DALLAS — Greysteel has arranged the sale of Meadows at Ferguson, a 264-unit apartment complex in northeast Dallas. Built in 1983, the property offers one-, two- and three-bedroom units. According to Apartments.com, residences have an average size of 825 square feet, and amenities include a pool, playground and picnic areas. Doug Banerjee, Jack Stone and Andrew Mueller represented the buyer and seller, both of which requested anonymity, in the transaction. The new ownership plans to implement a value-add plan.
CONSHOHOCKEN, PA. — LCOR, a developer with three offices in the Mid-Atlantic region, has begun leasing The Birch, a 304-unit apartment community located in the northern Philadelphia suburb of Conshohocken. The property offers studio, one- and two-bedroom units and 17,000 square feet of amenity space that houses a pool, fitness center, lounges and a golf simulator. Rents start at $1,755 per month for a studio apartment. The first move-ins will begin on Sept. 1.
ALLENTOWN, PA. — Bellwether Enterprise Real Estate Capital has arranged a $20 million loan for the renovation and construction of Cityplace North & South, a 204-unit apartment complex in the Lehigh Valley city of Allentown. The North Building is a conversion of a hotel into apartments that opened in early 2020, and the South Building is ground-up construction. An undisclosed life insurance company provided the loan. The borrower was also not disclosed.
Similar to the early stages of the COVID-19 pandemic in 2020, a gap has started forming with price expectations between apartment owners and investors. The price disparity at the start of the pandemic was driven namely by market uncertainty, adjustments to underwriting assumptions and increases to lender and insurance escrow requirements. As the pandemic played out, we saw a mass exodus from denser gateway cities, an influx of government stimulus money and a phasing out of state-specific stay-at-home orders that allowed the economy to open back up. Capital moved away from the retail and hospitality industries hit the hardest, with the multifamily sector reaping the benefit. The second half of 2020 saw a dramatic rise in rents, occupancy and new lease and renewal signings. These trends led to a calming of the debt and capital markets, paving the way for the price gap between buyers and sellers to evaporate as an unprecedented wave of investment flooded into the multifamily space, with 2021 hitting a new high of $213 billion of investment volume, well above the previous peak of $129 billion in 2019, according to Yardi Matrix data. Now midway through 2022, we’re seeing a buyer-seller price gap begin to take …
DALLAS — Rent growth and occupancy rates will likely not be as robust in 2022 compared with the prior year, but the U.S. apartment market remains quite healthy, according to a CBRE panel of experts who highlighted the strengths of the sector during an Aug. 8 webinar. Rent growth registered in the double digits in many active markets in 2021, but monthly rents are still affordable in relation to the average renter’s income, the panelists said. Additionally, developers are building apartment communities with the work-from-home tenant in mind. These two key trends will support a healthy market throughout the remainder of 2022, according to CBRE. The panel presenters included Julie Whelan, CBRE’s global head of occupier thought leadership; Jen Siebrits, head of U.K. research; and Matthew Vance, head of U.S. multifamily research. The panelists concurred that while consumer confidence is low, other trends, such as wage growth, indicate apartment demand will remain steady. This will especially be true if developers continue to meet demands to accommodate hybrid and remote workers by incorporating workspaces into units and common areas of the apartment communities they’re building. “Housing demand in the U.S. remains exceptionally high,” said Vance. “It has brought occupancy rates to historic levels. …
PLANO, TEXAS — Ziegler has arranged $197.7 million in bond financing for The Outlook at Windhaven Forefront Living, a seniors housing community in Plano. The property, which is in development, will comprise 153 independent living apartments, 30 independent living cottages, 32 assisted living units and 24 memory care units. The financing comprises $109.5 million of tax-exempt bonds, $88.2 million of tax-exempt mandatory paydown securities and $1.3 million in taxable bonds, all of which were sold publicly to institutional investors. The borrower is Forefront Living.
WYLIE, TEXAS — Richmond, Va.-based investment firm 37th Parallel Properties has acquired Creekside South, a 252-unit apartment complex in Wylie, a northeastern suburb of Dallas. Built in 2015, Creekside South offers one-, two- and three-bedroom floor plans with an average size of 936 square feet and amenities such as a pool and outdoor lounge. Cutt Ableson of Berkadia arranged acquisition financing through an undisclosed life insurance company on behalf of 37th Parallel. The seller was not disclosed.
SAN ANTONIO — Newmark has brokered the sale of Viva Max, a 240-unit multifamily property in northwest San Antonio. Viva Max features one- and two-bedroom units with an average size of 733 square feet. The amenity package comprises a pool, clubhouse, picnic area, onsite laundry facilities, a playground and package handling services. Jim Young and Chase Easley of Newmark represented the seller in the transaction. New York-based River Rock Capital purchased the asset for an undisclosed price with plans to implement a value-add program. Viva Max was roughly 98 percent occupied at the time of sale.
VICTORIA, TEXAS — Northmarq has negotiated the sale of Stratford Place, a 110-unit apartment complex in Victoria, about 100 miles north of Corpus Christi. The property was built in 1980 and consists of 10 two-story buildings. Moses Siller, Zar Haro, Phillip Grafe and Bryan VanCura of Northmarq represented the seller, 3CM Multifamily, in the transaction. Additional terms of sale, including the name of the buyer, were not disclosed.
TRUMBULL, CONN. — New York City-based brokerage firm Rosewood Realty Group has negotiated the $101 million sale of The Royce at Trumbull, a 339-unit multifamily property located in southern Connecticut’s Fairfield County. AvalonBay Communities originally developed the property, which houses one-, two- and three-bedroom units, in 1997. Jonathan Brody of Rosewood Realty Group represented the seller, a partnership between Sym Investments and Skywood Properties, which acquired the asset in spring 2021 for $82 million. Brody also procured the buyer, Massachusetts-based Colony Hills Capital. The Royce at Trumbull was 99 percent occupied at the time of sale.