CHICAGO — Berkadia has arranged a $7.5 million Freddie Mac small balance loan for the acquisition of Paulina Street Lofts, a 24-unit multifamily property in Chicago. Chuck Christensen, Vincent Punzi and Lowell Takahashi of Berkadia secured the financing on behalf of the buyer, Saxony Properties LLC. The 10-year loan features a 3.64 percent interest rate and a 70 percent loan-to-value. Paulina Street Lofts was originally constructed as a masonic temple in 1928 and converted to apartments in 2019.
When beginning the loan process, borrowers and lenders start with a solid foundation. But what happens if a new or renovated project doesn’t lease up as quickly as expected? What happens if construction delays push past the end of the construction loan? What happens if construction cost overruns jeopardize completion of a project? And what if the economic upcycle turns downward before your project is completed? Mark Fogel, President and CEO of ACRES Capital, talks about the role of alternative lenders and how communication between borrowers and lenders can overcome these challenges. Watch the video for Fogel’s recommendations on creating a solid partnership with your lender. This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week newsletter series, followed by video interviews from MBA CREF.
MIAMI BEACH, FLA. — Starwood Real Estate Income Trust Inc. has acquired an 18-property, 3,336-unit affordable housing portfolio located predominately in Florida and North Carolina. The portfolio was 96 percent occupied at the time of acquisition. The garden-style portfolio offers amenities such as pools, clubhouses, playgrounds, fitness centers and laundry facilities. More than 50 percent of the portfolio is located in Orlando, Jacksonville, Raleigh and Charlotte. Individual properties were not disclosed. The seller(s) was also not disclosed. Starwood REIT is a non-traded REIT managed by Miami Beach-based Starwood Capital Group.
WEST PALM BEACH, FLA. — Time Equities Inc. has unveiled plans for CasaMara, a 300-unit multifamily community in West Palm Beach that will also feature 16,000 square feet of retail space. The property will comprise a 16,000-square-foot clubhouse and seven low-rise buildings offering studio to three-bedroom floor plans. Communal amenities will include a pool with cabanas, pool pavilion building, children’s pool, grilling stations, 60-foot water wall, Jacuzzi, coworking lounge, fitness center, bark park, game room with billiards and Wii stations, club room with art lounge and fire place, dining facilities for private parties, children’s playroom and an outdoor playground. The property is situated on 10 acres at 3111 S. Dixie Highway, two miles south of downtown West Palm Beach. MSA Architects is designing the exterior of CasaMara, while ID and Design International will design the interiors. KAST Construction is the general contractor, and Zabik & Associates is the construction manager. M&T Bank is providing construction financing. Avison Young is handling leasing efforts for the retail portion, and Lincoln Property Co. is handling leasing efforts for the multifamily portion. Time Equities expects to deliver the community in spring 2021.
HOLLY SPRINGS, N.C. — A joint venture between Dominion Realty Partners, Amzak Capital Management and Kite Realty Group has broken ground on Holly Springs Apartments, a planned 239-unit complex in Holly Springs. The property will offer communal amenities such as a pool, multiple outdoor fireplaces, dog park and a 24-hour fitness center with a yoga and cycle room. Unit interiors will include nine-foot ceilings, decorative pendant lighting, quartz countertops, stainless steel appliances, subway tile backsplash and vinyl plank hardwood floors. United Bank is providing financing for the project, which is expected to cost $44.8 million to develop. Rule Joy Trammell + Rubio is the architect, Armada Hoffler Construction is the general contractor and Piedmont Land Design is the project’s civil engineer. The developers expect to deliver the first units and clubhouse by the end of 2021.
FRISCO, TEXAS — KWA Construction has topped out Kilby, a 258-unit apartment community located within the $600 million Frisco Square mixed-use development north of Dallas. Designed by BGO Architects and developed by Toll Brothers Apartments, the property will offer a clubroom, conference lounge, gaming lounge, two-story fitness center with a yoga deck, pet spa and an outdoor patio with grills surrounding a resort-style pool. Completion is scheduled for late 2020.
CINCINNATI — KTGY Architecture + Planning has unveiled the design for Artistry Cincinnati, a 344-unit apartment project located along the Ohio River in downtown Cincinnati. The seven-story building, located at 601 E. Pete Rose Way, is currently under construction and is scheduled for completion in late 2021. Milhaus is the developer. Features of the property include a second-floor amenity space offering direct access to an exterior courtyard, a 2,500-square-foot outdoor gallery that will house large-scale art installations, and access to the river and adjacent park. Amenities will include a rooftop pool, fitness center, yoga studio, pet spa, community garden, coworking spaces and bike storage. Plans also call for 390 parking spaces and 8,000 square feet of commercial space. Floor plans will range from studios to three-bedroom units. The project is situated at 601 E. Pete Rose Way.
ANN ARBOR, MICH. — Trinitas Ventures is set to break ground on The One, a 682-bed student housing community located near the University of Michigan campus in Ann Arbor. The development will offer one-, two-, three-, four- and five-bedroom, cottage-style units. Shared amenities will include a fitness center, business center, game room, resort-style swimming pool, fire pit, private study lounges, basketball and volleyball courts and a shuttle service to campus. A Trinitas-managed investment entity has provided equity financing for the project, and PNC Bank is providing construction financing. A timeline for the development, located at 2601 Pontiac Trail, has yet to be announced.
CONROE, TEXAS — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has negotiated the sale of West Creek Apartment Homes, a 228-unit community located about 25 miles north of Houston in Conroe. The property features one-, two- and three-bedroom units and amenities such as a pool, business center and a resident clubhouse. Will Balthrope, Drew Kile, Jennifer Campbell and Will Griffin of IPA represented the seller, Partin Real Estate Management, in the transaction. The team also procured the buyer, Southstar Capital Group.
HOUSTON — Parkview Financial has provided a $38 million loan for the construction of a 168-unit apartment community located at 1107 Shepherd Drive in Houston. The property will also feature 20,475 square feet of ground-floor retail space and a 305-space parking structure. Amenities will include a pool, fitness center, outdoor kitchen, business center and a dog park. Construction has commenced and is expected to be complete in mid-2021. Greystone arranged the loan on behalf of the borrower, Hunington Properties.