Southeast

John Ducey Walker & Dunlop agency financing affordable housing

How to Maximize Agency Financing for Affordable Housing

by Sarah Daniels October 24, 2023

There are a variety of ways to build affordable housing, but implementing these strategies has become an increasingly difficult proposition in 2023. Affordable housing projects seem to face challenges on every front. Generally affordable housing developers will: Despite intensifying renter demand for new units, developers are struggling to make their projects financially feasible, says John Ducey, chief production officer in the affordable lending group at Walker & Dunlop. “Affordable housing developers are facing some of the toughest headwinds I’ve seen in more than 20 years in the industry,” Ducey says. “That means developers are forced to work harder than ever to structure deals that stretch scarce housing subsidies and maximize agency financing.” Challenging Conditions One impediment to affordable housing efforts is reduced future rent levels, related to area median income (AMI) caps the Department of Housing and Urban Development (HUD) imposed recently on LIHTC properties in many markets in the United States. The unexpectedly restrictive caps forced developers to slash revenue projections, scuttling some transactions and forcing many loan applicants to renegotiate or seek alternative financing to salvage deals. On the expense side, inflation and the labor crunch continue to drive up costs for new construction, renovation of older affordable …

October 24, 2023

Acquisitions Leasing Activity Retail Southeast Virginia

VICI Acquires 38 Bowling Alleys from Bowlero in $432.9M Sale-Leaseback Deal

by John Nelson October 23, 2023

MECHANICSVILLE, VA. — VICI Properties Inc. has acquired 38 bowling alleys from Mechanicsville-based Bowlero Corp. in a sale-leaseback transaction for a total $432.9 million. Bowlero will now occupy the properties, which are located across 17 states, on a triple-net-lease basis. Initial annual rent for the lease will total $31.6 million. The deal also included an eight-year right of first offer (ROFO) term for VICI to purchase Bowlero’s real estate assets. J.P. Morgan acted as financial advisor to VICI in the transaction, and Hogan Lovells US LLP and Kramer Levin Naftalis & Frankel LLP provided legal counsel. VICI Properties Inc. is an experiential REIT that owns one of the largest portfolios of gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. Bowlero is a publicly traded company that operates 325 bowling alleys across North America. Earlier this year, Bowlero acquired the Lucky Strike Entertainment LLC brand, which operated 14 locations across nine states. In 2019, the company purchased the Professional Bowlers Association.

October 23, 2023

Development Multifamily North Carolina Southeast

Walker & Dunlop Arranges $49.3M Construction Financing for Hominy Creek Apartments Near Asheville

by John Nelson October 23, 2023

CANDLER, N.C. — Walker & Dunlop has arranged $49.3 million in financing for the development of Hominy Creek Apartments, a 216-unit multifamily community to be located at 40 Pallet Road in Candler, roughly 11 miles outside of Asheville. Upon completion, the property will feature apartments in a mix of one-, two- and three-bedroom layouts. Amenities will include a swimming pool, disc golf course, walking and biking trails and community gardens. The financing includes a $32.3 million construction loan secured through two regional banks and $17 million in preferred equity provided by an institutional fund. Walker Layne, Matt Wallach, Stephen West and Fletcher Dunn of Walker & Dunlop arranged the financing on behalf of the borrower, Charleston-based Southeast Partners. A construction timeline was not disclosed.

October 23, 2023

Development Industrial South Carolina

Selwyn, CIP Break Ground on 240,000 SF Waterford Business Park in Metro Charlotte

by John Nelson October 23, 2023

ROCK HILL, S.C. — Selwyn Property Group and CIP Real Estate have broken ground on Waterford Business Park, a 240,000-square-foot speculative industrial development in Rock Hill, approximately 30 miles southwest of Charlotte in South Carolina. Upon completion, which is scheduled for the fourth quarter of 2024, the property will comprise two 120,000-square-foot facilities situated on 25 acres at 656 Red River Road. Designed for single-tenant use, the buildings will also have the ability to be subdivided for multi-tenant use. Patrick Gildea, Rob Hardway, Matt Smith, Grayson Hawkins, Trey Barry and Frank Fallon of CBRE secured an $11.1 million limited partnership equity placement for the development of the property.

October 23, 2023

Development Industrial Southeast Tennessee

MYCON Underway on 204,500 SF Industrial Development in Nashville

by John Nelson October 23, 2023

NASHVILLE, TENN. — Dallas-based MYCON General Contractors is underway on the first phase of construction for Airpark Commerce Pointe, an industrial development situated on 73 acres near Nashville International Airport. The first phase will feature two multi-tenant industrial buildings — 801 and 900 Airpark Commerce Drive — totaling 204,500 square feet. The first building will comprise 94,500 square feet with 14 dock doors and two drive-in doors. The second building will feature 110,000 square feet with 16 dock doors and two drive-in doors. MYCON is constructing the property on behalf of the developer, Hamilton Creek Partners, and Development & Construction Insight will provide construction management services. Delivery is scheduled for late 2024. Melissa Alexander, W.B. Scoggin and Casey Flannery of Foundry Commercial will handle leasing at the development.

October 23, 2023

Acquisitions Multifamily North Carolina Southeast Tennessee

Crescent Communities Sells Two Multifamily Communities Totaling 642 Units in Nashville, Metro Raleigh

by John Nelson October 23, 2023

NASHVILLE, TENN. AND CARY, N.C. — Crescent Communities has sold two multifamily communities in the Southeast totaling 642 units. TA Realty acquired both properties from the Charlotte-based developer for an undisclosed price. The first property, NOVEL Harpeth Heights in Nashville, features 322 apartments in a mix of studio, one-, two- and three-bedroom layouts . Amenities at the community include a clubhouse, spa and fitness center. Monthly rental rates at the community begin at $1,629, according to Apartments.com. Crescent developed Harpeth Heights, which marks the seventh multifamily community for the developer in the Nashville market, in partnership with Pearl Street Partners. The second property, NOVEL Cary, comprises 320 residences in studio, one-, two- and three-bedroom floorplans in Cary, roughly 12 miles outside of Raleigh. Amenities at the community include a saltwater pool with cabanas, hammock lawn, an elevated deck with a grilling area and a fitness center. Monthly rental rates at NOVEL Cary begin at $1,610, according to the community website.

October 23, 2023

Market Reports Multifamily Southeast Southeast Market Reports Virginia

Richmond’s Multifamily Growth Reflects the Local Economy’s Positive Trajectory

by John Nelson October 23, 2023

As Richmond continues to grow, its relative value points to prosperity in the market for years to come. Having grown our company in Richmond, we’ve witnessed the transformative momentum and tremendous change firsthand. Specifically, the diverse employment base has continued to expand through economic strength and migration trends, increasing not only population but also multifamily demand and asset performance. Strong economics support Richmond’s stability. Richmond’s diverse employment base empowers a resilient market with high-growth potential. The MSA is home to 11 Fortune 1000 companies and a robust private sector, encompassing hospitals, energy companies and financial services. The economy is stabilized by the presence of many institutions of higher learning, along with substantial medical and life sciences users. Numerous major corporations have announced or recently completed large expansions. These include CoStar’s new $460 million corporate campus (2,000 jobs) and The LEGO Group’s new $1 billion, 1.7-million-square-foot production facility (1,760 jobs). As Virginia’s state capital, Richmond has a large government presence, including the Richmond Federal Reserve Bank and the U.S. Fourth Circuit Court of Appeals. The city is also actively engaged in creating public-private partnerships — including the “Diamond District,” a 67.5-acre parcel redevelopment into a mixed-use entertainment district, and “City Center,” …

October 23, 2023

Development Multifamily North Carolina Southeast

Alliance Residential Opens 323-Unit Broadstone Optimist Park Apartments in Charlotte

by John Nelson October 20, 2023

CHARLOTTE, N.C. — Alliance Residential Co. has opened Broadstone Optimist Park, a 323-unit multifamily community located at 2010 N. Brevard St. in Charlotte. Apartment and townhome units at the property range from 600 to 1,368 square feet in studio, one- and two-bedroom layouts. Monthly rental rates range from $1,300 to $3,000, according to Apartments.com. Amenities at Broadstone Optimist Park include a swimming pool with private cabanas; courtyard with outdoor grilling stations, dining areas, games and firepits; fitness center; indoor/outdoor clubroom; coworking spaces; a 24-hour mail package system; podcast recording studio; indoor/outdoor sky lounge; 40 electric vehicle charging stations; and 410 parking spaces. Located in the Optimist Park neighborhood, the community is walkable to both the 25th St. Light Rail Station and the new Urban District Market food hall. Cline Design Associates was the architect on the project, and John R. McAdams Co. served as the civil engineer. LS3P provided interior design services.

October 20, 2023

Build-to-Rent Development Florida Multifamily Single-Family Rental Southeast

Advenir Oakley to Develop 302-Unit Build-to-Rent Residential Project in Wildwood, Florida

by John Nelson October 20, 2023

WILDWOOD, FLA. — Advenir Oakley Capital will begin development on LEO at Wildwood, a new multifamily development in Wildwood, part of The Villages MSA in Central Florida. Miami-based Advenir Living purchased the site in September 2022 in partnership with Birmingham-based Oakley Group for $8.5 million. Upon completion, LEO at Wildwood will feature standalone cottages with attached garages, duplexes, rowhouses and carriage houses. Residences will range from 782 to 1,300 square feet. Certified General Contractors will serve as the general contractor on the project, which was designed by Nequette Architecture & Design. Amenities will include a swimming pool, clubhouse with a 24-hour fitness center and coffee/water bar, internet lounge, pocket parks, a dog park, pet washing station and free Wi-Fi. Delivery of the first homes is scheduled for January 2025. Monthly rental rates will range from $1,900 to $2,700.

October 20, 2023

Development Multifamily North Carolina Southeast

DRP to Break Ground on 270-Unit Perimeter Pointe Apartments in Southwest Charlotte

by John Nelson October 20, 2023

CHARLOTTE, N.C. — Dominion Realty Partners (DRP) will break ground this month on Perimeter Pointe Apartments, a 270-unit multifamily community in southwest Charlotte. Situated within the LakePointe Corporate Center business park at 3737 Glen Lake Drive, the property will feature a pool, activity lawn, automated package delivery system, fitness center and a club/game room. Rule Joy Trammell & Rubio designed the community, and Armada Hoffler Construction will serve as the general contractor. The first units are scheduled for delivery in the first quarter of 2025. Trustmark Bank, along with Dogwood State Bank and Providence Bank, is providing financing for the project. CBRE acted as an advisor on the debt placement, and the Richmond office of Hunton Andrews Kurth represented DRP. Moore & Van Allen assisted in rezoning the property, which was acquired from Childress Klein for an undisclosed amount. Perimeter Pointe marks DRP’s sixth project in the metro Charlotte area.

October 20, 2023

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