O’FALLON, ILL. — Gateway Multifamily Group, along with its in-house property management company Tut and Tut Properties, has purchased a 78-unit apartment community in O’Fallon, about 17 miles east of St. Louis. The purchase price was not disclosed. The garden-style community will be rebranded as the Park Entrance Apartments. Gateway plans to invest an additional $2 million to $3 million in renovations. The property sits on 5.4 acres and consists of two-bedroom units averaging 1,200 square feet.
BOSTON — Skanska USA has topped out 121 Seaport, a 17-story, 400,000-square-foot office building under construction in Boston. The construction milestone marks the completion of the building’s steel frame. Designed by CBT Architects, 121 Seaport is scheduled for completion in the first quarter of 2018. The property is located in Boston’s Seaport district across from District Hall and Seaport Square Green. Its three-story lobby will face Boston Harbor and open onto Harbor Way, a 70-foot-wide pedestrian street. A team of nearly 200 construction workers has put more than 35,000 hours into the project to date.
TARRYTOWN, N.Y. — Cushman & Wakefield has arranged the $30 million sale of 660 White Plains Road, an office building in Tarrytown. GHP Office Realty, a privately held real estate firm, acquired the property from RA 660 White Plains Road LLC, an entity controlled by RNY Property Trust. The six-story building totals 279,000 square feet and features on-site food service, 24-hour access and access to public bus service. It sits on 11 acres in the Tarrytown Corporate Center. Cushman & Wakefield’s Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Frank DiTommaso and Al Mirin brokered the transaction. The property is 87 percent leased to more than 40 tenants ranging in size from less than 1,000 square feet to nearly 60,000 square feet.
NEW YORK CITY — The Singer & Bassuk Organization (SBO) has secured a $15 million permanent loan on 9 E. 38 St. for a joint venture between Juster Properties and ClearRock Properties. Lincoln Financial Group funded the 20-year loan, which includes a fixed rate of 3.86 percent. Craig Bjornsund of NorthMarq Capital advised Lincoln Financial Group. Scott Singer and Jeffrey Moroch of SBO worked with Howard Juster of Juster Properties and Steve Grant and Joshua Weiner of ClearRock in the transaction. The joint venture purchased the office property in 2013 along with the adjacent 14 E. 39 St. After the purchase, ClearRock subdivided 9 E. 38 St. and sold 14 E. 39 St. plus the northern portion of the 38th Street property as a development site to hotel developer Sam Chang. 9 E. 38 St. is located in Midtown within walking distance of both Grand Central Station and Penn Station.
WORCESTER, MASS. — David Cohen and Jim Cozza and Kelleher & Sadowsky Associates have brokered the $5.5 million sale of 225 Shrewsbury St. in Worcester. The 33,000-square-foot retail space is located on 2.4 acres. The property currently includes four current tenants and will be expanded this year.
ASBURY PARK, N.J. — Asbury Park Brewery has purchased a 28,369-square-foot former warehouse located at 810 Sewall Ave. in Asbury Park. Glenn Jaffe of Sheldon Gross Realty represented the seller, Flexcraft Co. Asbury Park Brewery initially signed on to lease the property, then decided to purchase it during the lease term. A Family Dollar store also occupies a portion of the property.
DALLAS — Marcus & Millichap’s (NYSE: MMI) Dallas-based multifamily investment sales team has closed the sale of six multifamily assets within the state of Texas totaling $80.5 million. The communities contain a total of 1,164 units. Four of the properties reside within the Dallas-Fort Worth area, known as the Metroplex, while another is situated 60 miles northeast of Dallas in Commerce, and the other is in Waco. The Metroplex-area properties include the 380-unit Spring Lake in Haltom City, the 306-unit Tradewind in Mesquite, the 200-unit Village at the Crossroads in Irving and the 76-unit Oaks Branch in Garland. “The Metroplex’s diverse and growing economy continues to attract investors, creating increased buyer competition for apartment assets and accelerating deal flow,” says Nick Fluellen, a member of Marcus & Millichap’s multifamily investment sales team. “Local investors are particularly focused on properties with some value-add component, as was the case with these assets.” The remaining two properties are the 128-unit Bradford Place in Commerce and the Village Condominiums, a 74-unit apartment asset in Waco. “All of the properties provide new ownership with excellent opportunities to add value in various ways, including the continuation or implementation of strategic upgrade plans,” adds Bard Hoover, who, …
Investors are attracted to Boston due to its diverse economy, education base and strong market fundamentals. In fact, major corporations like GE, Reebok, New Balance, and most recently Asics have all relocated to the city or are in the planning to relocate or rebrand here. As a result of this heightened interest in Boston as a global headquarters destination, the city is expected to grow, which in turn creates housing demand. Rhythm between Cap Rates and Interest Rates As investors know, there is a direct correlation between cap rates and interest rates. However, while a correlation exists, not all buyer profiles are necessarily affected in the same way in a shifting interest rate environment. Highest impact: Leveraged buyers would be most impacted by rising interest rates since they are typically trying to maximize leverage when pursuing an acquisition. With shifting interest rates, higher rates have a direct impact to potential returns. If leveraged buyers can borrow less at high rates, this has a direct impact to pricing/cap rates. Within the leveraged buyer profile, groups possessing strong balance sheets and banking relationships will be less impacted than groups not necessarily in the same financial position. Moderate impact: Cash and low-leverage buyers …
BROOMFIELD, COLO. — Summit Management Services has acquired the 350-unit Stonegate apartments in Broomfield for $86 million. The community is located at 11815 Ridge Parkway, halfway between Denver and Boulder. The property is just west of Interlocken Business Park, which is northwest Denver’s most prominent office park with more than 4 million square feet of office space, and Flatiron Crossing, which comprises more than 2 million square feet of retail, dining, hotel and entertainment options. Stonegate’s community amenities include a resort-style swimming pool, hot tub, grilling area, playground, dog park, 24-hour fitness center, resident lounge with full kitchen and fireplace, and views of the Rocky Mountains. The property is 95 percent occupied. HFF’s Jordan Robbins and Jeff Haag represented the seller in this transaction.
YUMA, ARIZ. — Cushman & Wakefield Senior Housing Capital Markets has negotiated a $9 million loan for Mission Senior Living. The capital will be used to build River Valley Estates, an 88-unit assisted living and memory care community in Yuma. River Valley Estates will feature 56 assisted living units and 32 memory care units in a 66,000-square-foot building on a 5.3-acre site. It will be Mission’s fifth property and third ground-up development. The Cushman & Wakefield team of Aaron Rosenzweig, Richard Swartz, Jay Wagner and James Dooley arranged the loan. Contemporary Healthcare provided the capital.
