NEW YORK CITY — Greystone has provided two Fannie Mae acquisition loans totaling $17.5 million for a pair of affordable seniors housing properties totaling 151 units in the New York City area. In the first deal, Greystone originated a $12.4 million loan for Highland Avenue Senior Apartments, an 88-unit community in Yonkers that was built in 2008. In the second transaction, the company provided $5.1 million in acquisition financing for 2120 Hughes Avenue, a 63-unit property in The Bronx that was constructed in 1995. Dan Sacks and Ilan Bassali of Greystone originated the loans on behalf of the borrower, Heritage Affordable Communities LLC.
By Taylor Williams For lenders and investors in New York City’s affordable housing market, accurately underwriting rent growth, operating costs and long-term asset appreciation can be a tricky proposition in today’s economic environment. To be fair, buyers and financiers of affordable housing properties in many U.S. markets are being forced to adjust and recalculate their metrics due to forces they can’t control. Yet macroeconomic factors like rising inflation, which puts heavy pressure on construction and operating costs, can often seem more acute in the Big Apple, where the cost of living and doing business is already higher than virtually anywhere else in the country. Economic Drivers The labor and materials costs for the renovations and rehabilitations that many affordable housing communities need are rising. According to Producer Price Index data supplied by the U.S. Bureau of Labor Statistics, for the month of August, the latest report available at the time of this writing, the aggregate cost of construction materials had risen by 19 percent from August 2019. Much of this rise in materials costs is due to disruption of the global supply chain via COVID-19, causing developers of much-needed housing stock to incur heftier budgets and longer construction timelines on …
AcquisitionsAffordable HousingCaliforniaDevelopmentLife SciencesMixed-UseMultifamilyOfficeTop StoriesWestern
IQHQ Buys Site in Bay Area to Develop New Elco Yards Life Sciences Campus
REDWOOD CITY, CALIF. — IQHQ, a private life sciences developer and owner with offices in San Diego and Boston, has purchased a “shovel-ready” development site in the Bay Area town of Redwood City that is fully entitled for mixed-use. The firm plans to develop Elco Yards, a project that will feature four life sciences buildings and two residential communities, as well as green space open to the public. The four office buildings will span 600,000 square feet and include laboratory, meeting and research and development space. The buildings are designed to meet LEED Gold standards. “Elco Yards represents an iconic project in a thriving life sciences market with a proven track record of attracting top companies and diverse talent,” says Steve Rosetta, CEO of IQHQ. “We are excited to advance this project, which is fully entitled and well-positioned to address the unmet demand for premier lab space in the Bay Area.” The multifamily portion will include two communities totaling 540 units. IQHQ is partnering with Charleston, S.C.-based Greystar for the residential component, which will feature 147 income-restricted units, according to Redwood City Mayor Diane Howard. “We look forward to Greystar’s continuing involvement and the creation of much-needed housing in Redwood …
SOUTH DAYTONA, FLA. — The Klotz Group of Cos., a Jacksonville, Fla.-based private equity real estate investment platform, plans to develop the Halifax Riverfront Residences & Marina, an $85 million mixed-use multifamily and marina project in South Daytona. Klotz, in partnership with KABR, purchased the site in September 2020 for $1.6 million and immediately began working with the City of South Daytona to review and approve the project. The partnership expects to break ground in late 2022, and construction is expected to take about 24 months. Located at 2941 S. Ridgewood Ave., the Halifax Riverfront Residences & Marina will include 330 residential units, more than 15,000 square feet of commercial space and 145 boat slips. The project will have dockside restaurants and a tiki bar.
WILMINGTON, N.C. — Middleburg Communities, a Vienna, Va.-based multifamily development, investment, construction and management company, has completed the disposition of Mosby at Riverlights, a 250-unit, Class A apartment community in Wilmington. Boca Raton, Fla.-based RAS Realty Partners purchased the property for $63.8 million and plans to rebrand the property as Oasis at Riverlights. Developed and completed by Middleburg Communities earlier this month, Mosby at Riverlights features one-, two- and three-bedroom homes. Units feature granite countertops, hard-surface plank flooring, designer lighting and stainless steel appliances. Community amenities include a pool with outdoor cabanas, an 8,000-square-foot, two-level clubhouse with terraces and an outdoor kitchen with grilling areas. Located at 4027 Watercraft Ferry Ave., the property is situated 6.5 miles from downtown Wilmington, about 7.6 miles from the University of North Carolina at Wilmington and approximately 6.4 miles from Wilmington Riverwalk.
KENNESAW, GA. — TSB Realty has negotiated the sale of Bixby Kennesaw, a 656-bed student housing community located near the Kennesaw State University campus in Georgia, on behalf of Gilbane Development Co. TSB Capital Advisors helped to secure acquisition financing on behalf of the buyer, an undisclosed joint venture partnership. Bixby Kennesaw offers a mix of studio, one-, two-, three-, four- and five-bedroom units. Community amenities include a heated saltwater swimming pool, outdoor courtyard with fire pits, 24-hour fitness center and a rooftop terrace overlooking the university’s football stadium.
HOLLYWOOD, FLA. — FM Capital has arranged the $6.2 million financing of Lincoln Gardens Apartments, a 77-unit multifamily community in Hollywood. Sheridan Capital provided the loan, which was structured with an 80 percent loan-to-cost ratio and full-term interest-only payments. Noam Temchin of FM Capital arranged the financing for the borrower, Gelt Team. Located at 2711 Lincoln St., Lincoln Gardens is situated about 3.6 miles from Hollywood Beach, 7.6 miles from Fort Lauderdale-Hollywood International Airport and 10.5 miles from Fort Lauderdale. Built between 1952 and 1987, the property was 80 percent occupied at the time of financing. Community amenities include a pool, courtyard and parking.
LUBBOCK, TEXAS — The Multifamily Group (TMG), a Dallas-based brokerage firm, has arranged the sale of a portfolio of four multifamily properties totaling 350 units in Lubbock. The properties include Summertime Villa, Genoa Gardens, Genoa Gardens II and Yorkshire Villas. Jon Krebbs of TMG represented the seller, and Paul Yazbeck of TMG procured the buyer. The buyer and seller(s) involved in the transaction requested anonymity. The sales price was also not disclosed.
SELMA, TEXAS — Locally based investment and development firm Embrey Partners has acquired Retreat at Chelsea Park, a 280-unit apartment community in Selma, a northeastern suburb of San Antonio. Built in 2006, the property features one-, two- and three-bedroom units and amenities such as a pool, fitness center, coffee bar, dog park, clubhouse and outdoor grilling areas. Patton Jones of Newmark brokered the deal, the seller in which was not disclosed. Embrey plans to implement an interior value-add program that will upgrade units’ countertops, cabinetry, appliances, flooring and closets.
BURLESON, TEXAS — Locally based general contractor KWA Construction has topped out Atlantica at Burleson, a 217-unit multifamily project located south of Fort Worth in Tarrant County. Developed by Sovereign Properties and designed by Womack + Hampton Architects, the property will offer one-, two-and three-bedroom units. Amenities will include a pool, outdoor gaming lawn and grilling areas, dog park, cybercafé and a fitness and yoga studio. Atlantica at Burleson is expected to be completed in June 2022.