LONGVIEW, TEXAS — Senior Living Investment Brokerage (SLIB) has arranged the sale of Haven Care, a 108-bed skilled nursing facility in the East Texas city of Longview. The facility totals 24,653 square feet and is situated on three acres. The seller was a Texas-based partnership, and the buyer was an owner-operator with several other facilities in the state. Both parties requested anonymity. Matthew Alley of SLIB handled the transaction.
HARTFORD, CONN. — Locally based brokerage firm Chozick Realty has negotiated the $12.9 million sale of a portfolio of eight apartment buildings totaling 176 units in Hartford. About half of the units in the buildings, which are located near the campus of Aetna Insurance in the downtown area, were recently renovated. Steve Pappas and Jordan Pinto of Chozick Realty represented the seller and procured the buyer, both of which were regional investment firms that requested anonymity, in the transaction.
SAN DIEGO — Berkadia, on behalf of sponsor Lincoln Avenue Communities, has arranged $151 million in financing for Sea Breeze Gardens, an affordable multifamily property in San Diego. The financing includes a $53.5 million Low-Income Housing Tax Credit (LIHTC) equity investment and $97.5 million in bonds that were credit enhanced by Freddie Mac. Situated within the Lincoln Park neighborhood of San Diego, Sea Breeze Gardens is a rehabilitation project and once complete will feature 268 units across 36 two-story walk-up residential buildings. The unit mix consists of 100 two-bedroom units and 168 three-bedroom units. Twenty-seven units will be designated for residents earning up to 30 percent area median income (AMI), 27 units at 50 percent AMI and 212 units at 60 percent AMI. Additionally, the property will offer three employee units, and the community will meet the requirements for mobility and sensory access with a total of 27 units for mobility impairment and 11 units for sensory impairment. Tim Leonhard and Chris McGraw of Berkadia secured the financing for the borrower.
CARLSBAD, CALIF. — Innovative Housing Opportunities (IHO) and C&C Development have opened Pacific Wind, an affordable housing community in Carlsbad, approximately 30 miles north of San Diego. Located at 3875 Sydney Way, the 89-unit property replaced 22 1950s-era duplexes. Pacific Wind features five two- and three-story garden-style walk-up buildings with two play areas for low-income working families and individuals who make between 30 to 80 percent of area median income. The community is already fully leased to more than 300 residents. The property features a clubhouse with leasing and resident service offices, a multi-purpose room with a kitchen and a learning center. Funding sources for the $56 million project include Bank of America, California Municipal Finance Authority, City of Carlsbad and National Equity Fund, as well as federal tax credits. The project team included Bassenian Lagoni Architects, M Zaki Design, JAG Interiors, C&C Construction Services as general contractor, Candela Engineering as electrical engineer, Gouvis Engineering Consultants Group as structural engineer, SWS Engineering as civil engineer, TAD Engineering as MEP and VBK Consulting as project manager.
DENVER — Kaufman Hagan Commercial Real Estate has arranged the sale of Lowry Pines, an apartment complex at 835 S. Quebec St. in Denver. The asset traded for $5.1 million, or $151,471 per unit. Lowry Pines offers 34 apartments and an interior courtyard. Andrew Vollert and Brandon Kaufman of Kaufman Hagan Commercial Real Estate represented the seller in the deal.
CHICAGO — Interra Realty has arranged the $8.2 million sale of The Synagogue, a 40-unit apartment building in Chicago’s Uptown neighborhood. Constructed in 1922, the building at 5029 N. Kenmore Ave. is an adaptive reuse of a former temple that was reopened as apartments in 2019. Previously home of Agudas Achim North Shore Congregation, the synagogue closed in 2008 and was put on the market by its board in 2012 after the facilities had fallen into disrepair. Cedar Street purchased the property in 2016 and subsequently converted it into apartments, retaining the temple’s historic exterior as well as several original interior features. The building features eight studios and 32 one-bedroom units, which were almost fully occupied at the time of sale. Jon Morgan and Michael Duckler of Interra represented Cedar Street in the sale as well as the buyer, a local investor.
— By Mark Bridge, Managing Director, Bridge Multifamily Team, Capital Markets, Americas, Cushman & Wakefield — Vacancy The vacancy rate is 4.0 percent as of the mid-point in the second quarter of 2024, up 30 basis points (bps) quarter-over-quarter (QOQ) and year-over-year (YOY). The rate has been increasing in eight out of the last 11 quarters from a market low of 2.1 percent in third quarter 2021. The rate is currently 40 bps above the five-year quarterly average of 3.6 percent. Despite this recent increase, Orange County’s vacancy rate is considerably lower than the national average at 7.7 percent. OC’s vacancy rate ranks it second lowest among the nation’s 50 largest markets. Rent The average asking rent per unit currently sits at $2,513 as of the mid-point in the second quarter of 2024. The market high asking rent per unit peaked in fourth 2023 at $2,530 and has come down 0.7 percent since then. Despite the recent decrease, the asking rent per unit is still up 0.9 percent YOY. Given the tightness of the market and a healthy development pipeline, it is likely that the asking rent will remain elevated. Construction/Deliveries There are currently 23 buildings or 8,183 units under …
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Cracking the Code: Winning Strategies for Affordable Housing in Any Market
Frustrated by high costs and a lending crunch for market-rate multifamily projects, savvy mainstream developers are seeking opportunities to build affordable housing. But what constitutes opportunity in a sector reliant on agency lending, community stakeholders and controlled rents? Definitions of “opportunity” in affordable housing vary widely, and favorable elements often involve additional and unique challenges. Not only must developers identify opportune site conditions, but they must also evaluate prospects to compete for funding, secure municipal approvals and win community support. And they need to complete the project within required timeframes in order for the asset to qualify as a good opportunity. REBusiness asked experts from two firms at the forefront of affordable housing development about what affordable housing “opportunity” looks like — and about the strategies they use to transform promising sites into viable projects. Beacon Communities is an established developer of affordable, market-rate and mixed-income housing, while Bohler’s land development consulting and site design services have helped clients identify and act on commercial real estate opportunities for more than 35 years. “We look at any development opportunity through three lenses,” says LeAnn Hanfield Curtin, vice president of development at Beacon. “Those are the availability of sites, ability to get …
CHICAGO — Chicago-based developer and property manager Habitat has opened OC Living, the first multifamily building at the $200 million Ogden Commons mixed-use development in Chicago’s North Lawndale neighborhood. Located at 1325 S. Washtenaw Ave., OC Living consists of 92 units, 90 percent of which are affordable. The four-story building features a mix of 23 studios, 60 one-bedroom units and nine two-bedroom apartments. Amenities include a rubber-surfaced children’s lot with play structures, bike racks, a walking path, landscaped lawn, 110 parking stalls, a package room, resident lounge, fitness center and social services offices. Developed by Habitat along with Sinai Health System, Alecko Capital and the City of Chicago, Ogden Commons is among the city’s largest opportunity zone projects. Upon full build-out, the development will consist of 120,000 square feet of commercial and retail space along with more than 350 mixed-income housing units. The first phase of Ogden Commons was a 45,000-square-foot commercial building completed in 2021 that is home to Sinai Health System’s One Lawndale Express Care Clinic, a Wintrust Bank branch, La Catedral Café & Restaurant and Momentum Coffee. The second phase is slated for completion by 2026. McHugh Construction and Bowa Construction are the general contractors. Bank of …
GLENDALE, ARIZ. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale of Glen 91, an apartment community in the Phoenix suburb of Glendale. HCW sold the asset to Bridge Investment Group for $76.5 million, $258,446 per unit. Steve Gebing and Cliff David of IPA represented the seller and procured the buyer in the deal. Completed in 2023, Glen 91 features 296 apartments, a resort-style swimming pool, hammock garden, covered parking and attached garages. Apartments offer nine-foot ceilings, laundry rooms with full-size washers/dryers and walk-in closets with built-in shelving.