Multifamily

Growing Pains — The History, Revitalization and Relocation to Austin’s CBD

by Haisten Willis November 13, 2015

Operating as our state’s political core and as the “live music capital of the world”, Austin’s real estate market is as distinctive as the people that make this city great. Austin is a one-of-a-kind place that’s unique to Texas and the entire country. It defies stereotypes with its progressive and fiercely entrepreneurial spirit, and continually gets top marks for its quality of life, pro-business culture and pro-environment views. WalletHub recently ranked Austin as the 2015 best large city to live in and the data matches up — the city ranks second among 2015’s fastest-growing cities in the U.S., according to Forbes, behind Houston and ahead of Dallas-Fort Worth. In the era of ‘Walker, Texas Ranger,’ Emmitt Smith and ‘the Dream Team,’ and the release of ‘Dazed and Confused,’ the tech boom of the 1990s drove the Austin office market. During that same time, Austin’s total population increased 35 percent and close to 1,750 companies employed over 110,000 people in technology-related jobs in Austin. By the end of the 90s, Texas’ capital city was widely known as Silicon Hills, home to a critical mass of institutional technology knowledge and major tenants like Dell, IBM, Motorola and other software and gaming companies. …

November 13, 2015

Market Reports Western Market Reports

Record-Setting Employment Figures Fuel NorCal’s Strong Multifamily Market

by Nellie Day November 10, 2015

Fueled by record-setting employment, the San Francisco Bay Area multifamily market is performing at its highest level in recent years in terms of low vacancy rates, strong rental growth, and new apartment communities coming online, under construction and planned. The San Francisco metropolitan area – which accounts for half of the San Francisco Peninsula, San Francisco, Marin and Oakland – added about 4,100 jobs during September, according to Beacon Economics. This number is on par for most of the year. Sources from the City of San Jose reported the Bay Area added more than 40,000 new jobs during the 12-month period from October 2014 through September 2015. A further report from the Association of Bay Area Governments stated that “by spring of 2013, the region had regained all of the jobs lost in the 2007 to 2009 recession, while estimates indicate that the jobs lost since the higher peak in 2000 were finally regained by the end of 2014. This rebound has spread unevenly throughout the region, with counties as diverse as San Francisco and Napa each having passed the two previous peaks in employment.” Unemployment is running as low as 3.7 percent in the San Jose/Sunnyvale-Santa Clara MSA. It …

November 10, 2015

SunTrust Arranges $138M Credit Facility for Expansion, Renovations at MorseLife Community

by Nellie Day November 9, 2015

WEST PALM BEACH, FLA. — SunTrust Banks Inc. has arranged a $138 million tax-exempt senior secured credit facility for MorseLife Health System. The credit facility will fund the $77 million construction of The Tower at MorseLife, a 135-unit luxury independent living expansion to The Tradition of the Palm Beaches in West Palm Beach. It will also fund renovations to the existing community. “The senior population in Palm Beach County continues to grow and The Tower at MorseLife is meeting the greater demand for luxury independent living in our community,” says Keith Myers, MorseLife’s president and CEO. Construction on The Tower at MorseLife is scheduled to begin before the end of the year and the project is expected to be completed in mid-2017. The Tower at MorseLife will be a full-service, luxury senior living residence with one- and two-bedroom apartments. It will include amenities like gourmet dining, housekeeping, wellness spa, an outdoor pool, theatre, synagogue, medical clinic, and educational and entertainment options. SunTrust Robinson Humphrey acted as sole lead arranger on the transaction, which includes a $66 million tax-exempt construction line of credit for The Tower at MorseLife and a $72 million tax-exempt term loan to refinance existing bonds outstanding at the …

November 9, 2015

California Multifamily Seniors Housing Western

Summit Healthcare REIT Elects Suzanne Koenig to Board of Directors

by Nellie Day November 6, 2015

LAKE FOREST, CALIF. —Summit Healthcare REIT Inc. has named Suzanne Koenig to its board of directors after an election at the annual meeting of stockholders. Koenig is president and founder of SAK Management Services LLC, a long-term care management and healthcare consulting services company. With over 20 years of experience as an owner and operator, Koenig offers skills in operations improvement, staff development and quality assurance, with particular expertise in marketing, census development and operations enhancement for the whole spectrum of senior housing. Koenig is a Licensed Nursing Home Administrator and a Licensed Social Worker in multiple states. In addition, she has served in an advisory and consulting capacity for numerous client engagements involving bankruptcy proceedings as well as in turnaround management situations. Koenig also serves as an officer and director for several of the states’ long-term care provider associations. She is the former co-chair of the American Bankruptcy Institute’s (ABI) Health Care Committee, a co-chair for the Steering Committee of the Midwest Turnaround Management Association (TMA) Chapter, and was recently elected to the Global Turnaround Management Association Board of Trustees. She is on the board of directors for the School of Social Work at the University of Illinois, Champaign-Urbana. …

November 6, 2015

Starwood Capital Agrees to Buy More Than 23,000 Apartment Units from Equity Residential for $5.3B

by Nellie Day October 26, 2015

GREENWICH, CONN. — Starwood Capital Group has agreed to purchase 72 multifamily properties totaling 23,262 units from Equity Residential (NYSE: EQR) for $5.3 billion. The purchase price equates to approximately $230,634 per unit, with a capitalization rate of 5.5 percent. The deal represents the largest non-hotel acquisition in the history of Greenwich, Conn.-based Starwood Capital Group, which has extensive experience investing in the multifamily sector. Following the final closing of the transaction, expected to occur in the first quarter of 2016, Starwood Capital Group will control more than 88,000 units, making the firm one of the largest apartment owners in the United States. The portfolio contains properties in South Florida, Denver, Washington, D.C., Seattle and the Inland Empire area of Southern California (see below for a detailed breakdown of the properties sold). Including this transaction, Starwood has acquired or is under contract to acquire approximately 67,800 multifamily units over the past 12 months. “Our intimate market knowledge and access to capital allowed us to execute on this transaction quickly and efficiently,” says Christopher Graham, senior managing director and head of real estate acquisitions for the Americas at Starwood Capital Group. “Our existing multifamily portfolio provides us with tremendous insights into market …

October 26, 2015

Florida Market Reports Multifamily Southeast Southeast Market Reports

Job Growth Key to Orlando Apartment Market’s Strong First-Half Performance

by John Nelson October 26, 2015

Orlando’s multifamily market is in the midst of a golden era of sorts, as it sits squarely at the intersection of strong employment growth, an increasing population, a major demographic shift and a variation in lifestyle preferences. Together, these factors provide a tremendous tailwind for future strength in the local apartment market. While the national multifamily market continues to perform at a high level, Orlando is starting to show up on the radar of more institutional investors due to its recent outperformance and tremendous growth prospects. According to recent data from MPF Research, Orlando is on pace to see 5.6 percent rent growth in 2015, followed by 4.7 percent growth in 2016. The strong momentum in the MSA is being driven by a rapidly expanding and increasingly diversified job market. Going forward, the picture looks even brighter. MPF Research ranks Orlando as the No. 1 metro in the nation for job growth through 2020, with a growth rate (2.7 percent), more than twice the national average (1.1 percent). Unlike previous cycles, today’s growth is spread more evenly across employment industries, resulting in a more diverse, dynamic labor market. The highest growth sectors are forecast to be construction, healthcare/bio-tech, business services, …

October 26, 2015

Colorado Multifamily Seniors Housing Western

Lancaster Pollard Hires Rob McAdams to Open Office in Denver

by Nellie Day October 21, 2015

DENVER — Rob McAdams has joined Lancaster Pollard and will open a new office for the firm in Denver. McAdams will serve the lender’s clients in Colorado, Wyoming, Montana and Idaho and will oversee the structuring and funding of healthcare project financings for hospitals and senior living providers in those states. McAdams has been involved in investment sales and debt and equity structuring for the hotel and hospitality industry since 2005 and most recently served as a partner at U.S. Hotel Advisors in Denver. In that role, he oversaw all areas of hotel debt and equity financing transactions, including new business generation, negotiation of financing terms, selection of capital providers and orchestration of closing processes. He earned master’s degrees in finance, as well as real estate and construction management, from the University of Denver, Daniels College of Business. He received a bachelor’s degree in communications from the University of Colorado.

October 21, 2015

Market Reports Western Market Reports

Santa Monica Multifamily Market Thrives Amid a Few Challenges

by Nellie Day October 20, 2015

Santa Monica is Los Angeles County’s most stable beachside apartment rental location. The prices this market commands as the year progresses continue to surprise our brokerage team. No longer the sleepy beach town of old, we are seeing capitalization rates below 3 percent on 30- to 40-plus-year-old product with stringent, and at times almost suffocating, rent control laws. There have been multiple record-breaking transactions that have taken place in Santa Monica this year, including one mind-blowing apartment deal at 537 San Vicente Blvd. that sold for $16.1 million this past March. It was then sold to another party three months later for $19 million. The old adage about location rings true for Santa Monica as buyers consider future returns in this beachside enclave. The question right now on everyone’s mind is: how long can this last? It has been our opinion that this upward trend in pricing cannot last forever. It is inevitable that the Federal Reserve will raise interest rates soon. However, as rates rise, we will see a minimal effect on Santa Monica multifamily investment, as this “real -estate safe haven” makes investment even more desirable as stability is attractive to owners seeking long-term returns. Even though some …

October 20, 2015

Industrial Market Reports Multifamily Office Retail Texas Texas Market Reports

Port, Diverse Economy Drive Growth in Corpus Christi Real Estate Market

by Haisten Willis October 9, 2015

When people come to Corpus Christi, many of them expect to find a community that has been devastated by the downturn caused by the oversupply of cheap oil and gas. They expect a community with rising unemployment and vacant buildings. Based on the past, they would be correct. However, Corpus Christi and the Coastal Bend have been experiencing a major transformation of their economy, which is now much more diverse. This is partly because of the leadership, hard work and vision of its people, and partly because of good luck caused by the infrastructure that had been put in place by the Port of Corpus Christi. This infrastructure was at the right place at the right time. The Port of Corpus Christi has always been a driving force and major contributor to the economy of Corpus Christi. The port’s leaders knew that if they didn’t make some major changes, they would not remain competitive. The Port of Corpus Christi is the fifth largest port in the U.S. in total tonnage. However, because of the depth of the port channel and the height of the harbor bridge which crosses over the port, the newer, larger ships could not enter the port. …

October 9, 2015

Colorado Multifamily Student Housing Western

Cardinal Group to Manage 9Seventy Near the University of Colorado at Boulder

by Nellie Day October 1, 2015

BOULDER, COLO. — Cardinal Group Management will manage 9Seventy in Boulder, located on the east side of the University of Colorado at Boulder. The property is comprised of 138 units across five four-story buildings. Beginning in November 2015, 9Seventy will offer studio, one-, two- and three-bedroom apartment homes. The community will have a resident clubroom with kitchen, outdoor grilling area, views overlooking Chautauqua Park and the Flatirons, swimming pool, fitness center, business center, billiards table and guest patio. Cardinal Group Management will now manage more than 11,000 units in 20 states.

October 1, 2015

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