SCOTTSDALE, ARIZ. — ICON Builders and Multi-Family Renovation Group (MFRG) have merged to form a new company called MFRG-ICON Construction. The new company will focus on affordable housing renovation. Justin Krueger is the owner and will act as president of the new company. Allen “Kelly” Sands will be his partner. The new firm will draw from nearly three decades of experience to push this now $100 million annual construction business to raise the standard in occupied affordable housing renovations. ICON began building and renovating affordable housing in 1992. The company specialized in the renovation of tax credit, bond and HUD projects. The combined companies have completed more than 28,000 affordable housing units and more than $1.7 billion in construction. MFRG-ICON has offices in Scottsdale and Los Angeles. The company has projects in Arizona, California, Nevada and some Eastern states.
ATLANTA — A surge in population and job growth in the Atlanta metropolitan area over the next two decades will bode well for the multifamily sector, according to panelists at the eighth annual InterFace Multifamily Southeast. Among the 12 largest metropolitan areas in the county, Atlanta ranked second in the rate of job growth and third in the number of jobs added, according to the Bureau of Labor Statistics (BLS). Total nonfarm employment for the Atlanta-Sandy Springs-Roswell Metropolitan Statistical Area stood at 2.75 million in September 2017, up 2.5 percent year-over-year. In addition, the Atlanta Regional Commission forecasts the 20-county Atlanta region will add 2.5 million people and 1.5 million jobs by 2040. Multifamily demand is reaping the benefits of this growth. The job growth multiplier for the demand for new apartments used to be a factor of 5 to 1, meaning for every five jobs created, you could take one unit of inventory out of the equation, according to Mike Kemether, vice chair of the multifamily advisory group at Cushman & Wakefield. This year and next in Atlanta, that ratio sits around 7 to 1. “A lot of the renters are coming because of job relocations,” said Christie Hawver Jordan, …
DALLAS — Marcus & Millichap has brokered the sale of Tschannen Estates, a 372-unit multifamily community located at 8039 Chariot Drive in east Dallas. Built in 1969, the property consists of 216 one-bedroom units and 156 two-bedroom units ranging in size from 563 to 1,018 square feet. Amenities include four pools, on-site laundry facilities, an outdoor picnic area with grills and a playground. Al Silva, Daniel Burton, Trey McGhin and Peter Flis of Marcus & Millichap represented the seller, a California-based private investor, in the transaction. Dallas-based investment firm Cross Equities purchased the property for an undisclosed price.
MARIETTA, GA. — Federal Capital Partners (FCP) has acquired Stratford Ridge, a 446-unit apartment community in Marietta, roughly 20 miles north of downtown Atlanta, for $45 million. Kevin Geiger of CBRE represented the undisclosed seller in the transaction. Stratford Ridge includes a mix of one- to four-bedroom floor plans and features a clubhouse, fitness center, playground, pet park, sundeck and pool and an after-school care program. In addition, the property is roughly four miles north of SunTrust Park, home of the Atlanta Braves. FCP will invest in capital improvements to the existing site and buildings, including amenity enhancements and interior unit renovations.
ESTERO, FLA. — Greystone has arranged a $44.6 million Fannie Mae loan for Estero Oaks, a 280-unit apartment community in Estero, roughly 15 miles south of Fort Myers. Nicholas Diamond of Greystone arranged the 10-year loan with two years of interest-only payments and a 30-year amortization schedule on behalf of the developer and borrower, Royal Palm Cos. Constructed at the end of 2016, Estero Oaks features a business center, clubhouse, playground, dog park, fitness center, yoga studio, outdoor spa and a resort-style swimming pool. Rosemount Management manages the property.
DETROIT — Developers Karp and Associates and Prater Development have completed a $30 million conversion of a former retail and office building into Capitol Park Lofts, a 63-unit apartment property in Detroit’s Capitol Park neighborhood. Floor plans range from studios to two-bedroom units with monthly rents starting at $998. The 80,800-square-foot building was originally constructed in 1912. The property, located at 1145 Griswold St., also features second-floor office space and Prime + Proper restaurant. The project team included architecture and design firm Kraemer Design Group and construction manager Buildtech.
Dougherty Arranges $14.7M HUD Acquisition Loan for Affordable Housing Project in St. Paul, Minnesota
ST. PAUL, MINN. — Dougherty Mortgage LLC has arranged a $14.7 million HUD 221 (d)(4) loan for the acquisition of an office building in St. Paul. The borrower, Pioneer Apartments LLLP, plans to convert the existing building into a 144-unit affordable housing property called Pioneer Apartments. All units will be restricted to residents earning 60 percent or less of the area median income. The property was originally constructed in 1954 and most recently served as the headquarters for the St. Paul Pioneer Press. In addition to the HUD-insured first mortgage, the borrower will receive equity from the sale of low-income housing tax credits, federal historic tax credits, state historic tax credits funded in the form of a loan from Preservation Alliance Minnesota and funds from the Metropolitan Council. The project also involved tax-exempt bonds underwritten by Dougherty & Co. LLC, an affiliate of Dougherty Mortgage. Completion of the project is slated for early 2019.
UPPER GYWNEDD, PA. — Equus Capital Partners has completed the disposition of Madison Willowyck, an apartment community located in Upper Gywnedd, a suburb of Philadelphia. New Jersey-based Friedman Realty Group acquired the property for $62.5 million. At the time of sale, the community was 96 percent occupied. Erin Miller and Marybeth Farris of Jones Lang LaSalle represented the seller in the deal. Built in 1972 on 28 acres, the garden-style apartment community features 308 apartments in a mix of one-, two- and three-bedroom layouts with private entrances. On-site amenities include a resort-style pool, a 24-hour fitness center, a clubhouse with community room and balcony. An affiliate of Equus acquired Madison Willowyck in 2007 from UBS. The transaction was made on behalf of BPG Investment Partnership VIII, a $550 million private equity fund.
NEW YORK CITY — The Kalikow Group and Steelpoint Property Group have completed the sale of a mixed-use property located at 517 Second Ave. in the Kips Bay neighborhood of Manhattan. An undisclosed buyer acquired the property for $7.4 million. The four-story building features a ground-level restaurant and three floor-through, three-bedroom apartments. The partnership originally purchased the property in 2014 for $5 million and implemented a three-year renovation project.
TARZANA AND ORANGE COUNTY, CALIF. — iBorrow, a private direct lender for commercial real estate, has provided a $16.5 million loan for assisted living facilities in the Los Angeles suburbs of Tarzana and Orange County. The first property is an 88-unit, 50,054-square-foot facility and the second property is an 81-unit, 40,207-square-foot facility. Both properties are private pay, were built in 1974 and were renovated in 2016. Their names were not disclosed. The borrower is a local businessman whose experience is in the healthcare sector. He has had a successful career in developing structured finance products for high net worth individuals, closely held businesses and hedge funds. The use of the funds was not disclosed.