SEATTLE — Taylor Street Capital Partners has arranged $3.5 million in cash-out refinancing for an apartment community located in downtown Seattle. Taylor Street secured a non-recourse, 10-year, fixed-rate note with all reserve requirements waived for the out-of-state borrowers. The borrowers own the 23-unit asset and were looking to replace a previous note with a long-term, low-interest-rate solution to maximize cash flow and provide funding for additional capital improvements at the property.
Ralph Cram, President of Envoy Net Lease Partners, LLC, is seeing dramatic change in the net lease space in 2021: in the past couple months he’s seen cap rates with 25 to 35 basis point drops on active deals, increased 1031 exchange activity and robust interest in net-lease properties. “What we’ve really seen in the last six months is the demand for investment-grade, net-lease properties has skyrocketed — partly because people aren’t buying nonessential or non-investment-grade tenants.” There is a supply constraint though: with many 2020 projects delayed, Cram anticipates 12 months before supply can reach the market — making for a tight market. Finance criteria for net lease clients, construction loan programs, development risks, outlining the process for lending overall and 2021 goals are concepts covered in this video interview for Finance Insight. This article is posted as part of REBusinessOnline’s Finance Insight series. Click here to subscribe to the Finance Insight newsletter, a four-part newsletter series, followed by video interviews delivered to your inbox in March.
AUSTIN, TEXAS — Host Hotels & Resorts Inc. (NASDAQ: HST) has acquired the fee simple interest in the 448-room Hyatt Regency Austin for approximately $161 million in cash. The purchase price represents a capitalization rate of 10 percent and a 20 to 25 percent discount to pre-COVID pricing, according to HST. Hyatt will continue to manage the hotel under a long-term agreement. The seller was undisclosed. Situated on nearly six acres along Lady Bird Lake, the waterfront property is located near the city’s South Congress District and Zilker Park. The hotel’s rooms were renovated in 2015 and its meeting space was expanded in 2018. The property features 45,000 square feet of meeting space, including two ballrooms. There are also two food and beverage outlets as well as an outdoor pool and a fitness center. “As travel resumes, we expect the well-located Hyatt Regency Austin to benefit from a strong rebound led by Austin’s multiple leisure and business demand drivers that are anchored in world-renowned music festivals, sporting events and blue-chip corporations,” says James Risoleo, president and CEO of HST. “Additionally, we are encouraged by the reported contraction in Austin’s hotel construction pipeline relative to pre-pandemic levels and by the market’s …
ALTAMONTE SPRINGS, FLA. — Axiom Realty Partners LLC has sold The Studios at Uptown, a 108-unit, all-studio apartment community located in Altamonte Springs, for $10.9 million. Mike Donaldson and Nick Meoli of Cushman & Wakefield represented the seller in the transaction. Denny Romain, Charles Crapse and Alex Kupp of Cushman & Wakefield arranged acquisition financing through Ameris Bank on behalf of the buyer, Ty and Tovah Lohman of Ormond Beach, Fla. Located at 245 Loraine Drive, The Studios at Uptown was 97 percent occupied at the time of sale. Community amenities include a swimming pool with a sundeck, tennis courts and onsite laundry facilities on each floor. The property is 26 miles from Walt Disney World Resort and 48 miles from Daytona Beach.
FLORENCE, KY. — Ohio-based MAGNA Properties has acquired Florence Shops, a 50,068-square-foot, multi-tenant shopping center located at 7541-7565 Mall Road in Florence. The property was fully leased at the time of sale. Patrick Metz of Stan Johnson Co. represented MAGNA Properties in the $5.5 million acquisition. The seller was an undisclosed local developer. The Florence Shops is situated on 4.1 acres approximately 13 miles from Cincinnati. The acquisition includes additional development potential on an adjacent pad site. The center’s neighboring tenants include Kroger, Old Navy, Ulta Beauty and Barnes & Noble. The center was last renovated in 2015.
BRANDON, FLA. — Summit Contracting Group, a multifamily general contractor, has broken ground on Landon Preserve, an affordable housing community located on Pauls Drive in Brandon, a Tampa suburb east of Interstate 75. Landon Preserve will be a pet-friendly community featuring one-, two- and three-bedroom apartment homes. The construction will include 230 units in seven three-story buildings, and a total square footage of 255,960. Community amenities will include a clubhouse with fitness center, swimming pool, mail kiosk, maintenance building and a dog park. Construction is planned to be complete in summer 2022. The developer is Vestcor and the architect is Group 4 Design Inc.
AMARILLO, TEXAS — Amazon (NASDAQ: AMZ) has announced plans to open a 1 million-square-foot fulfillment center in Amarillo, its first in the northwest Texas city, in a move that is expected to create about 500 new full-time jobs. Citing an announcement from the Amarillo Economic Development Corp., local news outlet KFDA reports that the facility will be located at the corner of Northeast 24th Avenue and Loop 335 and will generate approximately $35 million in economic impact. The opening is slated for early 2022. The developer was not disclosed.
GRAPEVINE, TEXAS — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the sale of Cross Creek at Grapevine Ranch, a 392-unit apartment community located roughly midway between downtown Dallas and Fort Worth. Built on 35 acres in 1999, the property offers a pool, business center and an indoor basketball court. Drew Kile and Joey Tumminello of IPA represented the seller, a joint venture between an affiliate of The Carlyle Group and VCT Capital Partners, in the transaction. The duo also procured the undisclosed private buyer.
AUSTIN, TEXAS — Texas-based developer Presidium has broken ground on Phase I of Presidium Waterford, a 283-unit multifamily project that will be located near The Domain in North Austin. Designed by Dallas-based O’Brien Architects and Atlanta-based Dwell Design Studio, the property will offer amenities such as a pool, fire pits, fitness center, office lounges and a bocce court. The first units are scheduled to be delivered in December 2022. Presidium is currently in the design stage of Phase II, which it estimates will include 350 units.
WACO, TEXAS — Dallas-based entertainment concept Main Event will open a 48,559-square-foot venue at Cottonwood Creek Market, a 285,000-square-foot shopping center in Waco owned by Houston-based NewQuest Properties. Main Event will join Topgolf and a 14-screen Cinemark Holdings Inc. as the other entertainment anchors at the center, which is located near Baylor University’s campus on the city’s southwest side. Main Event’s new location will feature 20 bowling lanes, multi-level laser tag areas and a virtual reality gaming space, along with food and beverage offerings. Construction is scheduled to begin this month and to be complete in the first quarter of 2022. Austen Baldridge represented NewQuest Properties in the lease negotiations on an internal basis. Dawn Greiner of SRS Real Estate Partners represented Main Event. Topgolf and Cinemark are scheduled to open this spring and summer, respectively.