Multifamily

MG Properties Acquires Two Pacific Northwest Multifamily Communities for $305.2M

by Amy Works December 20, 2019

BEAVERTON, ORE., AND LYNNWOOD, WASH. — San Diego-based MG Properties Group has purchased two multifamily properties — Pallas Townhomes & Apartments in Beaverton and Tivalli Apartments in Lynnwood — for a combined total of $305.2 million. The company acquired Pallas Townhomes & Apartments, a 566-unit community in Beaverton, in an off-market transaction for $186 million. The seller was a joint venture between Holland Partner Group and Invesco Real Estate. Built in 1997, Pallas is located at 15021 SW Millikan Way along the Millikan Way MAX Light Rail. Brian Eisendrath and Cameron Chalfant of CBRE arranged the Fannie Mae financing for the acquisition. MG Properties also purchased Tivalli Apartments, a 383-unit community located at 15631 Ash Way in Lynnwood, for $119.2 million. Built in 2014, Tivalli features a two-story clubhouse with multiple fireplaces, seating areas, a gourmet kitchen, indoor sports court and an upstairs game room and sky deck. The buyer plans to invest capital to further improve common area amenities for current and prospective residents. David Young and Corey Maxx of JLL represented the undisclosed seller in the deal. Freddie Mac provided financing, Bryan Frazier and Blake Hockenbury of Walker & Dunlop arranged. MG Properties has acquired 14 communities in …

December 20, 2019

Acquisitions Arizona Multifamily Western

Wood Partners Divests of 277-Unit Alta Drinkwater in Scottsdale for $96.1M

by Amy Works December 20, 2019

SCOTTSDALE, ARIZ. — Wood Partners has sold Alta Drinkwater, a multifamily community located in downtown Scottsdale. Starwood Real Estate Income Trust, a non-traded REIT managed by Starwood Capital Group, acquired the property for $96.1 million. Built in 2019, Alta Drinkwater features 277 apartments; a resort-style swimming pool with poolside kitchen and dining area; rooftop lounge; fitness center; designer resident clubhouse with a 13-foot television; outdoor courtyard with gas grills and games; and secured parking. Residences at the property offer nine-, 10- and 20-foot ceilings, gourmet kitchens with oversized quartz countertops, natural gas cooktops and energy-efficient, stainless steel appliances. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE’s Phoenix Multifamily Institutional Properties represented the seller in the deal.

December 20, 2019

Acquisitions California Multifamily Western

CPP Purchases Cameron Park Apartments in Southern California for $52M

by Amy Works December 20, 2019

WEST COVINA, CALIF. — Community Preservation Partners (CPP) has purchased Cameron Park Apartments, a multifamily property located at 929 W. Cameron Ave. in West Covina, for $52 million. The acquisition includes nearly $10 million in renovations, plus measures to keep all 158 units at below market rents for the next 55 years. Built in 1970 and lightly renovated in 2002, the 14-building property features a 158 units in a mix of one-, two-, three- and four-bedroom apartments. CPP plans to implement an extensive renovation to the property, including upgrades to the interiors and exteriors, improvements to the common area facilities, and a reconfiguration of the community building and office space. Renovations began in October, with completion slated for summer 2020. The rehabilitation will include a total roof and window replacement; new HVAC, electrical load and plumbing upgrades; new energy-efficient lighting; stucco repair; new paint; full unit turns; ADA upgrades; path-of-travel improvements; common-facility improvements; security upgrades; and new landscaping. Foundation for Affordable Housing, the nonprofit managing general partner for the deal, supported CPP in the acquisition. Additional equity and development partners included Citi Community Capital and WNC & Associates, CPP’s parent company.

December 20, 2019

Acquisitions Arizona Development Mixed-Use Multifamily Office Retail Western

Sunchase Holdings Sells 30-Acre Opportunity Zone Redevelopment Site in Scottsdale

by Amy Works December 20, 2019

SCOTTSDALE, ARIZ. — Sunchase Holdings has completed the disposition of Scottsdale Entrada, a 30-acre former auto mall at the northeast corner of 64th Street and McDowell Road in Scottsdale. Los Angeles-based Banyan Residential acquired the site for an undisclosed price through a qualified Opportunity Zone fund. Banyan Residential plans to redevelop the site into a speculative mixed-use development, which is slated to break ground in April 2020 and deliver mid-2021. Scottsdale Entrada will feature 735 multifamily units, 7,000 square feet of retail space, and a three-story, 245,000-square-foot office building. The office plans call for floor plates of approximately 80,000 square feet, high ceilings, full-height windows and indoor-outdoor space. Office amenities will include an on-site fitness center, game lawns, dog park, pedestrian walkways with direct access to the Arizona Crosscut Canal and tunnel access to Papago Park. Tom Adelson and Erin McClure of Newmark Knight Frank (NKF) handled the transaction. Mike Garlick and Jimmy Hoselton of Newmark Knight Frank will represent the project’s office leasing. DPC Cos. is serving as developer for the project.

December 20, 2019

Development Loans Multifamily New York Northeast Retail

CIM Provides $120M Construction Loan for Redevelopment of Manhattan Residential Tower

by Alex Patton December 20, 2019

NEW YORK CITY — CIM Group has provided a $120 million construction loan for the redevelopment of 685 Fifth Avenue, a 115,330-square-foot multifamily and retail property in Manhattan. The borrower, a partnership of developer-owners SHVO, Bilgili Group and Deutsche Finance, will redevelop and rebrand the residences as 69 Mandarin Oriental and will construct 10 additional floors for the tower. Originally built in 1928, the 20-story building was the former headquarters of Gucci, and current retail tenants include apparel and accessory retailers Coach, Stuart Weitzman and Tag Heuer. Construction is slated for completion in 2021.

December 20, 2019

Development Maine Multifamily Northeast Student Housing

Capstone, University of Southern Maine to Develop 577-Bed Residence Hall, Student Center

by Alex Patton December 20, 2019

PORTLAND, MAINE — A partnership between Capstone Development Partners and the University of Maine System will develop a 577-bed residence hall and student center on the University of Southern Maine’s (USM) campus in Portland. The proposed 209,000-square-foot community will offer apartment-style units alongside academic support space. The partnership hopes to break ground on the project in spring 2020, with Capstone providing financing for the student housing component and the university providing financing for the student center. The design-build team for the community includes architectural and engineering firm SMRT Architects and Engineers, architectural firm Elkus Manfredi Architects and general contractor PC Construction. Capstone Management Partners, the management subsidiary of Capstone Development, is the proposed maintenance and operations provider for the community upon completion.

December 20, 2019

Acquisitions Affordable Housing Midwest Minnesota Office

Upland Negotiates Sale of Minneapolis Office Building for Affordable Housing Project

by Kristin Harlow December 20, 2019

MINNEAPOLIS — Upland Real Estate Group Inc. has negotiated the sale of the Rockler Fur building in downtown Minneapolis for an undisclosed price. The buyer, Beacon Interfaith Housing Collaborative, plans to convert the property into 48 units of affordable housing. The seven-story, 38,305-square-foot building was originally built as a Printer’s Exchange building in 1915 with a Gothic Revival style. Rockler Fur has occupied the property since the 1940s. Upland will also represent Rockler in its relocation process in spring 2020.

December 20, 2019

Acquisitions Multifamily Texas

CBRE Brokers Sale of 300-Unit Iron Rock Ranch Apartment Community in Austin

by Taylor Williams December 20, 2019

AUSTIN, TEXAS — CBRE has brokered the sale of Iron Rock Ranch, a 300-unit apartment community in south Austin. Built on 22 acres in 2002, the property consists of 216 apartments and 84 townhomes. Amenities include two pools, a fitness center, playground, pet park, basketball court and a volleyball court. Charles Cirar, Michael Wardlaw and Colin Cannata of CBRE represented the seller in the transaction. John Fenoglio of CBRE arranged acquisition financing on behalf of the buyer, Houston-based Domain Communities.

December 20, 2019

Market Reports Multifamily Nevada Western Western Market Reports

The Disappearance of the Shadow Inventory Renter in Las Vegas

by Taylor Williams December 20, 2019

From 2009 through 2015, Las Vegas renters were afforded the luxury of renting many of the high-rise condominiums around the Strip and Downtown Las Vegas. This was due to the massive amount of short sales and foreclosures during that time. There were about 7,876 condo units completed between 2006 and 2009. Shortly after the crash, these developments shifted to luxury rentals. During 2011, we tracked 785 condos that were rented with an average of $1.31 per square foot, or $1,838 per month. During that same time, we tracked sales prices of these high condos at an average of $154 per square foot, or $239,411 per unit. We also tracked 904 sales during 2011 that typically involved investors putting their inventory back into the “shadow inventory.” Fast forward to 2015, and resales of this same inventory were trading at an average of $238 per square foot. Rents of this inventory were at $1.45 per square foot, or $2,000 per month. The higher-end buildings like Mandarin Oriental (now Waldorf Astoria) were at $2.70 per square foot. The trend continues to today as sales prices continue to rise. Rents continue to go up and no new for-sale inventory is being delivered. Most of …

December 20, 2019

Acquisitions Florida Multifamily Southeast

Cushman & Wakefield Brokers $78M Sale of Newly Built Multifamily Community in Clearwater, Florida

by Alex Tostado December 19, 2019

CLEARWATER, FLA. — Cushman & Wakefield has negotiated the sale of The Vue at Belleair, a 339-unit multifamily community in Clearwater, 20 miles west of Tampa. Located at 1551 Flournoy Circle W., the property sold for $78 million, according to the Tampa Bay Times. Luis Elorza, Brad Capas, Robert Given and Michael Mulkern of Cushman & Wakefield’s Multifamily Advisory Group represented the seller and developer, Columbus, Ga.-based Flournoy Development Co., in the transaction. Suffern, N.Y.-based Castle Lanterra Properties acquired the community, which consists of 11 two- and four-story residential buildings. Built in 2019, Vue at Belleair offers one-, two- and three-bedroom apartments, as well as gated access, elevators, a rooftop terrace, clubhouse, coffee bar, two dog parks, car care center, saltwater pool, fitness center, fire pits and a business center with a conference room, video game room and a billiards table. The property was 93 percent occupied at the time of sale. The Vue at Belleair is located on the east side of U.S. Route 19.

December 19, 2019

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