MINNEAPOLIS — Dominium has completed the rehabilitation of the historic Millworks Lofts in Minneapolis. The renovation process included transforming two run-down buildings into 78 affordable apartment units. The building dates back to the 1920s and was formerly home to Lake Street Sash & Door Co., according to Minneapolis Business Journal. Many of the building’s historic features were preserved as part of the renovation, including the original windows. Paint was removed from the exterior brick to expose the original shell and the shed building was restored to its original cedar look. Amenities include a fitness center, yoga room, package room and rooftop clubrooms. The property features a geothermal power system, which will heat and cool the building. Millworks Lofts is the first affordable housing property in southern Minneapolis to have this infrastructure, according to Dominium. A grand opening celebration is scheduled for Friday, Sept. 22.
Multifamily
LONG GROVE, ILL. — Capital One has provided a $21.5 million HUD 232/223(f) loan for the refinancing of Avantara Long Grove. The 195-bed skilled nursing facility is located in Long Grove, about 35 miles northwest of Chicago. The property was built in 1995 with additions in 2006 and 2007. The borrower, Cascade Capital Group, purchased the facility in 2016 and completed $3 million in improvements to the rehabilitation wing, therapy gym, front lobby, offices and conference room. Joshua Rosen of Capital One originated the 35-year loan.
CHICAGO — The Joseph J. Duffy Co. has broken ground on Brainerd Park Apartments, a $12 million affordable housing project in Chicago’s 21st ward. The 36-unit property is located at 8920 S. Loomis St. The two-story building features one-, two-, three- and four-bedroom units. The property will serve families earning at or below 60 percent of the area median income. Chicago Housing Authority rental assistance will cover 25 percent of the units. Safeway Construction Co. Inc. is a partner in the construction of the building. Two nonprofit organizations, Full Circle Communities Inc. and Christian Community Health Center, are the co-owners and developers. Hooker DeJong Inc. is providing architectural services.
OXFORD, MISS. — Texla Housing Partners has sold University Trails Oxford, a student housing community located near the University of Mississippi in Oxford. The buyer, Capstone Real Estate Investments LLC, plans to rebrand the community as Flatts at South Campus. The property contains 492 beds in a mix of two-, three- and four-bedroom units. Shared amenities include a resort-style pool, business center, fitness center, beach volleyball court, basketball court, computer lab and a 24-hour game room. Renovations planned by Capstone for the property include the conversion of units to feature community-wide bed-to-bath parity, and common area and unit upgrades.
DALLAS — ORIX USA, a Dallas-based division of international financial services group ORIX Corp., has acquired Lancaster Pollard Holdings LLC. The acquisition price was more than $300 million, according to a report by Commercial Mortgage Alert. Based in Columbus, Ohio, Lancaster Pollard was the top HUD lender in the seniors housing sector for fiscal year 2016, which ended Sept. 30, 2016. The company closed 60 transactions totaling $554.4 million, accounting for 21 percent of total HUD volume in the sector. Lancaster Pollard is a new separate subsidiary of ORIX alongside RED Capital Group, which is also based in Columbus, and Boston Financial Investment Management. All three ORIX subsidiaries will continue to operate as separate companies with their current management. Moving forward under the ORIX Commercial Mortgage Servicing umbrella, Lancaster Pollard will focus on the financial, capital and advisory needs of senior living and healthcare clients, and RED will do the same in the affordable and market-rate multifamily sectors. Advisors for ORIX USA on the transaction included Beekman Advisors Inc. and Houlihan Lokey Inc. for financial services and Weil, Gotshal & Manges LLP for legal services. For Lancaster Pollard, Credit Suisse Securities (USA) LLC served as financial advisor and Kramer Levin …
SAN DIEGO — A joint venture between Olympus Property and Artemis Real Estate Partners has purchased the 360-unit Broadstone Corsair in San Diego for an undisclosed sum. The community is located at 8583 Aero Drive in the Kearny Mesa neighborhood. The asset is being rebranded as Olympus Corsair. On-site amenities include a resort-style pool with poolside cabanas inset with outdoor TVs, an indoor golf simulator room, a fitness center, yoga/dance studio, a clubhouse with demonstration kitchen, library and wet bar, green living wall, and seven outdoor courtyard social spaces.
PHOENIX — WWC Holdings, a Canadian investor, has acquired the 244-unit Marble Creek apartments in Phoenix for $16.7 million. The community is located at 5601 W. McDowell Road. Marble Creek was built in 1985. It was 96 percent occupied at the time of the sale. WWC plans to normalize rents and bring them to market average. The company will also invest in washer/dryer installs and interior upgrades to units. Trevor Koskovich, Bill Hahn and Jeff Sherman of Colliers International negotiated the sale transaction. The seller was Marble Creek LLC, an Arizona limited liability company formed by a local, private investor.
NEW YORK CITY — Jonathan Rose Cos., a green real estate investment, development and project management firm, has closed a $233 million impact fund. The fund is the firm’s fourth institutional fund focused on acquiring and preserving affordable multifamily housing, implementing practical green strategies to reduce environmental impacts and operating costs and to fund social, educational and other services for residents. The fund closed with aggregate capital commitments of $233 million, reaching the top end of its $150 to $250 million target. Institutional investors, investment advisors and leading impact-investment managers, as well as family offices and high net-worth investors, contributed to the success of the fund. A key component of the fund’s strategy is to develop “communities of opportunities,” adding programs and facilities to properties including on-site community centers, computer-filled classrooms, health and wellness rooms, social service rooms, exercise facilities and community gardens. The programs and facilities were implemented to develop initiatives to connect residents with a range of health, education and social services. As of July 2017, the fund has deployed more than $64 million equity investments. Among the fund’s initial investments is a portfolio of more than 3,300 apartment units across 18 assets in eight states and the District …
Cadence Senior Living, Emerald Investment Management Form Seniors Housing Investment Partnership
by Nellie Day
SCOTTSDALE, ARIZ., AND NEWPORT BEACH, CALIF. — Cadence Senior Living, a Scottsdale-based owner, developer and operator, and Emerald Real Estate Partners LLC, an investment management firm based in Newport Beach, have formed a strategic partnership for investing in seniors housing. According to the companies, the partnership will allow Cadence to expand its portfolio of boutique senior living. Emerald will provide additional acquisition capital, working capital and expertise in increasing scale, due to the company’s experience in other real estate sectors. Emerald principal Josh Martin stated that Emerald “had been searching for a senior living operator with which to grow a platform in this sector.” The Cadence and Emerald partnership is seeking opportunities to acquire existing senior housing communities, develop new communities and leverage Cadence’s management team by operating senior living communities for third-party owners.
KeyBank Arranges $28.5M in Financing for Seniors Housing Property in Suburban Philadelphia
by Amy Works
PAOLI, PA. — KeyBank Real Estate Capital has arranged a $28.5 million Freddie Mac floating-rate mortgage loan for Daylesford Crossing in Paoli, a northwest suburb of Philadelphia. Built in 2015, the Class A property features 64 assisted living and 14 memory care units, as well as commercial space occupied by Ciao Bella Salon and Spa. Carolyn Nazdin of Key’s Healthcare Group arranged the financing, which features a seven-year term, three-year interest-only period and a 30-year amortization schedule.