GLEN ELLYN, ILL. — Holladay Properties has broken ground on Glenwood Station, a $35 million luxury apartment community in the western Chicago suburb of Glen Ellyn. The development will include 86 units in a variety of studio, one-bedroom and two-bedroom layouts. Amenities will include a clubhouse, fitness center, electric vehicle charging stations and secure heated parking. There will also be 1,500 square feet of retail space. Completion is slated for 2025. Glenwood Station marks the fourth luxury apartment complex in Chicagoland for Holladay Properties. Holladay Construction Group is the general contractor, and Tandem Architecture designed the project. Wintrust Bank & Trust provided financing.
LIVINGSTON, N.J. — JLL has arranged a $49.7 million construction loan for Highgate at Livingston, a 169-unit multifamily project that will be located in Northern New Jersey. The complex will offer one, two- and three-bedroom units that will be furnished with stainless steel appliances, walk-in closets and individual washers and dryers. Amenities will include a pool, fitness center, clubhouse, coworking lounge, outdoor grilling and dining areas and a dog run. Michael Gigliotti, Matthew Pizzolato, Michael Lachs and Benjamin Morgenthal of JLL arranged the floating-rate loan through Truist Bank on behalf of the borrower, Continental Properties.
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Underutilized Hotel Properties Present Conversion Opportunities for Multifamily, Affordable Housing
Walker & Dunlop is finding financial success while helping to provide high-demand, affordable housing in key markets by converting hotel assets into multifamily buildings. Brian Cornell, managing director at Walker & Dunlop Investment Partners (WDIP), says his firm is identifying hotels that are already built out and can accommodate market-rate multifamily use. Extended-stay hotels have the best layout for this type of conversion because their footprint already includes the floor plans and many of the amenities that multifamily residents expect. “The units are typically one-bedroom, but with some two-bedroom suites and studios,” he outlines. “This creates a variety of unit types within the existing physical build-out of the property, and these assets can operate as true multifamily without having to combine walls and do extensive capital renovations.” When it comes to location, Cornell explains, “We prefer infill locations that have strong employment drivers and a dearth of affordable housing.” Underutilized Properties, Multifamily Strategies The three investments Walker & Dunlop has done in the past two years are in the heart of commercial corridors, in areas where there are limited multifamily projects within a two-to-three-mile radius offering rents that can support an 80 percent area median income (AMI) threshold. One is …
CLEVELAND — City Club Apartments has topped off construction of City Club Apartments-Cleveland, a 23-story luxury apartment tower located at 776 Euclid Ave. in Cleveland. The development will include 304 apartment units and penthouses as well as street-level retail space, including a restaurant, basement speakeasy, lobby café, Sky Club café and doggie daycare and spa. Dubbed an “apartment hotel,” the property will offer residents the option to rent a furnished suite or an unfurnished apartment or penthouse. Amenities will include indoor and outdoor theaters, a heated rooftop pool and hot tub, outdoor kitchen, coworking spaces, a bark park, Zen garden, fitness center, yoga studio, wellness room, business center and conference room. Occupancy is slated to begin in October.
MERRIAM, KAN. — Brinkmann Constructors has broken ground on Merriam Grand Station Lofts, a 361-unit luxury apartment project in Merriam, a southwest suburb of Kansas City. Drake Development is developing the project on the site of a former retail development that has been vacant for 10 years. The development is part of the larger Merriam Grand Station, a $72.5 million project including retail, residential and public gathering space. Merriam Grand Station Lofts will consist of two buildings with 73,000 square feet of below-grade parking. Amenities will include a pool, pet wash station, game rooms and electric vehicle charging stations. Completion is slated for 2025.
CHICAGO — Interra Realty has brokered the sale of a 16-unit multifamily property in Chicago’s Logan Square neighborhood for $6.1 million. Located at 2543 N. California Ave., the building was constructed in 1902 and renovated in 2018. There are eight two-bedroom units, five three-bedroom units, one four-bedroom layout and two commercial spaces. Starbucks has been a long-term tenant in one of the commercial spaces. Brad Feldman of Interra represented the seller, Chicago-based Barnett Capital Ltd. Feldman also represented the local private buyer.
BILLINGS, MONT. — PGIM Real Estate has provided $16.1 million in fixed-rate FHA financing to Lincoln Avenue Capital (LAC) for the acquisition and rehabilitation of South Forty Apartments, an affordable seniors housing community in Billings. The property features 101 units and is 100 percent subsidized by a Section 8 contract. The property also has a tax credit LURA on title restricting half of the units to residents earning up to 50 percent of area median income (AMI) and the other half at 60 percent AMI through 2069. LAC plans to complete an extensive rehabilitation of the property that will address deferred maintenance at the property, revitalize the apartments and update site amenities. The property was originally constructed in 1987 and was last renovated in 2007. LAC’s scope of work will include new kitchens and baths, new windows throughout, upgrades to the clubhouse, new solar panels and accessibility repairs. Alex Viorst, executive director at PGIM Real Estate, led the financing on behalf of the firm.
EDINBURG, TEXAS — New Jersey-based Cronheim Mortgage has arranged an $18.3 million construction loan for Las Vilitas, a 200-unit multifamily project that will be located in the Rio Grande Valley city of Edinburg. An undisclosed regional bank provided the loan, which was structured with three years of interest-only payments followed by a 12-year term. The sponsor is locally based developer Verturo Interests. David Poncia led the transaction for Cronheim Mortgage.
SAN ANTONIO — Forum Capital Advisors, a Denver-based investment firm, has provided an $18 million equity investment for Tacara at Steubing Heights, a 293-unit multifamily project that will be located near South Texas Medical Center in San Antonio. The four-story complex will feature studio, one- and two-bedroom units and amenities such as a pool, clubhouse, outdoor lounge and a pet park. The name of the lead developer was not disclosed. Construction is expected to begin before the end of the year and to be complete in 2025.
MORRISTOWN, N.J. — A partnership between New York City-based SJP Properties and Scotto Properties has broken ground on M Station West, a 260,000-square-foot office project in the Northern New Jersey community of Morristown. Designed by Gensler and inclusive of retail space, the two-building complex will serve as the new flagship office of Sanofi, a global pharmaceutical company that is based in Paris. Sanofi plans to employ nearly 2,000 people at the campus, which is slated for a first-quarter 2025 delivery. The partnership completed the 120,0000-square-foot M Station East in July 2022.