STAYTON, ORE. — Marcus & Millichap has arranged the sale of Stayton Apartments, an apartment property located at 1340 W. Locus St. in Stayton. An Oregon-based buyer acquired the property for $1.7 million in an exchange. Built in 1998, the property features 16 two-bedroom/one-bathroom flats. Danalee Corso and Whitney Rhoades of Marcus & Millichap’s Portland, Ore., office represented the seller, a limited liability company, in the deal.
NEW YORK CITY — A pair of real estate lenders provided a $664.1 million construction loan that will allow JDS Development Group to build the tallest building in Brooklyn. Situated at 9 DeKalb Ave. in the borough’s downtown district, the tower will rise 1,066 feet and will include 425 rental apartments, 150 for-sale condominiums and 120,000 square feet of retail space. JDS and development partner The Chetrit Group expect to deliver the 73-story residential tower in 2022. About 30 percent of the rental units at 9 DeKalb will be capped below market rates. The lenders include New York-based Silverstein Capital Partners and Montreal-based Otera Capital Inc., a subsidiary of Caisse de dépôt et placement du Québec (CDPQ), one of Canada’s leading institutional fund managers. Aaron Appel, Keith Kurland, Jonathan Schwartz, Michael Diaz, Mark Fisherand, Matthew Collins and Sean Bastian of JLL arranged the financing, details of which were not disclosed. SHoP architects is designing the residential tower’s façade to be clad in bronze and glass. New York-based JDS and Chetrit Group originally acquired the 9 DeKalb site in 2016 for $90 million, including air rights for the future development. On the site is a 70,000-square-foot, five-story property that once housed …
What is the economic outlook for the year, and what does that mean for the student housing industry? Hessam Nadji, president and CEO of Marcus & Millichap/Institutional Property Advisors, answered just that in the keynote speech that kicked off the 2019 InterFace Student Housing Conference, which was held in Austin earlier this month and drew approximately 1,400 attendees. Nadji began by laying out the basics on where the industry is today economically in comparison to before and during The Great Recession. “We’ve added 21 million jobs since the bottom of The Great Recession, and that has caused a 120 basis point reduction in the unemployment rate at a time when inflation is 200 basis points below where we were in 2007,” he says. “That is the crux of why everything in our industry as a whole — commercial real estate, and student housing in particular — has done so well. The combination of really good growth with very little inflation, and therefore low interest rates. “We have 7.6 million job openings today,” continues Nadji. “That is a record number of employers looking for qualified employees and about one-third of those employers are having a hard time finding qualified workers. That …
ELGIN, OKLA. — Marcus & Millichap has brokered the sale of Kensington Rental Estates, a 26-unit multifamily community in Elgin, located southwest of Oklahoma City. Derek Wilson of Marcus & Millichap represented the seller and buyer, both of which were private investors, in the transaction. The property was built in 2013 and offers two- and three-bedroom units.
BOLINGBROOK, ILL. — CA Senior Living LLC, the senior housing investment and development division of Chicago-based CA Ventures, has completed the development of Atria at River Trail, a 128-unit seniors housing community in the Chicago suburb of Bolingbrook. The Chicago office of Harley Ellis Devereaux designed the property. Located on 5.8 acres, the two-story community offers 86 assisted living units and 42 memory care units in a 123,482-square-foot building. Louisville, Ky.-based Atria Senior Living will operate the community. Atria operates approximately 200 communities across the United States and Canada.
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.