— By Ryan Sarbinoff, first vice president and regional manager, Marcus & Millichap — Phoenix ranks third among the major markets in terms of both total net in-migration and job creation since the end of 2019. The region has also posted one of the largest jumps in median household income. Combined, these factors underpin heightened demand for housing and support elevated multifamily development. While total deliveries will rise for the fourth consecutive year in 2024 to a record high of 22,000 rentals, apartment absorption has notably kept pace through mid-year. As such, metro-wide vacancy is on track to dip to 7 percent by December. This would mark both a 30-basis-point decline from the 2023 peak, as well as an 18-month low. The improving alignment of supply and demand will encourage a return to rent growth, albeit slight. The average effective rent will end 2024 at $1,585 per month, up from the year before but down 5.3 percent from the peak set in 2021. Apartment completions over the past year (ending in June) were most prevalent in the Avondale-Goodyear-West Glendale submarket, where a collective 5,200 units opened. This represented a 23.8 percent boost to existing stock. Yet, the substantial wave of openings …
CLEMSON, S.C. — JLL has secured construction financing and an equity placement for Hartwell Ridge, a 168-unit student housing development located near the Clemson University campus in South Carolina. Jeremy Sain, Teddy Leatherman and Lauren Dow of JLL represented the borrower, Fountain Residential Partners, in arranging the equity placement through FrontRange Capital and Atlantic American Partners. BankUnited provided the construction loan for the project. Located at 10920 Clemson Blvd., the community will offer fully furnished units in studio through five-bedroom configurations, including two-story townhomes. Shared amenities will include a swimming pool, clubhouse, strength training and cardio center and multiple private study rooms. Van Winkle Construction is acting as general contractor for the project, which is scheduled for completion in fall 2026.
SAN ANTONIO — A partnership between locally based developer The Lynd Group, New York City-based investment firm Declaration Partners and Delaware-based investment manager Corten Partners has acquired a multifamily property in downtown San Antonio for $48 million. Augusta Flats is a five-story, 260-unit apartment community that was initially developed in 2021 and subsequently sold during lease-up. The property offers studio, one- and two-bedroom units and amenities such as a pool, fitness center, rooftop lounge, golf simulator and outdoor grilling and dining stations. The partnership purchased Augusta Flats from the previous owner’s lender. Benefit Street Partners provided acquisition financing for the deal.
PLANO, TEXAS — Eastern Union has arranged $20.4 million in financing for a seniors housing conversion project in Plano. Built in 1984 and renovated in 2005, the six-story, 137-room building at 700 Central Parkway E. was most recently operated as a Deluxe Inn hotel. The borrower plans to convert the property into a facility with 100 assisted living units and 40 memory care units that will be operated under the Parkdale Senior Living brand. Meir Abrahamson of Eastern Union arranged the financing, which consists of a $15.8 million construction-to-permanent loan and $4.7 million bridge loan. The direct lender was not disclosed. The conversion is slated for a mid-2026 completion.
TEMPE, ARIZ. — Boca Raton, Fla.-based Pinnacle Holdings has completed the disposition of Rancho Las Palmas Apartments in Tempe to an Arizona-based private investor for $18 million, or $160,714 per unit. Built in 1986 on 5.2 acres, Rancho Las Palmas features 112 apartments spread across six two-story and three-story buildings. The community offers 48 one-bedroom units and 64 two-bedroom units with an average size of 777 square feet. Unit amenities include balconies/patios, vaulted ceilings in select units and fully equipped kitchens with stainless steel appliance packages in select units. Community amenities include a clubhouse, fitness center, swimming pool, spa, laundry facility, gated entry and ample parking. Avison Young’s Peter Sherman, Keith O’Donnell and Mark Seale, along with Alon Shnitzer, Rue Bax, Eddie Chang, Doug Lazovick and Tyler Bruggman of ABI Multifamily, brokered the transaction.
FARGO, N.D. — Gindi Equities has acquired Timber Creek Apartment Homes, a 252-unit apartment community in Fargo. The purchase price was undisclosed. Built in 2015, the property at 4720 Timber Parkway South offers one- to three-bedroom units. Amenities include a playground, beach volleyball court and a pergola grilling area. Gindi plans to implement interior upgrades, including the installation of new features and fixtures to apartment kitchens and bathrooms. Common areas and grounds will also be renovated, and new exterior amenities will be added. Gindi acquired the asset from Property Resources Group, which will continue to manage and service the asset. The purchase marks Gindi’s second acquisition in the Fargo market.
DOUGLASSVILLE, PA. — BWE, the commercial finance firm formerly known as Bellwether Enterprise Real Estate Capital, has arranged a $57.8 million loan for the refinancing of Keystone Villa at Douglassville, a 248-unit seniors housing property located about 55 miles northwest of Philadelphia. The property comprises a 123-unit independent living building that was constructed in 2015 and a 125-unit assisted living and memory care building that was constructed in 2011. Ryan Stoll and Taylor Mokris of BWE arranged the nonrecourse loan through Commercial Bank on behalf of the borrower, a joint venture between private investment trust ReNew REIT and operator Heritage Senior Living. The property was 92 percent occupied at the time of the loan closing.
NEW YORK CITY — Greystone has provided a $32 million CMBS loan for the refinancing of a 90-unit affordable housing complex in the Clinton Hill neighborhood of Brooklyn. The building at 58 Vanderbilt Ave. was completed in 2023 and features studio-, one- and two-bedroom units. Amenities include a rooftop terrace, business center and a recreation room, and the building houses two commercial spaces on the ground floor. Rose Schwartz and Gabby Gutwein of Everest Equity arranged the loan, which was structured with a 51 percent loan-to-value ratio, a five-year term and a 30-year amortization period. The borrower was not disclosed.
KATY, TEXAS — Locally based developer Sueba USA has completed San Paseo, a 293-unit apartment community in the western Houston suburb of Katy. Located near the northeast corner of I-10 and the Grand Parkway, San Paseo consists of 273 apartments and 20 townhomes. Apartments come in studio, one-, two- and three-bedroom floor plans and range in size from 496 to 2,088 square feet, while the townhomes feature three different layouts and have an average size of about 2,450 square feet. Amenities include multiple pools, outdoor grilling and dining stations, a fitness center, coworking space and a coffee bar. Rents start at $1,170 per month for a studio apartment.
AUSTIN, TEXAS — Locally based brokerage firm Muskin | Elam Group has negotiated the sale of six multifamily properties totaling 179 units in Austin. The properties, which include The Hyde Park Collection, Baccarat Apartments and Adobe Apartments, are concentrated in the Hyde Park neighborhood and have an average construction vintage of 1974. The four Hyde Park Collection properties were sold by the original developers, and there were three different buyers across the six assets. All parties involved requested anonymity.