Multifamily

OPELIKA, ALA. — Colliers International has negotiated the $33 million sale of Paces at the Estates, a 270-unit apartment community in Opelika. The property offers one- and two-bedroom floor plans. Paces at the Estates is located at 4150 Academy Drive, about four miles from downtown Auburn. Communal amenities include a swimming pool, fire pit, courtyard, playground, 24-hour fitness center and bike storage racks. RREAF Holdings LLC, a Dallas-based real estate investment firm, purchased the property from Burt & Willis LLC. Brian Savage of Colliers represented the buyer in the transaction and Stephen Perlis, also of Colliers, represented the seller.

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BIRMINGHAM, ALA. — Berkadia has arranged the $12.5 million sale of the Core 174 Portfolio, which includes four apartment complexes in Birmingham totaling 174 units. The portfolio includes Element 26, Fox Hall, Forest Park and 5th Avenue, all of which are located within three miles of downtown Birmingham. Core 174 was constructed between 1963 and 1978 and renovated between 2013 and 2015. David Etchison, Abe Maddox and Caleb Frizzell of Berkadia represented the seller, Birmingham resident Elton Stephens Jr., in the transaction. Birmingham-based Hughes Capital Partners acquired the portfolio at a 4.7 percent cap rate.

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LOS ANGELES — Multifamily turnover, the percentage of total rented units not renewed each year, fell to 47.5 percent in 2018, its lowest level in at least two decades, according to CBRE. Five of the six major multifamily REITs recorded lower turnover in the first quarter of 2019 than the prior year. For AvalonBay, Camden, Equity Residential, MAA and UDR, the average annualized first-quarter rate fell by 200 basis points to 42 percent. Essex was the exception with a 100-basis-point rise to 41 percent. The REITs’ historical data also confirm that turnover has been falling for many years, argues CBRE. For example, Equity Residential’s first-quarter annualized rate of 39.2 percent was its lowest level since at least 2005. Benefits of lower turnover rates generally outweigh disadvantages. Turnover hurts a property due to loss of rent while the unit is vacant, possible rent concessions needed to release the unit and expenses to make it ready for a new renter. Turnover costs are at least $1,000 per unit and can easily rise to more than $3,000, according to the National Apartment Association. Yet, owners often achieve more rent growth when units turn. Higher turnover can be advantageous during periods where the market …

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OMAHA, NEB. — Grandbridge Real Estate Capital has provided an $88.3 million Freddie Mac loan for the refinancing of The Atlas Apartments in Omaha. The apartment complex was originally built as a hospital in 1977. NuStyle Development renovated the property into a 732-unit apartment property starting in 2018. Amenities include an indoor pool, fitness center, sand volleyball courts, conference rooms, clubhouses, bike storage rooms, grilling patios, a rooftop deck, rooftop pool and pedestrian bridge to Creighton University. Brett Olson and Jeff Witt of Grandbridge originated the 11-year loan, which features a fixed rate and a 30-year amortization schedule.

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COLUMBUS, OHIO — The Pizzuti Cos. is underway on the development of The Residences at The Sutton, a six-story multifamily project featuring 100 units and 123 parking spaces. The property is situated within the Short North neighborhood of Columbus, which is known for its art galleries, specialty shops, restaurants, pubs and coffee houses. Community amenities include a 2,000-square-foot rooftop deck, fitness center and package delivery room. Completion is slated for summer 2020. The Residences is the second phase of a multi-phase project, which includes a new mixed-use building located at 875 N. High St. The Offices at The Sutton is a four-story office and retail development that includes 45,000 square feet of office space and 12,000 square feet of ground-level retail space.

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LOS ANGELES — San Diego-based MG Properties Group has purchased two multifamily properties in Los Angeles for a total of $139.7 million. An undisclosed seller sold both properties. Totaling 397 units, the assets are The Enclave at Warner Center, which sold for $69.5 million, and Meridian Place Apartment Homes, which sold for $70.2 million. Located in Los Angeles’ Warner Center/Woodland Hills neighborhood, The Enclave at Warner Center features 195 units. Meridian Place Apartments, situated in Los Angeles’ Northridge district, features 202 units. MG Properties plans to enhance the interiors of the units and upgrade common area amenities at both properties. Greg Harris, Kevin Green and Joseph Grabiec of Institutional Property Advisors (IPA), a division of Marcus & Millichap represented the seller in the Enclave at Warner Center deal, while Sean Deasy and Blake Rogers of JLL represented the seller in the Meridian Place transaction. Brian Eisendrath, Brandon Smith and Cameron Chalfant of CBRE arranged acquisition financing for the deals.

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LITTLETON, COLO. — San Diego-based Pathfinder Partners has acquired The Station, a 97-unit multifamily community located at 2100 W. Berry Ave. in Littleton. An undisclosed seller sold the value-add asset for $20.7 million. Constructed in 1983, The Station features 17 studios, 44 one-bedroom and 36 two-bedroom apartments with well-equipped kitchens including over-the-range microwaves, dishwashers and garbage disposals. Additionally, the units feature walk-in closets, private balconies or patios, air conditioning, washer/dryer hook-ups in 80 units and fireplaces in nine units. On-site amenities include parking, laundry facilities and a leasing office.

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For the year ending in March, multifamily vacancy in the Cleveland metro area tightened to the lowest level since 2016, keeping annual rent growth climbing. Measured supply gains amid increased renter demand over the past four quarters have resulted in steady vacancy and rent improvement. These trends should continue over the next several quarters, holding vacancy below the 5 percent threshold. Favorable apartment operations are capturing investor attention. Demand for apartments is coming from an increase in employment that is allowing more people to move into rentals. Employers added roughly 14,200 positions year over year in May, nearly double the previous year’s growth. Another encouraging sign for Cleveland is that most employment sectors added jobs during this period. The heightened hiring has kept the unemployment rate below 5 percent for the past five months and the rate is down 80 basis points since May 2018. Education and health services is the most dominant employment sector, and the construction segment led employment gains during the past 12 months, staffing more than 5,300 new positions, followed by professional and business services with nearly 4,200 people. New apartment projects contribute to some of the construction jobs. Over the past four quarters, builders added …

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PEMPROKE PINES, FLA. AND NASHVILLE, TENN. — NexPoint Residential Trust Inc. has agreed to buy the 1,520-unit Pembroke Cove Apartments in South Florida for $322 million and the 346-unit Arbors of Brentwood in Nashville for $62.3 million. Pembroke Cove Apartments is situated at 13401 NW 5th St., 24 miles north of downtown Miami. The property offers one- through three-bedroom floor plans. Communal amenities include a swimming pool, hot tub, clubhouse, fitness center, tennis courts, racquetball courts, basketball courts, playground and a billiards room. The community was 96 percent occupied at the time of the agreement. The seller was not disclosed. Arbors of Brentwood is located at 100 Brentwood Place, 10 miles south of downtown Nashville. The complex offers one- through three-bedroom floor plans. Community amenities include a fitness center, three swimming pools, outdoor kitchen, business center, pet park, playground, tennis court and outdoor picnic and grilling area. The seller was not disclosed. NexPoint expects both sales to close by Aug. 30.

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ORLANDO, FLA. — Walker & Dunlop has provided a $27.9 million Freddie Mac acquisition loan for Brooke Common Apartments, a 288-unit affordable housing community in Orlando. The borrower is Avanath Capital Management. Half of the units, which are spread out over 38 garden-style buildings, are reserved for those making 60 percent of the area median income (AMI), while 5 percent of the units are reserved for those making 55 percent of the AMI. Brooke Commons Apartments is located 13 miles north of downtown Orlando and offers communal amenities such as a swimming pool, playground, fitness center, volleyball court, business center and a clubhouse. The seller was not disclosed.

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