ATLANTA — Berkadia’s Seniors Housing & Healthcare team has arranged the sale of Brighton Gardens of Buckhead, a 112-unit seniors housing community in Atlanta’s Buckhead district. Metro Atlanta-based PruittHealth purchased the asset from Indianapolis-based Prime Care One LLC for an undisclosed price. Cody Tremper, Mike Garbers, Dave Fasano and Ross Sanders of Berkadia represented the seller in the transaction. Additionally, Jay Healy of Berkadia arranged a $13 million bridge-to-HUD loan for the acquisition of Brighton Gardens, as well as the refinancing of two separate skilled nursing facilities in Georgia. The three-year, fixed-rate loan features interest-only payments for the full term and is prepayable at any time. Built in 1996, Brighton Gardens features both assisted living and memory care units.
ELMWOOD PARK, N.J. — JLL has arranged financing for Riverwalk Phase IV, a 150-unit multifamily project that will be located in the Northern New Jersey community of Elmwood Park. Thomas Didio Jr. and John Cumming of JLL arranged the financing, which consisted of a $32 million, floating-rate construction loan from Provident Bank and a $17 million preferred equity investment from Hickory CRE Lending. The initial phases of the larger Riverwalk development were completed in 2012-2013. The final phase, which is slated for a fourth-quarter delivery, will also feature 15,000 square feet of retail space.
LAKEWOOD, COLO. — San Diego-based ColRich Multifamily has acquired Belmar Villas, an apartment property located at 700 S. Reed Court in Lakewood, a first-ring suburb west of Denver. The name of the seller and acquisition price were not released. Built in 1970, Belmar Villas features 17 residential buildings totaling 318 units and a leasing office on 18 acres. The property offers one-, two- and three-bedroom layouts with an average unit size of 856 square feet. Community amenities include a fitness center, resort-style pool and hot tub, clubhouse, playground and basketball court. Terrance Hunt, Shane Ozment, Andy Hellman, Justin Hunt, Chris Hart and Brad Schlafer of CBRE’s multifamily investment properties team in Denver represented the seller. Troy Tegeler, Trevor Breaux and Ryan Greer of CBRE Debt & Structured Finance in Greater Los Angeles arranged acquisition financing for the buyer.
OSWEGO, ILL. — Marcus & Millichap has brokered the sale of Light Road Apartments in Oswego for an undisclosed price. Built in 1972, the 168-unit multifamily property is situated on 10 acres. One-bedroom units average 561 square feet, and two-bedroom floor plans average 750 square feet. Amenities include a clubhouse, pool and laundry facility. Ryan Engle and Andrean Angelov of Marcus & Millichap represented the seller, a private investor. The duo procured the buyer, a private investor, in conjunction with colleague Zack Mahoney.
By Adam Ferguson, Bernard Financial Group If 2022 was a lesson in how rapidly things can change in commercial real estate, 2023 was an exercise in adaptation for both borrowers and lenders alike. Detroit is no stranger to change or adaptation. From becoming the Motor City and growing into the country’s fourth-largest city during the first half of the 20th century to a renaissance in the 2010s after several decades of bumps and bruises, Detroit continues to add to its storied history. With billions of dollars of investment within the city limits and growing suburban sectors, Detroit’s multifamily market is making significant advancements by adding fresh developments to a market where 38 percent of multifamily inventory is over 50 years old. While certainly not the only catalyst, low interest rates help to spur development. Lower cost of capital is especially impactful in markets like Detroit where building costs are high and rents are low compared with other major markets. Southeast Michigan averaged over 3,800 units of multifamily housing building permits issued per year over the past decade. Compare that to an average of 988 from the decade prior and one can discern the growth in demand for multifamily housing financing …
In a way, the dynamics of public-private partnerships (P3s) are the same as they’ve always been. “The reasons why universities elect to go the P3 route haven’t changed much,” says Michael Baird, managing director of municipal finance for RBC Capital Markets. “For many, the decision is made based on speed to market. This happens when other alternatives can take years — resulting in an opportunity cost of not being able to provide housing to students that need housing now, in addition to increased development expenses as construction costs continue to increase year over year.” These costs — both the ones saved and the ones incurred by the university — have become increasingly important in today’s economic climate. The cost of construction materials has increased by an average of 19 percent since 2020, notes facility and construction insights provider Gordian. Meanwhile, the annual student housing rent at purpose-built communities rose by an average of 8.8 percent between November 2022 and May 2023, according to RealPage. Construction costs make it easy to see why it’s more difficult to get projects to pencil right now…and increasing demand shows why it’s more important than ever to get them off the ground. Jay Pearlman, senior vice president …
DENVER — Gelt Venture Partners has acquired Allure Apartments, a multifamily community located at 1300 S. Willow St. in Denver. Sares Regis Group sold the asset for $68.2 million. Built in 2002 and renovated in 2023, Allure Apartments features 252 one- and two-bedroom apartments spread across 12 two- and three-story buildings. Community amenities include a 24-hour fitness center, heated pool, private detached garages, parcel package lockers, a business center, coffee bar and resident clubhouse. The recently upgraded units offer washers/dryers, wood-style flooring, granite countertops, stainless steel appliances, updated cabinets, upgraded light fixtures, carpeted bedrooms, patios or balconies, and nine-foot vaulted ceilings. Jordan Robbins of JLL represented both sides of the transaction.
DULUTH, MINN. — Kraus-Anderson Duluth has completed Zenith DCHS, a $34.9 million project that converted the Historic Old Central High School in downtown Duluth into 122 apartment units. Designed by AWH Architects and owned by Saturday Properties, the four-story building boasts the city’s landmark clock tower. The building was constructed in 1892 as Duluth Central High School (DCHS) and is listed on the National Register of Historic Places. Amenities for apartment residents include a fitness center, sauna, coworking space, auditorium and workshop.
TOLEDO, OHIO — Welltower Inc. (NYSE: WELL) has agreed to acquire 25 active adult properties from Affinity Living Communities for $969 million. The off-market transaction is part of a long-term strategic partnership between the two companies, with plans for future development activity together. The portfolio encompasses nearly 3,900 units predominately located in the Pacific Northwest. Welltower says the acquisition will enable the company to strategically scale the geographic reach of its active adult portfolio into markets with a five-year projected population growth in the 55-plus demographic that is more than 2.5 times higher than the U.S. average. Post-closing, Affinity will continue to manage the portfolio subject to a terminable management contract. Welltower plans to fund the acquisition using cash on hand and the assumption of $523 million of below-market-rate debt with an average interest rate of 3.8 percent and a nine-year weighted average maturity. The purchase price of approximately $249,000 per unit represents a significant discount to replacement cost, according to Welltower. The average property age is eight years. The transaction is expected to close in tranches over the next several months with timing dependent on property-level loan assumption approvals. The deal will expand Welltower’s in-place and under-development active adult …
HOUSTON — Dallas-based multifamily developer Palladium USA will develop a $35 million affordable housing project in northeast Houston. Palladium Houston Ella will be a three-story, 146-unit building that will house one-, two- and three-bedroom units. About 78 percent (115) of the units will be reserved for renters earning between 30 and 60 percent of the area median income, and the remainder will be rented at market rates. Amenities will include a pool, fitness center, conference center, dog park, computer lounge, kid’s play area and a clubroom. Palladium USA is developing the project in partnership with the Harris County Housing Finance Corp. HEDK Architects is designing the property, and Brownstone Construction is serving as the general contractor.