The Inland Empire multifamily market will retain its solid foundation of positivity this year as the economy again provides a healthy supply of new jobs and freshly formed households seek apartments to rent. The number of new multifamily units scheduled for delivery is a fraction of what it was last year, and this will place downward pressure on vacancy. Tightening vacancy will support another year of above-trend rent growth. Strong job growth in wholesale trade, government and transportation and warehousing positions has drawn many new employees to the Inland Empire in recent years. The number of 20- to 34-year-olds, who typically favor rental housing, has steadily increased. Growth in wholesale trade, government and warehousing will continue to attract Millennials in 2017, and the region’s employers are expected to add 27,500 new jobs overall. The Inland Empire’s employment boom has led to an increase in household formation, which has stimulated new multifamily construction. Developers fruitfully delivered 2,600 new units to the market in 2016. This exuberance, however, may well have been the peak for the current real estate cycle. This year, the projected number of apartment completions is just 500. This much more measured level of development will be quickly absorbed …
NEW YORK CITY — Avanath Capital Management has acquired an affordable housing portfolio of 17 apartment buildings totaling 198 units in Brooklyn for $73 million. The properties were purchased from a private investor in joint partnership with New York-based Oak Tree Management. Located in the Prospect Heights, Crown Heights, Williamsburg and Bedford-Stuyvesant neighborhoods, the properties include 115 rent-stabilized units, 79 free market units and four commercial spaces. Average rents range from $1,700 to $2,500 per month. Avanath’s Ben Finley was responsible for sourcing and acquiring the deal. Peter Von Der Ahe, Joseph Koicim and Shaun Riney of Institutional Property Advisors (IPA), and DJ Johnston of Cushman & Wakefield represented the seller. Andrew Dansker of Marcus & Millichap arranged the financing for the buyer. The portfolio’s four commercial spaces are leased to tenants including Sunday Routine, Fool’s Gold Records and a day care center.
SANTA CRUZ, CALIF. — Dominion Mortgage Corp. has both arranged and provided a $4.2 million bridge loan for Villa Senior Housing. The 58-unit seniors housing community is located south of the Bay Area in Santa Cruz. No further details were disclosed.
FRISCO, TEXAS — A joint venture between Dallas Cowboys owner Jerry Jones, former Cowboys quarterback Roger Staubach and Dallas developer Robert Shaw has announced plans for a 17-story apartment complex within The Star in Frisco. The property will feature 160 units with an average size of 1,200 square feet per unit. Construction is scheduled to begin in January 2018, with move-ins scheduled for the first quarter of 2019. Columbus Realty will develop the project.
CHICAGO — Essex Realty Group Inc. has arranged the sale of a 26-unit condominium building in Chicago’s Lincoln Park for $7.8 million. The property, located at 512 W. Belden Ave., includes a mix of one- and two-bedroom units. Steven Livaditis and Joe Scheck of Essex marketed the property for sale on behalf of the seller, 512 Belden Association. The team also represented the buyer, a local real estate investor.
SWANSEA, ILL. — BARBERMurphy Group has arranged the sale of a 108-unit apartment property in Swansea, about 15 miles east of St. Louis. The sales price was not disclosed. The building, located at Cantwell Lane and Old Collinsville Road, consists of 113,400 square feet. BARBERMurphy represented the seller, Dan L. Sheils LLC. Swansea Applegate Apartments LLC purchased the property.
CHARLESTON, S.C. — A joint venture between Spandrel Development Partners, Aspen Heights Partners and Northwestern Mutual plans to break ground on a 221-unit apartment community in downtown Charleston known as 511 Meeting Street. Situated in Charleston’s Upper King district, the project will feature more than 9,000 square feet of amenity space, two levels of structured parking and ground-floor retail space. The joint venture plans to break ground this month with completion expected by the second quarter of 2019. Including this project, Spandrel Development has $165 million in downtown Charleston developments underway, including two student housing projects in a partnership with Armada Hoffler Properties.
SACHSE, TEXAS — Mustang Creek Estates will develop a $7.5 million assisted living and memory care facility in the Dallas-Fort Worth metro of Sachse. The 42,000-square-foot Mustang Creek Estates at Sachse is expected to open this fall and create as many as 50 new staffing jobs. The property will be Mustang Creek’s fifth seniors housing asset in the Dallas-Fort Worth area.
SANDY SPRINGS, GA. — Moran & Co. Southeast has brokered the $63.5 million sale of M789, a 33-story apartment high-rise located at 789 Hammond Drive in Sandy Springs, a suburb of Atlanta. The property’s 300 units average 1,221 square feet. Chicago-based Magnolia Capital purchased M789 from Austin, Texas-based CWS Capital LLC. Sean Henry and Joel Sasser of Moran & Co. Southeast brokered the transaction. The apartment tower’s amenities include a 24/7 concierge, resident clubroom, media lounge, entertaining kitchen, business center, resort-style pool and sundeck, fitness center, tennis court, on-site dry cleaners, sundries store and a private dog park.
BRADENTON AND ST. PETERSBURG, FLA. — Goldman Sachs has provided $54.3 million in financing for two apartment communities in the Tampa Bay area. The properties include the 281-unit Fountain Lakes Apartments located at 5620 Fountain Lake Circle in Bradenton and the 276-unit Sienna Bay Apartments located at 10501 3rd St. in St. Petersburg. Mona Carlton, Elliott Throne and Matthew Sand of HFF arranged the two 10-year, fixed-rate loans through Goldman Sachs. The borrower, Beachwold Residential, will use the financing to retire existing bridge financing and return sponsor equity following a renovation/expansion program at both communities.