CHICAGO — Sterling Bay has topped out construction of 160 N Morgan, the firm’s first residential building in Chicago’s Fulton Market district. The 282-unit apartment building will feature amenities such as an exterior rooftop pool deck, fitness center, training room, outdoor fitness deck, resident lounge, covered outdoor dog run and coworking spaces. Sterling Bay is developing the project in partnership with Ascentris, a Denver-based real estate private equity firm. The project’s capital structure includes senior-secured financing from CIBC Bank USA. Sterling Bay has set aside 28 units for affordable housing. Chicago-based bKL Architecture is the project architect. Walsh Group is leading construction alongside joint venture partner BOWA Construction. Pre-leasing is scheduled to begin in July. The first units are slated for completion in September.
GRAND RAPIDS, MICH. — Thompson Thrift has sold The Grove, a 320-unit apartment complex in Grand Rapids, for an undisclosed price. A private real estate investment firm purchased the Class A community. Completed in August 2022, The Grove features floor plans that average 1,200 square feet. Amenities include a resident social lounge, fitness center, heated pool and spa, grilling areas, pickleball courts, dog park and pet spa. Jason Krug of Berkadia brokered the sale on behalf of Thompson Thrift.
EXCELSIOR, MINN. — Locally based Red Leaf Partners LLC and Monarch Development Partners LLC are developing One West Drive, a 49-unit apartment building in Excelsior, a western suburb of Minneapolis. The project site is situated near Lake Minnetonka and dozens of restaurants and shops. The development will include a 322-stall parking garage, of which 78 stalls will be dedicated to One West Drive residents. Andy Finn of Northmarq arranged equity and debt financing for the project. Denver-based Brue Baukol Capital Partners is the equity partner, and MidWestOne Bank is providing a construction loan. The loan features a 65 percent leverage on a three-year term with three years of interest-only payments.
LOS ANGELES — Landmark Properties has announced plans to develop a student housing community near the University of Southern California (USC) campus in Los Angeles. Located at the corner of West 39th and South Figueroa streets, the property will offer 435 units in studio through five-bedroom configurations. The development will also include 87 affordably priced units, which will be reserved for students at the low-income level or below. Landmark is still in the planning phase for the project, which is expected to feature more than 1,500 beds. Shared amenities will include a clubhouse; rooftop resort-style swimming pool and grilling area; computer lab; fitness center; on-site parking; and 20,000 square feet of ground-floor retail. Construction is set to begin by the end of 2023, with completion scheduled for fall 2026. Landmark Urban Construction will serve as general contractor for this project. Kevin Shannon, Ken White, Greg Galusha, Bryan Norcott, Ryan Lang, Jack Brett, Chris Benton and Anthony Muhlstein of Newmark, in collaboration with Eric Bergstrom at Bergstrom Capital Advisors, brokered the acquisition of the development site from Ventus Group for an undisclosed price.
WESTLAKE VILLAGE, Calif. — LTC Properties Inc. (NYSE: LTC), a Westlake Village-based REIT, has sold two skilled nursing centers in New Mexico. The two centers, totaling 235 beds, were sold for $21.3 million, generating proceeds of $20.8 million. The proceeds will be used to pay down the company’s unsecured revolving line of credit. LTC anticipates recording a gain on sale of approximately $15 million in first-quarter 2023. As a result of the sale, the two properties were removed from the operator’s master lease, and LTC provided a rent decrease of 7.5 percent of the net proceeds, or approximately $1.5 million of cash rent, to the operator. The centers were built in 1975 and 1985. “As part of our active asset management program, we identify opportunities to reduce the age of our portfolio and provide us with capital that can be better deployed through new investments or deleveraging our balance sheet,” says Wendy Simpson, LTC’s chairman and CEO. “This sale was in the best interest of LTC and the operator, and we look forward to continue working with them through the four skilled nursing centers and one behavioral hospital they continue to operate under the master lease.”
LOS ANGELES — Standard Communities, an affordable housing developer and investor based in Los Angeles, has acquired controlling interest in an affordable housing portfolio of approximately 3,200 units in Florida and Georgia. The seller and price were not disclosed. This is Standard Communities’ largest acquisition to date. The portfolio includes the firm’s first acquisitions in Florida and first affordable housing acquisitions in Georgia. “Standard is expanding its portfolio in the Southeast to foster more thriving communities in the region,” says Jeffrey Jaeger, co-founder and principal of Standard Communities. “High-quality, well-maintained affordable housing is crucial to the well-being and livelihood of so many people.” Standard Properties is partnered with Apartment Life, a Dallas-based nonprofit organization that works to increase renters’ access to education and healthcare, foster community engagement, reduce food insecurity and provide opportunities for economic mobility. The firm plans to invest $25 million in capital improvements across the portfolio. Apartment Management Consultants and Arco Management Corp. will manage the properties. Also in Georgia, Standard Communities recently broke ground on a project in Savannah that will convert a 1920s-era Atlantic Coast Line Railroad office building into a 219-unit market-rate apartment community. — Channing Hamilton
FORT WORTH, TEXAS — Locally based developer Palladium USA is underway on construction of Palladium Oak Grove, a 240-unit mixed-income residential project in Fort Worth. Residences will come in one, two- and three-bedroom formats, and amenities will include a pool, fitness center, conference center, dog park, computer lounge, kid’s playroom and a resident clubroom. Cross Architects is designing the project, and Treymore Construction is the general contractor. The Texas Department of Housing & Community Affairs issued $25.6 million in tax-exempt bonds that were purchased by Cedar Rapids Bank & Trust to fund the project. PNC Bank also provided over $23 million in equity. Palladium Oak Grove’s first units are expected to be complete in May 2024.
TALLAHASSEE, FLA. — KeyBank Community Development Lending and Investment (CDLI) and KeyBank Real Estate Capital have provided $49 million in construction financing for Magnolia Family II, an affordable housing development in Tallahassee. The community’s 160 units will feature 128 apartments that will be affordable to households earning 33 percent and 60 percent of the area median income (AMI). The remaining 32 units will be rented at market rates. The borrower is Columbia Residential, which is developing Magnolia Family II in partnership with the landowner, Tallahassee Housing Authority. CDLI provided a $33 million construction loan and a $15.9 million Freddie Mac forward commitment permanent loan to Columbia Residential. Reginald Fenn of CDLI and Leslie Meyers of KeyBank originated the financing. Additionally, RBC provided $19.5 million in LIHTC equity, and Tallahassee Housing Authority approved project-based vouchers. Magnolia Family II is the second phase of the redevelopment of a public housing complex operated by the Tallahassee Housing Authority that was originally constructed between 1971 and 1972. Phase I of Magnolia Family is set to open in November.
FAYETTEVILLE, N.C. — StoutCap, a real estate investment firm specializing in raising capital from passive investors, has closed on its $9.2 million acquisition of Treetop Apartments in Fayetteville. The seller was not disclosed. The buyer plans to renovate the interiors of all 146 apartments, as well as upgrade the property’s amenities and exteriors. Treetop is situated on 10.4 acres and features a pool, lounge area, onsite laundry facilities, picnic area with grills and onsite property management and maintenance. StoutCap expects the value-add acquisition to double the return for investors in six years. The buyer plans to return 100 percent of capital to its investors in three years.
NORTH BERGEN, N.J. — Hall Structured Finance, a Dallas-based lender, has provided a $52.5 million construction loan for The Braddock Apartments, a 135-unit multifamily project located across the Hudson River from Midtown Manhattan in North Bergen. New York City-based Sanz Management is developing the 10-story building, which will also house 2,400 square feet of retail space. Units will come in studio, one- and two-bedroom floor plans and will be furnished with stainless steel appliances, walk-in closets and individual washers and dryers. Private balconies/patios will also be available in select residences. Amenities will include a fitness center, coworking lounge and a rooftop terrace. Peter Nicoletti, Dylan Kane and Zach Redding of Colliers arranged the loan. Construction is slated for a summer 2025 completion.