ARLINGTON, TEXAS — Global Real Estate Advisors (GREA) has arranged the portfolio sale of three multifamily properties totaling 217 units in Arlington that were all built in the 1960s. The properties include Avalon (75 units), Tuscany Square (70 units) and Regency (72 units). Mark Allen of GREA represented the buyer and seller, both of which requested anonymity, in the transaction. The new ownership plans to implement a value-add program.
IRVING, TEXAS — Marcus & Millichap has brokered the sale of The Vanderbilt, a 152-unit multifamily complex in Irving. The property offers studio, one- and two-bedroom floor plans and amenities such as a pool, dog park, outdoor grilling and dining areas and onsite laundry facilities. David Fersing, Nick Fluellen, Bard Hoover and Wesley Racht of Marcus & Millichap represented the buyer, private investor Tony Lin, in the transaction.
WASHINGTON, D.C. — Akridge and National Real Estate Development have broken ground on Phase I of The Stacks, a residential development in Washington, D.C.’s Buzzard Point neighborhood. Situated along the Anacostia River in the city’s Capitol Riverfront district, The Stacks will comprise three towers featuring 1,100 apartments and 35,000 square feet of ground-floor retail space. More than 10 percent of the apartments will be income-restricted. Bank OZK provided construction financing for Phase I, which is slated to deliver in 2025. The developers tapped general contractor Clark Construction Group to build Phase I and engaged Gensler, Morris Adjmi Architects, Handel Architects, Eric Colbert & Associates, West 8, Lee & Associates, DXA, HOK and Hickok Cole for the project’s overall design. The Stacks is jointly owned by Akridge, Bridge Investment Group, Blue Coast Capital and institutional funds managed by National Real Estate Advisors, parent company of National Real Estate Development.
DORAVILLE, GA. — A fund sponsored by CBRE Investment Management closed on an $85.3 million mortgage loan to finance Atlanta-based Carroll’s acquisition of the 592-unit Arium Winters Chapel apartment community in the Atlanta suburb of Doraville. The floating-rate loan has an initial term of three years with a two-year extension option. The loan features future funding to finance the sponsor’s business plan. Robert Kadoori of CBRE’s Debt & Structured Finance team in Atlanta arranged the loan on behalf of Carroll. Formerly known as Jasmine at Winters Chapel, Arium Winters Chapel is a garden-style property located at 4335 Winters Chapel Road and offers one-, two- and three-bedroom floor plans. Units feature hardwood-style flooring, resurfaced cabinets, private balconies, tile backsplashes and washer/dryers in select units. Community amenities include a fitness center, two swimming pools, soccer field, picnic and grilling areas, two dog parks, playground, clubhouse, business center and controlled gated access.
LOWELL, ARK. — Rogers, Ark.-based ERC Holdings and St. Louis -based Mia Rose Holdings have begun development of Pure Lowell, a multifamily community in the northwest Arkansas city of Lowell. The project includes new construction of 152 one- and two-bedroom units visible off I-49 and conveniently located near the corporate headquarters of J.B. Hunt and Mercy Pediatric and Mercy Behavioral Health clinics. Pure Lowell will include 109 one-bedroom units and 43 two-bedroom units spread across 115,000 square feet in 10 three-story buildings. All units will have washers and dryers, Energy Star-rated kitchen appliances, energy-efficient mechanical systems, upgraded interior finishes and window coverings. Community amenities will include walking trails, a resort-inspired pool, clubhouse, bicycle garage, 1,000-square-foot fitness center, technology lounge and business center, a pocket park and numerous greenspace gathering areas. The project team includes architectural firm Sharp Architects Inc., general contractor Pick-It Construction Inc. and property management firm Trinity Multifamily. First National Bank of NWA is providing construction financing for the project, which will break ground immediately. The developers expect to deliver Pure Lowell in the third quarter of 2023. ERC and Mia Rose are also co-developing the 234-unit Pure Springdale community, which is under construction 10 miles away.
VANCOUVER, WASH. — Los Angeles-based MJW Investments has acquired Avenue 66, a multifamily community in Vancouver, in an off-market transaction. The seller and sales price were not released. Built in 2016, the garden-style property features 56 apartments in a mix of one- and two-bedroom floor plans. The average unit size is 840 square feet. MJW Investments plans to make light improvements to unit interiors, clubhouse and other common areas. Affinity Property Management will oversee operations and the renovation of the property. Banc of California provided acquisition financing.
NEWARK, N.J. — Los Angeles-based Parkview Financial has provided a $21.5 million loan for the acquisition and conversion of a 13-story vacant hotel located at 810 Broad St. in Newark. The borrower, a subsidiary of Winchester Equities LLC, plans to transform the property, which was originally constructed in 1912 as the headquarters of First National State Bank, into a multifamily complex. Upon completion, which is slated for late 2022, the property will house 106 apartments in studio and one-bedroom formats and a 7,500-square-foot restaurant.
OVERLAND PARK, KAN. — Sentinel Real Estate Corp. has acquired Lexington Farms Apartments in the Kansas City suburb of Overland Park. The 404-unit, garden-style apartment complex was originally constructed in 1997. Units average 972 square feet. Two-thirds of the units were recently updated, and Sentinel intends to renovate the remaining units. Amenities include a lounge area, coffee bar, two pools, tennis court, fitness center, dog park and barbecue area. The seller and sales price were not provided.
NEW YORK CITY — Avanath Capital Management, a private real estate investment management firm, has purchased two multifamily communities in Brooklyn. The Irvine, Calif.-based company purchased the two properties, which total 601 apartments and 42,643 square feet of ground-floor retail space, for $315 million. The properties also include 82,681 square feet of parking. The seller was not disclosed, but multiple outlets report the seller as Greenland USA, a residential and commercial real estate developer based in China. Located at 38 6th Ave. and 535 Carlton Ave., the two communities are situated adjacent to Barclays Center, the home arena of the Brooklyn Nets NBA franchise. A little over one-third of the units are reserved for residents with incomes between 40 percent and 100 percent of area median income (AMI). The buildings were constructed in 2017 as part of the ongoing Pacific Park New York Development initiative, which Avanath Capital says is Brooklyn’s largest development project to date. In addition to the two multifamily properties, at full completion the site will host eight acres of public open space, a new public middle school, 13 other residential buildings and more than 7.3 million square feet of residential, commercial and retail space. Amenities at …
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Rising Interest Rates and Inflation to Fuel Change in Property Markets
Beginning in the fourth quarter of 2020, commercial real estate buyers and sellers moved off the sidelines and began fueling an impressive investment sales rebound as many pandemic-related lockdowns and restrictions eased or ended. The rush to purchase hard assets hit its apex a year later when commercial property sales surged to a record $362 billion in the fourth quarter of 2021 alone, according to Real Capital Analytics, a part of MSCI Real Assets that tracks property transactions of $2.5 million or more. The strong market is continuing this year: Deals of $170.8 billion closed in the first quarter, a year-over-year increase of 56 percent, Real Capital reports. Buyers in the first quarter also pushed up prices 17.4 percent over the prior year, according to Real Capital’s Commercial Property Price Indices (CPPI). But given rising interest rates and other recent headwinds, will investors continue to drive robust investment activity and bid up prices? The 10-Year Treasury yield has spiked some 150 basis points to around 3 percent since the beginning of 2022, and fixed 10-year mortgage rates of between 3 percent and 4 percent are up about 100 basis points. For short-term variable loans, the benchmark secured overnight financing rate …