The property features ground-floor retail space, which includes 27 retail suites. The fixed-rate loan has a 10-year term with 10 years of interest-only payments.
LONG BRANCH, N.J. — Kushner Cos. and Extell Development Co. have closed on two phases of financing in conjunction with their purchase of Pier Village in Long Branch. The companies acquired Pier Village for $180 million in a transaction that closed in two phases over the last quarter of 2014. Pier Village consists of 492 residences and more than 100,000 square feet of retail, including restaurants, shops and a fitness center. Capital One provided bridge financing for the first phase of the acquisition in November 2014. In mid-December, the bank also originated and closed a $97 million long-term fixed-rate financing from Fannie Mae to take out the acquisition loan that it provided a month earlier. Both Capital One financings were arranged by Meridian Capital Group. Additionally, the partnership assumed a 7-year $32 million Freddie Mac loan originated by PNC Bank, which was originated a year and half ago by the prior ownership.
ATLANTA — Miami-based Atlantic|Pacific Cos. has acquired four Class A multifamily communities in metro Atlanta. The properties include the 246-unit Carrington Green located at 745 Highway 42 S. in McDonough; the 297-unit Villas at Southpoint located at 1690 Highway 20 W. in McDonough; the 332-unit Harris Bridge Overlook located at 1175 Old Harris Road in Dallas; and the 300-unit Shiloh Valley Overlook located at 2100 Shiloh Valley Drive N.W. in Kennesaw. Atlantic|Pacific plans to make capital improvements to the four communities, including interior upgrades and common area improvements. Atlantic | Pacific Management, the property leasing and management platform under Atlantic|Pacific Cos., will handle all property management responsibilities for all properties. The acquisition of these four properties brings Atlantic|Pacific’s holdings in metro Atlanta to 10 communities totaling more than 2,600 units.
ATLANTA — Cocke Finkelstein Inc. (CFI) has purchased Solace on Peachtree, an 18-story, 533-unit apartment tower located at 710 Peachtree St. N.E. in Midtown Atlanta. CFI purchased the asset from Lubert-Adler Real Estate Funds for an undisclosed amount. Mike Kemether, Chris Spain and Brandon Whitesell of Cushman & Wakefield’s (C&W) Atlanta office represented Lubert-Adler in the transaction. Additionally, Mike Ryan, Telly Fathaly, Brian Linnihan and Jeff Walker of Cushman & Wakefield’s equity, debt and structured finance team arranged a $43.6 million acquisition loan on behalf of CFI. C&W originated the GSE loan through its correspondent lender, Walker & Dunlop. Renovated in 2009, Solace on Peachtree was 96 percent occupied at the time of sale. The high-rise features a fitness center, clubroom with a business center and an updated rooftop deck.
PINELLAS PARK, FLA. — Marcus & Millichap has brokered the $2 million sale of Cedar Hollow Apartments, a 42-unit apartment community located in Pinellas Park. Casey Babb of Marcus & Millichap’s Tampa office represented the buyer, a limited liability company based in Tel Aviv, Israel. Cedar Hollow Apartments, which was constructed in the mid-1980s, was 88 percent occupied at the time of sale.
SAN ANTONIO — Robert Faust Mortgage Co. has arranged an equity investment for the Twin Creeks Ranch apartment project in San Antonio. The project will be the first phase of a two-phase project. Phase I will span 300 units located on 17 acres at the southeast corner of Alamo Ranch Parkway and Lone Star Parkway, which is the main intersection into Alamo Ranch. This is one block west of Loop 1604 and U.S. Highway 151. The developer will be SWBC Real Estate, which is owned by Southwest Business Corp. Robert Faust Mortgage Co. has been active in providing financing in San Antonio for a number of years. This year the Dallas-based company celebrated 38 years in business. The first units should be completed in spring 2016.
CHICAGO — Interra Realty has brokered the $7.1 million sale of a 21-unit elevator apartment building in Chicago’s Avondale community. The property is located at 2902-10 W. Belmont Ave. The apartment building includes two- and three-bedroom layouts and a first-floor parking garage. Joe Smazal and James Clough of Interra Realty represented the seller, a local developer. Ted Stratman of Interra Realty represented the buyer, a venture of CLK Properties, a New York-based investor.