KANSAS CITY AND RIVERSIDE, MO. — NorthMarq’s investment sales division has arranged the sale of three multifamily properties in Missouri for $10.4 million. Northcrest Apartments is a 151-unit community in Riverside. A Midwest-based buyer purchased the asset. Rock Ridge Ranch and Belton Heights are both located in south Kansas City and total 119 units. A California-based buyer purchased the properties. Jeff Lamott of NorthMarq represented the seller, Worcester Investments, in each transaction.
BRICK, N.J. — Lancaster Pollard Mortgage Co. has provided a $17.3 million HUD loan to refinance Willow Springs, a skilled nursing facility in Brick, located in New Jersey’s northern coastal region. The borrower was local investment firm Tryko Partners LLC, which purchased the community from its developer, NuVision Management, in 2013 and subsequently rebranded it. At that time, Willow Springs featured 148 skilled nursing beds with expansion potential and an assisted living component that could accommodate 23 clients. Tryko then implemented a $1 million improvement plan that delivered an expanded rehabilitation facility with cutting-edge equipment and technology and updated common areas, patient rooms and assisted living accommodations.
UPLAND, CALIF. — Wood Partners has broken ground on Alta Upland, a multifamily property located at 1160 E. 19th St. in Upland. The property is located on the last undeveloped parcel at The Colonies at San Antonio masterplan and is adjacent to The Colonies Crossroads, a retail development. Slated to open in fall 2020, Alta Upland will features 203 apartments in a mix of one-, two- and three-bedroom floorplans. Community amenities will include a pool, spa, clubhouse and fitness center.
Seeking higher yield, private capital multifamily investors are increasingly looking to the Norfolk-Virginia Beach-Chesapeake MSA. This region of seven cities and a population of more than 1.7 million people is known collectively as Hampton Roads. Strong fundamentals, a youthful population and an expanding economy offer more promising returns than most surrounding MSAs. Compressing cap rates Over the last 12 months, cap rates compressed nationwide. In Hampton Roads, Class A cap rates ranged between 5.25 and 5.50 percent. There is very little spread between Class A and going-in cap rates for well located, true value-add deals. Notable recent sales include the Waypoint Portfolio in Newport News, Trail Creek in Hampton and Brookfield and Woodshire in Virginia Beach. Collectively, cap rates for these transactions ranged from 5.50 to 5.75 percent. Transaction volume in 2018 exceeded $665 million. With deals in the MSA now trading as high as $70 million a piece, more private equity groups nationwide are seeking to invest in the market. Strong fundamentals Fundamentals in Hampton Roads continue to improve with steady year-over-year rent growth and occupancy near 95 percent. With numerous MSAs battling oversupply and concessionary pressures, Hampton Roads apartment owners benefit from a more modest development pipeline. CoStar …
SPRING, TEXAS — Passco Cos., a California-based investment and development firm, has acquired The Grayson, a 330-unit multifamily community located in the northern Houston suburb of Spring. Situated near Interstate 45 and State Highway 99, the community offers one-, two- and three-bedroom floor plans with stainless steel appliances, island kitchens with granite countertops, modern cabinets and fixtures and individual washers and dryers. Amenities include a pool, fitness center, dog park, jogging trail, resident kitchen and a cyber café. Josh Goldfarb and John Carr of Cushman & Wakefield represented Passco and seller Bridgeview Louetta LLC in the deal. Chris Black and Caleb Marten of KeyBank Real Estate Capital arranged acquisition financing on behalf of Passco.
FORT WORTH, TEXAS — Wood Partners, a multifamily investment and development firm with offices around the country, has broken ground on Alta Champions Circle, a 285-unit multifamily project in north Fort Worth. The community will offer one-, two- and three-bedroom units averaging 957 square feet. Units will feature custom granite countertops, stainless steel appliances and individual washers and dryers. Amenities will include a pool, fitness center and outdoor grilling stations. Completion is slated for summer 2020.
CARROLLTON, TEXAS — HFF has negotiated the sale of Villas of Josey Ranch, a 198-unit apartment property situated on 12.3 acres in the northern Dallas suburb of Carrollton. The property, which was 96.5 percent occupied at the time of sale, comprises 19 two-story buildings with one- and two-bedroom units averaging 849 square feet. Amenities include multiple pools, outdoor picnic areas, a 24-hour fitness center and a business center. Bill Miller, Roberto Casas, Rob Key and Greg Toro of HFF represented the seller, a partnership between Harbert Management Corp. and Balfour Beatty Communities, in the transaction. HFF also procured the buyer, Houston-based Domain Communities.
YORK, PA. — New Jersey-based Larken Associates has acquired The Reserve at Copper Chase, a 132-unit apartment community in York, a southern suburb of Harrisburg. The property was 90 percent occupied at the time of sale and offered amenities such as a pool and a playground. The new ownership will expand the community by an additional 107 units and rebrand it as Larken Luxury Living Community. As part of the expansion, Larken plans to add a new clubhouse, fitness center and upgrades to units’ floors, cabinets, appliances and plumbing fixtures. The seller was not disclosed.
SUN PRAIRIE, WIS. — Arbor Realty Trust Inc. has provided a $3.2 million small-balance loan through Fannie Mae for the refinancing of Stonewood Crossing in Sun Prairie, a suburb of Madison. Built in 2018, the 24-unit multifamily property features covered parking and access to a nearby walking trail. Geoffrey Platt of Arbor originated the fixed-rate loan, which is fully amortized over 30 years.
LORAIN, OHIO — American Street Capital (ASC) has arranged a $2.8 million loan for the refinancing of a 109-unit apartment community in Lorain, about 30 miles west of Cleveland. Built in 1972 and renovated in 2018, the property consists of seven two-story buildings on nearly five acres. There are 67 two-bedroom units and 42 one-bedroom units. The average unit size is 672 square feet. Igor Zhizhin of ASC arranged the five-year, fixed-rate loan with a correspondent CMBS lender. The borrower was not disclosed.
