WORCESTER, MASS. — Marcus & Millichap Capital Corp. (MMCC) has arranged an $11.2 million acquisition loan for Biotech Park Apartments, a 92-unit multifamily property located in the central Massachusetts city of Worcester. Robert Bhat of MMCC arranged the seven-year, nonrecourse loan, which carried a 65 percent loan-to-value ratio and 5.89 percent fixed interest rate, on behalf of the undisclosed borrower. The direct lender was also not disclosed. Evan Griffith and Tony Pepdjonovic of Marcus & Millichap brokered the sale of the property.
SANTA BARBARA, CALIF. — Following a year of unprecedented performance, the anticipated slowdown in the U.S. multifamily market arrived in November, according to the latest Yardi Matrix National Multifamily Report. The average asking rent in the U.S. fell $9 during the month to $1,719, while year-over-year growth dropped to 7 percent, the lowest level in 17 months. The decreases are attributed to economic headwinds and deteriorating demand. The $9 rollback was the largest one-month decline in rents in over a decade. The deterioration in rents and slowdown of year-over-year performance were expected. Rent increases have exceeded normal growth patterns for nearly two years. Average asking rents increased by 22 percent nationally between January 2021 and October 2022. According to the report, this growth would be unsustainable even under optimal conditions. “With the economy softening, demand for units slowing and rising interest rates creating headwinds for housing, multifamily asking rent growth finally took a turn downward in November,” states the report. “The decades-high inflation rate has left household balance sheets in a weaker position than a year ago, while economic growth is slowing as the Federal Reserve raises interest rates.” Though rent growth has decreased in many metros during the fourth …
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Retail Development Program Lessons Apply Across Property Types
Retail development programs have allowed retailers to streamline their goals by creating prototype models based on site particulars. This process saves developers and retailers money as they can be flexible in choosing models that work for each site without needing to alter layouts and features too much between builds. But what makes for successful prototypes and program standards? Can this approach work outside of the retail world? “The lessons of retail programs can apply across property types in this sense: land development consultants and site designers can learn how specific clients need their set of standards and guidelines implemented. It’s essential to thoroughly understand a program client’s procedures, and we’re expected to know these parameters inside and out,” says Steven T. Fortunato, a senior project manager at Bohler’s Rehoboth Beach office in Delaware. Bohler is a land development design and consulting firm that specializes in helping developers move their projects forward faster. “The retail program methodology translates well to other sectors. Starting off with either a new developer or a new client is an opportunity to learn their standards — or help the client create them. The end result must offer the same level of confidence whether the product is retail or …
INDIANAPOLIS — BAM Capital has acquired Gateway Crossing, a 160-unit multifamily community located in Indianapolis. Built in 2004, the property features garden-style apartments. The seller and purchase price were undisclosed. The property offers a diverse array of floorplans and is consistent with BAM’s focus on acquisitions that provide stable cash flow, appreciation potential and capital preservation, according to the company. The property is the latest addition to the BAM Multifamily Growth & Income Fund III. Other recent Indianapolis multifamily acquisitions include Hamilton Station and The Bristol. The fund, which is currently accepting capital from accredited investors, acquires Class B+ to A- assets built after 2000.
PANAMA CITY BEACH, FLA. — CBRE has brokered the sale of Sea Sound Apartments, a newly constructed, 300-unit multifamily community in Panama City Beach. Cliff Taylor, Joe Ayers, Paul Berry and Don Hoffman of CBRE represented the seller, Flournoy Development, in the transaction. Passco Cos. purchased the property for an undisclosed price. Located at 10400 Panama City Parkway, Sea Sound features four buildings comprising units in one-, two- and three-bedroom layouts, with an average unit size of 1,082 square feet. Amenities at the community include a pool, outdoor cabana with fire pits, grilling areas, a clubhouse, business center, fitness center and spin room, dog park, pet grooming station, playground, pickleball court and RV and boat parking.
PARIS, TEXAS — Dallas-based brokerage firm The Multifamily Group (TMG) has negotiated the sale of The Pavilion, a 24-unit complex in Paris, located about 100 miles northeast of Dallas. According to Apartments.com, the property was built in 1984 and offers one- and two-bedroom units ranging in size from 750 to 950 square feet, as well as outdoor grilling and dining areas and a dog park. Chase Davis of TMG represented the buyer and seller, both of which requested anonymity, in the transaction.
EVERETT, MASS. — South Carolina-based developer Greystar has broken ground on a 325-unit multifamily project in the northeastern Boston suburb of Everett. The site at 1690 Revere Beach Parkway previously housed a Stop N Shop grocery store. The project, which represents Phase I of a larger, 741-unit development, will ultimately house 875 parking spaces, 9,500 square feet of retail space and 22,800 square feet of indoor and outdoor amenities. CUBE3 Architects designed the project. Phase I is slated for an early 2025 completion.
CHARLESTOWN, MASS. — MassHousing has provided $31 million in financing for City Square Elderly Housing, a 120-unit affordable seniors housing complex in Charlestown, a northern suburb of Boston. The complex was originally constructed in 1900 and renovated in 1985. Units come in studio and one-bedroom floor plans. The borrower, CSI Support & Development Services, will use the proceeds to refinance existing debt, fund capital improvements and preserve the property’s affordability status. The loan carried a 35-year term and a fixed interest rate.
BRIGHTON AND NORTHGLENN, COLO. — The Ensign Group Inc. (NASDAQ: ENSG) has acquired the operations of Brighton Care Center, a 108-bed skilled nursing facility located in Brighton, and Malley Transitional Care Center, a 162-bed skilled nursing facility located in Northglenn. These acquisitions are subject to a long-term, triple-net lease. “We are excited about growing in Colorado,” says Barry Port, Ensign’s CEO. “These facilities are a great fit to our existing portfolio and we look forward to the contribution each will have in our operational market and clusters in Colorado.” This acquisition brings Ensign’s growing portfolio to 271 healthcare operations, 26 of which also include senior living operations, across 13 states.
ATLANTA — This year has been a tumultuous one for multifamily construction. Between rising interest rates, fluctuating supply lines, costs of materials and difficulties procuring labor, developer confidence in new multifamily starts is faltering as work on current projects is beginning to slow. “In this market, it’s so hard to stay abreast of all of the changes that are happening,” said Cara Frost, director of preconstruction at Juneau Construction, which is based in Atlanta. “And that has led to a more design-assist approach on our end.” Frost’s comment came during the “What to Look for in Architecture, Design and Construction Trends in 2023” panel at the 13th annual InterFace Multifamily Southeast on Dec. 1. France Media hosted the event at the Westin Buckhead hotel in Atlanta. There were approximately 325 conference attendees. Joe Martinez, president of Atlanta-based real estate development and investment firm Vida Cos., moderated the panel. Speakers discussed the challenges they are currently facing and emphasized the importance of collaboration and transparency early in the process of a project. “There are three buckets — budget, time and quality — and right now, you get to be really good at two of those things,” remarked Josh Kassing, vice president …