With all the recent froth in the multifamily markets, knowledgeable observers are expressing concern regarding all of the cranes that are sprouting around Seattle. To assess the apartment market, we have compiled data recently published in the “March 2015 Apartment Development Report” by Dupre + Scott Apartment Advisors. The Seattle Metro area is in the midst of an apartment development boom, with an estimated 17,400 units under construction, 12,000 units to be completed and ready for occupancy in 2015 and 11,000 units to be delivered in 2016. There is an additional 25,000 additional units in various stages of planning for delivery over the next five years. This new construction is in response to low vacancy rates (3.5 percent in the Seattle MSA, excluding vacancies for properties in initial lease-up), job expansion and related in-migration to the area. These trends have resulted in rising rents for new projects, up more than 7.4 percent in the region in the past 12 months (skewed by rents in newly opened projects). The new units under construction or proposed are heavily weighted to the close-in neighborhoods surrounding the Seattle CBD (Belltown, Downtown Seattle, South Lake Union) and close-in neighborhoods north of Lake Union (Ballard, Greenlake/Wallingford, …
WORCESTER, MASS. — CBRE/New England has arranged the sale of Plantation Ridge, a multifamily property located in Worcester. TGM Plantation Ridge sold the 330-unit property to Audubon Plantation Ridge LLC, an affiliate of Boston-based Audubon Capital Partners, for an undisclosed price. Built in 2004, the property offers a mix one- and two-bedroom layouts, averaging 959 square feet. Community amenities include a freestanding community center, business center, pool and fitness center, as well as 30 underground parking spaces and 52 detached garages. Simon Butler and Biria St. John of CBRE/NE represented the seller in the transaction.
NEW YORK CITY — Cushman & Wakefield has arranged the sale of a mixed-use property located at 309 Amsterdam Ave. in Manhattan’s Upper West Side. The four-story property sold for $6.6 million, or $1,630 per square foot. The 4,800-square-foot property features a 1,200-square-foot retail space and three one-bedroom apartments. The property was delivered vacant. The undisclosed buyer plans to reposition the property for rental. Paul Smadbeck and Robert Stufano of Cushman & Wakefield represented the undisclosed seller in the transaction.
AMES, IOWA — Hunt Mortgage Group has provided a $6.4 million Fannie Mae loan for the acquisition of a student housing property in Ames. Located on the campus of Iowa State University, South Meadow Apartments features 148 one-bedroom units, 15 two-bedroom units and 19 three-bedroom units. On-site amenities include common laundry areas, courtyards and parking. The property is 100 percent occupied and fully pre-leased for the 2015-2016 school year. South Meadow Co-Op Inc., backed by Daniel Joseph, Hagan Brown and David Raisner, was the borrower. The 7-year loan features a 30-year amortization schedule.
TAYLOR, TEXAS — The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single-tenant new construction Advance Auto Parts property located at 3508 N. Main Street in Taylor, for $1.98 million. The brand-new Advance Auto Parts building is located across the street from a Walmart Supercenter-anchored development. The property is positioned along the area’s primary north-south thoroughfare. Retailers located in the immediate vicinity to the property include HEB, Walgreens, CVS and Chase Bank. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a southeast-based commercial real estate developer, in the transaction. The buyer was a private individual based in the southwest who utilized a 1031 exchange. Advance Auto Parts has 15 years remaining on their absolute net lease. The lease features 5 percent rental escalations in each renewal option period. Advance Auto Parts is an investment grade rated tenant with a Standard & Poor’s rating of BBB-.
HOUSTON — Berkadia has negotiated the sale of Crystal Falls, located at 10950 Westbrae Parkway in Houston. Chip Nash, Gregory Austin, Wade Schmitz and Bob Heard of Berkadia’s Houston office negotiated the transaction. The property was 96 percent occupied at the time of the sale. Built in 1984, the 165-unit property features studio, one- and two-bedroom floor plans. Each unit features fully equipped kitchens and a balcony or patio. Select units have washer and dryer connections, fireplaces and vaulted ceilings. Community amenities include a swimming pool, jacuzzi, fitness center and controlled-access gate. The community is located near Braeswood Boulevard, State Route 59 and Beltway 8. Crystal Falls is two miles from BraeBurn Country Club and 3.5 miles from Houston Baptist University. Emerge Crystal Falls LLC of Ladera, Calif. was the seller. Bear Valley Delaware Crystal Falls LLC of Sausalito, Calif. was the buyer. The buyer plans to upgrade the unit interiors.
SPRINGFIELD, OHIO — Treetop Development has acquired Sunset Hills, a 128-unit HUD apartment complex in Springfield. Located at 924 Sunset Ave., Sunset Hills consists of studio, one-, two- and three-bedroom units. The property is part of a four-property portfolio, totaling 588 units, that Treetop purchased from GHC Housing for $22.1 million. The other properties are the 160-unit Wayman Manor in Temple, Texas; the 100-unit Talladega Downs in Talladega, Ala.; and the 200-unit Summit Ridge in Birmingham, Ala. Marcus & Millichap represented Treetop Development, and Steven Fleissig of Greenberg Traurig provided legal counsel in the transaction.
ST. PAUL, MINN. — Dougherty Mortgage LLC has closed a $12.3 million HUD 221(d)(4) loan for the construction of The Cambric, an affordable seniors housing community in St. Paul. Restricted to residents 55 years of age or older, the property will offer 113 apartments units, with 23 set aside at fair market rates. Dougherty’s Minneapolis office arranged the 40-year loan for the borrower, St. Paul Leased Housing Associates VI LLLP.
PHILADELPHIA — Berkadia has arranged an $80.4 million loan for the acquisition of ICON 1616, a multifamily property located at 1616 Walnut St. in Philadelphia. The borrower, Castle Rock Equity Group, will use the loan toward the $112 million acquisition of the property. Yuri Kletsman of Berkadia secured the 10-year, fixed-rate loan through Berkardia’s Fannie Mae DUS Program. Terms of the loan include a 4.06 percent interest rate and a 30-year amortization schedule. The financing also incorporated the property’s PILOT program and historic tax credits. Built in 1929, the 25-story property features 206 studio, one-, two- and three-bedroom floor plans. Community amenities include a sky deck with 360-degree views; a grilling station; herb garden and outdoor living area; a yoga studio; a club level with a kitchen, billiard tables, flat-screen televisions and a large-screen media room; and a business center with computers, printers and conference rooms.
BEAR, DEL. — HFF has arranged $45 million in financing for Christiana Meadows, a multifamily property located in Bear. The 10-year loan, which features a 3.62 percent fixed rate, was secured for the borrower, a joint venture between The Commonwealth Group and The Emory Hill Companies. Proceeds of the loan will be used to refinance existing debt on the property. Located at 265 Bear Christiana Road, the 54-building property features 648 one- and two-bedroom apartment units. On-site community amenities include an Olympic-sized swimming pool, sauna, hot tub, playground, tennis court and clubhouse with fitness center and large conference room. At the time of financing, the property was 92 percent occupied. James Conley and Mike Pagniucci of HFF arranged the financing.