PHILADELPHIA — Locally based brokerage firm The Prestige Group has arranged the $8.2 million sale of a portfolio of two multifamily buildings totaling 50 units in Philadelphia’s Mount Airy neighborhood. Both buildings rise four stories and predominantly house one- and two-bedroom units. Bob Cohen of Prestige Group represented the seller in the off-market transaction, and Jon Mirsky and Sajan Shah of Prestige Group represented the buyer. Both parties requested anonymity. The portfolio was 95 percent occupied at the time of sale.
HILLSBOROUGH, N.J. — New Jersey-based developer Adoni Property Group has begun leasing The Franklin at Hillsborough, a 44-unit multifamily project in Northern New Jersey. The property offers one- and two-bedroom units ranging in size from 1,000 to 1,300 square feet that are furnished with stainless steel appliances and quartz countertops. Rents start at $2,350 per month for a one-bedroom unit.
MADISON, WIS. — Associated Bank has structured $14.1 million in construction financing for The Shield Apartments, a 44-unit affordable housing development in Madison. The financing includes a $6.9 million construction loan and $7.2 million in Low-Income Housing Tax Credit equity. The Salvation Army is the developer. The project will include 16 studio and 28 one-bedroom units for residents earning 30 to 60 percent of the area median income. Twenty-two of the units will be set aside for survivors of domestic violence and 11 will be designated for persons prone to homelessness. Amenities will include an onsite leasing office, community room and offices for supportive services. The project is part of the Salvation Army’s goal of transforming its existing Madison building from a standalone shelter for women and families into a multi-building campus that offers affordable housing and community support services. Teresa Rubio and Stefanie Bachrach of Associated Community Development LLC managed the loan and equity closings.
ALAMEDA, CALIF. — Wood Partners and Principal Real Estate have opened Alta Star Harbor, a residential property located at 1518 Clement Ave. in Alameda. The property is a combination of new construction and the adaptive reuse of a 100-year-old Del Monte warehouse, with all residences located within the six-acre historic brick façade. Additionally, select units feature preserved original timber roofs, brick walls and concrete floors combined with modern apartment amenities. Designed by BAR Architects, Alta Star Harbor features 372 apartments in a mix of studio, one-, two- and three-bedroom layouts. Units range from traditional apartment-style homes and townhome options to work/live units. Each apartment offers open floor plans, stainless steel appliances, quartz countertops, hard-surface flooring, full-size washers/dryers and temperature control. Community amenities include paseos with landscaped gardens, rooftop sundecks, retail space, a fitness center and yoga studio, Wi-Fi lounge with workspace booths, a clubroom for resident events with a community kitchen, and complimentary coffee bar. Wood Residential will manage the property.
SAN DIEGO — A joint venture between affiliates of Rockwood Capital and MG Properties has purchased Domain San Diego, a multifamily community in San Diego’s Kearny Mesa neighborhood, for an undisclosed price. The sellers were the real estate business within Goldman Sachs Asset Management and Magnolia Capital. Domain San Diego features 379 apartments in a mix of studio, one- and two-bedroom apartments, competitive community amenities and easy access to freeways 163 and 52. Joseph Smolen, Geoff Boler, Mark Peterson, Jonathan Merhaut and Eugene Chong of Eastdil Secured represented the sellers in the deal.
ALBUQUERQUE, N.M. — Northmarq has arranged the sale of two apartment communities in Albuquerque for an undisclosed price. ABQ Encore LLC and Uptown Horizon Apartments LLC sold the assets to CS ABQ Encore and CA ABQ Uptown, ownership entities of New York-based Crescent Sky Real Estate Partners, with loan assumptions and no new debt. The properties are the first acquisitions in Albuquerque by Crescent Sky Real Estate Partners. Located at 810 Eubank Blvd. NE, ABQ Encore features 129 residences split between 331-square-foot studio units and 551-square-foot one-bedroom units. The property was built in 1971 and converted from a hotel to a multifamily community in 2017. Community amenities include a laundry facility, 24-hour fitness center and pet park. Built in 1961, Uptown Horizon features 79 apartments, including 55 studio units and 24 one-bedroom units. The property’s roof was replaced in 2018, and 25 of the units underwent light upgrades with new kitchen appliance packages. Onsite amenities include a swimming pool, laundry facilities, outdoor grills and picnic areas. Uptown Horizon is located at 7601 Lomas Blvd. NE. Cynthia Meister, Trevor Koskovich and Jesse Hudson of Northmarq represented the sellers in the deal.
Against increasingly turbulent macroeconomic conditions, capital sources in both the debt and equity markets are being pickier about which multifamily deals they finance or invest in, with higher required rates of return (RRR) emerging as the symbol of this newfound selectivity. The macroeconomic deck is indeed stacked against capital sources. Borrowing costs have quintupled over the last eight months as the Federal Reserve has waged war on inflation, rattling off seven rate hikes for an aggregate increase of 425 basis points. Prices of key construction materials continue to fluctuate wildly as labor issues, both domestic and abroad, continue to entangle global supply chains. But lenders and investors can only sit on the sidelines for so long. To hedge their bets against market conditions beyond their control, many capital sources in the multifamily space are only giving serious consideration to deals and projects in which the path to a certain rate of return — or exit cap rate — is clear and plausible. The movement in RRR that multifamily owners and developers are facing from their capital partners formed a core part of the discussion at the 13th annual InterFace Multifamily Southeast conference. Hosted by Atlanta-based France Media, the event took …
LAWRENCEVILLE, GA. — JLL Capital Markets has brokered the sale of The Fieldhouse, a multifamily community featuring 252 residential units and 10,112 square feet of commercial space in Lawrenceville, roughly 30 miles northeast of Atlanta. Built in 2021, the property overlooks Coolray Field, home ballpark of the Minor League Baseball team Gwinnett Stripers. The Fieldhouse comprises three buildings with units in studio, one- and two-bedroom layouts. Amenities include a rooftop lounge, pool deck, grilling stations, two dog parks, a club and game room, workspace, a kitchen and bar for entertaining, a yoga studio and a fitness center. John Weber, Vic Ciancetta and Cade Songy of JLL represented the seller, Brand Properties, in the transaction. Bonaventure Realty Group was the buyer. The sales price was not disclosed.
COSTA MESA, CALIF. — Costa Mesa-based Boardwalk Investments Group, led by Gary Jabara and Debi Kroger, has received $245 million in financing for a portfolio of properties in California. John Chun, John Marshall, Jordan Leake and Spencer Seibring of JLL Retail Capital Markets Debt Advisory secured the permanent financing from four lenders. The portfolio includes: The Estate, a 22-acre hospitality and destination retail complex in downtown Yountville. The property features the 193-room Hotel Villagio, Vintage House and the five-bedroom Villa at The Estate. Aliso Creek Shopping Center, a 49,149-square-foot, 92-percent occupied retail center in Laguna Beach. Flower Hill Promenade, a 168,249-square-foot, 95.6-percent leased retail center in Del Mar. The Landing, a 44,289-square-foot, fully leased shopping center on the Balboa Peninsula in Newport Beach. 1810 State Street, a 99-unit mid-rise apartment complex in downtown San Diego’s Little Italy neighborhood. Restoration Hardware Yountville, a single-tenant wine vault and restaurant space in downtown Yountville.
TUALATIN, ORE. — Kidder Mathews has arranged the sale of Fox Meadows Apartments, a garden-style multifamily property in Tualatin. Trion Properties sold the asset to a California-based national multifamily investor for $19.3 million. Tyler Linn, Jordan Carter and Clay Newton of Kidder Mathews represented the seller in the deal. Located at 19545 and 19605 SW Boones Ferry Road, Fox Meadows features 95 apartments in a mix of one-, two- and three-bedroom units.