WASHINGTON, D.C. — In the first quarter of 2021, originations for commercial and multifamily loans totaled $3.9 trillion, according to the latest report from the Mortgage Bankers Association (MBA). Compared to the Washington, D.C.-based organization’s findings from fourth-quarter 2020, the first-quarter originations increased by $44.6 billion, a 1.1 percent hike quarter-over-quarter. According to the MBA report, commercial banks held the largest share (roughly 38 percent) of commercial and multifamily mortgages at $1.5 trillion. The second largest holders of commercial and multifamily mortgages were Fannie Mae, Freddie Mac, HUD and other mortgage-backed security lenders at $861 billion, or 22 percent. Additionally, life insurance companies provided $588 billion (15 percent) in the first quarter and issuers of commercial mortgage-backed securities (CMBS), collateralized debt obligations (CDO) and other asset-based securities (ABS) generated $540 billion in debt (14 percent). In the first quarter, agency lenders saw an increase of $23 billion in loans, a 2.8 percent jump. CMBS, CDO and other ABS issuers increased their holdings by $7 billion, or 1.3 percent. Banks increased their holdings by $6.8 billion (0.5 percent), and REITs increased their holdings by $4.9 billion (5.2 percent). Finance companies, however, saw their holdings decrease 1.2 percent.
HOUSTON — Locally based developer McNair Interests has broken ground on Remy on the Trails, a 330-unit multifamily project located on a 24-acre site in West Houston. The property will span 400,000 square feet and offer one- and two-bedroom units. Amenities will include an infinity pool, indoor fitness center with an adjoining outdoor workout area, a clubhouse with resident lounges, dog washing station, multiple courtyards with outdoor entertainment spaces and a business center with private offices and a conference center. In addition, residents will have access to a private walking trail and three-acre lake with a dock for paddleboards, kayaking and fishing. Project partners include The Preston Partnership (architect), Mayfield & Ragni Studio (interior designer), Kimley-Horn (landscape architect) and Arch-Con (general contractor). Leasing is expected to begin in the third quarter of 2022.
ST. LOUIS — Draper and Kramer Inc. has broken ground on Moda at The Hill, a 225-unit apartment building in The Hill neighborhood of St. Louis. The four-story project is part of a larger 11-acre master-planned community led by Draper and Kramer that also includes single-family homes and a condominium building. Moda at The Hill will offer a mix of one- and two-bedroom units measuring from 600 to 1,200 square feet. Amenities will include a fitness center, yoga studio, pool courtyard, parking garage, community lounges, pet care facilities and coworking spaces. Holland Construction, Humphreys & Partners Architects and HPA Design Group make up the project team. Gershman Mortgage provided construction financing. Completion is slated for late spring 2022.
AUSTIN, TEXAS — Newmark has arranged the sale of Elan Parkside, a 309-unit apartment community located within the 81-acre Highland ATX mixed-use development in north-central Austin. Built in 2018, the six-story property houses a mix of studio, one- and two-bedroom units as well as 5,500 square feet of ground-floor retail space. Amenities include a pool, 24-hour fitness center, outdoor courtyard with fire pits, a business center and bike storage space. Patton Jones of Newmark represented the seller, Charleston, S.C.-based Greystar, in the off-market transaction. Andy Scott and Michael Cosby of JLL arranged a $40 million acquisition loan through Mesa West Capital on behalf of the buyer, Dallas-based multifamily investment firm SPI Advisory. The loan was structured with a five-year term and a floating interest rate. Elan Parkside was 97 percent occupied at the time of sale.
TEMPE, ARIZ. — Los Angeles-based GoodLife Housing Partners has completed the disposition of two apartment communities located in Tempe. Capital Allocation Partners acquired the properties for $30.5 million, or $178,363 per unit. Both built in 1968, the properties are the 134-unit Sakara Tempe and the 36-unit Sakara Villas at Tempe. Units at the properties consist of a mix of one-, two- and three-bedroom layouts, with select units having new laminate kitchen countertops, wood-style vinyl flooring and two-tone paint with accent walls. Additionally, some units are furnished for the convenience of student tenants, as the properties are within walking distance of Arizona State University. Community amenities at Sakara Tempe include a resort-style swimming pool with cascading water features and poolside cabanas, a fitness facility, bocce ball court and an outdoor TV lounge. Cliff David and Steve Gebing of Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller and procured the buyer in the deal.
SAN ANTONIO — A fund sponsored by CBRE Global Investors has purchased Preston Peak, a 596-unit apartment community in northwest San Antonio. Preston Peak offers a mix of one- and two-bedroom units that are furnished with stainless steel appliances, walk-in closets and private patios. Amenities include two pools, a fitness center, tennis and sand volleyball courts, outdoor grilling and picnic areas, a jogging trail, putting green and package lockers. The garden-style property was 93 percent occupied at the time of sale. Patton Jones and Matt Michelson of Newmark represented the seller, Dallas-based private equity firm Knightvest Capital, in the transaction. The new ownership plans to implement a value-add program.
DALLAS — Avant Capital, a Connecticut-based direct lender, has provided a $47.1 million bridge loan for the acquisition of a 500-unit apartment complex in Dallas. The property, the name of which was not disclosed, was originally built in the 1970s. The borrower, a partnership between The Willowood Group, Arch Investment Group and Stormlight Holdings, will use a portion of the proceeds to fund capital improvements. NorthMarq arranged the loan.
HARTFORD, CONN. — Locally based brokerage firm Chozick Realty has negotiated the $22 million sale of a hotel and multifamily property located at 50 Morgan St. in Hartford. The 18-story building was originally constructed in 1971 as a 350-room hotel and currently houses 150 hotel rooms and 96 apartments following a recent conversion. The buyer, a partnership between Alexa Group and Shelbourne International, plan to reposition the remaining 150 hotel rooms into 164 apartments, bringing the total number of residences to 260. The new owners will also convert existing banquet space into an amenity area with a fitness center and coworking lounge and add a 380-space parking garage and a pool with a sun deck. Rick Chozick and Tom Boyle of Chozick Realty represented the seller, DW Capital, in the transaction and procured the buyer.
SHELBYVILLE, TENN. — Community Preservation Partners (CPP Housing) has acquired Bedford Manor Apartments, a 108-unit affordable housing community in Shelbyville, for $6.1 million. The property comprises 18 one-bedroom, 60 two-bedroom and 30 three-bedroom units for residents earning less than 50 percent of the area median income (AMI). CPP Housing is investing $12.3 million to renovate the 10-building property, which was built in 1968. Construction begins this month and is expected to finish in January 2022. CPP Housing plans to remodel the interior units to include new flooring, cabinets, countertops, appliances and lighting. The company also plans to make exterior improvements and security enhancements, such as improvements to the roofing, HVAC system, windows, lighting and security cameras. Americans with Disabilities Act units and ADA path of travel will also be updated as required by local jurisdictions. CPP Housing also plans to expand the property’s residential services to include programs such as health and wellness classes, financial literacy and food programs. CPP Housing is an affordable housing rehabilitation company with headquarters in Irvine, Calif., and Reston, Va.
MILWAUKEE — A joint venture partnership between Becovic and Next Realty has acquired a 14-building, 232-unit apartment portfolio within a one-mile radius of Marquette University in Milwaukee. The purchase price was $16.1 million. Units range from studios to four-bedroom floor plans. The portfolio was 95 percent leased at the time of sale. Taylor Grant of Park Equities represented the seller, Wiegand Enterprises LLC, which had owned the portfolio for roughly 20 years. Marquette University is home to nearly 12,000 students.