John Randall of Grandbridge Real Estate Capital talks about the capital available in the commercial real estate market. The risk-adjusted returns available in CML [capital market line] debt capital markets is superior to that offered by alternative investment classes, he says. “Until we see any meaningful steepener on the curve or significant disruption, there’s really no end in sight to the liquidity in both debt and equity flowing into commercial real estate.” This breeds fierce competition, but there has not been any meaningful slippage in risk terms or how lenders are underwriting assets. As far as the multifamily sector goes, Randall sees no end to the growing demand from renters. “As a country, we are underhoused to the tune of 3 million to 4 million units… and we’re running at an annual deficit in excess of 350,000 units,” he notes. Watch the interview to hear Randall’s insights on multifamily, as well as Grandbridge’s plans following the merger of BB&T with SunTrust to form Truist. (Grandbridge is a subsidiary of BB&T, now Truist.) 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 …
COLLEGE PARK, MD. — JLL has negotiated the $62.7 million sale of Monument Village at College Park, a 235-unit multifamily community in College Park. The property features one-, two- and three-bedroom floor plans averaging 894 square feet. Communal amenities include a pool with cabanas and outdoor grilling areas, fitness center with yoga and spin studios, Zen garden, clubroom with catering kitchen and billiards, movie theater and gaming room with snack bar, conference room, lounge with computer workstations and coffee bar, pet spa and a dog run. There is also 4,800 square feet of ground-level retail space. Completed in 2016, the asset is situated at 9123 Baltimore Ave., two miles north of University of Maryland and 10 miles northeast of downtown Washington, D.C. Walter Coker, Brian Crivella and Robert Jenkins of JLL represented the seller, Monument Realty, in the transaction. Foulger-Pratt purchased the community.
GRAHAM, N.C. — Southwood Realty has purchased Watercourse and Waterside, two adjacent apartment complexes in Graham, for $62 million. Watercourse was built in 2016 and was 98 percent occupied at the time of sale. Built in 2019, Waterside was 93 percent occupied at the time of closing. Each asset totals 444 units and feature one-, two- and three-bedroom floorplans averaging 956 square feet. Montgomery Carolina was the general contractor, Finley Design was the architect and 10 Federal was the property manager for both assets. Amenities include a saltwater swimming pool, playground, picnic and grilling area, fitness center, car washing station and a dog park at each property. The seller and developer of both assets is The Eco Group, a collaboration between Durham-based Montgomery Carolina and Sanford, N.C.-based Lee-Moore Capital Co.
Content PartnerFeaturesLumentMarket ReportsMultifamilyNortheastNortheast Market ReportsPennsylvaniaRED Capital Group
Philadelphia’s New Brand Identity in Commercial Real Estate
Interest in Philadelphia among commercial real estate investors has been on the rise for years. But the Eastern Pennsylvania market managed to maintain a relatively low profile in the public consciousness, overshadowed by its larger East Coast primary market rivals, each with its own clear brand identity. But this is largely a thing of the past. Philadelphia has emerged lately as a leader in cutting-edge biotech and life science innovation. The city is a magnet for gene and cell-level therapy entrepreneurs, a status that is rapidly evolving into a distinct brand. Billions in venture capital and real estate investment have followed, elevating the Athens of America to the top rank of U.S. competitors for global investment cash. The multifamily sector is a chief beneficiary of the trend. Fueled by strong demand for luxury space, builders ratcheted apartment development higher over the past 10 years, raising construction starts from about 4,000 units per year at mid-decade to 6,000 annually since 2017. Currently, there are about 8,000 multifamily units under construction, and the pace isn’t likely to slow much this year. The magnitude of the supply surge is anticipated with a degree of trepidation in some quarters. Philadelphia renters have never absorbed …
ARLINGTON, TEXAS — Locally based investment firm 180 Multifamily Properties has purchased Rio on the Parkway, a 305-unit community in Arlington. According to Apartments.com, the property was built on 9.5 acres in 1972 and features studio, one- and two-bedroom units. Amenities include a pool, playground and onsite laundry facilities. The buyer, which acquired the asset from an entity doing business as Rio on the Parkway 2017 LLC, will renovate and rebrand the property as The Mirage.
PHOENIX — A public-private partnership between Arizona State University and Capstone Development Partners has broken ground on a $118 million mixed-use development located within the university’s downtown Phoenix campus. The project — titled the Downtown Phoenix Residence Hall and Entrepreneurial Center — will feature 75,000 square feet of academic space in the form of design studios, flexible classroom space, fashion studios, fabrication labs, music practice rooms, recording studios and live event space. The 207,000-square-foot residential component of the community will house up to 530 students in two- and four-bedroom, apartment-style units. The design-build team for the project includes architect Studio Ma and general contractor DPR Construction. Development is scheduled for completion in fall 2021.
LOS ANGELES — Ready Capital has closed a $15.5 million, non-recourse, floating-rate loan for a retail and multifamily property located in the Hollywood/Silver Lake submarket of Los Angeles. Proceeds of the loan will provide financing for the acquisition, renovation and stabilization of the approximately 17,000-square-foot, Class B asset. Upon purchase, the undisclosed sponsor plans to renovate the existing multifamily units with high-end interior finishes, renovate the retail space, and lease-up existing retail space at market rents. The financing features a 36-month term, two extension options, flexible pre-payment and a facility to provide future funding for capital expenditures, tenant leasing costs, interest and operating shortfalls.
GREELEY, COLO. — Live Oak Bank has provided an $8.1 million loan for Greeley Village, a 71-unit assisted living and memory care community in Greeley, approximately 50 miles north of Denver. The borrower is KSL Seniors, a developer/owner with communities in Colorado, Utah, Idaho and Oregon. The 51,000-square-foot community opened during in fourth-quarter 2019. Cadence Senior Living operates the property. The three- to five-year, floating-rate loan refinanced a construction line of credit, providing bridge-to-permanent financing. It also allowed the borrower to recapture a line of credit capacity to pursue future projects.
JERSEY CITY, N.J. — Wallabout Realty Holdings is developing Parkview Apartments, a 170-unit multifamily project in Jersey City. The project will consist of two adjacent, seven-story buildings located at 87-99 Van Horne St. and 72-78 Woodward St. near Berry Lane Park. The buildings will feature a total of 65 one-bedroom, 95 two-bedroom and 10 three-bedroom units. Dresdner Robin and Montefiore Architectural Studio are serving as project and landscape architects, respectively. Construction is slated to complete by the end of 2021.
DOVER, PA. — Lancaster Pollard has provided $11 million in Fannie Mae financing for Providence Place Senior Living of Dover, located approximately 25 miles south of Harrisburg. The community offers independent living, assisted living and memory care services to the Central Pennsylvania borough of Dover. The number of units was not disclosed. The borrower and owner is Providence Place Senior Living, headquartered in nearby Hershey. Miles Kingston, Doug Harper and Casey Moore of Lancaster Pollard arranged the long-term, fixed-rate financing.