Rent an apartment or buy a home? That is the question now posed to many Millennials as they face the facts about the high barriers to homeownership that generations before them, at the same stage of life, could easily overcome. But since the Great Recession and the loose homeownership qualifications that helped spawn it, banks and other home-lending institutions have been under the tight-fisted control of government regulators who have demanded, rightly or wrongly, that prospective homeowners meet strict and often daunting qualifications to buy a house. While that’s bad news for a generation that was raised by families who owned homes and where a home was the primary financial asset for inheritance, it’s good news for multifamily investors, developers and contractors. The demand for apartments has risen to levels eclipsing demand for homeownership in one of the few times in modern history. This is especially true in Orange County where home prices have always been among the highest in the nation. In fact, demand among multifamily investors is so strong that nearly every recent offering for well-located apartment properties has garnered multiple offers, creating a perfect-storm situation for the sellers. One sale that involved an investment portfolio of four …
WASHINGTON, D.C. — The first Architecture Billings Index (ABI) of the year slipped below the positive mark, reflecting a decline in demand for design activity at architecture firms. The American Institute of Architects (AIA) reported the January ABI score was 49.5, down from a very strong 55.6 in December 2016. The score reflects a decrease in design activity, with any score above 50 indicating an increase in billings. The new projects inquiry index was 60.0, up from a reading of 57.6 the previous month, and the design contracts index, which is an early indicator of construction contract awards, was also positive with a mark of 52.1. Given the positive showing for the new projects inquiry and design contracts indices, Kermit Baker, AIA’s chief economist, isn’t too concerned about the ABI starting 2017 in the negative territory. “This small decrease in activity, taking into consideration strong readings in project inquiries and new design contracts, isn’t exactly a cause for concern,” says Baker. “The fundamentals of a sound nonresidential design and construction market persist.” Regionally, the West was the only geographic region with a negative showing (48.8). The South led the way with a 54.2 mark, followed by the Northeast (53.0) and …
SALEM, ORE. — CBRE has arranged $72.5 million in financing for the acquisition of The Bonaventure Portfolio, five independent living and assisted living communities throughout the states of Washington and Oregon. NorthStar Healthcare Income, a non-traded REIT, acquired the portfolio, which totals 453 units. Based in Salem, Ore., Bonaventure is a family of companies that develops and operates seniors housing properties in the West. The company operates 24 properties in three states. Aron Will and Matthew Whitlock, both of CBRE National Senior Housing, arranged the 10-year, fixed-rate loan with 24 months interest-only payments through its Fannie Mae DUS Multifamily loan origination program.
TUALATIN, ORE. — NAI Elliott has arranged the $16.3 million sale of Martinazzi Square, a 51,060-square-foot shopping center located in Tualatin. Joe Sandahl of NAI represented the seller, Martinazzi Square LLC, in the disposition of the property to CH Retail/Acquisitions LLC. The property is home to tenants including Starbucks Coffee, Nothing Bundt Cakes and H&R Block.
MERCED, CALIF. — Envoy Net Lease Partners has closed on a $4.5 million ground lease acquisition and development loan for a CVS/pharmacy property in Merced. Envoy financed 100 percent of the total cost of the project, allowing the undisclosed developer to retain full control and ownership of the property. The 2.2-acre site is located on Olive Avenue near highways 59 and 99.
STAMFORD, CONN. — CBRE has secured $51 million in financing for the acquisition of 66 Summer Street, an apartment building located in Stamford. The borrower was KC Summer Street Owner LLC, a joint venture between The Kabr Group and Ceruzzi Properties. Freddie Mac provided the eight-year, fixed-rate loan with full funding based on pro forma, as the property is still in its lease-up period. The newly constructed property features 209 luxury apartment units. Mark Fisher, Jason Gaccione, Alex Furnay, Irene Lu and Michael Ricco of CBRE facilitated the loan for the borrower, while CBRE Capital Market’s Investment Sales team represented the seller in the deal.
GARDENA, CALIF. — Marcus & Millichap has arranged the sale a retail property located at 14600 S. Broadway in Gardena. A limited liability company sold the 37,088-square-foot property for $5.4 million. Twin Dragon Marketing Inc. occupies the property. Brandon Michaels of Marcus & Millichap represented the seller in the deal. The name of the buyer was not released.
Eastern Union Funding Arranges $35.9M in Refinancing for Three Multifamily Properties in Connecticut
WINDSOR, NEWINGTON AND BLOOMFIELD, CONN. — Eastern Union Funding has arranged three loans totaling $35.9 million to refinance three multifamily properties in Connecticut. The borrower was a New York-based private investment firm. Totaling 369 units, the properties are Williamsburg Apartments, 250 Bloomfield Ave. in Windsor; Northwood Apartments, 215 Lowrey Place in Newington; and Manor House Apartments, 14-2 Revere Drive in Bloomfield. Customers Bank provided the financing.
NEW YORK CITY — New York Residence Inc. has brokered the purchase of a multifamily and retail building located at 165-167 Williams St. in downtown Manhattan. A private European equity fund acquired the 31,000-square-foot property from an investor group led by Eli Tabak of Bluestone Group for an undisclosed price. Originally built in 1907 as an office building, the 10-story building features ground-floor retail space, leased to Downtown Pharmacy, and 12 apartments on the upper floors. Thomas Guss and Saul Lalic of New York Residence Inc. represented the buyer, while Victor Sozio and Jesse Greshin of Ariel Property Advisors represented the seller in the transaction.
PAYSON, ARIZ. — MidCap Financial has arranged a $4.5 million bridge-to-HUD loan to refinance Compass Senior Living’s Majestic Rim Retirement Living, located in the Phoenix suburb of Payson. Majestic Rim is a 50-unit independent living facility built in 2006. Compass purchased the property in 2014 as an underperforming asset. MidCap’s bridge loan will refinance existing debt on the property.