EL CAJON, CALIF.; GRANTS, N.M.; AND GLENDALE, ARIZ. — Community Preservation Partners (CPP) has purchased three multifamily properties in California, New Mexico and Arizona. CPP acquired Park Villa, a two-story garden-style apartment building in El Cajon, for $9 million. Built in 1959, Park Villa features 38 studio, one- and two-bedroom units designated at 30 percent to 60 percent of area median income (AMI). The project has a total redevelopment cost of approximately $18 million. Renovation is underway, with completion slated for December. The company bought Vista Mesa Villa, a 100-unit property with one- and two-bedroom layouts in Grants, for $6.5 million. CPP plans to invest $4.7 million, or $45,000 per unit, in renovations. Construction is underway and completion is scheduled for spring 2023. The residences at Vista Mesa Villa are set at 60 percent AMI. CPP also purchased Bethany Glen, a 25-building residential property in Glendale, for $33.2 million. The company plans to invest $58,000 per unit in renovations at the 150-unit community. Bethany Glen features one-, two- and three-bedroom units, as well as two additional buildings containing an employee unit and an office building. Project funding for all the properties leveraged Low-Income Housing Tax Credits and tax-exempt bonds and …
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Multifamily Developers Must Find Balance Between Density, Amenities
Finding a balance between density and amenities has never been simple for residential developers, but rising interest rates, density restrictions and an increased desire to solidify multifamily projects within the community mean that there is much to be gained from creative approaches to this old problem. Starting the process of planning early, using zoning to the developer’s advantage and creating an adaptable, sustainable and welcoming place for tenants can allow for a successful project with a lower overall price tag. This method can solve some of the trickier problems faced by multifamily developers, including density, parking and zoning considerations. Starting Off Right — Creating a Master Site Plan Success in multifamily is easier to achieve if the project starts with a shared team vision from the outset, says Bill Rearden, principal at Bohler, a land development design and consulting firm. Rearden explains that Bohler has its own planning, landscape architecture and survey teams and works with many industry partners for environmental and geotechnical due diligence. “We work with these teams in the very early stages to understand what the configuration of a property is and what its constraints are. We know upfront any underlying zoning a property might have, so …
SUGAR LAND, TEXAS — Texas-based investment firm Catalyst Equity Partners has purchased The Addison at Sugar Land, a 280-unit apartment community located on the southwestern fringe of Houston. According to Apartments.com, the property was built in 2004, features one-, two- and three-bedroom units and offers amenities such as a pool, fitness center, spa, business center, volleyball court and package handling services. The seller and sales price were not disclosed.
ROUND ROCK, TEXAS — Dallas-based RightQuest Residential has sold Siena Round Rock, a 198-unit apartment complex located on the northern outskirts of Austin. The property offers studio, one- and two-bedroom units ranging in size from 597 to 1,137 square feet. Most residences feature upgraded appliances, granite countertops, individual washers and dryers and private balconies/patios. Amenities include a pool, fitness center, clubhouse, business center, outdoor grilling stations and a dog park. CBRE brokered the sale of Siena Round Rock, which was 97 percent occupied at the time of sale. Judah Hammer and Daniel Neiss of Meridian Capital Group arranged $35.3 million in acquisition financing through NewPoint Real Estate Capital on behalf of the buyer, River Rock Capital.
NASHVILLE, TENN. — Subtext, a residential development firm, has broken ground on LOCAL Midtown, a 15-story apartment building located at 1904 Hayes St. in Nashville’s Midtown district. The property will comprise 307 apartments in a mix of studios, one-, two- and three-bedroom layouts. Designed by Dynamik Design, LOCAL Midtown will feature 10,000 square feet of amenity space, including a coffee bar and micro-market on the first floor, music studio and recording booth on the fifth floor and several spaces on the sixth floor, such as a media lounge, speakeasy, collaboration spaces, gaming room, fitness center with coach-led classes, library and outdoor amenity deck with a swimming pool. The 15th floor will feature a sky lounge and deck with views of downtown Nashville. A five-level covered parking garage will also be available to residents. The general contractor, Brinkmann Constructors, expects to deliver LOCAL Midtown in 2024. Subtext and Brinkmann recently completed LOCAL Boise in Idaho. The new venture is the first Nashville project for both St. Louis-based firms.
NEW YORK CITY — Brookfield Real Estate Financial Partners has provided a $272.5 million construction loan for a project that will convert a 530,000-square-foot office building at 160 Water Street in Manhattan’s Financial District into a 588-unit apartment community. The redevelopment, a tentative completion date for which was not disclosed, will add six levels to the 24-story building. The new apartment building will feature units with stainless steel appliances, quartz countertops and individual washers and dryers, as well as amenities such as a lobby lounge, coffee bar, fitness center and rooftop deck. Gideon Gil, Adam Spies, Kempton Coady and Alex Lapidus of Cushman & Wakefield arranged the loan on behalf of the borrower, Vanbarton Group.
OVERLAND PARK, KAN. — Midloch Investment Partners and Artisan Capital Group have sold Villa Medici Apartments and Townhomes in Overland Park for $43.6 million. The partnership acquired the asset in August 2020 for $25 million. The 166-unit multifamily property is located at 9550 Ash St. The developer for the property was J.C. Nichols Co., which was also the developer of Kansas City’s Country Club Plaza. Jeff Stingley and Max Helgeson of CBRE represented the sellers. The buyer was undisclosed.
MADISON, WIS. — JLL Capital Markets has brokered the sale of Stonewood Village in Madison for $40.8 million. The 272-unit, garden-style multifamily property features one- and two-bedroom units with an average size of 1,004 square feet. Amenities include a playground, pool and tennis courts. The value-add property was built in 1982. Wick Kirby, Amanda Friant and Jamie Fink of JLL represented the seller, Stonewood UI LLC, an affiliate of Banner Real Estate Group. Axiom Properties was the buyer. Matthew Schoenfeldt and Medina Spiodic of JLL originated a $29.8 million Fannie Mae acquisition loan on behalf of the buyer. The 10-year loan features a fixed interest rate.
TUCSON, ARIZ. — ABI Multifamily has arranged the sale of Commons on Stella Apartment Homes, a multifamily property located at 6534 E. Stella Road in Tucson. An undisclosed California-based buyer acquired the asset from an undisclosed Illinois-based seller for $37 million, or $185,930 per unit. Completed in 1964, Commons on Stella Apartment Homes features 199 apartments in a mix of 30 one-bedroom/one-bath units, 109 two-bedroom/one-bath units and 60 three-bedroom/one-bath units. Each unit is individually metered for electricity and gas with individual hot water heaters. Units feature air conditioning/heating, full-size washers/dryers, hardwood floors, private enclosed backyards, oversized closets and kitchens equipped with refrigerators and microwaves, as well as dishwashers in select units. Community amenities include a swimming pool, splash pool, business center, clubhouse, children’s play area, picnic area with barbecues and assigned parking. Alon Shnitzer, Rue Bax, Eddie Chang and Doug Lazovich of ABI Multifamily’s Phoenix-based institutional apartment group, in collaboration with Desiree Palmer and Ryan Kippes of ABI Multifamily’s Tucson apartment team, represented the buyer and seller in the transaction.
LONE TREE, COLO. — OZ Architecture has completed the design of The Reserve at Lone Tree, a seniors housing community located within the RidgeGate master-planned community in Lone Tree. Experience Senior Living Development (ESLD), a NexCore company, is a partner on the project. The community will offer 124 independent living units in a nine-story building alongside 60 assisted living and 24 memory care units in an attached five-story building. The project is scheduled break ground in fourth-quarter 2022, with anticipated completion in 2024. Independent living units will be up to 1,930 square feet, while assisted living apartments will range between 430 and 1,100 square feet. RidgeGate spans 3,500 acres southeast of Denver and includes the RidgeGate Parkway Regional Transportation District (RTD) station, as well as more than 1,000 acres of parks to support an active lifestyle.