Contrary to some Southeast markets’ recent shift in focus to the suburbs, construction in Central Birmingham continues to boom with activity. The Central Birmingham cluster — encompassing the CBD, Southside, Parkside District, University of Alabama Birmingham (UAB) and Lakeview neighborhoods — has established itself as a strong-performing submarket with 3,800 multifamily units total, according to CoStar. The growing number of desirable amenities such as parks, restaurants, museums and trails has helped foster rent growth and additional projects. Birmingham’s overall multifamily construction activity has been consistent with 12,000 units added from 2009 to 2018 (approximately 1,300 units per year). Within the Birmingham metro itself, multifamily construction is highly concentrated in Central Birmingham, which experienced a 225 percent hike in multifamily construction from a low in second-quarter 2017 to 850 units currently under construction and 1,400 units planned or proposed. Suburban supply has been tempered compared to similar metros given the lack of zoned land available. There are a number of planned suburban projects, including projects by Dobbins Group and Davis Development, but none under construction. Drivers of this trend Rents achieved in Central Birmingham enable multifamily development to ensue despite higher construction costs. The Pizitz and Thomas Jefferson Tower (TJ) are …
JACKSONVILLE, FLA. — CBRE has arranged the $63.4 million sale of Steele Creek Apartments, a 300-unit multifamily community situated in Jacksonville’s Butler Corridor submarket. RST Development acquired the property for $211,333 per unit, which marks the highest ever per-unit price for a suburban multifamily site in Northeast Florida, according to CBRE. Steele Creek offers one-, two- and three-bedroom floor plans. Communal amenities include a swimming pool with a cabana, grill area, clubhouse, fitness center, car wash area and a pet washing station. Additionally, Steele Creek offers technological finishes such as car charging stations, smart thermostats in each unit, USB ports and a tech-centric business center. Joe Ayers, Cliff Taylor and Shelton Granade of CBRE represented the seller, AC Parker West, in the transaction.
LOUISVILLE, KY. — Inland Private Capital Corp. (IPC) has sold Hurstbourne Estates Apartments, a 270-unit complex in Louisville, for $45.5 million. IPC sold the property on behalf of its institutional investors through its subsidiary on behalf of Louisville Multifamily DST, the company’s 1031 tax exchange investment program. At the time of sale, Hurstbourne Estates was 95.2 percent occupied. Communal amenities include a fitness center, clubhouse, yoga room, game room, business center, swimming pool and a dog park. The buyer was not disclosed. The apartment community comprises 17 buildings and was built in 2013. IPC acquired the asset in 2014.
BURLINGTON, N.C. — Berkadia has negotiated the $24.4 million sale of Hawthorne at Forestdale, a 234-unit apartment complex in Burlington. The community offers studio, one-, two- and three-bedroom floor plans. Communal amenities include a saltwater swimming pool, sundeck, playground, cyber café, community pond, 24-hour fitness center and a dog park. Mark Boyce and Blake Coffey of Berkadia represented the undisclosed, Alabama-based seller in the transaction. Berkadia provided the undisclosed Texas-based buyer with a Fannie Mae acquisition loan.
AUSTIN, TEXAS — PGIM Real Estate Finance has provided two Fannie Mae loans totaling $111 million for the refinancing of Gables Park Plaza and Gables Park Tower, two adjacent apartment complexes totaling 513 units in Austin. The borrower was Clarion Gables Multifamily Trust. Tom Goodsite of PGIM led the debt placement effort, which included the origination of a 10-year loan for Gables Park Plaza and a 12-year loan for Gables Park Tower. Both properties offer amenities such as pools, outdoor courtyards with grilling stations, sky lounges, theaters, game rooms, conference centers and bocce ball courts. Additional loan terms were not disclosed.
AVONDALE, ARIZ. — 29th Street Capital (29SC) has purchased Las Casitas Apartments, a multifamily community located in Avondale, for an undisclosed price. The name of the seller was not released. 29SC plans to invest more than $2.1 million in capital improvements at the 168-unit property. Planned interior upgrades include black appliances, improved lighting, USB ports, refaced cabinets, fresh paint and kitchen backsplashes, while exterior renovations include enhancing the dog park, clubhouse, pool area and other amenities. The buyer also plans to address deferred maintenance at the community. The acquisition is 29SC’s 13th in the Phoenix market, for a total of more than 2,500 units.
TEMPE, ARIZ. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has completed the sale of MarQ at 1st, an apartment community located in Tempe. Knightvest Capital acquired the property from Western Wealth Capital for $24 million, or $146,341 per unit. Constructed in 1985, MarQ at 1st features 164 apartments and is situated less than a mile from Arizona State University’s main campus and Tempe’s Mill Avenue District, which offers a mix of more than 125 local eateries and boutique retailers. Cliff David and Steve Gebing of IPA represented the seller and procured the buyer in the deal.
BOSTON — A joint venture between Jefferson Apartment Group (JAG) and LaSalle Investment Management has acquired CityView at Longwood, a 289-unit multifamily high-rise in Boston, for roughly $180 million. The property is located within a block of the MBTA Green Line and within a mile of the Fenway area. The new ownership plans to implement a value-add program. Planned updates to the property include a reimagined common area on the penthouse level that will feature more than 8,000 square feet of lounge space, a community kitchen, fitness center and an indoor/outdoor roof deck. Additional new amenities will include a pet spa and resident storage space. Unit renovations will include the additions of granite countertops, updated appliances, new cabinets, sophisticated light fixtures, new flooring and tile backsplashes. The seller was Equity Residential.
WESTBOROUGH, MASS. — CBRE has brokered the $130 million sale of Fountainhead Apartments, a 562-unit community in Westborough, located east of Worcester. The market-rate community is situated on 20 acres near Interstates 90, 290 and 495 and comprises three eight-story buildings. Originally built in phases between 1971 and 1973, Fountainhead offers one-, two- and three-bedroom units averaging 1,157 square feet. Amenities include a pool, fitness center, basketball court and a tennis court. Simon Butler and Biria St. John of CBRE represented the seller, Northland Fountainhead LLC, an affiliate of Massachusetts-based Northland Investment Corp., in the transaction. The buyer was an affiliate of FPA Multifamily LLC.
NEW YORK CITY — JLL has arranged $70 million in acquisition and construction financing for a new multifamily project that will be located at 308 Livingston St. in Brooklyn. In addition to the construction financing, the developer, Lonicera Partners, sourced preferred equity from Twining Properties and a major institutional investor to develop the 23-story project, which is in the pre-construction phase. Lonicera will demolish the existing five buildings on the site make way for a development containing 160 apartments, including 48 affordable housing units, as well as 9,460 square feet of retail space. Amenities will include a sky lounge, common dining room, entertainment lounge, fitness center and coworking office space. Jonathan Schwartz, Aaron Appel, Keith Kurlan, Adam Schwartz and Mark Fisher of JLL arranged the financing through Santander Bank and City National Bank on behalf of Lonicera.