PATERSON, N.J. — Locally based brokerage firm Gebroe-Hammer Associates has negotiated the $3.7 million sale of two apartment buildings totaling 18 units in the Northern New Jersey community of Paterson. The buildings are located in the Wrigley Park area and include commercial uses. Debbie Pomerantz of Gebroe-Hammer represented the seller and procured the buyer, both of which requested anonymity, in the transaction.
PRESCOTT, ARIZ. — Montezuma Heights Investors has unveiled plans for Montezuma Heights, a $41 million luxury multifamily development in Prescott. The groundbreaking ceremony will be held July 13. The development, located at 609 Bagby Drive, will feature 144 apartment units with one- to three-bedroom floor plans. Amenities will include a state-of-the-art gym, lounge, outdoor grotto with grilling area, dog parks, multiple fire pits and electric car charging stations. The community will also have a trail connection to Granite Creek Park and the Depot shopping center. The developer expects the construction process to take 20 months. MEB Management will serve as the community’s manager and leasing agent.
ST. PAUL, MINN. — Kraus-Anderson has completed Phase II construction of Lexington Landing, a $24 million seniors housing development in St. Paul’s Highland Park neighborhood. Designed by Pope Design Group, the four-story building features 92 independent living units. Amenities include a pickleball court, golf simulator, club lounge, community room, library, community garden, dog park, rooftop patio, fitness room and guest suite. Lexington Landing also offers event and activity programming, spiritual care and scheduled transportation. J.A. Wedum Foundation is the owner and PHS Management LLC is the property manager.
PHOENIX — Topp Corp. has purchased The Marlowe, a 53-unit apartment complex in Phoenix, for $8.4 million. Built in 1968, the majority of the apartment interiors have been renovated with new cabinets, countertops, appliances, flooring and lighting. The average unit size is 552 square feet. The Marlowe offers new ownership an opportunity to implement a comprehensive value-add strategy by renovating the remaining 20 percent of apartment interiors and adding custom touches to enhance the community. The community enjoys a central location near Tempe, Scottsdale and Phoenix Sky Harbor International Airport. It features a central garden courtyard, swimming pool, laundry facility and assigned parking. Paul Bay and Darrell Moffitt of Marcus & Millichap, in conjunction with Cliff David and Steve Gebing of IPA, represented the seller, Living Well Homes, and procured the buyer.
ELMHURST, ILL. — Focus Healthcare Partners LLC, a Chicago-based real estate investment and asset management firm, has acquired a senior living community in Elmhurst for an undisclosed price. The buyer will rebrand the property as The Roosevelt at Salt Creek and convert it from an entrance-fee model to a rental community offering both independent living and assisted living. Life Care Services will manage the community and help facilitate its multi-year renovation. The transformation will include building out common areas with a new design and broadening programming options for residents. Amenities will include an indoor pool, cinema, art studio, game room and sports lounge. The property was formerly named Lexington Square Senior Living.
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Rising Interest Rates Take Toll on Fannie, Freddie Deal Volume
The multifamily divisions of Fannie Mae and Freddie Mac are off to a slow start this year as the government-sponsored enterprises (GSEs), their network of lending partners and multifamily borrowers contend with rising interest rates. Fannie Mae’s volume of new multifamily business totaled $10.2 billion in the first quarter of 2023, which is a 36 percent decrease from the same period a year earlier when the agency closed $16 billion. Freddie Mac closed $6 billion in new multifamily business in the first quarter, a year-over-year decrease of 60 percent. Seasoned agency lending professionals all point to elevated borrowing costs as the primary reason for the two agencies closing less business thus far in 2023. “The rapid increase in rates across the board has really been a shock to the industry,” says Vic Clark, senior managing director and head of conventional multifamily production at Lument. At its May meeting, the Federal Open Markets Committee raised the federal funds rate to a target range of 5 to 5.25 percent. The fed funds rate is the interest rate that U.S. banks charge each other to lend funds overnight. This time a year ago, the short-term benchmark rate was at a range of 0.75 …
— By James Hall, ABI Multifamily — It’s been a tumultuous year for global capital markets and asset prices, which have had to contend with a broad array of geopolitical and economic headwinds. The Las Vegas multifamily market — while it remains demographically sound — is dealing with inflationary-based pricing concerns and fundamental characteristics dampening investor appetite.Amongst all the noise and negatively skewed fundamentals, Las Vegas’ economy continues to grow, with tourism surpassing pre-pandemic levels this quarter. Harry Reid Airport reported the highest recorded number of passengers in February, indicating that the market continues to benefit from a surge in post-pandemic domestic tourism.A report released by the Federal Funds Information for States ranked Nevada as first in the nation for economic growth and momentum last year. The measurement considers a wide array of key economic and demographic indicators, including population, personal income and employment growth.While California continues to reel from a declining population, both Nevada and Arizona are benefiting from a surge in net-migration. The population of Las Vegas is expected to double by 2060, which would add an additional 2 million residents to the MSA, per Woods and Poole Economics..Las Vegas residents have a much higher propensity to rent …
FORT WORTH, TEXAS — A partnership between Los Angeles-based Cottonwood Group and Dallas-based Texsun Holdings has acquired Taylor Commons, a 224-unit multifamily property in Fort Worth. The property offers one- and two-bedroom units and amenities such as a pool, fitness center, playground, outdoor grilling and dining stations and onsite laundry facilities. The seller and sales price were not disclosed. The new ownership plans to implement a value-add program.
NASHVILLE, TENN. — Crescent Communities has opened Novel Harpeth Heights, a 322-unit apartment community located at 615 Old Hickory Blvd. in Nashville’s Bellevue neighborhood. The Charlotte-based developer partnered with Pearl Street Partners on the project. The property’s clubhouse resembles a country farmhouse and includes a front porch and screened patio space, and the property’s “Carriage House” features a spa and fitness center. A resort-style swimming pool and lap pool are situated between the two amenity buildings. The four residential buildings are elevator-serviced and house studio, one-, two- and three-bedroom apartments. Rental rates start at $1,705 per month, according to the property website. The project team included architecture firms HEDK Architects and 906 Studio Architects, interior designers SJL Design Group and 505 Design, landscape architect EDGE, civil engineer Barge Civil Associates and general contractor McShane Construction.
MOUNT PLEASANT, S.C. — Mesa West Capital has provided a $71.5 million loan for the refinancing of The Cooper, a 344-unit apartment community located on a 30-acre site at 331 Harper Pointe Drive in Mount Pleasant, a suburb of Charleston. Richard Jordan of CBRE’s Atlanta office arranged the floating-rate loan on behalf of the borrower, Atlanta-based Audubon. Proceeds from the financing repaid an existing loan and feature a future funding component to complete ongoing in-unit and community-wide renovations, including the reconstruction of 16 units that were fire-damaged in October 2019. The Cooper was built in 1986 and acquired by Audubon in December 2020.