RICHMOND, VA. — Berkadia has originated three HUD 223(f) loans for a trio of garden-style apartment communities in Virginia. The deals included an $11.5 million loan for the refinancing of Westlake Apartments in Hardy; a $9.5 million loan for the refinancing of River Retreat Apartments in Covington; and an $11.4 million loan for the refinancing of Madison Apartments in Christiansburg. Amy Gay of Berkadia’s FHA/HUD division originated the loans on behalf of the borrower, Roanoke, Va.-based Fralin Cos.
HOUSTON — Mesa West Capital has provided an $81 million loan for the refinancing of Domain Memorial, a 313-unit multifamily property in Houston. Built on a 12.7-acre site in 2016 in the Briar Forest/West Memorial submarket, Domain Memorial offers one-, two- and three-bedroom townhome-style units with an average size of 1,300 square feet that are housed across 29 buildings. Amenities include a pool, fitness center and a clubhouse. The borrower, Dallas-based Knightvest Capital, will use a portion of the proceeds of the five-year, floating-rate loan to complete interior renovations. Domain Memorial is currently 95 percent occupied.
LOS ANGELES — Advanced Real Estate has purchased two apartment properties in the Hollywood neighborhood of Los Angeles, totaling 393 residences. The assets include the 200-unit Sky Hollywood (formerly known as Columbia Square Living) and the 193-unit Jardine Hollywood towers. Terms of the transactions were not released. The acquisitions bring the Advanced portfolio to almost 13,000 units in Southern California. Sky Hollywood is situated a block south of Hollywood Boulevard at El Centro, and Jardine is located a block south of Sunset Boulevard at Ivar. The properties offer rooftop pools, large fitness centers, resident lounges, floor-to-ceiling windows and luxury appliances. Additionally, each property offers penthouses leasing from $12,000 to $20,000 per month. Advanced Management Co. will handle property management for the assets. Advanced plans to make cosmetic upgrades to the properties, which will be administered by it affiliated construction company, R3 Construction Services. Blake Rogers, Dillon Bergum, Alexandra Caniglia and Kip Malo of JLL Capital Markets handled the acquisitions. Kevin Mackenzie, Greg Brown and Charlie Vorsheck of JLL procured two separate, uncrossed loans totaling $141.4 million from Freddie Mac. The loans have a fixed rate for 10 years and interest-only payments.
PEORIA, ARIZ. — Thompson Thrift has completed the sale of Grindstone at Sunrise, a build-to-rent multifamily community in Peoria, to an undisclosed buyer for $45.8 million, or $327,500 per unit. Steve Gebing and Cliff David of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer in the deal. Completed in 2021, Grindstone at Sunrise features 140 one- and two-story homes in one-, two- and three-bedroom floor plans spread across 70 residential buildings. Units offer open-concept living spaces, 10-foot or higher ceilings and an average unit size of 1,069 square feet. The community also includes an amenity building, resort-style swimming pool and spa.
By Bert Belanger, PACE Equity Seemingly every week, a commercial real estate publication publishes a story warning that nine out of 10 markets in America need more affordable housing units. Switching to an “all-bills-paid” mindset and utilizing Commercial Property Assessed Clean Energy (C-PACE) financing can help address this quandary. Going Through the PACEs In early 2021, after a 40-year career as a real estate lawyer, consultant and developer focused on affordable housing, I began “selling money.” By this, I mean that I was sourcing capital for PACE Equity, a Milwaukee-based private debt firm focused on providing C-PACE funding. Since C-PACE was new to my home state of Oklahoma, I was initially unfamiliar with its characteristics, but the practice of so-called “green building” was something I had experienced firsthand. I hoped that my mixture of experience might make me a unicorn — a guy who knew how to meld obtuse government subsidized housing tools with C-PACE, all for the greater good. However, I have quickly learned that mixing C-PACE with government-assisted housing financing tools is a non-starter. Why? Because cash flows within government-subsidized financings are thin by design, leaving no room for debt service beyond a small senior loan. Real Deals and Real Savings …
CORVALLIS, ORE. — Bonaventure Senior Living is currently underway on the development of a new community in Corvallis. Scheduled to open in late 2027, the property will feature independent living, assisted living and memory care units. Amenities at the community will include a bistro, golf simulator, fitness center, library, theater room, salon and barber shop, activity and game rooms, courtyards and scheduled transportation services. The community will also include Bonaventure’s Life Stations, which recreate familiar environments for memory care residents. At the Corvallis community, these will include an Artists Life Station, Gardening Life Station, Fishing Life Station, Post Office Life Station and Classic Ice Cream Parlor Station, among others.
BRANDON, FLA. — Walker & Dunlop has provided a $60.2 million Freddie Mac loan for 2211 Grand Isle Apartment Homes, a 390-unit, garden-style apartment community located at 2211 Grand Isle Drive in Brandon, a southeastern suburb of Tampa. Stephen West, Matthew Wallach and Walker Layne of Walker & Dunlop originated the floating-rate loan on behalf of the borrower, Providence Real Estate. Apprise, Walker & Dunlop’s independent third-party appraisal platform, appraised the transaction. Built in 1999, 2211 Grand Isle Apartment Homes offers one-, two-, three- and four-bedroom residences, as well as a 24-hour fitness center, car care center and a pool with poolside cabanas.
CHICAGO — McHugh Construction and joint venture partner Powers & Sons Construction, along with The Community Builders (TCB), have broken ground on Southbridge 1C, the latest phase in the redevelopment of the former Harold Ickes Homes at 2305 S. State St. in Chicago’s South Loop. The 12-story building will include 80 market-rate and affordable housing units in a mix of studio, one-bedroom and two-bedroom layouts. Located adjacent to the Cermak-McCormick Place CTA Green Line station, the development will feature a 1,500-square-foot, street-level retail space alongside a resident lobby. The first floor will include a bike room with 80 spaces, a dog wash station, package room, leasing office and back-of-house areas. Amenity spaces on the 12th floor will include a fitness area, outdoor terrace and resident storage. Developed by TCB and supported by the Chicago Department of Housing, Chicago Housing Authority (CHA), Illinois Housing Development Authority and the U.S. Department of Housing and Urban Development, the 76,000-square-foot project will receive $11.9 million in tax-increment financing assistance. Gensler designed the project. Construction is slated for completion in June 2027. Southbridge 1C will include 44 affordable housing units, representing 55 percent of the total unit count. Fifteen residences will be designated for families …
LINCOLN, NEB. — Lument has provided a $21.2 million HUD/FHA Section 232/223(f) Express Lane loan for the refinancing of Pemberly Place Senior Living, a seniors housing community in Lincoln with 120 units and a licensed capacity for 132. Quintin Harris and Patrick Roan of Lument originated the financing, which features a fixed interest rate and 35-year term. The refinance pays off existing bank debt from a construction loan originated by Lument several years ago. Lument also helped structure a shareholder note to reimburse the borrower for previous capital expenditures. Built in 2017, Pemberly Place Senior Living features assisted living, independent living and memory care options. Locally owned and operated, the community has a partnership with MJ Senior Living, a Nebraska-based management company.
MassHousing Provides $17.8M in Financing for Affordable Housing Project in Somerville, Massachusetts
SOMERVILLE, MASS. — MassHousing has provided $17.8 million in financing for a 43-unit affordable housing project in Somerville, located just outside of Boston. MassHousing also issued tax-exempt housing revenue bonds to finance the project, with TD Bank providing another $22.8 million in construction financing. The capital stack also includes $21.2 million in federal and state tax credits. The site at 24 Webster Ave. previously housed a vacant commercial building, which has since been demolished to make way for a six-story building that will have studio, one-, two- and three-bedroom units. Residences will be reserved for households earning between 30 and 60 percent of the area median income. The borrower is nonprofit organization Just A Start.