NEWTON, MASS. — Senior Housing Properties Trust (SNH) has acquired seven seniors housing communities from Five Star Quality Care for $112.4 million. Five Star will continue to operate the communities as part of the sale-leaseback deal. The portfolio totals 545 units in North Carolina, South Carolina, Tennessee and Virginia. The lease with Five Star expires at the end of 2028 and includes renewal options. Five Star intends to use the proceeds it receives from the sale-leaseback transaction to repay in full amounts outstanding under its secured revolving credit facility, which had $60 million outstanding on June 28, 2016, and for general business purposes. The initial annual rent payable to SNH under the lease will be $8.4 million per year, resulting in an approximate capitalization rate of 7.5 percent. Starting after 2017, the rent may increase based upon a percentage of gross revenue increases realized by operations at the leased communities. SNH funded the purchase of the seven communities with cash on hand and drawings under its $1 billion unsecured revolving credit facility. Five Star was formerly SNH’s wholly owned subsidiary and both companies are based in Newton.
ALTAMONTE SPRINGS, FLA. — Crescent Communities has opened Crescent Gateway, a 249-unit apartment community located near the Maitland Boulevard exit on I-4 at 912 Innovation Way in Altamonte Springs. The property’s residences range from a 634-square-foot studio to a 1,476-square-foot, three-bedroom unit. Amenities include a clubhouse with Wi-Fi access, computer lounge with Macs and PCs and a poolside indoor/outdoor kitchen and lounge area. The community also has a yoga lawn, fire pit near the pool deck, bike storage, off-leash dog park and a media lounge with Xbox, PlayStation 4 and Apple TV. Unit interiors include granite countertops, stainless steel appliances, USB ports in the kitchen, walk-in closets and a washer and dryer in every residence.
RICHMOND, VA. — A partnership between L5 Investments and BH Equities has purchased Aspen Station Apartments, a 232-unit multifamily community located at 1500 Forest Run Drive near I-95 in Richmond, for $22.9 million. Built in 1980, the garden-style property features a swimming pool, clubhouse with a business center, lighted tennis and basketball courts, car wash and vacuum station and picnic areas with grill stations. Each unit features a full-size washer and dryer and a private balcony or patio. L5 Investments and BH Equities plan to invest $2.6 million in capital improvements such as remodeling amenities, upgrading unit interiors and landscaping. BH Management Services, BH Equities’ property management division, will manage Aspen Station. Laura Cathlina of Berkadia Commercial Mortgage arranged acquisition financing on behalf of the new ownership. Wink Ewing of ARA Newmark represented both the buyer and the undisclosed seller in the transaction.
Today’s apartment property managers wear a lot of hats. In addition to being responsible for leasing up residential buildings or knowing how to calculate a property’s return on investment, they must also maintain healthy relationships with their workers, owners and residents. Figuring out how to leverage technology is key to achieving this delicate balancing act. According to a 2015 survey by the National Multifamily Housing Council (NMHC), 37 percent of households within the United States rent versus own. That’s up from 32 percent in 2010. Approximately 26 percent of those who rent are under the age of 30. This shift from owning to renting by younger residents has changed the way the industry reacts to them. “It’s one of the interesting dynamics of the 21st century and has changed the way we and other management firms do business,” says Mark Zettl, chief operating officer of Chicago-based Waterton, an owner and operator of multifamily and hospitality assets across the United States. “While customer service and satisfaction have always been priorities, today’s managers are constantly being held to a higher standard — one that measures response times in minutes and hours rather than days,” says Zettl. “We’ve embraced the change because the …
ARLINGTON, TEXAS — A partnership between Dougherty Mortgage and Old Capital Lending has arranged a $10.1 million acquisition loan for Water Chase Apartment Homes, a 200-unit multifamily community in Arlington. The gated, pet-friendly complex features a swimming pool, fitness center and a clothing care center. Individual units include washer/dryer connections, walk-in closets and private balconies and patios. Dougherty Mortgage and Old Capital Lending arranged the 12-year Fannie Mae loan on behalf of the borrower, TFG Waterchase Apartments LLC. The loan features two years of interest-only payments and a 30-year amortization schedule.
COLUMBUS, OHIO — Lancaster Pollard has arranged both the sale of, and acquisition financing for, Columbus West Park Nursing and Rehabilitation Center, a 100-bed skilled nursing facility in Columbus’ Westgate neighborhood. In the sale transaction, Chad Elliott and Steve Kennedy represented the seller, a family that has owned the property since 1992. The MacIntosh Company purchased the facility for an undisclosed price, expanding the company’s Central Ohio seniors housing portfolio to six communities. Columbus West Park was built in 1984, and the sale included excess land for potential future expansion. In the financing transaction, Chris Mauger and Brendan Healy arranged a balance-sheet loan to fund the acquisition. The financing was structured as a bridge-to-HUD loan.
CHICAGO — U.S. Bank has invested $5.9 million in low-income housing tax credits equity and provided a $6.8 million construction loan for a 30-unit apartment project in the Chicago Lawn neighborhood. Southwest Organizing Project and Brinshore Development are heading up the project that will turn nine vacant buildings into apartments that are below the market rate. The nine buildings will provide two one-bedroom, 16 two-bedroom, 10 three-bedroom and two four-bedroom units. Four of the units will be fully disabled-accessible. Tenants will earn between 30 percent and 60 percent of the area median income, and rents will range from $270 to $1,005 per month. Construction on the buildings, which cover a six-block area, is expected to be complete next June.
MASON CITY, IOWA — Anchor Housing Development has completed construction of Legacy Manor of Mason City II, a 48-unit affordable seniors housing community, in Mason City, approximately 120 miles north of Des Moines. WNC, a California-based real estate investor, provided $5.9 million in low-income housing tax credit (LIHTC) equity to fund the development. Legacy Manor of Mason City II is a three-story, elevator-serviced building comprised of two-bedroom apartment homes with approximately 800 square feet of space for residents aged 55 and older. Daniel Tonnesen was project developer for the development, which took one year to complete.
CHICAGO — Interra Realty has brokered the sale of a three-property portfolio located in Chicago’s Jefferson Park neighborhood for a total of $3.5 million. The properties include a mixed-use asset at 5802 W. Catalpa Ave. that sold for $2.1 million, and two multifamily properties located at 5402 W. Windsor Ave. and 4518 N. Long Ave. The multifamily properties sold for $657,500 and $702,500, respectively. The portfolio included a total of 32 apartment units and eight commercial spaces. Joe Smazal of Interra Realty represented both undisclosed parties in the transaction.
HENDERSONVILLE, TENN. — Ryan Cos. US Inc. and LCS have announced plans to build Clarendale of Hendersonville, a $40 million independent living, assisted living and memory care community in the Nashville suburb of Hendersonville. Clarendale of Hendersonville will feature 184 total units on an 11-acre site. The community will be the fourth Clarendale-branded property. Life Care Services, an operational subsidiary of LCS, will manage the community once complete. Ryan Cos. will build the property, and Jack Potter of Nashville-based HFR Design will design the community. Marty Cook of Bone McAllester Norton is providing legal services.