A strengthening rental market is drawing more multifamily investors toward the New Haven metro area. Property fundamentals are rapidly improving, aided by greater renter demand and a lack of new supply pressure. Solid apartment performance, an array of multifamily assets well-positioned for upgrades and region-leading yields offer opportunities for investors, contributing to a record level of deal volume for the market in 2018. Apartment properties in New Haven have performed better over the past 24 months than they have at any point in the last 10 years. Positive job growth has renewed renter demand, facilitating vacancy declines and rent gains. Vacancy has fallen 350 basis points since September 2016 to its current rate of 4.1 percent, and as vacancy contracted, rent growth accelerated. Effective rents began rising in 2017. The pace of growth has been trending upward in 2018, reaching a trailing 12-month appreciation rate of 5.9 percent in September, a four-year high. These improvements are just as evident in the surrounding suburbs south along the I-95 Corridor and north along the I-91 Corridor as they are in the city of New Haven. The increase in absorption and the resulting impact on multifamily operations has been positive in part because …
REVERE, MASS. — Colliers International has arranged a $115 million bridge loan for a former NECCO candy manufacturing facility in Revere. The loan replaces the acquisition financing also arranged by Colliers. Located at 135 American Legion Highway, the 49-acre property includes a single-story, high-bay warehouse and a two-story manufacturing and distribution space. Adam Coppola, Thomas Welch, John Poole and Tonia Jenkins secured the financing on behalf of the borrower, Atlantic Management and VMD Companies. The lender was LoanCore Capital.
ARLINGTON, VA. — Public Broadcasting Service (PBS) has signed a 15-year lease to remain with landlord JBG Smith Properties. PBS will relocate from JBG Smith’s 2100 Crystal Drive asset in Arlington’s Crystal City district to JBG Smith’s asset situated at 1225 S. Clark St. in Arlington’s National Landing district. National Landing is a newly branded neighborhood encompassing parts of Pentagon City and Crystal City in Arlington and Potomac Yard in nearby Alexandria. The two assets are located less than a mile apart. PBS is expected to relocate in mid-2020, where it will occupy 120,328 square feet alongside March of Dimes, Conservation International and other nonprofits. Paul Darr, Dale Powell and Chaise Schmidt of Cushman & Wakefield represented PBS in the lease transaction.
MOORESTOWN, N.J. — NAI Mertz has brokered the $13.5 million sale of a 209,000-square-foot industrial property in Moorestown. Located at 540 Glen Ave., the property is currently fully leased to two tenants and features 18- to 24-foot clear heights as well as 40-by-40 foot column spacing. Fred Meyer and Jonathan Klear of NAI Mertz represented the seller, 540 Glen LLC, in the transaction. The buyer was One Liberty Properties Inc.
PROVIDENCE, R.I. — Greystone Real Estate Advisors has closed the sale of two seniors housing properties in Rhode Island: Chapel Hill in Cumberland and Smithfield Woods in Smithfield. The sales price was not disclosed. Both properties are located in the Providence metro area. Mike Garbers and Cody Tremper of Greystone Real Estate Advisors represented the seller in the transaction, a publicly traded REIT. The buyer was a partnership between GMF Capital, a New York-based private equity firm, and Meridian Senior Living, which will operate the properties. The communities were built between 1989 and 1999. The properties offer 272 units of assisted living, memory care and skilled nursing.
BETHLEHEM, PA. — Markward Group has negotiated the sale of a 32,000-square-foot flex facility in Bethlehem. The sales price was undisclosed. Located at 2147 Ave. C, the property consists of a 30,500-square-foot heated warehouse and 1,500 square feet of office space. Michael Capobianco of Markward Group represented both the buyer, J.G. Petrucci, and the undisclosed seller in the transaction.
PAWTUCKET, R.I. — CBRE has arranged the sale of a 64,000-square-foot industrial flex facility in Pawtucket. Located at 670-710 Narragansett Park Drive, the property is currently 96 percent occupied by a tenant roster that includes Cintas, Granite City Electrical Supply, Johnson Controls, Rhode Island PBS, Shred-It and Sprint Corp. Situated on the first turn of the former Narragansett race track where famed race horse Seabiscuit once ran, the building and park are adjacent to the East Providence city line. Alden Anderson and Dan Cregan of CBRE represented the seller, Marshall Properties, in the transaction. The buyer was Legacy Gansett LLC, an entity owned by Legacy Real Estate Ventures.
RALEIGH, N.C. — Loden Properties has sold a two-tenant shopping center adjacent to North Carolina State University in Raleigh for $7.4 million. The 24,656-square-foot asset is anchored by a 22,211-square-foot, urban-formatted Target and 2,445 square feet is leased to Guasaca, a fast-casual Venezuelan restaurant. San Francisco-based Stockbridge bought the property. Tom Kolarczyk, Justin Good and Warren Johnson of HFF represented the seller in the transaction.
BIRMINGHAM, ALA. — Barings Multifamily Capital has provided a $10.9 million Fannie Mae refinancing loan for Flats on 4th, an 86-unit mid-rise apartment complex in downtown Birmingham that was built in 2017. The 10-year term loan comes with a 30-year amortization schedule and three years of interest-only payments. The complex is 97.7 percent occupied. The borrower was not disclosed.
ATHENS, GA. — NorthMarq Capital has arranged $9.3 million in acquisition financing for Arbor Ridge Apartments, a 212-unit multifamily community situated at 150 Chateau Terrace in Athens. Andrew Slaton and Griffin Whitlock of NorthMarq arranged the Freddie Mac, seven-year, floating-rate loan on behalf of the borrower, Asia Capital Real Estate (ACRE). Arbor Ridge Apartments was built in 1969 and renovated in 2008 by the undisclosed seller. ACRE plans to further renovate the common areas and amenities over the next couple of years. Amenities include a clubhouse, fitness center, laundry facility, playground, pool, courtyard, tennis court and a business center. The complex is situated about five miles from downtown Athens and about three miles from the University of Georgia.