LA VERNE, CALIF. — KeyBank Real Estate Capital has secured $39 million in Fannie Mae Green financing for San Diego-based MG Properties Group. The borrower will use the loan to refinance Monte Vista Apartment Homes in La Verne. Built in 1972 and renovated in 2018, the 207-unit community comprises 18 two-story apartment buildings on 14 acres. Since 2016, MG Properties has spent more than $6 million on exterior renovations and interiors renovations for 151 units. MG plans to finish renovations, which will cost approximately $1 million, to the remaining 56 units. Peter Kurzeka of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged the financing.
DALLAS — Multifamily projects are becoming more costly and time-consuming to complete, and the need to cultivate a unique amenity package that differentiates a property from the competition is contributing to inflated budgets and lengthier timelines. As noted by a panel of multifamily architects and construction managers at the InterFace Multifamily Texas on Sept. 5, the definition of what constitutes an ideal amenity package is in a constant state of flux. The event, held at the Westin Galleria hotel in Dallas, drew more than 225 attendees. The complications of designing and building multifamily communities are challenging and costly enough. That the amenities are subject to ever-changing consumer tastes adds another layer of complexity to maintaining project costs and schedules. Yet curating the right mix is a critical part of product differentiation in saturated markets. Many amenities found in new properties reflect broader changes in consumer behavior, which is fickle by definition. Features such as Amazon package lockers, rideshare lounges, electric car charging stations and coworking office space exemplify how changes in the ways people shop, travel and work are trickling down to the design and construction of apartment communities. “In our world, projects are increasingly complex,” said moderator Spencer Stuart, …
San Diego continues to exhibit very strong fundamentals with a healthy and diversified economy, as well as a continued shortage of housing supply. The unemployment rate of 3.3 percent is below both the California and national unemployment rate. Tourism, biotech, healthcare, education, military/defense, drone manufacturing, business services, software and other high-tech industries have made San Diego a magnet for venture capital and other business investment, creating the jobs of the future. Amazon, Apple and several other high-profile technology companies have also announced expansions in San Diego. The region attracted $744 million in venture capital this past year alone. Local housing policies, which have been unfriendly to new development, have made it very expensive to build, thereby perpetuating the shortage of housing. This dynamic has continued to bode well for multifamily investment in the region. CBRE’s Apartment Market Report for the end of the second quarter illustrates the following year-on-year changes from 2018: • The vacancy rate moved 9 basis points to 3.6 percent • Rental rates increased by 2.9 percent • New construction deliveries dropped by 14 percent • Sales volume included 95 transactions with a total dollar volume of $476 million (compared to 32 sales transactions last year that …
TAMPA, FLA. — A joint venture between Forge Capital Partners and Intown/Framework Group has sold 500 Harbour Island, a 235-unit, 21-story multifamily tower in downtown Tampa. The high-rise property offers one- and two-bedroom floor plans averaging 1,087 square feet. Communal amenities include a two-story lobby with a concierge, outdoor deck with dining and grilling areas, dog run, heated swimming pool, cabana area, conference room and a fitness center. Northwestern Mutual acquired 500 Harbour Island and brought in ZRS Management to oversee the building. Matt Mitchell, Zach Nolan and Brett Moss of JLL represented the seller in the transaction.
LAKE MARY, FLA. — Sonata Senior Living has announced plans to develop Sonata Lake Mary, a 193-unit seniors housing community in Lake Mary, approximately 15 miles north of Orlando. The four-story, 250,000-square-foot community will be located on a seven-acre site within Parkway Properties Inc.’s Lake Wellness & Technology Park mixed-use development. Sonata Lake Mary will feature 88 independent living, 92 assisted living and 13 memory care apartments. Sonata Senior Living expects to break ground in early 2020 for a planned 2021 opening. It will be the 12th community for the Orlando-based seniors housing developer and operator. Development costs were estimated at $52 million. The location of Sonata Lake Mary within the 153-acre, $750 million Lake Wellness & Technology Park will place the community in close proximity to a hospital, urgent care facility and medical pavilion. Orlando Health plans to start construction of a $470 million, 240-bed hospital in 2020, with plans for another 84,000 square feet of medical office space within walking distance to Sonata Lake Mary.
RICHMOND, TEXAS — CIT Group has provided a $34 million loan for an assisted living community in Richmond, approximately 25 miles southwest of Houston. The loan will refinance construction debt on the Delaney at Parkway Lakes, a 207-unit community. The borrower is a joint venture between Blue Moon Capital Partners and Life Care Services (LCS).
COLORADO SPRINGS, COLO. — Newmark Knight Frank – Colorado has arranged the sale of Park Ridge, a multifamily property located in Colorado Springs. Park Ridge Apartment CS LLC sold the asset to Park Ridge SRP LLC for $23 million. Located at 2602 W. Serendipity Circle, the property features 204 apartments. Kevin McKenna and Saul Levy of Newmark Knight Frank – Colorado Multifamily handled the transaction.
PORTLAND, ORE. — Fore Property has completed the disposition of Rivage, a multifamily property located at 2220 NW Front Ave. in Portland. Magnolia Capital acquired the asset for an undisclosed sum. Rivage features 260 units in a mix of studio, one- and two-bedroom layouts, with a rooftop deck overlooking the Willamette River. At the time of sale, the podium-style property was stabilized. Fore Property, with funds from Carlyle Realty Partners VII and financing from PNC Bank, developed the property in 2017.
COEUR D’ALENE, IDAHO — San Francisco-based Newmark Realty Capital (NRC) has arranged $22 million in development and construction financing for One Lakeside Center, a 15-story residential tower on the north shore of Lake Coeur d’Alene in Northern Idaho. Demetri Koston of NRC’s Spokane, Wash., office arranged the financing for the undisclosed borrower through a New York-based national bank lender. Situated one block from the water’s edge in Coeur d’Alene, One Lakeside Center will feature 69 residential units, a parking garage and a ground-floor commercial suite. Additional details of the project were not released.
HIGHLANDS RANCH, COLO. — Erickson Living has unveiled plans for a two-building residential expansion at Wind Crest, a continuing care retirement community (CCRC) in Highlands Ranch, about 15 miles south of Denver. The property already opened an expansion in 2019, an independent living building named Prospect Crossing. The two new buildings, named Summit Square and Quincy Point, will add more than 200 independent living units. They are both scheduled to open in 2020. The expansion will also include 18,000 square feet of amenity space, including outdoor space, multiple new restaurants, a second fitness center and other shared spaces.