NEW YORK CITY — Ready Capital has closed a $24.6 million loan for the acquisition, renovation and stabilization of a 52-unit, Class B multifamily property located in the Greenpoint neighborhood of Brooklyn. Upon acquisition, the sponsor will convert the existing multifamily building into a co-living property. Additionally, the sponsor will implement a capital expenditure to prepare the co-living units for occupancy, which includes fully furnishing each unit. Ready Capital closed the nonrecourse, floating-rate loan, which features a 48-month term, one extension option, flexible prepayment and a facility to provide future funding for capital expenditures.
HOUSTON — Ready Capital has closed a loan of an undisclosed amount for the acquisition and stabilization of a 219-unit apartment community in Houston’s Greenway Plaza submarket. Upon acquisition, the sponsor will use a portion of the loan proceeds to renovate units and achieve market-rent premiums. The nonrecourse loan carried a fixed interest rate, a 60-year term and a declining prepayment schedule. The sponsor and property name were not disclosed.
LONGVIEW, TEXAS — MedCore Partners and The National Realty Group (TNRG) have acquired Parkview on Hollybrook, a 189-unit seniors housing community in Longview, approximately 60 miles west of Shreveport, La. The campus offers 126 independent living, 41 assisted living and 22 memory care residences. The buyers intend to develop land adjacent to the existing campus to add independent living cottages by early 2021. Integral Senior Living (ISL) will manage the community. The seller and sales price were not disclosed.
AVON, BROWNSBURG, PLAINFIELD AND DANVILLE, IND. — Newmark Knight Frank (NKF) has arranged $102 million in Fannie Mae debt financing for the acquisition of a 1,024-unit multifamily portfolio in suburban Indianapolis. The four properties include Avon Creek Apartments in Avon, Brownsburg Crossing Apartments in Brownsburg, Saratoga Crossing Apartments in Plainfield, and Settlers Run Apartments in Danville. Spruce Capital purchased the portfolio from Hampshire Properties for $133 million. Ari Schwartzbard, Matt Mense and Daniel Sarsfield of NKF secured the loan at a 75 percent loan-to-value ratio.
GRAND RAPIDS, MICH. — BB&T Capital Markets has closed on $70.2 million in bond financing to fund the expansion of Clark Retirement Community’s Keller Lake campus in Grand Rapids. The financing consists of $64.5 million in tax-exempt bonds and $5.7 million in taxable bonds, all at a fixed rate. The developer is currently underway on the Keller Lake expansion.The project will add 53 independent living units to the continuing care retirement community. Upon completion, Clark Retirement Community’s two campuses will total 185 independent living units, 230 assisted living units and 39 skilled nursing beds.
CHICAGO — Associated Bank has provided a $15.5 million loan for the acquisition of a 22,500-square-foot land parcel and subsequent construction of an apartment project. The borrower, Cedar Street Cos., plans to develop a five-story, 78-unit apartment building at the site, which is located at 5440 N. Sheridan Road in Chicago’s Edgewater neighborhood. Method Development, a wholly owned subsidiary of Cedar Street, will serve as general contractor. Once completed, the apartments will be managed by Flats, an affiliate of Cedar Sreet.Daniel Barrins of Associated Bank managed the loan and closing.
RUSTON, LA. — KeyBank Real Estate Capital has provided a $23.2 million Freddie Mac refinancing loan for University Crossing Apartments, a 552-bed student housing community located near Louisiana Tech University in Ruston. Hayley Suminski and Amanda Kutia of KeyBank originated the floating-rate financing on behalf of the borrower, WFInvestments. The loan features a 10-year term with three years of interest-only payments. Communal amenities include a pool, sundeck, 24-hour fitness center, clubhouse, study lounge, bicycle parking, a community kitchen and upright tanning beds. The garden-style community is currently undergoing renovations.
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Can Boston Keep Up with Multifamily Demand?
Think Boston multifamily is overbuilt or overheated? Think again. Due to superb fundamentals and a slowing development pipeline, Boston is now regarded as the number one metro area for multifamily investment. From 2019–2030, Boston will need to add 51,007 units to accommodate population growth, an average of 4,637 units per year. Recent development (2014–2017) averaged 3,334 units per year. Population and job growth are expected to remain strong, fueling continued demand for multifamily housing and countering arguments that the Boston market is overbuilt. Many developers nationally are interested in the market. The construction pipeline for multifamily properties features organizations with headquarters as far away as Portland, Phoenix, and Dallas. The Houston-based Hanover Company, for example, has four properties totaling over a thousand units in the Boston development pipeline. Boston is a seller’s market as well, with deals typically attracting multiple bids, and it is easy to see why. For investors, Boston is a market with an average cap rate of roughly 4.5 percent. This is the same cap rate as Raleigh or Central Florida — two markets generally considered to be more volatile than Boston in the case of a recession. A Reliable Hub Becomes a Vibrant City “Historically, people …
LAS VEGAS — Next Wave Investors has acquired Villaggio Di Murano, an apartment community located at 9475 W. Tompkins Ave. in Las Vegas. A Southern California-based multifamily investment group sold the asset for $14.5 million in an off-market transaction. Built in 2005, Villaggio Di Murano features 88 units in a mix of one-, two- and three-bedroom floor plans. Community amenities include a business center, fitness center, swimming pool and spa/hot tub. Next Wave plans to implement a series of capital upgrades, including exterior paint and signage, new landscaping, interior unit enhancements and pool area improvements. Additionally, the new owner plans to add new community amenities including collaborative outdoor barbecue and gathering spaces.
NEW YORK CITY — A joint venture between Pebb Capital and TriArch Real Estate Group has sold The Alabama, a 175-bed student housing community in the Greenwich Village neighborhood of Manhattan, for $104 million. The buyer in the transaction was undisclosed. Situated at 15 E. 11th St., the property serves students attending Cardozo Law School, The New School and New York University. The community offers fully furnished units with shared amenities including an attended lobby, fitness center, 24-hour business center, study and conference rooms, a 24-hour coffee bar, resident lounge and Hub by Amazon package lockers. Pebb Capital and TriArch acquired The Alabama in October 2016 for $58 million.