GLENDALE, CALIF. — Ready Capital has closed $23 million in refinancing for a creative office portfolio in Glendale, a suburb of Los Angeles. The undisclosed sponsor will use loan proceeds to pay off existing debt and acquire additional properties at the 59,000-square-foot property, which consists of 12 industrial/flex buildings that are or will be redeveloped into creative office space. Ready Capital closed the non-recourse, floating-rate loan that features a 36-month term, two extension options, flexible pre-payment. The financing includes a facility to provide future funding for capital expenditures, tenant leasing costs and interest/operating reserves.
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Orion Investment Brokers $2.3M Acquisition of Encanto Village Shopping Plaza in Phoenix
by Amy Works
PHOENIX — Orion Investment Real Estate has arranged the purchase of Encanto Village, a shopping center located at the corner of 15th Avenue and Thomas Road in Phoenix. A Phoenix-based private investor sold the asset to Arizona Partners for $2.3 million. Built in 1951, The Original Hamburger Works has anchored the 20,000-square-foot shopping plaza since 1967. The buyer plans to renovate the plaza and stabilize the rent roll. Andrew Harrison, Ari Spiro and Sean Stutzman of Orion Investment Real Estate represented the buyer in the deal.
Perhaps there is no better way to describe the Nashville office market and its progression than to examine the recent transaction history of two of Nashville’s older generation office buildings, Fifth Third Center and Bank of America/Philips Plaza. Both of these office towers are 1980s vintage with significant renovations in the last three to four years. However, no renovation can cure some of the obsolete issues with these buildings: limited parking, inefficient floorplates and old “core” locations. Nevertheless, these buildings have enjoyed rental growth, occupancy strength and consequently excellent sales transaction history. On a more macroeconomic level, investor activity remained on the rise in 2019 as Nashville has become a global real estate investment target with Nashville being in the top 10 list of markets in Urban Land Institute and PricewaterhouseCooper’s Emerging Trends report for the past five years. Nashville’s presence on this list is supported with its business-friendly environment, population growth, growing IT workforce and appeal as a leisure and meeting destination. In 2010, Nashville’s overall office vacancy rate was 12.2 percent with its Class A rents averaging $22.41 per square foot. Today, the market’s vacancy rate is 8.4 percent with Class A rents averaging $31.20. Clearly, the Nashville …
NEW YORK CITY — Meritz Securities, a South Korea-based lender and intermediary, has provided a $350 million inventory loan for The Centrale, a 63-story residential tower in Midtown Manhattan. The loan, which essentially functions as permanent financing, is collateralized by the property and pays off the property’s $300 million construction loan. New York City-based Madison Realty Capital provided that loan to the project developer, Ceruzzi Properties, in 2017. The Centrale features 124 residential condominium units, 7,645 square feet of ground-floor retail space and a parking garage. Pelli Clarke Pelli Architects designed the project, construction of which was completed in early 2019. Units at the property feature one-, two-, three-, four- and five-bedroom floor plans that range in size from 777 to 5,388 square feet. Amenities include an indoor pool, a spa, fitness center and shared workspaces. The property also offers proximity to Grand Central Station, several subway lines, Times Square and Midtown East’s Plaza District. JLL arranged the loan through Meritz Securities on behalf of Ceruzzi Properties. VI Development Group advised Meritz on the transaction and tapped PIA Asset Management to manage the project. “New York City remains the go-to market for global capital,” says Chris Peck, a managing director …
FORT MYERS, FLA. — JLL has negotiated the $96 million sale of The Retreat at Vista Lake, a 640-unit, garden-style apartment complex in Fort Myers. The property comprises 32 two- and three-story buildings spanning 35 acres. The community offers one-, two- and three-bedroom floor plans averaging 867 square feet. Communal amenities include two pools, a fitness center, gazebo with grilling area, tennis courts, racquetball court, lakeside basketball court, dog park and a business center. The Retreat at Vista Lake is situated at 3701 Winkler Ave., five miles southeast of downtown Fort Myers. Matt Mitchell, Zach Nolan Brett Moss, Drew Jennewein, Jarrod Smith and Bailey Smith of JLL represented the undisclosed seller in the transaction. The buyer was an undisclosed private partnership.
JACKSONVILLE, FLA. — Atlanta-based ShareMD has acquired 841 Prudential, a 20-story, 500,000-square-foot medical office building in downtown Jacksonville, for $67 million. The property is situated within a medical campus anchored by Baptist Medical Center. The building was 80 percent leased to office users at the time of sale, but the buyer sees an opportunity to change to clinical users. Built in 1955, 841 Prudential was the city’s first skyscraper and underwent a $6 million renovation two years ago. ShareMD will dedicate between 10,000 to 15,000 square feet of 841 Prudential for coworking and fill other vacancies with long-term medical tenants. Elliot LaBreche of Easton & Associates represented the buyer in the transaction. CBRE represented the seller, Chicago-based GEM Realty.
CHARLOTTE, N.C. — Cushman & Wakefield has arranged the $33.5 million sale of The Flats at Arrowood, a 301-unit multifamily community in Charlotte’s Montclaire South neighborhood. The property offers studio to three-bedroom floor plans ranging from 525 to 1,270 square feet. Communal amenities include a courtyard, fitness center, pool, sundeck, clubhouse and a business center. The Flats at Arrowood was originally developed in 1980. The seller, Blackfin Real Estate Investors, renovated the community in 2017. The property is situated at 8508 Lodge S. Circle, nine miles south of downtown Charlotte. Marc Robinson, Watson Bryant and Brooks Colquitt of Cushman & Wakefield represented the seller in the transaction. Quantum Equities acquired the asset.
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Expanded Rent Stabilization Law Freezes NYC Stabilized Multifamily Property Market, Generates Buying Opportunities for Intrepid Investors
New York state authorities last year passed legislation designed to maintain rental affordability and housing stability in the Empire State. Mandated changes for units not currently subject to stabilization were mostly technical in nature — relating to rent increase notification periods, evictions and security deposits — but the impact on the New York City’s nearly 1 million regulated units was significant. Previously, an owner’s ability to raise stabilized unit rents was limited by a city board, except upon vacancy or after major property or unit improvements were made. These exceptions were curtailed by the legislation, largely negating the appeal of buying, renovating and repositioning older properties. The regulations sent a chill through the recently hot New York City multifamily property market. Sales volume dropped by half last year to about $3.3 billion, with the largest declines coming after the law took effect at mid-year. Indeed, volume in the typically busy fourth quarter plunged to less than $200 million, the lowest single-quarter sales total since recessionary 2010. Although obscured by thin volume, cap rates appeared to rise. After hovering near 4 percent throughout 2018, institutional B/B+ quality asset purchase yields gapped higher, drifting up to about 4.25 percent at mid-year and …
East To West Capital Sells Three-Property Student Housing Portfolio in Florida, Arkansas
by Alex Tostado
TALLAHASSEE AND GAINESVILLE, FLA.; AND FAYETTEVILLE, ARK. — UK-based investor East To West Capital has sold a three-property student housing portfolio located in Florida and Arkansas for an undisclosed price. The portfolio includes Gator Cottages, a three-unit, 18-bed property built in 2018 serving students at the University of Florida in Gainesville; Whitham Cottages, a 10-unit, 40-bed community also constructed in 2018 located near the University of Arkansas in Fayetteville; and Seminole Gardens, a 10-unit complex ranging from 2,213 to 2,571 square feet serving students attending Florida State University in Tallahassee. Kevin Dufour and Director Kyle Peco of FourPoint Investment Sales Partners represented the seller in the transaction. The buyer was undisclosed.
Hunt Provides $9.4M Acquisition, Renovation Loan for Affordable Multifamily Complex in North Georgia
by Alex Tostado
ROME, GA. — Hunt Real Estate Capital has provided a $9.4 million Freddie Mac acquisition and renovation loan for Callier Forest Apartments, a 130-unit, mixed-income multifamily complex in Rome. The borrower, Memphis-based Envolve Communities (formerly LEDIC Realty Co.), plans to invest $7.3 million to upgrade unit interiors, including adding new kitchen cabinets, flooring, paint, fixtures and full bathroom renovations. Hunt Real Estate Capital closed the 17-year, tax-exempt loan featuring a 35-year amortization schedule through Freddie Mac’s Targeted Affordable Housing (TAH) program. Callier Forest comprises 17 two- and three-story buildings. The property was built in 1981 and renovated in 2004, utilizing low-income housing tax credits (LIHTC). Paul Weissman of Hunt Real Estate Capital says the property will benefit from a new, 20-year housing assistance payment (HAP) Section 8 contract. Callier Forest was fully occupied with an 87-household waitlist at the time of the transaction. Envolve Communities is an owner-operator of affordable housing properties, with a portfolio spanning 33,000 units in the Southeast, Southwest and Midwest.