NEW YORK CITY — A partnership between two locally based firms, EJS Group and New Hope Capital, has received $108.1 million in construction financing for a 240-unit multifamily project in Brooklyn’s Bedford-Stuyvesant neighborhood. The development at 12 Halsey St. will consist of three buildings, with 30 percent of the units to be reserved as affordable housing. Amenities will include a pool, fitness center, tenant lounge and rooftop garden, as well as ground-floor retail space. Completion is slated for fall 2025. The financing package consists of an $83.1 million senior mortgage loan from Bank OZK and $25 million in mezzanine financing from CanAm Enterprises. Aaron Appel of Walker & Dunlop arranged the debt on behalf of the developers.
SCOTTSDALE, ARIZ. — The Dinerstein Cos. (TDC) is developing Atlas Kierland, a multifamily property in Scottsdale, and the latest addition to its Atlas-branded properties. Located at 7007 E. Marilyn Road, Atlas Kierland will feature 261 one-, two- and three-bedroom apartments, ranging in size from 809 square feet to 1,456 square feet. Residences will have vinyl plank flooring and contemporary kitchens equipped with quartz countertops, islands and premium appliances, as well as bathrooms with full-height tiled showers, soaking tubs and illuminated mirrors. Units will also feature full-size, stackable washers/dryers and keyless electronic door locking systems. The community will include a rooftop with resort-style pool, lounging areas and outdoor kitchens with grills. A sky lounge on the fifth floor will offer space for residents to host gatherings and a gourmet kitchen. Additionally, amenities include a fitness center, lounge center, golf simulator and pet spa. Construction is slated to begin in December, with completion scheduled for 2026. TDC Construction, the in-house construction arm of TDC, will serve as general contractor. Leasing for the property is set to begin in summer 2026.
WESTFIELD, N.J. — A joint venture between two New Jersey-based developers, Premier Development and Garden Communities, is underway on construction of a 162-unit multifamily project in the Northern New Jersey community of Westfield. Designed by BlackBird Group Architects, Parkside at Westfield will be a three-story building that offers one-, two- and three-bedroom units. Residences will range in size from 985 to 1,944 square feet. Amenities will include a fitness center, clubhouse, library, golf simulator, playground and outdoor grilling and dining stations. Delivery is scheduled for late spring 2024.
INDEPENDENCE, N.J. — New Jersey-based developer Woodmont Properties has reached 75 percent occupancy at the first phase of Woodmont Liberty at Independence, a 120-unit multifamily project that is located on an 11-acre site about 60 miles west of Manhattan. The property offers one- and two-bedroom units that are furnished with custom-designed kitchens, walk-in closets, keyless entry mechanisms, individual washers and dryers and private balconies/patios. Amenities include a pool, outdoor grilling and dining areas, a fitness center, game room, conference center, walking trails and a dog park. Leasing began in April, at which point rents started at $2,440 per month for a one-bedroom apartment.
CHICAGO — An analysis from Origin Investments (Origin) predicts a tumultuous 2024, with concerns of a recession and elevated interest rates likely to continue. Despite this, the Chicago-based real estate fund manager expects next year to bring unique opportunities for multifamily investors to secure protected positions in the capital structure and enhance investment returns. “The volume of variable-rate bank loans — made when the Secured Overnight Financing Rate was 0 percent and the 10-year Treasury note yield was below two percent — coming due in 2024 will create a generational opportunity in senior debt and preferred equity investments,” explains David Scherer, co-CEO of Origin. “Despite uncertainties, it remains a mistake to stay out of the multifamily investment market in 2024.” Origin predicts that rent growth will stabilize to historic norms in 2024. The analysis theorizes that the negative rent growth some markets — such as Austin, Texas — experienced in 2023 was likely due to oversupply, and will reverse by January 2025. The report also indicates that long-term demand and absorption of apartments and rental homes is likely to remain strong for several years, as the U.S. is facing a shortage of between 5.5 million and 6.8 million housing units. …
BELLWOOD, ILL. — Evergreen Real Estate Group has completed Bellwood Senior Apartments, an 80-unit affordable seniors housing community in Bellwood, a western suburb of Chicago. The $31.5 million project replaces a former Walgreens store that had been vacant for nearly five years. The four-story development offers 76 one-bedroom and four two-bedroom apartments for seniors age 62 or older with incomes at or below 60 percent of the area median income (AMI). Evergreen says the building is 40 percent leased and will reach full occupancy in the next few months. Weese Langley Weese Architects designed the project. F.H. Paschen served as general contractor on the development. Financial partners for Bellwood Senior Apartments include the Illinois Housing Development Authority as the tax credit issuer (both Low-Income Housing Tax Credits and Illinois Affordable Housing Tax Credits) and subordinate funds provider; the Village of Bellwood, which provided a TIF loan; Bank of America, which is the investor and construction loan lender; Hudson Housing Capital, which syndicated the tax credits; Cook County, which provided HOME funds; and the ComEd Energy Efficiency Program.
CHICAGO — Interra Realty has brokered the $9.6 million sale of a 28-unit apartment building in Chicago’s Lincoln Park neighborhood. Located at 1900-16 N. Lincoln Ave., the property features a mix of studio, one- and two-bedroom units. The building, constructed in 1906, underwent a capital improvement program for new appliances, countertops, cabinets and floors. Joe Smazal of Interra represented the buyer, Chicago-based ICM Properties. He also represented the local private seller. The property was fully occupied at the time of sale.
By John Bogdasarian, Promanas At a time when the multifamily marketplace is experiencing some turbulence after an extended period of strong growth, some developers, owners and investors are rethinking, repositioning and reworking their approach to a commercial real estate sector that has historically been one of the most reliable investments and dependable asset classes. Current market conditions, however, are not as favorable. A report by The Motley Fool this summer highlighted a 21 percent decline in apartment value. Overbuilding has saturated some markets, contributing to an increase in vacancy rates to around 7 percent and helping push rent growth down to 0.8 percent. In conjunction with persistently high interest rates and increasing delinquency issues with renters, the result is that building a traditional apartment product is a very tricky proposition. Even though the apartment market is somewhat dysfunctional at the moment, there are still plenty of opportunities in multifamily. For thought leaders and forward-thinking commercial real estate investors and professionals, the key is to understand the market, be flexible in your development and investment strategies, and be able to execute an approach that does work in the current marketplace. For those looking to maximize multifamily returns in 2024, there are …
HUNTINGTON, W.VA. — Cornerstone Community Development Corp. plans to convert the historic Prichard Hotel in downtown Huntington into an affordable seniors housing property. The $51 million renovation will comprise converting the former hotel rooms into 108 residential living spaces, as well as repositioning the first two floors for healthcare services and additional community resources. Cornerstone Community Development’s partners on the project include Christ Temple Church, Winterwood Development and CVS Health, which is investing more than $17 million in the project. The timeline for construction was not disclosed.
MIRAMAR, FLA. — Pinnacle has obtained $41.2 million in construction financing for Pinnacle at La Cabana, a 110-unit affordable seniors housing development in Miramar, a city in South Florida’s Broward County. The financing included debt or LIHTC equity from Bank of America, Neighborhood Lending Partners, Florida Housing Finance Corp., City of Miramar and United Way of Broward County. Located at 8911 Miramar Parkway, the development is a public-private partnership between Pinnacle and the City of Miramar, which is the landowner. Pinnacle at La Cabana will feature one- and two-bedroom apartments, with 11 units reserved for seniors earning 28 percent of the area median income (AMI) and the remaining affordable to seniors earning 60 percent of AMI. Amenities will include indoor and outdoor multi-purpose facilities. Completion of the project is estimated for mid-2025.