Rising costs of homeownership and the lack of SALT deductions on federal income tax returns will help maintain the strong demand for apartments in Northern New Jersey. We are seeing an increase in construction activity as municipalities settle their affordable housing lawsuits with developers and long-awaited projects, especially those located along major public transportation hubs, are completed. In Jersey City and Hoboken, these new projects are placing upward pressure on Class A vacancy as they take time to lease. We see an increase in more concessions being offered, which will dampen the appreciation of monthly rates. This could impact the upgraded Class B buildings, which find themselves battling for renters with recent finished projects and more affordable options that can be found inland. In areas west of the Gold Coast, we see continued higher occupancy rates with many landlords reporting well under 30 day turnover rates, unless major renovations are needed. Outside of Hudson County, the overall vacancy factor trends between 2 and 3 percent allowing for increased revenue, according to research from Marcus & Millichap. Landlords in strict rent control markets are faced with the decision of either renovating to increase rents via capital improvement programs or take advantage …
AUSTIN, TEXAS — Mason Joseph Co. Inc., a San Antonio-based multifamily lender, has closed $34.1 million in construction and permanent financing for Nexus at Goodnight Ranch, a 294-unit apartment project in Austin. Mason Joseph secured the nonrecourse loan through HUD’s 221(d)(4) program, the multifamily industry’s highest-leverage, lowest-cost FHA financing option. The loan, which was arranged on behalf of the developer, privately held multifamily firm Artisan American Corp., also carries an interest rate that is fixed for the initial 21-month construction period and the subsequent 40-year term. Hudson Construction Co. is serving as general contractor for the garden-style project, which will feature Class A furnishings and amenities.
SAN MARCOS, TEXAS — JLL has brokered the sale of 1271 San Marcos, a 240-unit apartment community located approximately 32 miles south of downtown Austin. The recently built, 11-acre property consists of eight three-story apartment buildings, a resort-style pool, two outdoor grilling stations, a fitness center, outdoor entertainment pavilion and a dog park. Greg Austin and Scott LaMontagne of JLL represented the sellers, Covenant Development and Parkcrest Builders LLC, in the transaction. The buyer was Oregon-based Hayden Properties LLC.
TEXARKANA, TEXAS — CBRE has arranged the sale of Waterton Plaza at Cowhorn Creek, a 76-bed skilled nursing facility in Texarkana, located along the Texas-Arkansas border. Daniel Morris of CBRE represented the seller, The Waterton at Cowhorn Creek LLC, in the transaction. The buyer was a partnership between Trinity Healthcare and Live Oak Healthcare, both of which are based in the DFW metroplex.
MIAMI — ZOM Living and The Moinian Group have partnered to purchase the land necessary to develop Luma, a 43-story, 434-unit apartment community within downtown Miami’s Miami Worldcenter project. The joint venture plans to break ground in the coming weeks. Luma will offer floor plans ranging from 566 to 1,808 square feet and amenities such as a wellness center, speakeasy, sundry shop, dog salon, fitness center and a swimming pool. Miami Worldcenter is a $4 billion mixed-use project that will sit on 27 acres, span 10 city blocks and offer more than 2,000 hotel rooms, 500,000 square feet of office space and 300,000 square feet of retail and entertainment space at full buildout. Robert Given and Robert Kaplan of Cushman & Wakefield arranged equity and debt financing on behalf of the joint venture to acquire the land.
WEST VALLEY CITY, UTAH, AND LAS VEGAS — Next Wave Investors has purchased two multifamily communities in Nevada and Utah totaling 188 units for an undisclosed price. Additional details of the acquisitions were not released. Next Wave acquired Harlow Apartments, a 98-unit property located at 10602 W. Alexander Road in Las Vegas, with units averaging 1,061 square feet. The resort-style, Class A property was built to condominium specifications and was more than 95 percent occupied at time of sale. Unit amenities include walk-in closets, USB ports, vinyl-plank flooring, nine-foot ceilings and smart-technology package that includes Alexa devices, Nest thermostats, lighting and locks, as well as the smart apartment Dwelo app. The company also purchased Aspen Village Apartments, a 90-unit property located at 3043 W. 3500 S in West Valley City, near the 215 Beltway and Bangerter Highway. As of January, the property was 96.7 percent leased with units averaging 950 square feet. Situated near Fairbourne Station, a new mixed-use development, Aspen Village is in its original condition, which allows Next Wave to add value to the property with unit and amenity upgrades.
SAN JOSE, CALIF. — Levin Johnston of Marcus & Millichap has arranged the sale of Delano Apartments, a multifamily property located at 272-280 La Pala Drive in San Jose. A private, high-net-worth investor sold the property for an undisclosed price. Built in 1960, Delano Apartments features 35 units in a mix of one- and two-bedroom layouts. Community amenities include a swimming pool, on-site leasing office, coin-operated laundry facility and secured gated perimeter with security cameras. The newly renovated units feature granite countertops, engineered hardwood flooring, stainless steel appliances and modern light fixtures. Adam Levin and Robert Johnston of Levin Johnston represented the seller in the deal.
CINCINNATI AND DAYTON, OHIO — KeyBank Community Development Lending & Investment has provided a total of $29.9 million in construction financing for three affordable housing properties in Ohio. KeyBank provided a $9.9 million loan for the construction of Omega Senior Lofts, an 81-unit seniors independent living facility in Dayton. MVAH Partners is the developer. KeyBank also provided a $10.9 million construction loan for Commons at South Cumminsville, an 80-unit property in Cincinnati. Upon completion, 60 of the units will be reserved for individuals who meet the HUD definition of chronically homeless with the remaining 20 units targeting low-income residents with sensory or mobility impairments. All units at the property will benefit from 20-year Section 8 vouchers, enabling tenants to pay no more than 30 percent of their incomes toward rent. Lastly, KeyBank provided a $7.9 million construction loan and a $1.2 million Federal Home Loan Bank community investment program loan to Episcopal Retirement Services for the rehabilitation of Madison Villa, a 93-unit, age-restricted Section 8 property in Cincinnati. The Model Group is the project partner.
WOODBURY, N.J. — Starkman Realty Group has negotiated the $6 million sale of Woodbury Manor Apartments, an 80-unit apartment community in Woodbury. Located at 546 Lafayette Ave., the property consists of all two-bedroom townhouse-style units. Jason Starkman of Starkman Realty represented the buyer, Olive Tree Management, in the transaction. The seller was a New York City-based investment group that had owned the property for 35 years.
BOSTON — Cornerstone Realty Capital has arranged a $3 million loan for the refinancing of a multifamily portfolio in Boston. The nine-unit portfolio includes a six one-bedroom, one two-bedroom, one three-bedroom and one five-bedroom unit. All units feature open floor plans, hardwood floors, stainless steel appliances and onsite laundry. Andrew Saccone of Cornerstone secured the financing on behalf of the undisclosed borrower. The lender was not disclosed. Terms of the financing included a fixed interest rate with a 30-year amortization schedule.