LOVES PARK, ILL. — American Street Capital (ASC) has arranged a $4.2 million CMBS loan for the refinancing of an apartment complex in Loves Park, about five miles north of Rockford. Built in 1969, the complex consists of 60 units across eight buildings. Units come in one-, two- and three-bedroom layouts. Igor Zhizhin of ASC arranged the 10-year loan, which features a fixed interest rate and two years of interest-only payments. The borrower was a seasoned owner-operator in the market.
LAS VEGAS, NEV. — NewPoint Real Estate Capital has provided $17.5 million in Fannie Mae DUS conventional multifamily financing for the purchase of Intrigue Apartments in Las Vegas. The borrower was a private family trust. David Bleiweiss of NewPoint originated the loan, which features a seven-year term with four years of interest-only payments followed by 30-year amortization schedule. The loan was made through Fannie Mae’s Sponsored-Dedicated Workforce Program, which is designed to support conventional multifamily properties. Borrowers receive lower interest rates and streamlined underwriting by agreeing to keep a minimum of 20 percent of units affordable at 80 percent of area median income (AMI) or 100 to 120 percent of AMI in specific cost-burdened markets. Formerly known as Andiamo Apartments, the community features 193 apartments, a pool, fitness center, dog park, playground and barbecue areas. Built in 1986, the garden-style property is located in the Twin Lakes neighborhood roughly seven miles north of the Las Vegas Strip.
KAHULUI, HAWAII — The Hawaii Housing Finance and Development Corp. (HHFDC) has selected EAH Housing to develop the Kahului Civic Center Mixed-Use Complex in Kahului, on the island of Maui. The property will include a transit hub, civic center and 303 units of affordable housing. The Kahului Civic Center Mixed-Use Complex will be constructed in phases as part of a public-private partnership. EAH Housing will coordinate the development of the civic center with the State of Hawaii Department of Accounting and General Services, the transit hub with the County of Maui and the affordable housing with HHFDC. Development costs are estimated at $193 million for both phases of the project. Financing sources include 4 percent Low Income Housing Tax credits (LIHTC); Hula Mae Multi-Family Tax Exempt Bonds; State of Hawaii Rental Housing Revolving Funds (RHRF); and Dwelling Unit Revolving Funds (DURF). According to EAH Housing, the project is designed to address a critical need for affordable housing on Maui. The National Low Income Housing Coalition reports that nearly one-quarter of rental households in Hawaii report incomes at or below the national poverty guidelines. The state faces a deficit of more than 27,000 affordable housing units. “As we continually work to …
— By Julian Freeman, Dave Wensley and Gabe Pitassi — With steep vacancy rates impacting traditional office markets due to the headwinds of higher interest rates, short-term economic uncertainty and long-term remote/hybrid work uncertainties, underutilized traditional office buildings may become liabilities before the end of their anticipated economic life. Owners of these properties may consider a conversion — an adaptive reuse or repurposing — to access higher rents and occupancy rates. In view of nationwide housing shortages, especially in California, converting office to multifamily has received much attention as a logical move. However, such a conversion is not always viable from a financial, structural, legal or location perspective. An alternative option may be to repurpose an office building for life sciences use. Such a conversion, while posing its own unique challenges, may provide more realistic options than a conversion to residential use for many owners and properties. Challenges in converting to residential Converting an office building to residential use presents challenges on multiple fronts. Zoning laws vary based on property location and usage, and the property may need to be rezoned to a different classification to allow multifamily uses. Rezoning requires local government approval and public hearings, which can take months …
NORTHRIDGE, CALIF. — C.W. Driver Cos. has started construction on a 198-bed student housing property at California State University, Northridge in the San Fernando Valley. Once completed for opening in fall 2025, the $55.7 million project will add two four-story buildings to the 365-acre campus. Located at 17950 Lassen St., Buildings No. 22 and No. 23 will total 60,290 square feet, of which 30,000 square feet will be housing space. The residential floors of each building will include dual-occupancy student rooms, with four students sharing each bathroom, and one suite-style living room per floor. Additionally, each building will have its own central elevator, building services and secure access. The non-residential floors will feature modern amenities and services, with Building No. 22 offering a student community space, study rooms and an expansive multi-purpose room, and Building No. 23 housing administrative offices and mail hub. A.C. Martin Partners is serving as architect for the project.
PLANO, TEXAS — Developer High Street Residential has completed Legacy Square, a 363-unit apartment community located north of Dallas in Plano. Designed by GFF with interiors by Britt Design Group, Legacy Square features one-, two- and three-bedroom units that are furnished with stainless steel appliances, granite countertops, island kitchens, custom cabinetry and tile backsplashes. Private balconies/yards are also available in select units. Amenities include a pool, fitness center, outdoor grilling and dining areas, a playground, cyberlounge, business center, clubroom and a package room. Rental rates start at $1,665 per month for a one-bedroom apartment.
MARLBOROUGH, MASS. — Atlanta-based developer Wood Partners has broken ground on Alta French Hill, a 276-unit apartment complex that will be located in the western Boston suburb of Marlborough. Units will come in one, two- and three-bedroom floor plans and will be furnished with stainless steel appliances, quartz countertops, wood-style flooring and individual washers and dryers. Amenities will include a pool, fitness center, dog park, resident lounge and outdoor grilling and dining areas. Alta French Hill will also house 10,000 square feet of retail space. Preleasing will begin in 2024, with the first move-ins scheduled to begin in February 2025.
BELLEVILLE, N.J. — Locally based brokerage firm The Kislak Co. Inc. has negotiated the $11.8 million sale of Brighton Estates, a 95-unit multifamily property located in the Northern New Jersey community of Belleville. Built in 1962 and recently renovated, Brighton Estates consists of three two-story buildings that house 13 studios, 66 one-bedroom units and 16 two-bedroom apartments. Tom Scatuorchio of Kislak represented the seller in the transaction. Andrew Scheinerman of Kislak procured the buyer. Both parties requested anonymity.
LITTLE CANADA, MINN. — Colliers Mortgage has provided a $26.7 million Fannie Mae loan for the refinancing of Montreal Courts Apartments in Little Canada, a northern suburb of St. Paul. The 444-unit multifamily property features a pool, fitness center, community room, playground and laundry facilities. Tony Carlson and Ben Fazendin of Colliers Mortgage originated the 10-year loan on behalf of the undisclosed borrower.
Following the financial markets crash 15 years ago, banks and other lenders began working with commercial real estate (CRE) borrowers who had run into trouble. Solutions included loan extensions, loan sales, recapitalizations and foreclosures. Today lenders are pulling out the playbook again. “We have seen a huge number of loan workout deals come across our desk,” says Jeff Salladin, a managing director with Dallas-based private debt fund Revere Capital. “Any lender that holds loans on their books is seeing the same thing.” Back in 2008, dodgy and highly leveraged residential and CRE loans — along with the emergence of exceedingly risky debt derivatives created by Wall Street — eventually crashed, causing the credit market to collapse. Today credit is still available, but the cost of it has spiked over the last 18 months. Consequently, many commercial properties owners have seen values plummet, making it difficult to find refinancing. The Federal Deposit Insurance Corp.’s (FDIC) imminent auction of Signature Bank’s $33 billion in commercial property loans and other assets is expected to attract bids as much as 40 percent below face value, according to The Wall Street Journal. That’s just the latest gloomy bellwether regarding CRE values and underscores the predicament …
