Multifamily

Cushman & Wakefield Arranges $9M Loan to Build 88-Unit Seniors Housing Community in Arizona

by Nellie Day March 14, 2017

YUMA, ARIZ. — Cushman & Wakefield Senior Housing Capital Markets has negotiated a $9 million loan for Mission Senior Living. The capital will be used to build River Valley Estates, an 88-unit assisted living and memory care community in Yuma. River Valley Estates will feature 56 assisted living units and 32 memory care units in a 66,000-square-foot building on a 5.3-acre site. It will be Mission’s fifth property and third ground-up development. The Cushman & Wakefield team of Aaron Rosenzweig, Richard Swartz, Jay Wagner and James Dooley arranged the loan. Contemporary Healthcare provided the capital.

March 14, 2017

Loans Multifamily Seniors Housing Utah Western

Love Funding Closes $6.8M Construction Loan for Assisted Living Community in Utah

by Nellie Day March 14, 2017

SOUTH JORDAN, UTAH — Love Funding, a lender specializing in FHA loans for healthcare real estate, has closed a $6.8 million bridge loan for the construction of an assisted living and memory care community in the Sale Lake City suburb of South Jordan. Our House of South Jordan will offer 62 beds in a 42,000-square-foot facility. Giza Development LLC, Stout Construction and Primera Group are building the property. SAL Management Group LLC will manage the community once construction is complete. James Vanar of Love Funding’s Los Angeles office arranged the laon, with Love Funding’s parent company, Midland States Bank, providing the capital. This is the second bridge loan Vanar has obtained for Giza Development, which started construction of Shadow Valley Assisted Living and Memory Care in nearby Ogden last year.

March 14, 2017

Georgia Mixed-Use Multifamily Southeast

MARTA Selects Place Properties, H.J. Russell for $51.3M King Memorial Station Development

by John Nelson March 14, 2017

ATLANTA — The Metropolitan Atlanta Rapid Transit Authority (MARTA) has partnered with Place Properties and H. J. Russell & Co. to develop the King Memorial Station Transit Oriented Development (TOD), which has an estimated total development cost of $51.3 million. The joint venture replaces Walton Communities, which was initially awarded the project in 2014. The TOD will be co-located at the King Memorial MARTA station, which is located near downtown at 377 Decatur St. S.E. The project will feature a 400-unit apartment community and 10,000 square feet of retail space. The joint venture plans for 20 percent of the property’s units to be reserved as affordable housing. Place Properties has financed, acquired and developed more than 37,000 multifamily beds nationwide, valued at over $1.7 billion. H. J. Russell & Co. has more than 60 years of development experience that includes The Pad on Harvard near the College Park MARTA station, Mercedes-Benz Stadium and the Smithsonian National Museum of African American History and Culture in Washington, D.C.

March 14, 2017

Midwest Missouri Multifamily

CBRE Brokers Sale of Two Apartment Properties in Downtown St. Louis

by Kristin Harlow March 14, 2017

ST. LOUIS — CBRE has brokered the sale of The Tower at OPOP and The Lofts at OPOP in downtown St. Louis in the Old Post Office Plaza (OPOP). North American Properties and Urban Street Group sold the buildings to Strategic Properties of North America for an undisclosed price. The Tower consists of 128 units and is located at 411 N. 8th St. The Lofts consists of 53 units and is located at 911 Locust St. The buildings have occupancy rates of 96 and 94 percent, respectively. Matt Bukhshtaber of CBRE represented the seller in the transaction.

March 14, 2017

Multifamily New Jersey Northeast

Gebroe-Hammer Associates Arranges $23.5M Sale of Carriage Club Apartments in Mount Arlington, N.J.

by Haisten Willis March 14, 2017

ARLINGTON, N.J. — Gebroe-Hammer Associates has arranged the $23.5 million sale of The Carriage Club, a 106-unit multifamily property located at 1 Hillside Dr. in Mt. Arlington. Gebroe-Hammer’s Adam Zweibel and Stephen Tragash secured the seller, Carriage Club Associates LLC, and procured the unnamed buyer, a private investment group, in the transaction. Built in 2003, Carriage Club is a Class A, 55-and-over apartment community offering one- and two-bedroom units, the latter of which offer a choice of one or two baths. Carriage Club was 98 percent occupied at the time of sale. The complex offers access to I-80, I-287 and the Garden State Parkway, and is within walking distance to NJ Transit service at Mount Arlington Station. Community amenities include a clubhouse with a heated indoor pool, billiards room, fitness center, golf putting green, outdoor sundecks and a grill and picnic area.

March 14, 2017

Multifamily Northeast Pennsylvania

M&M Brokers $3.8M Sale of 58 Apartment Units in Philadelphia

by Haisten Willis March 14, 2017

PHILADELPHIA — Marcus & Millichap has brokered the sale of 58 apartment units in the Germantown neighborhood of Philadelphia. The contiguous properties, Wissahickon Apartments and 5228-5232 Laurens St., sold for $3.8 million. The buyer plans to renovate and reposition the properties. Fred Paisley and Jonathan Massaro of Marcus & Millichap’s Philadelphia office marketed the property on behalf of the seller. Paisley secured and represented the buyer. Wissahickon Apartments includes 52 one-, two- and three-bedroom units located at 5215 Schuyler St. The historically registered property was constructed in 1910 and operated as a hotel before renovations in the mid-1980s.

March 14, 2017

Loans Multifamily New Jersey Northeast

NorthMarq Capital Secures $80M Refinance of Multifamily Portfolio in Hoboken, N.J.

by Haisten Willis March 14, 2017

HOBOKEN, N.J. — Gary Cohen of NorthMarq Capital’s New Jersey-based office has secured the $80 million refinancing of a portfolio of multifamily properties containing 519 total units. The five properties are located throughout Hoboken. The 12-year loan includes a 25-year amortization schedule. NorthMarq arranged financing for the borrower, Applied Housing Management, through its correspondent relationship with a life insurance company.

March 14, 2017

Connecticut Loans Multifamily Northeast

KeyBank Arranges $12.4M in Financing for Multifamily Properties in Connecticut

by Haisten Willis March 14, 2017

NORWALK, CONN. — KeyBank Real Estate Capital has provided $12.4 million in FHA financing for Cedar Court Apartments, a seniors housing community in Norwalk. The 91-unit property will designate at least 40 percent of its units for tenants earning below 60 percent of the area median income. In addition, the property will utilize Section 8 Housing Assistance Payments contract that will provide subsidized rents for 45 units. Jeff Rodman of Key’s commercial mortgage group and Kelly Frank of Key’s community development lending and investment group arranged the construction financing, which will be used to rehabilitate the property.

March 14, 2017

Features Multifamily Top Stories

M&M: Homeownership Hits 12-Year Low as Young Households Favor Apartments

by Jeff Shaw March 14, 2017

Homeownership rates in the United States have hit a 12-year low due to a combination of younger people’s preference for apartments, a low housing inventory that has inflated sales prices and strong absorption in the multifamily sector, according to a research brief from Marcus & Millichap. Single-family homes are experiencing low inventory compared to demand, with the supply of available homes holding steady for several months. The current supply represents just 3.6 months of sales, a record low, according to the brief. As a result, the median home price increased 7.3 percent on a year-over-year basis to $230,400 in January 2017. The apartment sector, meanwhile, is still seeing a drop in vacancy despite the fact that deliveries are expected to peak this year. Nearly 290,000 apartments were delivered nationally during 2016, but strong absorption still managed to push vacancy down 20 basis points to 3.9 percent. According to the brief, “young households’ increased propensity to rent fuels apartment demand, and the absorption of 294,100 units in 2016 was the fourth highest year on record.” Following this year’s peak, though, Marcus & Millichap predicts new apartment supply will taper off in 2018. Lenders have already begun to tighten the purse strings …

March 14, 2017

Arizona Market Reports Multifamily Western Western Market Reports

Demand, Product Coming to Phoenix’s Multifamily Market

by Camren Skelton March 14, 2017

With record-low cap rates dipping as far as 2.9 percent, the nation’s top multifamily markets have become expensive. In response, investors have turned to secondary markets like Phoenix, where upside potential is still strong, pricing is manageable and cap rates are hovering in the high 4 percent to mid-5 percent range. Although multifamily sales have maintained their accelerated pace nationwide, that pace is being driven by secondary markets — particularly in the West. Metro Phoenix captured more than $5.2 billion of this activity, up significantly from its previous peak of $4.6 billion in total multifamily sales in 2006. As of year-end 2016, the average multifamily price per unit in Phoenix was $110,000, compared to a national average of $145,000 for properties valued at more than $2.5 million. In the eyes of investors, Phoenix offers a stable inventory of existing Class A and B product, and a wave of new Class A units that have taken luxury in the market to a new level. This high-end product provides a key benefit for investors: it attracts residents who are willing and able to pay premium rents for a better lifestyle. The Valley is in a good position to support luxury product, with …

March 14, 2017

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