In 2021, supply chain issues, increased costs, wage inflation and the logistical challenges of completing projects compounded to negatively impact the affordable housing pipeline. According to Gregg Gerken, head of U.S. Commercial Real Estate with TD Bank, 2022 looks fantastic for the affordable housing sector as those issues are beginning to resolve. However, he notes that the affordable housing sector is still challenged by delays related to financing challenges, among other factors. Demand for affordable housing, federal level commitments to the sector and the continued involvement of Fannie Mae and Freddie Mac are all positive factors for the outlook of affordable housing. However, Gerken notes, “Financing is somewhat challenged by gaps in funding. With pricing and costs going up, there’s a gap between how much a project might support from a loan side versus how much in tax credits are allocated to that project during the last round of allocations. Some of that gap between overall costs and the funding sources is being made up as local agencies put in additional money in order to get affordable housing done.” Hear what Gerken has to say about the development of workforce and affordable housing and the involvement of government-sponsored …
NEW YORK CITY AND MCLEAN, VA. — Ares Management Corp. (NYSE: ARES) has acquired Capital Automotive LLC, a McLean-based firm that specializes in the sale-leaseback of car dealerships under new triple-net leases. Ares purchased the company through its alternative credit strategy division and real estate group for $3.8 billion. The seller was a private real estate fund managed by Brookfield Asset Management (NYSE: BAM). Capital Automotive owns more than 250 real estate assets in the United States and Canada that are structured under long-term, triple-net leases to various car dealers. The names and locations of the properties were not disclosed. Ares purchased Capital to expand and diversify its net-lease investment strategy. Including the recent investment in Capital Automotive, Ares’ funds have invested in over 1,200 real estate assets totaling approximately $7.2 billion of gross asset value in North America and Europe over the past 15 months. These net lease investments include retail, industrial and office properties leased to tenants with varying credit profiles. Ares’ real estate group had approximately $41.2 billion of assets under management as of year-end 2021. Ares Management’s stock price closed on Thursday, Feb. 17 at $79.01 per share, up from $52.02 a year ago, a nearly …
LONDONDERRY, N.H. — California-based investment firm Provender Partners has acquired two cold storage facilities totaling roughly 316,000 square feet in Londonderry, located south of Manchester. The 191,836-square-foot facility at 219 Rockingham Road features 24,000 pallet positions and 30-foot clear heights, while the 124,100-square-foot warehouse at 6 Rockingham Road offers 14,000 pallet positions and 30-foot clear heights. Both facilities house freezer, refrigerated dock and office space. Kevin Griffiths of Newmark represented Provender Partners in the off-market sale. Brian Pinch, also with Newmark, represented the seller, an undisclosed, New York-based investment firm.
STAMFORD, CONN. — Walker & Dunlop has provided a loan of an undisclosed amount for the refinancing of TMG Anchor Point, a 323-unit waterfront multifamily property in Stamford. The property was built on 17 acres in 2000 and includes a 72-slip marina. TMG Anchor Point houses studio, one-, two- and three-bedroom units ranging in size from 522 to 1,767 square feet. Amenities include a fitness center, business center, media room, theater room, indoor basketball and racquetball courts and concierge services. The borrower was New York City-based investment and advisory firm TMG.
ABINGTON, MASS. — MassHousing has funded a $34.8 million loan for the refinancing of Woodlands at Abington Station, a 192-unit affordable housing property located about 20 miles south of Boston in Abington. The property consists of eight buildings that house 78 one-bedroom apartments and 114 two-bedroom apartments. Amenities include a pool, fitness center, community room, tennis courts and a playground. The borrower, Beacon Communities LLC, will use a portion of the proceeds to fund capital improvements and preserve the property’s affordability status.
ARMONK, N.Y. — Global logistics operator Realterm has acquired a 112,791-square-foot warehouse in Armonk, located in Westchester County. The facility sits on a total of 5.5 acres, including 1.5 acres of undeveloped land for future expansion. Additional building features include 10,391 square feet of office space, 15 dock-high doors and two drive-in loading positions. Charlie Luce and John Meador of Casco Real Estate Partners represented Realterm in the transaction. The seller and sales price were not disclosed.
NEW YORK CITY — Property management firm FirstService Residential has signed a 48,000-square-foot office lease to occupy the ninth and 10th floors at 575 Fifth Avenue, a 500,000-square-foot building in Manhattan. The property offers amenities such as three conferencing facilities, a salon, fitness center and a bike storage area. Mark Friedman of Colliers represented the tenant, which is relocating from 622 Third Avenue, in the lease negotiations. The landlord, Beacon Capital Partners, was self-represented.
Content PartnerFinance InsightLoansMidwestMultifamilyNortheastSoutheastTexasVideoWalker & DunlopWestern
Web-Based Appraisal Tool Supports Massive Increase in Demand for Multifamily Valuations
Multifamily appraisers are extremely busy as investor interest in the sector is at an all-time high. “In terms of appraisal professionals, there is a supply and demand issue,” explains Meghan Czechowski, managing director and valuation lead for Apprise by Walker & Dunlop. She notes that the industry has greater demand for valuation than it has qualified appraisers. “Apprise is ensuring that we can support our appraisal staff and our local market experts with a tech-enabled process so that they can do their jobs more efficiently and get the values (and market information in general) into our clients’ hands as quickly as possible,” she adds. Czechowski focuses on the ways that web-based multifamily valuations can be streamlined to create a faster and more complete picture of properties. Multifamily experts need information on properties/parcels that comes from “multiple industry-standard resources such as Yardi, REIS, RCA and public record aggregators.” Parcel-level information, unit mix metrics, sale leads, land records and site assessment information are all available through Apprise’s platform via a single sign on to a dashboard that reflects information that is constantly being updated. This means that when an expert uses this platform and picks up the phone to confirm about …
ORLAND HILLS, ILL. — Northmarq has arranged the sale of Orland Towne Center in Orland Hills, a southern suburb of Chicago. The 138,000-square-foot retail center is home to Aldi, Edge Fitness, Five Below, PetSmart and Duly Health and Care. In addition to brokering the sale, Northmarq’s Jeff Frankel also arranged a $14.6 million first mortgage loan on behalf of the buyer, Sperry Equities. A life insurance company provided the fixed-rate loan, which features a 10-year term and a 30-year amortization schedule.
EVERETT, MASS. — Las Vegas-based Wynn Resorts (NASDAQ: WYNN) has entered into an agreement with San Diego-based REIT Realty Income Corp. to sell and lease back Encore Boston Harbor, a luxury resort and casino located outside the state capital in Everett. Under the terms of the deal, which is expected to close in the fourth quarter, Wynn will sell all of the real estate assets to Realty Income for $1.7 billion in cash while continuing to operate the property. However, Wynn will retain ownership of a nearby 13-acre site that will eventually house parking and other non-gaming amenities. Wynn will also enter into a triple-net lease with Realty Income that calls for an initial annual rent of $100 million with 1.75 percent increases for the first 10 years. The initial lease term is 30 years, and the contract includes one 30-year renewal option.