AMARILLO, TEXAS — Marcus & Millichap Capital Corp. (MMCC) has arranged a bridge loan of an undisclosed amount for the acquisition of a 415-unit multifamily property in Amarillo. Jamie Safier of MMCC arranged the nonrecourse, floating-rate loan. The undisclosed borrower will use a portion of the proceeds to fund capital improvements. The direct lender and property name were also not disclosed.
AUSTIN, TEXAS — Alamo Drafthouse Cinema has filed for Chapter 11 bankruptcy protection and entered into an asset purchase agreement with its group of senior lenders that is led by California-based Altamont Capital Partners and Fortress Investment Group. The agreement involves the sale of “substantially all” of the company’s assets, though it remains unclear how many of its 41 theaters Alamo Drafthouse plans to close. As part of its filing, Alamo Drafthouse has asked the U.S. Bankruptcy Court for the District of Delaware to approve a 75-day timeline for restructuring its debt and has secured $20 million in debtor-in-possession financing from its creditors to cover operational costs during that period. The company, which operates some of its theaters and franchises others, cited the COVID-19 pandemic’s “unprecedented and outsized impact upon the movie theater and dining industries” as the central driver behind its decision. Alamo Drafthouse, founded in Austin in 1997, was one of first entertainment concepts to bring elevated food and beverage offerings into the theater space.
HOUSTON — Design-build firm ARCO/Murray has completed Calhoun Avenue Storage, a 997-unit self-storage facility in Houston that will be operated by Pennsylvania-based REIT CubeSmart. Miami-based private equity firm FivePoint Capital Management developed the property, which rises four stories, spans 126,000 square feet and features a 1,000-square-foot sales office. Construction began in July 2020.
RICHARDSON, TEXAS — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has negotiated the sale of The Riley, a 262-unit apartment community located within the CityLine mixed-use development in the northeastern Dallas suburb of Richardson. The property was built in 2018 and offers amenities such as a pool, grilling areas, dog park, fitness center and a Wi-Fi café with a serving bar and TV. Drew Kile, Joey Tumminello, Will Balthrope and Grant Raymond of IPA represented the seller, JLB Partners, and procured the buyer, TTI Capital.
SAN ANTONIO — Dallas-based Everest Rehabilitation Hospital will open a $24 million inpatient facility on an 8.1-acre site on SE Military Parkway in San Antonio. The property will span 40,000 square feet and offer 36 beds designed to resemble a hotel rather than an acute care hospital. The facility will also include inpatient and outpatient therapy gyms, an outdoor mobility courtyard for therapeutic use, Hydroworx aqua therapy, several family gathering areas, a dining hall, in-house dialysis center and an in-house pharmacy. A construction timeline was not released.
SEGUNDO, CALIF. — California-based Matthews Real Estate Investment Services has brokered the sale of a portfolio of five healthcare properties in Texas totaling 37,282 square feet. The properties, which were originally constructed in 2015 as build-to-suits for emergency care provider Neighbors, are located in Lufkin, Grand Prairie, El Paso, Lake Jackson and Victoria. Neighbors went bankrupt shortly after the properties were built. Rahul Chhajed and Michael Moreno of Matthews represented the undisclosed buyer, which has converted the assets into surgery centers and signed long-term leases with a new operator.
Student housing demonstrated its resilience in the face of COVID-19 challenges, but what can the industry expect going forward? Timothy S. Bradley, founder, TSB Capital Advisors, and principal, TSB Realty, sat down with Finance Insight to discuss financing and expectations for student housing in the fall of 2021 and beyond. Finance Insight: How was 2020 for TSB? Bradley: We were fortunate. Many observers assumed the student housing industry would be devastated by COVID-19-forced school closures and campus clusters. Instead, thanks in large part to the rational and institutional nature of our major operators, investors and lenders, the industry proved its resiliency once again. We were affected by the pandemic, of course, and had to adjust some of our early year projections, but TSB companies still closed on a total transaction volume of approximately $4 billion, including construction loans, stabilized term loans and interim loans, as well as sales, and joint venture partnership consultations. There will be other challenges our industry faces in the years to come, but it’s difficult to imagine a more challenging singular event than the one we experienced this year with COVID-19. All things considered, we felt very good about 2020, and we’re even more optimistic about 2021. …
SAN ANTONIO — Houston-based developer Midway and private equity firm GrayStreet Partners have unveiled plans for Lone Star District, a mixed-use project in San Antonio that will be a redevelopment of the former Lone Star Brewery site. The site borders the San Antonio River and is located roughly 1.5 miles from the downtown area. Plans for Phase I of the 32-acre development call for 250 multifamily units, 100,000 square feet of office space and 50,00 square feet of retail, restaurant and entertainment space. Project partners include master-plan architects Lake|Flato and OJB Landscape Architecture, as well as civil engineer WGI Engineers. Phase I is expected to be complete in 2025.
PRINCETON, TEXAS — The NRP Group, a Cleveland-based developer, has broken ground on Princeton Crossroads, a 300-unit mixed-income housing project that will be located about 40 miles northeast of Dallas. Princeton Crossroads is being developed in partnership with Texoma Housing Partners and will consist of one-, two- and three-bedroom units ranging in size from 610 to 1,320 square feet. Fifty percent of the units will be reserved for residents earning less than 80 percent of the area median income (AMI). Amegy Bank provided construction financing. Leasing is expected to begin in spring 2022, with full completion slated for fall 2022.
ARLINGTON, TEXAS — Marcus & Millichap has arranged the sale of Fielder’s Glen, a 220-unit apartment community in Arlington. The property consists of 15 buildings on a 10.5-acre tract. Amenities include a pool, fitness center, clubhouse, laundry facilities and a courtyard. Al Silva of Marcus & Millichap represented the seller, a Colorado-based partnership, and procured the buyer, a private investment company based in Canada. The new ownership plans to implement a multimillion-dollar renovation.