FARMERS BRANCH, TEXAS — Greysteel has negotiated the sale of Villa Gardens, a 142-unit multifamily property in the Dallas metro of Farmers Branch. The property features studio, one-, two- and three-bedroom units. Amenities include a pool, playground and on-site laundry facilities. Doug Banerjee, Boyan Radic, Andrew Mueller and Andrew Hanson of Greysteel represented the seller and procured the buyer, both of whom requested anonymity.
MILWAUKIE, ORE. — Guardian Real Estate Services has received construction financing for the development of Axletree, a multifamily project located at the intersection of SE Main and SE Washington streets in Milwaukie, a suburb of Portland. Casey Davidson of HFF arranged the floating-rate construction loan through a regional bank, while Ira Virden and Carrie Kahn, also of HFF, arranged joint venture equity for the project through Hanover Financial. Terms of the loans were not released. Slated for completion in third-quarter 2019, the property will feature 110 units in a mix of studio, one- and two-bedroom floor plans averaging 610 square feet. The community will also offer approximately 7,000 square feet of ground-floor retail space and 77 parking stalls. Axletree is the first multifamily community to be built in Milwaukie since 1995, according to HFF.
Billy Meyer, managing director of Seattle-based Columbia Pacific Advisors, doesn’t mince words when talking about the bridge lender’s cautious approach to financing seniors housing product today. “We don’t underwrite hope as a strategy anymore. It’s just not a good execution strategy, we believe.” Against the backdrop of elevated levels of construction, rising interest rates and operational challenges in seniors housing, Columbia Pacific Advisors is scrutinizing operators heavily before providing funding. “We’re bridge lenders. That is all that we do. Our average loan is 19 months. It’s a short horizon of how far away our exit is, so we need to make sure that [pathway] is very real and clear,” said Meyer. Meyer’s insights on the loan underwriting process came during InterFace Seniors Housing Midwest on Thursday, June 7. The one-day event, which took place at the recently opened four-star Marriott Marquis Chicago at McCormick Place, drew 372 professionals from across the region. Panel discussions focused on everything from design to development to growth strategies for operators, in addition to the state of the capital markets. Moderated by Mike Taylor, senior vice president and group manager for healthcare lending at First Midwest Bank, the capital markets panel also included Ari Adlerstein, …
SOUTHERN NEW ENGLAND — EagleBridge Capital has secured a $21.5 million acquisition loan for a 370-unit multifamily portfolio in Southern New England. The portfolio is made up of multiple buildings ranging in size from two to 18 units. Brian Sheehan and Ted Sidel of EagleBridge arranged the financing through an agency lender. The borrower was undisclosed. The 10-year non-recourse mortgage carries a long-term fixed interest rate with a 30-year amortization.
NEW YORK CITY — Marcus & Millichap has arranged the sale of 934 Sterling Place, an eight-unit apartment property in Brooklyn. The sales price was $2.9 million. Shaun Riney of Marcus & Millichap represented the seller, a private investor, and the buyer, also a private investor, in the transaction. The four-story property was built in 1905 and is located in the Crown Heights neighborhood of Brooklyn.
TALLAHASSEE, FLA. — Lloyd Jones has acquired The Westcott Apartments, a 444-unit multifamily community located at 3909 Reserve Drive in Tallahassee, for $57.8 million. The name of the seller was not disclosed. Constructed in 2000 and 2005, the community offers a mix of one-, two- and three-bedroom floor plans and features two swimming pools, two fitness center, playgrounds and tennis courts. Lloyd Jones plans to renovate The Westcott, which is the Miami-based private equity investor’s second acquisition in the Tallahassee area.
CHARLOTTE, N.C. — Cushman & Wakefield has arranged the $39 million sale of 1420 Magnolia, a 204-unit apartment community in Charlotte. Jordan McCarley, Watson Bryant and Marc Robinson of Cushman & Wakefield arranged the transaction on behalf of the seller, Estates & Cos. Hudson Capital Properties acquired the asset. Constructed in 1999, 1420 Magnolia features a car care center, controlled access gates, dog park, fitness center, grilling and picnic areas, business center, yoga/Pilates room and a swimming pool.
CHICAGO — CRG, Clayco’s real estate development group, has broken ground on a 12-story apartment building in Chicago’s Uptown neighborhood. The development, located at the intersection of Sheridan Road and Wilson Avenue, will feature 149 units, 5,000 square feet of retail space and 29 parking spots. Amenities will include a 2,000-square-foot rooftop deck, coffee bar, exercise facility, business center and dog salon. Completion is slated for July 2019. Clayco is serving as the design-builder and its subsidiary, BatesForum, is the project architect. Capital partners include POB Capital and Principal Real Estate Investors.
Lending intermediaries are not seeing any slowdown in the availability of capital for the student housing sector in 2018. Many report that the sector is a favorite and a well-known quantity among lenders, one that they want to count among their specialties. “Historically, student housing was viewed only as a subset of multifamily, but we have seen a distinct departure from that mindset throughout the current cycle,” says Benjamin Roelke, senior vice president, debt and structured finance, CBRE Capital Markets. “Lenders are getting smarter about student housing and are asking the right questions more often than not.” “Our high volume construction lending relationships view student housing as a stand-alone product type and understand that each market should be evaluated on its own merits, but in uncertain times there are macro forces that can alter risk evaluation standards generally, with the effects trickling down to specialized product types,” says Tim Bradley, founder and CEO of TSB Capital Advisors. Student Housing — On Its Own Lenders increasingly view student housing as an attractive stand-alone asset class. Its strong performance during the Great Recession prompted many lenders to closely study and understand the sector, with many growing their lending platforms alongside strong developer …
DALLAS — The Legacy Senior Communities, a not-for-profit organization based in Plano, has broken ground on The Legacy Midtown Park, a $175 million seniors housing community in Dallas. Situated on 10 acres just off North Central Expressway, the property will consist of 184 independent living apartments, 50 assisted living units, 36 memory care residences and 54 suites for short-term rehabilitation or long-term care. Amenities will include multiple dining options and a fitness, aerobics and aquatic center. The project is expected to create approximately 350 jobs upon completion. The developer expects the community to begin opening for some services in fall 2019 with other levels of care becoming available in 2020. SunTrust Bank served as the lead lender for the project with Frost Bank as a participating lender.
