Multifamily

NMHC Members Report Softening Apartment Market in Quarterly Survey

by Jeff Shaw November 8, 2022

WASHINGTON, D.C. — The Federal Reserve last Wednesday raised the benchmark short-term borrowing rate by another 0.75 percentage point to a target range of 3.75 to 4 percent. The move by the central bank marked the sixth time this year that it has raised the fed funds rate, which now stands at its highest level since January 2008. The series of rate hikes is part of an aggressive effort by the Federal Reserve to combat inflation, which reached a 40-year high of 9.1 percent in June on a year-over-year basis and has held at elevated levels in the ensuing months. Inflation came in at 8.2 percent in September. The high interest rates have had a notably negative impact on the multifamily sector, according to the data from the National Multifamily Housing Council (NMHC), based out of Washington, D.C. Four indices in the trade association’s latest Quarterly Survey of Apartment Conditions came in below the breakeven level, loosely defined as the point at which there is no change in market conditions. The latest findings were based on the responses of 268 CEOs and other senior executives of apartment-related firms nationwide. The survey was conducted Oct. 17-24. “The Fed’s continued interest rate hikes have resulted in …

November 8, 2022

Servio Capital Acquires New Orleans Residential Building for $40M

by John Nelson November 7, 2022

NEW ORLEANS — Servio Capital has purchased the California Building, a luxury condominium property at the corner of Tulane Avenue and Rampart Street in New Orleans, for $40 million. Designed in 1949 and built in 1950, the property is one of the oldest standing international-style buildings in the city. Previously home to the Hibernia Bank operation center, the building has since been converted to multifamily housing and features amenities including a media room, fitness center, business center and a game room. The seller was not disclosed.

November 7, 2022

Acquisitions Affordable Housing Development Florida Hospitality Southeast

One Stop Housing Buys Orlando Hotel for Affordable Housing Conversion

by John Nelson November 7, 2022

ORLANDO, FLA. — One Stop Housing has purchased the Ambassador Hotel, a 155-room hotel located at 929 W. Colonial Drive in Orlando, from Sammy Investments Orlando for $7.1 million. The buyer plans to convert the hotel into an affordable housing community. When completed, the property will feature a mix of studio, one- and two-bedroom apartments. Construction is scheduled to begin this year. Glen Jaffee of Cushman & Wakefield represented the seller and procured the buyer in the $7.1 million acquisition. The Orlando City Council approved zoning for the Ambassador Hotel to be redeveloped into an affordable housing community in late July. Once complete, the community will become the eighth hotel conversion for One Stop Housing.

November 7, 2022

Acquisitions Multifamily Texas

Colliers Arranges Sale of 190-Unit Bay House Apartment Homes in Metro Houston

by Taylor Williams November 7, 2022

NASSAU BAY, TEXAS — Colliers has arranged the sale of Bay House Apartment Homes, a 190-unit multifamily property in Nassau Bay, a southeastern suburb of Houston that was built in 1967 and partially renovated in 2015. According to Apartments.com, the property features studio, one-, two- and three-bedroom units that range in size from 612 to 1,348 square feet. The amenity package consists of a pool, fitness center, business center, picnic areas, a multi-purpose event room and onsite laundry facilities. Bob Heard, Chip Nash and Jaleel Adatia of Colliers represented the seller, an entity doing business as Dojo Bay House LLC, in the transaction. CoVest Ventures acquired the asset for an undisclosed price.

November 7, 2022

Acquisitions Multifamily Texas

Marcus & Millichap Brokers Sale of 153-Unit Life at Stone Crest Apartments in South Dallas

by Taylor Williams November 7, 2022

DALLAS — Marcus & Millichap has brokered the sale of The Life at Stone Crest, a 153-unit apartment complex in South Dallas that was built in 2002. According to Apartments.com, the property offers two- and three-bedroom units that range in size from 950 to 1,111 square feet and amenities such as a pool, business center, resident clubhouse and onsite laundry facilities. Al Silva and Ford Braly of Marcus & Millichap represented the New York-based seller in the transaction. The buyer, a Dallas-based 1031 exchange investor, plans to make capital improvements to the property.

November 7, 2022

Development Massachusetts Multifamily Northeast

Greystar Breaks Ground on 384-Unit Multifamily Project in Everett, Massachusetts

by Taylor Williams November 7, 2022

EVERETT, MASS. — South Carolina-based developer Greystar has broken ground on The Maxwell, a 384-unit multifamily project in Everett, a northeastern suburb of Boston, that represents the second phase of a larger development at 85 Boston St. The Maxwell will consist of 355 market-rate apartments, 29 affordable housing units, a 460-space parking garage and 5,300 square feet of ground-floor retail space. Floor plans will feature studio, one- and two-bedroom layouts. Amenities will include a pool, gym, lounges, coworking spaces and outdoor grilling stations. Completion is slated for May 2025. Phase I of 85 Boston Street, The Mason, totals 330 units and is scheduled to open next year.

November 7, 2022

Acquisitions Development Multifamily New Jersey Northeast

Bijou Properties, Accurate Buy Multifamily Redevelopment Site in Montclair, New Jersey

by Taylor Williams November 7, 2022

MONTCLAIR, N.J. — A joint venture between two locally based developers, Bijou Properties and Accurate, has purchased a site in the Northern New Jersey community of Montclair that is fully approved for multifamily redevelopment. The joint venture plans to develop a 74-unit building, primarily with one- and two-bedroom units, as well as 3,873 square feet of retail space, at 65 Church St. Jose Cruz, Kevin O’Hearn, Ryan Robertson, Michael Oliver, Steve Simonelli and Michael Zlotnick of JLL worked on behalf of Bijou Properties to arrange Accurate’s $10 million equity investment.

November 7, 2022

Acquisitions California Multifamily Western

Dinerstein Cos. Acquires Five55 Apartments in Downtown Santa Cruz, California

by Amy Works November 7, 2022

SANTA CRUZ, CALIF. — The Dinerstein Cos. has purchased Five55 Apartments, a multifamily property in downtown Santa Cruz, from Swenson Development & Construction for an undisclosed price. Scott Bales of Newmark represented the seller in the deal. Located at 555 Pacific Ave., the four-story property features 94 apartments and 5,000 square feet of ground-floor retail space, which is leased to Current eBikes and Big Basin Vineyards. The property features a fitness center, community room with a pool table and kitchenette, an outdoor pizza oven, coffee bar, bike storage, electric car charging, an outdoor gathering space with fire pits and a 20,000-square-foot rooftop deck. The site is walkable to the beach and a variety of retail and restaurant options. The asset features a two-story below-grade parking structure with 100 spaces. At the time of sale, the community was 99 percent leased. Five55 was built in 2018.

November 7, 2022

Acquisitions Illinois Midwest Multifamily Northmarq

Northmarq Arranges $27M Sale of Multifamily Portfolio in Yorkville, Illinois

by Kristin Harlow November 7, 2022

YORKVILLE, ILL. — Northmarq has arranged the $27 million sale of a multifamily portfolio in Yorkville, about 50 miles southwest of Chicago. The two-property portfolio totals 164 units. Parker Stewart and Alex Malzone of Northmarq represented the seller, a long-term owner and operator. York Meadow, built in 2003, contains 92 units. The seller was the original developer of the community. Yorkville Apartments, built in 1977, features 72 units. The seller renovated about 20 percent of the units. An East Coast-based buyer purchased the portfolio.

November 7, 2022

Content Partner Features Industrial Leasing Activity Loans Midwest Multifamily NAI Northeast Office Retail Southeast Texas Western

Experts Turn to Opportunistic Moves, Lending During Uncertainty of Economic Downturn

by Sarah Daniels November 7, 2022

As we shift through economic uncertainty and changes in the market, commercial real estate businesses are planning for a range of scenarios — and looking to historical trends to make predictions. REBusinessOnline sat down with two industry experts to talk about how this period of uncertainty compares to previous eras and where there may be benefits and opportunities in the current landscape. Jay Olshonsky, president and CEO, and Cliff Moskowitz, executive vice president, at NAI Global spoke about the commercial real estate outlook and the challenges it is likely to face in the immediate future. REBusiness: Looking at the current environment, how does it compare to previous periods of uncertainty? What might be the impacts on commercial real estate? Olshonsky: To start with, we are in a recession. We’ve already had two quarters of negative GDP growth. I think the most fundamental difference between this cycle and a lot of other cycles is that we have extremely low unemployment, differentiating this moment from others, for example, 2009. Even though the most recent job numbers were lower, they were still fairly strong. Jobs create the demand for commercial real estate at all levels, but especially at the services level. We do …

November 7, 2022

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