Property Type

FHA’s Latest Revisions to Lean 232 Address Owner Issues

by Taylor Williams June 22, 2017

Recent changes to the Federal Housing Administration’s (FHA) Lean 232 program provide owners with more options, all of which a lender offering a full suite of financing options can act upon. Owners who anticipate future cash-out needs are in a good position to benefit. The program was made easier for owners to work with through several additional changes. For owners of residential healthcare facilities that offer services like skilled living or memory care, FHA Lean 232 loans are of exceptionally high value. Because the FHA is committed to ensuring an adequate supply of affordable beds for seniors, nursing home borrowers can secure terms that are unheard of in other CRE markets. Early this year, the FHA made changes in its official Section 232 Handbook that make these loans even more attractive, especially for owners who wish to take cash out of their properties. In order to understand the significance of these changes, it helps to see them in the context of baseline Lean 232 loans. These FHA-insured loans are non-recourse and assumable, offer maturity schedules of up to 35 years and loan parameters of up to 80 percent loan-to-value (LTV), as well as 1.45 debt service ratio coverage. Best of …

June 22, 2017

Illinois Industrial Market Reports Midwest Midwest Market Reports

Priming Chicago’s Industrial Corridors For 21st Century Development

by Kristin Harlow June 22, 2017

As Chicago has emerged as one of the country’s top tech capitals, large parcels of land across the city -— many set aside for manufacturers that no longer do business there — have remained stuck in the past, serving as roadblocks to billions of dollars in new real estate development. That’s about to change thanks to a yearlong effort spearheaded by Mayor Rahm Emanuel and the city’s Department of Planning and Development, which recently approved recommendations for modernizing the first of 26 industrial corridors across the city. The recommendations are the result of a community engagement process that solicited feedback from various stakeholders, including our firm and other real estate developers. The plan will pave the way for new residential and commercial projects throughout the North Branch Industrial Corridor, which stretches from Kinzie Street to just north of Fullerton Avenue along the Chicago River. These investments, which include much-needed infrastructure and open space initiatives, will engage the adjacent riverfront and create mixed-use environments. The early years In the 1980s, the city of Chicago designated a series of industrial corridors and Planned Manufacturing Districts (PMDs) — many along waterways and railways — to protect the city’s industrial base from encroachment by …

June 22, 2017

California Multifamily Western

MG Properties Receives $84.9M Loan to Acquire Alexan Melrose Apartments in Vista

by Nellie Day June 21, 2017

VISTA, CALIF. — MG Properties has received an $84.9 million loan to acquire the 410-unit Alexan Melrose in the San Diego submarket of Vista. The Class A complex is located at 1401 N. Melrose Drive. Alexan Melrose was built in 2015. It is 94 percent leased. The garden-style community features one- to three-bedroom units. The buyer plans to rebrand the property as the Preserve at Melrose Apartments. The 10-year loan features a fixed rate through Freddie Mac. CBRE’s Scott Peterson, Bill Chiles and Brian Cruz secured the financing.

June 21, 2017

California Multifamily Western

Van Nuys Apartment Complex Sells for $4.5M

by Nellie Day June 21, 2017

VAN NUYS, CALIF. – An unnamed buyer has acquired a 28-unit apartment building in Van Nuys for $4.5 million. The community is located at 15843 Saticoy St. It recently underwent an upgrade and has little deferred maintenance. Clyde Isaacson of Marcus & Millichap represented the seller, an individual/personal trust, in this transaction.

June 21, 2017

Arizona Multifamily Student Housing Western

Asset Campus Housing Awarded Management of 250-Bed Community Near University of Arizona

by Nellie Day June 21, 2017

TUCSON, ARIZ. — Asset Campus Housing has been awarded management of INDI Tucson, a 250-bed community located near the University of Arizona. The property offers two-, three- and four-bedroom, fully furnished units. Community amenities include two resort-style pools, an outdoor media lounge, state-of-the-art fitness center and on-site laundry facilities.

June 21, 2017

California Loans Multifamily Seniors Housing Western

PSRS Arranges $2.6M Acquisition Financing for 26-Unit Seniors Housing Community in San Diego

by Nellie Day June 21, 2017

SAN DIEGO — PSRS has arranged $2.6 million in acquisition financing for Melroy Investments, which will use the funds to purchase a three-story, 26-unit seniors housing community in San Diego’s North Park neighborhood. The total purchase price was $5.1 million. The property is restricted to those over the age of 55. The name of the property was not disclosed. In addition to the $2.6 million loan, PSRS included $700,000 in “earn outs” for hitting certain benchmarks as far as rent growth. If earned, Melroy will use that money for property improvements and future acquisitions. The nonrecourse loan features a 4 percent fixed rate and three years of interest-only payments.

June 21, 2017

Colorado Retail Western

Faris Lee Brokers $2.4M Sale of Pueblo West Retail Center in Colorado

by Nellie Day June 21, 2017

PUEBLO WEST, COLO. — Faris Lee Investments has arranged the $2.4 million sale of Pueblo West Retail Center, a 13,000-square-foot, Walmart Supercenter shadow-anchored strip center located in Pueblo West. The triple-net-leased property is fully occupied by eight tenants including Little Caesars, Jackson-Hewitt, Fantastic Sam’s and Sally Beauty Supply. Tom Chichester of Faris Lee represented the buyer, a private investor from San Clemente, Calif. CBRE represented the seller, a private investor from San Diego.

June 21, 2017

New York Northeast Retail

Lesso Group Acquires Two Properties Totaling 723,326 SF on Long Island for $92M

by Amy Works June 21, 2017

WESTBURY, N.Y. — Lesso Group has acquired The Mall at the Source and an adjacent retail building, located at 1504 Old Country Road in Westbury, for $92 million. Totaling 723,326 square feet, the transaction is the largest Long Island transaction to date. Lesso plans to convert the properties into a showroom and retail center for its household goods. The transaction includes the 512,528-square-foot enclosed mall and a 210,798-square-foot retail building, formerly occupied by Fortunoff. Situated on 38 acres and zoned for industrial space, the properties also feature 3,838 parking spaces, 2,813 of which are within a garage. Peter Rossi and Dennis Karr of Newmark Knight Frank represented the buyer in the deal. The name of the seller was not released.

June 21, 2017

Connecticut Northeast Office

CBRE Brokers $22.6M Sale of Office Building in Stamford, Connecticut

by Amy Works June 21, 2017

STAMFORD, CONN. — CBRE has arranged the sale of an office building located at 225 High Ridge Road in Stamford. TNREF III High Ridge LLC, a joint venture between Baywater Properties and True North Management Group, acquired the property from RA 225 High Ridge LLC, an entity controlled by RNY Property Trust, for $22.6 million. At the time of acquisition, the 244,104-square-foot property was 81 percent leased to a variety of tenants, including Synapse, Bank of America and Mass Mutual. Jeffrey Dunne, Steven Bardsley and Travis Langer of CBRE represented the seller in the deal.

June 21, 2017

Loans Multifamily New York Northeast Seniors Housing

Monticello Provides $34.1M Acquisition Loan for 256-Bed Skilled Nursing Facility in New York

by Amy Works June 21, 2017

NEW YORK CITY — Monticello Asset Management LLC has provided $34.1 million in financing to Elener Associates LLC and W Management Group, which will use the funds to acquire a 256-bed skilled nursing facility in New York. The four-story building was constructed in 1961 and features 120 resident rooms. It totals 35,525 square feet on 0.82 acres. The name of the facility was not disclosed. The borrowers plan to make improvements to the physical building as well as the operations. Renovations, which will require closing an entire floor at a time, will include addition of a kitchenette, changes to the telecommunication systems and improvements to the fire sprinkler system.

June 21, 2017

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