NEW YORK CITY — JLL Capital Markets has secured a $26 million loan for the refinancing of a three-property multifamily portfolio in the Bushwick neighborhood of Brooklyn. The properties are located at 184 Noll St., 286 Stanhope St. and 324 Melrose St. Aaron Appel, Keith Kurland, Jonathan Schwartz, Michael Diaz, Adam Schwartz and Matt Fagella of JLL secured the interest-only loan for borrower Cayuga Capital Management through lender Citigroup Global Markets. The 62,000-square-foot portfolio consists of 63 residential units and six commercial units with a combined 5,650 square feet of office space.
NEW YORK CITY — The Dermot Company has acquired the Kestrel, an eight-story, 126-unit multifamily building in Brooklyn’s Windsor Terrace neighborhood. Located at 33 Caton Place, the property was constructed in 2014. Amenities include a resident lounge, children’s playroom, fitness center, yoga room, sauna, pet spa and a landscaped roof deck with grilling areas and private cabanas. HFF represented The Dermot Company in the transaction. The seller was undisclosed.
NEW YORK CITY — Brax Realty has brokered the $12.2M sale of a two multifamily buildings on the Upper East Side of Manhattan. The properties, which were built in 1910, are located at 432-434 E. 89th St. and contain 41 residential units. Alan Stenson of Brax Realty represented the buyer, S.W. Management, in the transaction. The seller was H S Realty Associates.
NEW YORK CITY — Marcus & Millichap has arranged the $2 million sale of a four-story, mixed-use building in the Bedford-Stuyvesant section of Brooklyn. Located at 40 Nostrand Ave., the property consists of one retail unit and six residential units. Matt Fotis and Dylan Renicker of Marcus & Millichap’s Manhattan office represented the seller, a private investor, in the transaction. The buyer was also a private investor.
BLACKSBURG, VA. — Hunt Real Estate Capital has provided a $9 million first mortgage bridge loan for the acquisition and renovation of a student housing portfolio located near Virginia Polytechnic Institute and State University (Virginia Tech) in Blacksburg. The acquisition includes two garden-style student housing communities — Carlton Scott Apartments and Stonegate Apartments — totaling 196 beds on two non-contiguous parcels at 500 Broce Drive and 600 Appalachian Drive. The portfolio consists of 13 two- and three-story buildings offering one-, two- and three-bedroom units. The borrower, Willow Creek, plans to begin exterior renovations on both properties upon closing. Renovations are set for completion in May 2019.
ROWLETT, TEXAS — Dallas-based REIT Transcontinental Realty Investors Inc. (NYSE: TCI) and its subsidiary, Abode Properties, have opened Terra Lago Apartments, a 451-unit multifamily community in Rowlett, a northeastern suburb of Dallas. The Class A property features one, two- and three-bedroom units and offers amenities such as a pool, fitness center, business center, conference room and a bocce ball court. The property also fronts Lake Ray Hubbard.
HOUSTON — 29th Street Capital, a privately held investment firm with offices in San Francisco and Chicago, has acquired Cali Sommerall Apartments, a 368-unit multifamily asset located in Houston’s Copperfield/Bear Creek submarket. The company will invest in new countertops and paint for the unit interiors, as well as upgrades to the amenity spaces, which include a pool, coffee bar, dog park, fitness center and a grilling station. The seller was not disclosed.
DALLAS — Chicago-based NXT Capital has provided a $25 million acquisition loan for a 252-unit apartment community in Dallas. Located one mile north of Interstate 30 and three miles from downtown, the property features a clubhouse, grill area, fitness center, pool, dog park and access to the Santa Fe Trail. Tony Stein of CBRE placed the loan on behalf of an undisclosed borrower. The property name was also undisclosed.
CHANDLER, ARIZ. — Koelsch Communities is in the midst of construction for Park at Copper Creek, a luxury independent living community in the Phoenix suburb of Chandler. The three-story, 166,000-square-foot property will offer 135 apartments. Development costs were estimated at $40 million. RJ Development, which is partnering with Koelsch on the project, purchased the six-acre development site in 2017 for $3.2 million. PNC Bank provided $30.5 million in construction financing, while private investors funded the remainder of the costs. Koelsch Construction is acting as general contractor. Judy Koelsch and David Goularte of JSK Design will handle interior designs, and Koelsch Communities will operate the property. Construction is scheduled for completion in spring 2019.
Apartments in Philadelphia’s urban core command premium rent, prompting more renters to consider living in the surrounding suburbs. Rising demand for apartments in submarkets both near and far from Center City have helped lower vacancy and improve rent growth. Southwest Philadelphia, in particular, has exhibited these trends despite elevated construction activity. The combination of favorable property fundamentals amid supply additions draws strong investor interest, leading to increased transactions and higher sales prices. Multifamily properties in Southwest Philadelphia are outperforming those in Center City. Over the past four years, apartment inventory in both submarkets rose by almost proportional amounts, 10 percent versus 14 percent, respectively. Yet, over that time, vacancy in the suburban submarket dropped 100 basis points to a rate of 4.2 percent while the downtown rate went up 70 basis points to 5.3 percent. Rent growth showed a similar disparity. In the same four-year span, average effective rent appreciated 18 percent in Southwest Philadelphia but only 6 percent in Center City. The steep decline in vacancy and strong rent growth during this construction wave have demonstrated a healthy amount of demand in the submarket as residents seek more affordable housing options. As of June 2018, the average apartment in …