SACRAMENTO, CALIF. — A public-private partnership between University Enterprises Inc. — California State University, Sacramento’s (CSUS) commercial services auxiliary — and Greystar has broken ground on Hornet Commons, a 365,000-square-foot residence complex. The 1,100-bed development will feature six four-story buildings. Shared amenities will include a swimming pool, café, fitness center and a community room. Delivery is slated for fall 2021 The development team includes Sundt Construction Inc. and architectural firm Steinberg Hart.
GILBERT, ARIZ. — Pillar Communities & Private Portfolio Group has completed the disposition of Pillar at SanTan, a garden-style apartment complex located at 2910 S. Greenfield Road in Gilbert. Baron Properties acquired the asset for $67.8 million. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE’s Phoenix office represented the seller in the transaction. Constructed in 2009, Pillar at SanTan features 315 units in a mix of studio, one-, two- and three-bedroom floorplans with nine-foot ceilings, well-appointed kitchens and patios/balconies. Community amenities include a resort-style swimming pool, spa, poolside lounge, outdoor kitchen, fitness center, outdoor picnic areas, grills and a playground.
SAN ANTONIO — Passco Cos., a California-based multifamily development and investment firm, has acquired Tribute at The Rim, a 380-unit multifamily community in San Antonio. Built in 2017, the property is located within The Rim, a mixed-use development that is located on the city’s northwest side, and offers proximity to the hubs of major employers like USAA and Valero Energy. Floor plans feature one-, two- and three-bedroom units with quartz countertops, modern cabinetry and glass backsplashes. Amenities include a pool with a nearby fire pit, fitness center with on-demand classes, a dog park and grooming station, sky lounge, conference room and a bike storage and repair room. Scott LaMontagne, Moses Siller and Zar Haro of JLL represented the seller, Kairoi Development, in the transaction. Chris Black and Caleb Marten of KeyBank Real Estate Capital secured acquisition financing for the deal on behalf of Passco.
HOUSTON — Locally based multifamily developer MORGAN has begun leasing Pearl Marketplace, a 264-unit multifamily property in Houston’s Midtown district that includes a 40,000-square-foot Whole Foods Market on the ground floor. The grocery space is currently under construction and expected to open during the first quarter of 2020. Pearl Marketplace offers studio, one- and two-bedroom units with hardwood flooring, custom cabinetry, quartz countertops and smart thermostats. Communal amenities include a dog park and wash station, as well as a resort-style pool with a sun deck, poolside cabanas, grilling stations and TVs. A fitness center that overlooks the pool area will offer a variety of circuit and cardio equipment.
INDIANAPOLIS — Besyata Investment Group and The Scharf Group have acquired Southport Crossing Apartments in Indianapolis for an undisclosed price. Built in 1971, the 328-unit apartment property is located on Southport Road near Greenwood Park Mall. Amenities include a clubhouse, pool and fitness center. The seller was not disclosed.
RANTOUL, ILL. — Berkadia has negotiated the $7 million sale of South Pointe Commons in Rantoul, about 19 miles northeast of Champaign. The 245-unit multifamily property was originally built in 1959 as military housing for Chanute Air Force Base, which closed in 1993. The property is situated on 150 acres and consists of 37 two-story buildings. Floor plans are comprised of three- and four-bedroom units ranging from 1,050 to 2,300 square feet. Ralph DePasquale, Parker Stewart and Alex Blagojevich of Berkadia represented the Urbana, Ill.-based seller. Philadelphia-based Odin Properties purchased the asset.
PHILADELPHIA — Developer Chris Todd is nearing completion of The View at Old City, a 216-unit multifamily project in Philadelphia that is valued at $90 million. Located at the corner of Fourth and Race streets, the community is being developed at the site of the former home of Francis Hopkinson, a signer of the Declaration of Independence who designed the first official American flag and first U.S. coin. The property will offer a variety of different types of pet-friendly, open floor plans, from studios to two-bedroom units ranging from 441 square feet to 1,257 square feet. Amenities will include a pool, fitness center with a yoga studio, media room, outdoor grilling area, package locker service and a dog park. The View at Old City is expected to be available for occupancy in August.
Demographic shifts and the subsequent demand for affordable housing are currently impacting the greater Indianapolis multifamily sector, but the most marked influence is increased and expanded investor interest. Demographic shifts in population are influencing developers and owners in their long-term decision making when it comes to the multifamily sector. Two primary factors are at play. One, the traditional renter’s segment is changing as millennials age and delay having children. Two, national population projections are showing a decline in the prime renter’s segment as Baby Boomers begin to move into seniors housing. As a result, developers and owners are beginning to plan more senior living communities. Millennials are also impacting affordable housing occupancy rates as they want to live in walkable and amenity-rich areas without the cost of high-end apartments. This is leading to more rehabbed properties. At the moment, Class C properties in the Indianapolis area are reflecting greater occupancy movements, as occupancy declines when properties become distressed and increases when they are purchased and rehabbed. Additionally, college debt is delaying graduates in purchasing traditional homes. Both of these factors are causing occupancy rate increases which, in turn, result in a shortage of affordable housing. New housing construction costs are …
CHICAGO — A lot has happened at Brookdale Senior Living (NYSE: BKD) over the last few years in what can only be described as a tumultuous period. Operating 844 communities as of March 31, the company is still the largest owner and operator of seniors housing in the country. However, Brookdale’s stock price has struggled mightily in recent years. While trading at nearly $40 per share as recently as 2015, the company’s stock price has not gone above $10 per share since late 2017. (The stock closed at $6.52 per share on Tuesday, June 11.) The Brentwood, Tennessee-based company entertained acquisition offers at least twice, but instead settled on a change of leadership and a turnaround plan. Lucinda “Cindy” Baier was promoted from CFO to CEO in 2018 and immediately started trying to right the ship at Brookdale, in large part by paring the size of its portfolio up to 20 percent. Her efforts appear to be paying off. According to the company’s first-quarter 2019 earnings report, same-community revenue per occupied unit (RevPOR) increased 3.7 percent on a sequential-quarter basis and 3.1 percent on a year-over-year basis. In addition, same-community independent living occupancy remained at 90 percent for a second …
CHARLOTTE, N.C. — HFF has arranged the $57.3 million sale of Solis Berewick, a 275-unit multifamily community completed in 2017 in Charlotte. The property is located at 9550 Gannon Drive next to the grocery-anchored Berewick Town Center development, part of the 1,200-acre Berewick master-planned community in southwest Charlotte. Solis Berewick offers one-, two- and three-bedroom floor plans averaging 1,016 square feet per unit. Communal amenities include a saltwater swimming pool, outdoor grilling area with fire pit, gaming and entertainment lounge, fitness center, private yoga/spin studio, dog park and pet spa, electric car charging stations, community nature trail, and a playground. Allan Lynch, Justin Good, Caylor Mark and Jeff Glenn of HFF represented the seller, Terwilliger Pappas, in the transaction. The team also procured the buyer, RK Properties.