DORAVILLE, GA. — Hunt Real Estate Capital has provided a $32.5 million acquisition loan for Ashford Walk, a 306-unit multifamily property in Doraville. The loan term is two years, with three one-year extension options. The property was built in 1983 and renovated in 2015 and 2016. The undisclosed borrower will also invest $2 million for interior renovations. The property comprises 65 two-story buildings and one clubhouse. Ashford Walk was 93 percent occupied at the time of sale. Community amenities include a swimming pool, fitness center, tennis courts, sports court, new dog park, new playground, picnic and grilling areas, and laundry facilities. Ashford Walk is located at 3480 Morningside Village Lane, 17 miles northeast of downtown Atlanta.
NEW YORK CITY — Berkadia has arranged a $32 million senior loan with a mezzanine loan component for a 60-unit residential project at 433 W. 53rd St. in Midtown Manhattan. Proceeds will be used to stabilize the community, construction of which was recently completed. Keysite Capital Partners provided the loan to the borrower, Emmut Properties. Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia handled the transaction.
CYPRESS, TEXAS — Trammell Crow Residential is underway on construction of a 350-unit apartment project along Spring Cypress Road in the northwestern Houston suburb of Cypress. The Class A, garden-style community will be situated on 14.4 acres. The groundbreaking was held in December. Dosch Marshall Real Estate represented Trammell Crow in the land acquisition. The seller(s) in that transaction was not disclosed.
HOUSTON — Locally based multifamily development and management firm Allied Orion Group has sold The Beacon at Buffalo Pointe, a 281-unit apartment community located near the Texas Medical Center in Houston. Built on 32.4 acres in 2017, the property offers one-, two- and three-bedroom units averaging 862 square feet. Amenities include a pool with a sundeck and cabanas, outdoor grilling areas, a fitness center, demonstration kitchen and coffee bar, a dog park and concierge service. Chris Curry, Todd Marix and Bailey Crowell of JLL represented Allied Orion in the transaction and procured the buyer, Morgan Group Inc.
With a pressing demand for new housing in the Boston area and communities struggling to provide affordable options to mitigate the effect of rising prices, the barriers to providing new affordable multifamily properties remain significant. Here in the Boston region, the scale of the problem is immense. Boston’s Metropolitan Area Planning Council recently declared a need for 185,000 new units of housing over next 10 or so years in the 15 cities and towns that comprise the inner core of the metro area — just to keep up with expected growth. Some of the integral variables and processes associated with multifamily development, like land acquisition and construction costs, can be tangibly quantified. But harder to define is the often unpredictable process of securing public approvals, wherein a development team must navigate the sometimes contentious ground between neighborhood groups and regulatory agencies. Locally Scaled Solutions In 2018, Related Beal completed The Beverly, a 239-unit, income-restricted project in downtown Boston, capturing headlines that heralded this significant model for addressing housing affordability in the region. Landmark projects like The Beverly represent great strides toward addressing the housing affordability crisis and have helped raise the awareness of efforts to develop real solutions to the …
As we enter a new decade, it’s important for apartment owners and operators to understand the current state of the market and where it’s heading. In July 2019 we officially entered the longest recovery in our country’s history. Interest rates continue to be at historical lows, and there has been an influx of institutional appetite for Class B workforce housing, resulting in cap rate compression. That said, growth has started to slow and opportunistic investments are hard to come by. In 2020, Class B owners need to be selective and keep their houses in order by securing long-term, fixed-rate debt and continuing to focus on maximizing the renter experience. Here’s how you can capitalize in 2020. Monitor New Markets Class B workforce housing will continue to be a hot commodity for institutional investors because of its historical resilience to market recessions compared to other real estate sectors such as retail, office, and hospitality. The increased demand, coupled with low interest rates, should result in continued cap rate compression. For renters, the demand for affordable, quality living is high. Despite the fact that multifamily properties are being developed in almost every city across the United States, the majority are luxury, urban, …
James P. Flynn, CEO of New York-headquartered Hunt Real Estate Capital, believes 2020 will continue to provide a strong environment for multifamily lending and transactions. Though this may be good news for borrowers, it does mean competition in the market will also remain strong. Flynn addresses these points and elaborates on ORIX USA’s acquisition of the Hunt Companies’ commercial real estate financing subsidiary in the Q&A below. Finance Insight: What commercial property sector will experience the most activity in 2020, and why? Flynn: Multifamily should continue to be the most active commercial real estate sector in terms of financing activity. The MBA forecasts that multifamily lending will top $395 billion in 2020, a 9 percent increase over 2019 activity. That figure represents nearly 60 percent of the total commercial real estate activity forecast for 2020. With the Fed signaling no change to borrower costs for the year, the consensus seems to be a continued period of interest rates near historic lows. Multifamily owners and operators will continue to take advantage of this environment to rehabilitate, refinance and refine their portfolios. Of course, the other side of the equation is the growth in multifamily demand drivers. These drivers have remained strong, …
AURORA, ILL. — Walker & Dunlop Inc. has provided $11 million in bridge financing for The Vistas Fox Valley, a 136-bed supportive living facility in Aurora. The borrower was Cascade Capital Group, which used the funds to acquire the community. Walker & Dunlop’s bridge lending program utilizes the company’s own balance sheet to offer short-term, non-recourse loans for properties that are being acquired or repositioned. Joshua Rosen and the bridge lending team structured the financing with a nine-month term, full-term interest-only payments and flexible prepayment options. The borrower plans to replace the loan with HUD financing before the end of the year. Supportive living is an Illinois program to offer assisted living services while still allowing for government reimbursement.
LITTLE ROCK, ARK. — Dougherty Mortgage has provided a $13 million Fannie Mae loan that the borrower will use to refinance the third phase of Bowman Pointe, an apartment community located at 3321 S. Bowman Road in west Little Rock. Phase III spans 106 units and was completed last year. The borrower, Bowman Pointe LLC, is an affiliate of Richardson Properties, a local developer and manager of apartment communities, as well as office, retail, industrial and self-storage properties. The 10-year loan features a 30-year amortization schedule. Bowman Pointe is being delivered in four phases. The community’s amenities include late night concierge services, 24-hour fitness center, movie theater, conference room, virtual fitness studio, poker and wine lounge, Zen lounge, coffee bar, tanning room, resort-style pool with cabanas, pet park, outdoor fire pits, bocce ball court, professional putting green, two green areas with grills and picnic tables, garages inside the building, covered parking and an additional mailbox area.
OAK PARK, ILL. — Kiser Group has brokered two condo deconversion sales in Oak Park for a total of $12.4 million. Regency Terrace Condominiums, a 56-unit property located at 922 North Blvd., sold for $8.8 million. Andy Friedman and Matt Halper of Kiser represented the seller, The Regency Terrace Condominium Association. Marco Cesario of Kiser represented the buyer, Goldman Investments. “Regency Terrace Condominiums is a prime example of how condo deconversions can be a win-win scenario for all parties involved,” says Friedman. “The property requires substantial and costly physical improvements. This deal saved residents from large special assessments.” Clarence Court, a 26-unit property located at 628 Harrison St., sold for $3.6 million. Friedman and Halper represented the buyer, Redpoint Capital Management, and seller, Clarence Court Condominium Association. “This property fits the most common mold for deconversions. Most of the owners purchased a starter condo in the mid-2000s,” says Friedman. “When the market crashed and was slow to recover, owners had two options instead of selling at depressed pricing. They either became accidental landlords and rented the unit out or were stuck living in the unit. These owners received 25 to 30 percent more in the deconversion than if they would have sold …