BETHLEHEM, PA. — Berkadia has negotiated the sale of Birchwood Commons, a newly constructed, 96-unit multifamily community in Bethlehem, a city about 50 miles north of Philadelphia. The property was completed in 2018 and features one- and two-bedroom floor plans averaging 933 square feet. Matt Stefanski, Zac Pierce, Alan Krawitz and Christopher Farmer of Berkadia represented the seller, local developer Ashley Development Corp., in the transaction, and procured the buyer, Philadelphia-based Halfpenny Management Co. Stephen Comly of Berkadia secured acquisition financing through Investors Bank.
EAST ORANGE, N.J. — Greystone has provided a $6.5 million Freddie Mac loan to refinance 49 South Clinton Street, a 53-unit multifamily property located in East Orange, a city about 10 miles west of New York City. The non-recourse loan carries an adjustable-rate mortgage with a fixed rate for five years and 30-year amortization period. Jason Yuen of Greystone originated the loan. Morristown-based Red Oak Capital Advisors arranged the financing for the borrower.
CHESTERFIELD, MO. — NorthMarq has arranged debt and joint venture equity financing for the construction of Wildhorse, a 188-unit multifamily property in Chesterfield. Located at Wildhorse Creek Road and I-64, the $80 million development will also include 12,500 square feet of retail space and 10,500 square feet of restaurant space. Construction is set to begin this month with completion slated for early 2021. Brinkmann Constructors is the contractor. NorthMarq arranged the $38 million debt financing with a three-year term on behalf of the developers, Pearl Cos. and Great Lakes Capital. Canadian Imperial Bank of Commerce (CIBC) provided the financing. ReCap Real Estate Investment, on behalf of Reinsurance Group of America Inc., served as the joint venture partner for the remaining $16.5 million.
Notions of Seattle as a grunge-rock town with logging roots are in the rear-view mirror. While Seattle’s past is marked by the 1850s Klondike Gold Rush, 1970s Boeing Bust and 1990s Microsoft Millionaires run, today’s economy is dotted with news of exceptional growth from Apple, Amazon, Facebook, Google and Salesforce. To say that Seattle’s economy is both booming and diversified is an understatement. A benefactor of such continued growth is the regional rental market. Jobs, Jobs, Jobs Ecommerce juggernaut Amazon has assembled 12 million square feet of Class A office space in Downtown Seattle over the past several years. Now, Bellevue — not more than 10 miles from Downtown Seattle — is receiving attention from Amazon with commitments for 2 million square feet. Adding to that, Apple is committing to more than 625,000 square feet of office space; Facebook’s footprint is around 2.7 million square feet; and Salesforce has chosen Seattle as its second global headquarters. Given high wages and more economical for-rent and for-sale office and housing space (on a relative basis), it’s no surprise Seattle still has runway for sustainable economic growth. Development Pipeline Apartment developers seized upon Seattle’s modern day Gold Rush. Developers added 55,000 apartment units …
IRVINE, CALIF. — Steadfast Apartment REIT (STAR), Steadfast Income REIT (SIR) and Steadfast Apartment REIT III (STAR III) have entered into definitive merger agreements in which STAR will acquire SIR and STAR III in separate stock-for-stock, tax-free transactions. The merger will create a combined company with approximately $3.3 billion in gross real estate assets. The transactions are expected to close in the first quarter of 2020, subject to certain closing conditions, including the approval of the respective mergers by SIR and STAR III stockholders. The merger transactions are expected to close concurrently, but are not conditioned on the consummation of each other. The merger agreements were negotiated on behalf of STAR, SIR and STAR III by their respective special committees, each of which is composed exclusively of independent directors, along with each special committee’s independent financial and legal advisors. “We believe the strategic merger of these three highly complementary portfolios with similar investment strategies will create an enhanced and diversified portfolio, concentrated in high-growth markets,” said Rodney Emery, chairman of STAR, SIR and STAR III. “The enhanced size, scale and prominence of the combined portfolio will greatly improve the company’s access to attractive capital sources, which can be used to …
DALLAS — Westmount Realty Capital has purchased The View at Kessler, a 299-unit multifamily property located in the Kessler Park neighborhood of Dallas. Built in 1964, the 11-story building is situated adjacent to Stevens Park Golf Course and within a few miles of the Trinity River Corridor project, which will deliver the largest urban park in the country. The View at Kessler features one-, two- and three-bedroom units with up to 1,214 square feet per unit. Westmount will undertake a renovation program that will upgrade the lobby, café, pool area, fitness center, leasing center and elevator systems, as well as transform the 11th floor into a sky lounge with a kitchen, conference room and terrace. Avenue5 Residential will manage the property. The seller was not disclosed.
TEXAS CITY, TEXAS — Smart Living at Texas City LP (SLTC), a limited partnership controlled by developers Ronny Hecht and Avi Ron, has purchased 9.4 acres in Texas City for the development of a 234-unit apartment community. Designed by Ted Trout Architects, the Class A property will feature one-, two- and three-bedroom units with granite or quartz countertops and individual washers and dryers. Amenities will include a pool, fitness center, clubhouse with a kitchen and a dog park. Construction is scheduled to begin in October and be complete in the fourth quarter of 2020. Chris Bergmann Jr. of JLL represented the seller, First Baptist Church of Texas City, in the land acquisition.
BOERNE AND ROUND ROCK, TEXAS — CBRE has arranged loan for the refinancing of Franklin Park Boerne and Franklin Park Round Rock, two 76-unit assisted living and memory care communities in metro Austin. The borrower was a joint venture between Harrison Street Real Estate Capital and Franklin Development Properties. The borrower developed both properties in 2017. The communities feature a variety of amenities including a full-service hair and nail salon, theater, game room and a health and wellness center. Aron Will, Austin Sacco and Adam Mincberg of CBRE arranged the loan, which carried a three-year term, floating interest rate and 24 months of interest-only payments, through a national bank. Franklin Apartment Management, Franklin Development’s management affiliate, will continue to operate the communities.
PEMBROKE PINES, FLA. — Terra has received a $91 million refinancing loan for its recently delivered Pines Garden at City Center. An affiliate of Mack Real Estate Group secured the loan on behalf of the developer. The lender and terms of the loan were not disclosed. Pines Garden is a 387-unit multifamily community situated within Pines City Center, a master-planned 47-acre development that includes 300,000 square feet of retail, entertainment and restaurant space. Pines Garden offers one-, two- and three-bedroom floor plans. Communal amenities include a two-story clubhouse, fitness center, children’s playroom, game room, swimming pool, coworking lounge and coffee bar, outdoor cooking area, gazebo, life-size chess board, dog park and play spaces.
RICHARDSON, TEXAS — Chicago Pacific Founders and its subsidiaries, CPF Living Communities and Grace Management, have purchased Twin Rivers Assisted Living and Memory Care, an 83-unit seniors housing community in Richardson. The property is situated on five acres on the northeastern outskirts of Dallas. Grace Management will manage the property.