KING OF PRUSSIA, PA. — Berkadia has funded a $661 million Freddie Mac loan for the refinancing of Morgan 22 Portfolio, a portfolio of 22 multifamily properties totaling 4,670 units. Morgan Properties, a REIT based in King of Prussia, Pennsylvania, was the borrower. The portfolio includes properties located in New Jersey, Pennsylvania, Delaware and Maryland. The financing package consists of 22 individual fixed-rate loans, all of which carry 10-year terms. The proceeds from this refinance were used to pay off existing debt, which was provided by Freddie Mac and originated by Berkadia in 2013. T.J. Piper and Robert Falese of Berkadia arranged the loan.
SPRINGFIELD, N.J. — Greystone has provided a $20 million Freddie Mac loan to refinance The Cove at Springfield Apartments, a multifamily property in Springfield, a western suburb of New York City. The loan carries a seven-year term with a 30-year amortization schedule and interest-only payments for the first two years. Located at 118 Victory Rd., The Cove at Springfield Apartments is a garden-style community that features 91 units with one-, two-, and three-bedroom floor plans and amenities such as a clubhouse and a fitness center. Dan Sacks of Greystone originated the loan.
FORT WORTH, TEXAS — Locally based general contractor KWA Construction has broken ground on Phase II of Columbia Renaissance Square, a multifamily project that will add 120 independent living units for senior citizens to the local supply. Units will feature vinyl plank flooring, ceramic tile and carpeted bedrooms. Phase I of the project, which is being developed by Columbia Residential and Renaissance Heights Development Group, delivered 140 units, the majority of which were affordable housing residences. Phase II is expected to be complete in December.
TRACY, CALIF. — Greystone has secured $86.2 million in refinancing for Aspire Apartments, a newly constructed multifamily asset in Tracy. Todd Vitzthum and Simon Herrmann of Greystone Real Estate Advisors, along with Cody Field of Greystone, arranged 10-year refinancing and Freddie Mac loan for the undisclosed borrowers. Completed last year, Aspire Apartments features 348 units, a resort-style swimming pool, fitness center, pet spa and clubhouse.
HONOLULU — Coastal Rim Properties has purchased a 12,842-square-foot land parcel in downtown Honolulu from an affiliate of Next Realty for an undisclosed price. The buyer plans to develop a 20-story affordable seniors housing tower on the property, which is located at 1192 Alakea St. The site currently houses a vacant parking lot. Steven Sofos of Sofos Realty Corp. represented the seller, while Matt David and Terry Jackson of Cushman & Wakefield’s Land Advisory Group in San Diego provided advisory services for the transaction.
CHICAGO — Ventas Inc. (NYSE: VTR), a Chicago-based REIT and one of the largest owners of seniors housing in the United States, has adjusted its corporate cost structure in response to the COVID-19 pandemic’s impact on the company. In mid-June, Ventas plans to eliminate roles representing over 25 percent of its corporate positions, excluding onsite field personnel, according to a May 27 SEC filing. In addition, for the second half of 2020, the company will reduce the base salary of CEO Deb Cafaro by 20 percent, while reducing the salaries of other executive officers by 10 percent. As a result of these actions, Ventas predicts third-quarter selling, general and administrative (SG&A) expenses will be $25 million to $30 million lower than during the same period in 2019. The move is a continuation of Ventas’ initiatives to conserve capital as the pandemic drives expenses up and revenues down. Though the company reported $3.2 billion in cash on hand during its first-quarter report issued in May, Ventas plans reduce capital expenditures this year by between $300 million and $500 million. The company has paused construction, offered rent deferrals to struggling communities and issuing free COVID-19 tests to its operators. Like most companies …
It may be premature for multifamily investors to come off the sidelines and back into the acquisition fray. Still, the outlines of the post-pandemic landscape are growing clearer, and the hour draws near when owners and buyers must consider the buy/sell/hold mathematics of the future. Tampa presents a model for the unique economic factors likely to influence the nationwide multifamily sector. The initial phase of the post-pandemic analysis is likely to focus on the anticipated performance of “growth markets.” This category of metropolitan areas is characterized by a relative dearth of spatial and regulatory barriers to entry, lower land costs and lower business operating costs than the primary markets, as well as a demonstrated ability to support faster sustained employment and population growth than the national average. Historically, growth markets (e.g., Atlanta, Dallas, Phoenix, Tampa) have facilitated volatile real estate cycles, featuring rapid growth during boom times, followed by often painful supply-driven corrections during periods of economic weakness. Apartment capitalization rates discounted the relative riskiness of their NOI streams accordingly, pricing growth market assets to going-in yields 75 basis points or more above comparable assets in the primary markets. The long multifamily bull market of the passing decade altered this …
ATLANTA — Urban Realty Partners and Prestwick Cos. have broken ground on 982 Memorial Drive, a 205-unit multifamily community in Atlanta’s Reynoldstown neighborhood. The five-story property will offer studio and one-bedroom floor plans. The community will be located at 982 Memorial Drive, two blocks from the Atlanta BeltLine Eastside Trail and two miles east of downtown Atlanta. Patterson Real Estate Advisory Group arranged a construction loan through Principal Real Estate Investors and also procured a limited equity partner, Humphreys Capital, on behalf of the developers. A timeline for completion was not disclosed.
AUSTIN, TEXAS — Intracorp, a developer with five offices across North America, has received a $194 million construction loan for its 49-story condominium project at 44 East Ave. in Austin’s Rainey Street District. MSD Partners LP and Bank OZK provided the financing. Situated on the edge of Lady Bird Lake, the building will offer one-, two-, three- and four-bedroom floor plans ranging in size from 500 to 3,500 square feet. Amenities will include a pool, community kitchen and a rooftop lounge. The project, which is the only condo development currently under construction in downtown Austin, is expected to be complete in 2022. Nearly half the residences have already been sold.
NEW YORK CITY — Home Street Partners, a New York-based developer, has completed construction of Home Street Residences, a 63-unit multifamily building in the Foxhurst neighborhood of The Bronx. The 75,000-square-foot building is located at 1017 Home St., and 30 percent of the units are reserved for homeless seniors. Residences average 550 square feet. Body Lawson Associates designed the property, and Bronx Pro Group is the operator. Approximately 50,000 people have already applied for an apartment, according to Body Lawson Associates.