The marketplace is wary in the lead-up to the 2020 election, but Anuj Gupta, president of Commercial Real Estate Lending with Ready Capital, says there’s opportunity for bridge lenders in the meantime as equity investors look for higher returns. Gupta believes rates will be lower for a longer period, although there is no telling what might happen after the election. Gupta feels confident about Ready Capital’s preferred strategy of focusing on small-to-medium loan sizes in secondary markets. In gateway cities, the company is supportive of creative solutions to high rent, like co-living, a sector that is expected to grow aggressively over the next few years. Meanwhile, Ready Capital is working to stay ahead of the curve by looking at more efficient ways to tackle lending in the small-to-medium sized real estate market with new technology. Watch the interview to learn more about how Ready Capital is taking advantage of the present while preparing for the future. This video is posted as part of REBusinessOnline’s Finance Insight series, covering MBA CREF 2020. Click here to subscribe to the Finance Insight newsletter, a four-week newsletter series, followed by video interviews from MBA CREF.
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Washington’s Tech Boom Changes the Multifamily Investment Calculus
Washington and Northern Virginia are among the nation’s most expensive places to rent an apartment, which in part explains the billions of dollars being spent on apartment construction there. But Capital Area asset returns in the post-recession era haven’t clearly supported these decisions. From 2013 to 2018, rents in Washington and NoVA increased at respective compound annual rates of 3.2 percent and 2.6 percent, tabulating Reis data, materially slower than the 4.7 percent average growth recorded by the 50 largest U.S. apartment markets. Likewise, occupancy trends were no better than average, muted by heavy supply, suggesting that Washington NOI growth in most cases was measurably slower than in alternative markets. But everything changed last year. Although Washington has been a technology player for decades, the region’s strengths fell primarily in telecom and defense, markets in which proximity to government was a competitive advantage. But the region’s growing prowess in private applications of digital technology reached critical mass in 2019 with Amazon’s decision to site its East Coast headquarters in Northern Virginia, specifically with a view toward tapping its deep reservoir of high-tech talent. The impact on economic growth in the capital is only beginning and seems likely to fundamentally alter …
ORLANDO, FLA. — Newmark Knight Frank (NKF) has arranged the $44.1 million sale of Parke East, a 272-unit multifamily community in Orlando. Built in 1987, the property offers one-, two- and three-bedroom floor plans and was 94 percent occupied at the time of sale. The seller, Insula Cos., recently renovated Parke East. Community amenities include a clubhouse, cyber café, fitness center, two pools, dog park and a basketball court. Scott Ramsey and Patrick Dufour of NKF represented the seller in the transaction. Mitch Clarfield and Ryan Greer, also with NKF, originated a Freddie Mac acquisition loan on behalf of the undisclosed borrower.
ROGERS, ARK. — NorthMarq has provided a $42 million Freddie Mac refinancing loan for Woodland Park, a 427-unit apartment complex in Rogers, which is located in the northwestern part of the state. The loan features a 10-year term and a 3.72 percent interest rate. The community, which was 95 percent occupied at the time of refinancing, offers one-, two- and three-bedroom floor plans. Communal amenities include a playground, clubhouse and a swimming pool. Woodland Park is situated at 4000 S Dixieland Road, five miles south of downtown Rogers. Kyle Tucker of NorthMarq originated the loan on behalf of the borrower, Block Real Estate Services.
ALEXANDRIA, RICHMOND AND COLONIAL BEACH, VA. — Tryko Partners has acquired three skilled nursing facilities in Virginia as part of a planned geographic expansion in the Mid-Atlantic for the Brick, N.J.-based private equity investment firm. The facilities, which were part of the Cambridge Healthcare Portfolio, include the 307-bed Woodbine Rehabilitation & Healthcare in Alexandria, the 190-bed Lexington Rehabilitation & Healthcare in Richmond and the 66-bed Westmoreland Rehabilitation & Healthcare in Colonial Beach. Each property provides post-hospital care, short-term rehabilitation and long-term residential care. Tryko plans to invest nearly $9 million in renovations and programming enhancements at the facilities. Woodbine has the largest licensed capacity in Virginia, according to Tryko. The 94,000-square-foot facility, situated on a nearly four-acre parcel, consists of two interconnected buildings offering both private and semi-private rooms, as well as a dedicated ventilator unit. Lexington, which has been rebranded as Canterbury Rehabilitation & Healthcare Center, is a 69,358-square-foot, two-story building on a five-acre parcel. The facility offers both private and semi-private rooms. Westmoreland is the only licensed nursing facility in Westmoreland County. Situated on approximately four acres, the one-story, 25,000-square-foot building includes three patient wings with private and semi-private rooms, including a rehabilitation wing. Tryko has retained the …
FORT LAUDERDALE, FLA. — Cushman & Wakefield has negotiated the $18.2 million sale of Courthouse Place, a 66,246-square-foot office building in Fort Lauderdale. The property is situated at 12 SE 7th St., one block from the 20-story, 730,000-square-foot Broward County Courthouse. The seller, a joint venture between Highline Real Estate Capital and Sefire Capital, acquired the property three years ago and implemented building upgrades and a speculative leasing program targeting law firms and associated businesses that were attracted to the building’s proximity to the Broward County Judicial Complex, according to Highline president David Moret. Notable tenants at the time of sale included law firm Krupnick Campbell Malone Buser Slama Hancock, the Florida State Attorney’s office, Legacy Bank of Florida and the Law Firm of Gary M. Singer. Scott O’Donnell, Greg Miller, Dominic Montazemi and Miguel Alcivar of Cushman & Wakefield represented the seller in the transaction. New Haven, Conn.-based ABCD Courthouse Place LLC acquired the asset for $274 per square foot.
SANDY SPRINGS, GA. — InvenTrust Properties Corp. has purchased Trowbridge Crossing, a 62,600-square-foot, Publix-anchored shopping center in Sandy Springs, for $11 million. The property was fully leased at the time of sale to tenants including the U.S. Postal Service, Great Clips, T-Mobile and Domino’s Pizza. The center was also recently upgraded to include new LED lighting to improve energy efficiency and provide better illumination for the center. Trowbridge Crossing is situated at 7531 Roswell Road, 18 miles north of downtown Atlanta. The seller was not disclosed.
MIAMI — Locally based investment and development firm The Treo Group has broken ground on VOX Miami, a $125 million mixed-use project in South Florida. Treo Group will develop the transit-oriented site, which is located at the corner of U.S. Highway 1 and Sunset Drive, adjacent to the South Miami Metrorail station, in multiple phases. Phase I will feature an eight-story student housing building with 326 beds across 99 units that will serve undergraduate and graduate students at the University of Miami. Amenities will include study lounges, a rooftop terrace, fitness center and a pool. The building is scheduled for completion before the 2021-2022 academic year. The second phase of VOX Miami is a 195,000-square-foot office building. Perkins + Will is designing the Class A property, which will also house ground-floor retail space. A start and completion date for that component has not yet been released. “VOX Miami is designed to fulfill the needs of various community sectors, from University of Miami students to local businesses, while providing convenient accessibility via the Metrorail and bolstering the overall appeal of public transportation,” says Otto Boudet-Murias, Treo Group principal. Treo Group is also developing Regatta Harbour, a 9.5-acre mixed-use project in Miami’s …
The Charlotte industrial market continues to see strong construction activity, as developers look to tap into demand for modern space. Approximately 12.7 million square feet has been delivered in the last two years, most notably in the Cabarrus County, Stateline and Airport/West submarkets. Overall construction in the pipeline jumped by 32 percent from third-quarter 2019 to fourth-quarter 2019, reaching 7.2 million square feet. As the first quarter of 2020 takes shape, this development expansion should continue, with an expected 7 million square feet of additional deliveries by year-end. Overall leasing activity in Cabarrus County was strong in 2019, with vacancy declining from 15 percent to 11 percent, which is notable given the 4 million square feet of construction seen in that submarket in the past two years. The Cabarrus County vacancy rate is set to decline significantly when two large deals, totaling more than 800,000 square feet, are factored into the statistics. Once Pactiv (441,000 square feet) and Reynolds (360,000 square feet) are incorporated into the research, the rate will decline to 5.7 percent, as we expected going into year-end. This activity will quickly tighten up the submarket and will open the door for new development. The recent high vacancy …
FORT LAUDERDALE, FLA. — Newmark Knight Frank (NKF) has arranged the $58 million sale of Serramar Apartments, a 302-unit multifamily community in Fort Lauderdale. The property, which was 95 percent occupied at the time of sale, was built in 1986. The property comprises 23 two-story buildings offering one- and two-bedroom floor plans. Communal amenities include a recently renovated clubhouse, business center, basketball court, two swimming pools and a fitness center. The seller, Bar Invest Group, acquired the property in 2016 and invested $44 million in upgrades and renovated 25 percent of the units. Hampton Beebe and Avery Klann of NKF represented the seller in the transaction. Milbrook Properties purchased the asset.