LOS ANGELES — Arbor Realty Trust has funded a $88 million refinancing for a multifamily portfolio in Los Angeles. The name of the borrower was not released. Spread across 26 properties, the portfolio features more than 660 multifamily units. The loan was provided through the Freddie Mac Small Balance Loan program.
MISHAWAKA, IND. — KeyBank Real Estate Capital and Cain Brothers worked together to secure financing for the construction of Hellenic Senior Living of Mishawaka, an affordable assisted living facility near South Bend. The budget was approximately $28 million and included multiple funding components of debt and equity. Cain Brothers served as the sole managing underwriter of an $18.5 million tax-exempt bond issue that provided nonrecourse construction and permanent financing at a long-term fixed rate of 5.75 percent. In addition, the National Development Council (NDC) provided $9.3 million in low-income housing tax credit (LIHTC) equity. AHEPA National Housing Corp. is developing the 136-unit property, which will consist of 55 studio apartments and 81 one-bedroom units within a 113,000-square-foot building. All of the units will be reserved for tenants whose household income does not exceed 60 percent of the area median income. The monthly charges for the Medicaid waiver units will range from $2,881 for a studio to $3,378 for a one-bedroom unit.
CHICAGO — Interra Realty has brokered the $6 million sale of 5424 S. Cornell Ave., a 64-unit apartment building in Chicago’s Hyde Park neighborhood. Built in 1924, the building features 61 studio apartments and three one-bedroom units. The property was 90 percent occupied at the time of sale. Joe Smazal of Interra represented the private seller. Ted Stratman and Jeremy Morton of Interra represented the buyer, Chicago-based Nautilus Investments. A portion of financing was obtained through the opportunity investment fund set up by nonprofit lender Community Investment Corp. and Preservation Compact. The buyer plans to improve the property by updating both residences and common areas. About 20 percent of the units are designated as affordable for renters earning up to 50 percent of the area median income.
JACKSONVILLE, FLA. AND RALEIGH, N.C. — Carroll Organization has acquired three apartment properties totaling 1,012 units in Jacksonville and Raleigh for $145 million. All three communities will be part of Carroll Multifamily Real Estate Fund V LP, managed by Carroll Management Group and rebranded under the Arium name. Sellers were not disclosed. The 288-unit Autumn Cove and the 272-unit Vista Grande are adjacent communities in Jacksonville. The properties will be renamed Arium Retreat at Orange Park and Arium Reserve at Orange Park. Both feature pools, fitness centers and dog parks. Stonehenge Apartments is a 452-unit property in Raleigh. Amenities include a multi-level fitness center, pools, cabanas, playground and sports club with racquetball, basketball and tennis courts. The location provides convenient access to the Research Triangle and downtown Raleigh. “All three assets are consistent with a strategy of acquiring high-quality workforce housing within supply-constrained submarkets near employment centers in high-growth metro areas,” says M. Patrick Carroll, CEO of Carroll Organization. Atlanta-based Carroll has now purchased 29 properties totaling more than $1.5 billion over the past 12 months. The privately held real estate company manages approximately 35,000 multifamily units across eight states. — Kristin Hiller
Multifamily properties have produced strong returns for commercial developers and investors over the past few years. But the apartment supply wave appears to have crested, suggesting 2019 will bring a slower pace of rent growth. Consequently, pricing levels should come down, cap rates should creep upward and returns on investment should cool. According to a report from commercial real estate research firm Yardi Matrix, America’s multifamily market experienced 3.1 percent annual rent growth for the 12-month period ending November 2018, the latest data available at the time of this writing. The report also featured 2019 rent growth projections for America’s 30 largest multifamily markets, 19 of which are expected to see their paces of rent growth either decline or remain the same this year. Brokers who participated in Texas Real Estate Business’ annual forecast survey indicated that investment activity for multifamily assets in Texas should be more modest in 2019. This group ranked multifamily second among property types likely to experience a high velocity of sales in 2019, suggesting the new year could see more properties brought to market in anticipation of future elevation of cap rates. Numerical Context Most recently, the story on multifamily in Texas has been demand, …
ATLANTA — Cushman & Wakefield has arranged the $106.7 million sale of an 18-property apartment portfolio across the Southeast and Texas. The portfolio comprises 1,858 units. There are seven properties in Alabama; five in Pensacola, Fla.; three in Tennessee; a 200-unit property in Pascagoula, Miss.; a 203-unit property in Winston-Salem, N.C.; and a 223-unit property in Houston. Tyler Averitt and Craig Hey of Cushman & Wakefield’s Atlanta office represented the seller, Varden Capital Properties, in the transaction. The Walden Group acquired the properties.
SILVER SPRING, MD. — A joint venture between The Donaldson Group, Declaration Capital and DRA Advisors has acquired Montgomery White Oak Apartments, a 592-unit, garden-style apartment community in Silver Spring, for $86.8 million. The partnership plans to renovate the property, with the main focus of the renovation being the heating and cooling systems in each unit. Montgomery White Oak Apartments is situated on 28 acres adjacent to White Oak Federal Research Campus, home to the Food and Drug Administration’s (FDA) headquarters and the U.S. Army Research Laboratory. Bill Roohan, Mike Muldowney, Brian Margerum and Martha Hastings of CBRE represented the seller, Joncon Venture LLP, in the sale. Maxi Thiels Leachman and David Webb of CBRE arranged acquisition financing through Freddie Mac on behalf of the buyers.
RICHMOND, VA. — Bellwether Enterprise Real Estate Capital LLC has provided a $37.5 million Fannie Mae loan to Heritage Income Property LLC for the acquisition of James River at Stony Point, a newly built apartment complex in Richmond. Harry Giallourakis of Bellwether Enterprise’s Cleveland office originated the 12-year, interest-only loan. The borrower purchased James River at Stony Point through a 1031 tax-deferred exchange. Located at 9101 Stony Point Parkway, the 280-unit community includes a fully furnished clubhouse with a heated saltwater pool and sundeck, outdoor grill and fire pit lounge, 24-hour fitness center, dog park and a business center. Individual units feature modern appliances, in-suite washers and dryers and walk-in closets.
HOUSTON — Varden Capital Properties, an Atlanta-based firm specializing in value-add acquisitions, has sold Gracie Square, a 223-unit apartment community in west Houston. The property, which was sold as part of a larger disposition of 18 multifamily assets across the southern U.S., features one-, two-, three- and four-bedroom units. Amenities include two pools, a fitness center, outdoor grilling areas and a dog park. The buyer was The Walden Group, a New Jersey-based investment firm. Tyler Averitt and Craig Hey of Cushman & Wakefield brokered the sale.
IRVING, TEXAS — SVN | Investment Sales has negotiated the sale of Crescent Ridge Apartments, a 50-unit multifamily property in Irving. The Class C property is located near both DFW International Airport and Dallas Love Field Airport. Nicholas Brown of SVN represented the seller and procured the buyer, both of which requested anonymity.