Multifamily

Reis Expects U.S. Apartment Market Vacancy Rate to Keep Climbing in 2016

by John Nelson January 7, 2016

NEW YORK — The national apartment vacancy rate climbed 10 basis points in the fourth quarter to 4.4 percent, according to Reis. This marked the second consecutive quarter that vacancy ticked up for the multifamily sector, something that hasn’t happened since the third and fourth quarters of 2009. Ryan Severino, senior economist and director of research at New York-based Reis, believes that the two-quarter decline represents a turning point in the U.S. apartment market. “With construction outpacing demand, the national vacancy rate should slowly drift higher over the coming years,” writes Severino in the report. Reis reports that while demand and supply have been largely in balance between mid-2013 and mid-2015, that has started to change over the last two quarters. Construction exceeded absorption by 12,350 units in the third quarter and 15,263 units in the fourth quarter. For comparison, construction only exceeded demand by 3,471 units in the second quarter. “With construction continuing to increase and net absorption generally stabilizing, this rift should continue to widen over time putting further upward pressure on the national vacancy rate,” writes Severino. For 2015, the total number of units completed was 188,306, according to Reis. This is the highest figure since 1999 when the total was …

January 7, 2016

Multifamily Top Stories

CBRE Brokers $120M Sale of Luxury Apartments in South Florida

by Haisten Willis January 6, 2016

MIRAMAR, FLA. — CBRE has brokered the sale of Modera Town Center, a new 487-unit, Class A multifamily asset located at 11575 City Hall Promenade in the Miami suburb of Miramar. CIP II/MRCT Miramar Town Center LLC, a joint venture between CrossHarbor Capital Partners and Mill Creek Residential Trust, sold the asset to Miramar Apartment Co. for $120 million. The property is located within the 54-acre, master-planned Miramar Town Center, which includes mix of 320,000 square feet of office, retail and civic buildings. “Anchored by the 6 million-square-foot Miramar Park of Commerce, the Miramar address represents one of Broward County’s largest and most sought-after office and industrial markets,” says Robert Given, vice chairman of CBRE Multifamily. The property is 88 percent leased with an average market rent of $1.78 per square foot. Modera Town Center consists of 353 units in two midrise buildings and a mix of 134 two- and three-bedroom townhomes. Interior finishes include granite countertops, ceramic tile flooring, espresso cabinets, stainless-steel GE appliances, accessories, tile backsplash, full-size washer and dryer and knockdown finishes on the walls and ceiling. All units feature covered parking via a parking garage for the midrise units or direct access garages in the townhomes. …

January 6, 2016

Industrial Multifamily Office Retail Texas

NOVUS Brokers Sale of 11-Acre Tract on Highway 380 in Metro Dallas

by Haisten Willis January 6, 2016

PRINCETON, TEXAS — NOVUS Realty Advisors’ Tom Grunnah has completed the sale 11 acres for client and former property owner Wells Fargo Bank NA. The land is located at the southwest corner of the US Highway 380 and Cypress Bend intersection, just east of downtown McKinney in Princeton. The buyer, F&L LLP, plans to divide the property and sell commercial pad sites to end users.

January 6, 2016

Mixed-Use Multifamily New York Northeast Retail

TerraCRG Arranges $2.2M Sale of Mixed-Use Building in Brooklyn

by Amy Works January 6, 2016

NEW YORK CITY — TerraCRG has arranged the sale of a mixed-use building located at 128-130 Cortelyou Road in Brooklyn’s Kensington neighborhood. Sugar Hill Capital Partners acquired the two-story, eight-unit building for $2.2 million, or approximately $316 per square foot. The property features five ground-floor commercial units and three three-bedroom units on the upper level. Additionally, the property features approximately 4,800 buildable square feet as of right. Adam Hess, Sam Shalumov, Eddie Setton and Kirill Galperin of TerraCRG were the sole brokers in the transaction.

January 6, 2016

California Multifamily Western

TruAmerica Buys the Millennium Apartments in Los Angeles for $163M

by Nellie Day January 6, 2016

LOS ANGELES — TruAmerica Multifamily has acquired the 395-unit Millennium apartment community in the Los Angeles submarket of Woodland Hills for $163 million. The luxury community is located at 21021 W. Erwin St. within the Warner Center district. The property will be rebranded as the Motif. This is the sixth multifamily acquisition in Los Angeles County for TruAmerica, and the second-largest single-asset purchase for the Los Angeles-based real estate investment firm. CBRE’s Brian Eisendrath and Cameron Chalfant arranged acquisition financing with a 10-year, fixed-rate loan.

January 6, 2016

Arizona Loans Multifamily Western

Bank of America Merrill Lynch Provides $97M Credit Facility to Refinance Multifamily Portfolio in Arizona

by Nellie Day January 6, 2016

PHOENIX — BH Properties has received a $97 million credit facility to refinance a multifamily portfolio in the Phoenix area. The portfolio contains 12 properties and about 3,000 apartment units. The Bank of America Merrill Lynch credit facility replaces multiple existing loans with various lenders. The properties average a 93 percent occupancy rate.

January 6, 2016

Maryland Seniors Housing Southeast

Mid-Atlantic Health Care Acquires Four Skilled Nursing Facilities in Maryland

by John Nelson January 6, 2016

BALTIMORE — Mid-Atlantic Health Care LLC, a Baltimore-based healthcare provider, has purchased four skilled nursing facilities in western and central Maryland for an undisclosed price. The four facilities include Northampton Manor Health Care Center in Frederick, Devlin Manor Health Care Center in Cumberland, Julia Manor Health Care Center in Hagerstown and Moran Manor Health Care Center in Westernport. The seller is The Magnolia Group, a skilled nursing owner/operator in Maryland and Pennsylvania. The company will continue to provide services to the facilities through its affiliate, Magnolia Rehabilitation Services LLC. With these acquisitions, Mid-Atlantic will now operate the largest group of facilities in western Maryland and become one of the region’s largest employers, according to the company. Adding the Magnolia facilities will increase Mid-Atlantic Health Care’s total number of locations from 17 to 21.

January 6, 2016

Midwest Minnesota Multifamily Seniors Housing

LCS, Weitz Open $161M Seniors Housing Community in Minneapolis Suburb

by Christina Cannon January 6, 2016

PLYMOUTH, MINN. — Design and construction firm The Weitz Co. and developer LCS have opened the doors to Trillium Woods, a 46-acre continuing care retirement community in the Minneapolis suburb of Plymouth. The 500,000-square-foot community cost $161 million to develop. The buildings are split into a 50,000-square-foot commons building, a 58,000-square-foot health center and three independent living buildings totaling 392,000 square feet. The three-level health center building contains 44 memory care and skilled nursing units. The independent living buildings contain 195 apartments. In addition, there are 14 detached townhome residences in seven separate buildings. Life Care Services, a subsidiary of LCS, will operate the new community.

January 6, 2016

Midwest Minnesota Multifamily

Marcus & Millichap Arranges $2.4M Sale of 13-Unit Apartment Property in Minneapolis

by Christina Cannon January 6, 2016

MINNEAPOLIS — Marcus & Millichap has arranged the sale of a 13-unit apartment property in Minneapolis for $2.4 million. The property is located at 2118 Dupont Ave. S. A Japanese investor purchased the asset from an undisclosed buyer. Bill Bailey and John Bailey of Marcus & Millichap listed the property on behalf of the seller who was a private investor. A Chicago-based investment fund represented the buyer in the transaction.

January 6, 2016

Midwest Multifamily Wisconsin

Continental Properties to Build 480-Unit Apartment Project in Kenosha, Wisconsin

by Christina Cannon January 6, 2016

KENOSHA, WIS. — Continental Properties has purchased land for the future development of an apartment project in Kenosha, approximately 40 miles south of Milwaukee. North Shore Bank sold a 48.5-acre land parcel to Continental Properties for $2.6 million. Continental Properties plans to develop 280 units in Phase I and an additional 200 units in Phase II. Phase I is scheduled to start this spring. Upon completion, the project can be accessed from 125th Avenue or 71st Street. Andrew Stefanich of CBRE was the sole broker for the land parcel transaction.

January 6, 2016

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