CONCORD, CALIF. — Carlton Senior Living, an operator of 11 seniors housing communities in Northern California, has named industry veteran David Coluzzi as its new president. The company is based in Concord, located between San Francisco and Sacramento, and is looking to expand its portfolio of independent living, assisted living and memory care properties. Serving the industry for over 26 years, Coluzzi most recently was CEO of Esquire Group, a senior living and apartment company with 1,200 units in seven communities in New Jersey. Coluzzi was formerly vice president of operations at Classic Residence by Hyatt (now known as Vi). He directed the management of a portfolio consisting of 10 luxury continuing care retirement communities (CCRCs) while leading the start-up of two new communities and an expansion that resulted in more than 4,000 independent living, assisted living, memory care and skilled nursing units in California, Arizona, Colorado, Illinois, South Carolina and Florida. Coluzzi served in the United States Air Force and holds a Bachelor of Science degree in health care administration from the University of Arizona in Tucson.
It is a great time to be a multifamily owner in San Diego. Vacancies are at the low rate of 4.1 percent for the county, while rent growth is at its highest level since 2011. Cap rates and interest rates are still at record lows, and we are slowly seeing an increase in inventory as owners realize values are higher than ever. We will soon see a rise in interest rates, and can expect a reduction in values as the cash-on-cash returns are reduced. For every 100 basis points of increase in rates, we may see up to a 6.7 percent reduction in value. Rental market performance, according to the San Diego County Apartment Association, has weighted averages in San Diego up to: $974: Studios $1,301: one-bedroom $1,609: two -bedrooms $1,943: three -bedrooms South Bay has the highest vacancies at 5.1 percent, while North County has the lowest at 3.1 percent. Chase, one of the largest lenders in San Diego, is expecting rent growth of 35 percent over the next five years. This news is encouraging as the market has been flat in San Diego for years. There were 139 apartment buildings with 50 units or less that sold in …
NEW YORK CITY — Stone Street Properties has acquired two apartment properties in the Gramercy Park submarket of New York City for a total of $123 million. The properties are located at 210 and 220 E. 22nd St. They are situated just east of the Flatiron District, near the East River. The buildings sold for a little more than $1,030 per square foot. The acquisition includes 208 rental units, with an average rent of $3,450 per month. The communities are situated near Peter Cooper Village, the National Arts Club and the Union Square Subway. They are one block from Gramercy Park. The property at 210 E. 22nd St. was built in 1982. It features 88 units throughout eight floors. Amenities include a doorman, elevator, laundry facilities on every floor and an on-site super. The property at 220 22nd St. was built in 1930. It features 122 units throughout six stories. This community also features a doorman, elevator and an on-site super. Broad Street Development and Crow Holdings originally listed the properties for sale this past April for a targeted price of $130 million. The partners purchased the property for $85 million in 2012. Broad and Crow have invested about $4 …
The transformation of downtown Baltimore into a contemporary world-class city began nearly two decades ago, but over the past few years it has irrefutably evolved into a true 24/7 city and a top-tier housing market that is nationally recognized by the investment community. An influx of commercial investment drove job growth, which inevitably boosted downtown Baltimore’s daytime population. But what is remarkable is how many of these individuals also decided to become city residents. The number of degree-holding young people living in downtown Baltimore increased by 92 percent between 2000 and 2010, exceeding the pace of 20-something magnet cities like New York and Boston. Whether it was the chicken or the egg, this new group of residents favored a rental urban lifestyle, and downtown Baltimore delivered nearly 4,700 new apartments between 2000 and 2010. Ambitious developers John Paterakis and Michael S. Beatty paved the way in the late 1990s with the development of Harbor East, which congregates upscale retailers, Class A office space and luxury rental apartments. Its immediate success filled a niche in the market and spurred growth in other communities around the Inner Harbor, including the Ritz-Carlton. As this wave of development continued throughout the 2000s, slowly but …
RENO, NEV. — MG Properties Group (MGPG) has purchased two multifamily properties totaling 722 units in Reno for $68.1 million. The transaction includes the 318-unit Vizcaya Hilltop Apartments and the 404-unit Village at Iron Blossom Apartments. The acquisition represents the largest bulk purchase of multifamily units in Reno’s history, according to MGPG. Vizcaya is located at 1350 Grand Summit Drive, while Village at Iron Blossom is located at 690 E Patriot Blvd. The communities are situated near Tesla’s soon-to-be-developed Gigafactory. Both properties include a mix of one- to three-bedroom units. MGPG plans to renovate the communities’ common-area amenities. Unit interiors will also be upgraded, and deferred maintenance will be addressed. “The potential to create value through renovations and upgrades to these properties makes them an excellent fit for our fully integrated investment and management platform,” says Mark Gleiberman, CEO of MGPG. “These assets will bring added value to our existing portfolio.” MGPG has purchased eight multifamily properties in the past year. These acquisitions included 2,600 units for a combined purchase price of $370 million. MGPG is currently targeting properties in the Western U.S. in areas including Arizona, California, Colorado, Nevada, Oregon and Washington. The transaction was executed by Newmark Grubb …
Surging rental demand for apartments in metro Kansas City during the first six months of 2015 supported a sharp rise in real estate fundamentals following a lackluster second half of 2014. Renters absorbed 2,510 apartments during the first half of this year, surpassing the 1,810 apartments completed during the same period a year ago. With leasing activity exceeding deliveries so far this year, the overall vacancy rate fell 60 basis points to 5 percent by the end of June. The decline followed a spike in vacancy and negative absorption in the fourth quarter of 2014. The recent resurgence in leasing resulted in the vacancy rate in June matching the 5 percent rate one year ago. Supply-side pressure was most noticeable in the Class A apartment segment, which po sted an increase of 60 basis points in the vacancy rate year-over-year to reach 4.2 percent in June. Even with the increase, the vacancy rate was tightest among top-tier apartments, while Class C vacancy tightened 20 basis points during the same period to settle at 5.3 percent in June. A Landlord’s Market As a result of Kansas City’s apartment vacancy rate tightening during the first half of this year, operators were able …
GOLD RIVER, CALIF. — Inspire Communities has named David L. Gold as its new CEO. The manufactured housing community owner is located in Gold River, just west of Sacramento. Gold has more than 30 years of institutional experience owning, financing and investing in domestic and international commercial real estate, with a focus on low- and middle-income housing. He co-founded Rockland Capital Partners in 2011, and was a managing director at Los Angeles-based real estate private equity firm Paladin Realty Partners for more than a decade. The firm’s former CEO, Matt Follett, will remain as a board member of Inspire Communities. His focus will be limited to acquiring manufactured housing communities in Washington, Oregon and California. Private investment firm American Infrastructure MLP Funds also recently announced it will invest in Inspire’s infrastructure-related operating businesses that are profitable and can expand quickly with additional capital.
NEW YORK — Fairstead Capital and Blackstone Real Estate Partners VIII have purchased a multifamily portfolio containing nearly 1,000 free-market rental units in Manhattan for $690 million. The acquisition includes 24 mid-rise rental properties situated in the Chelsea and Upper East Side neighborhoods. The new owners plan to upgrade the properties’ common areas. The partners will also add new amenities and carry out a capital improvement plan to renovate the units. The Caiola Family sold the portfolio. It was previously managed by B&L Management Company, which was founded by Benny Caiola in 1980. Family-owned B&L Management owns, acquires, develops and manages residential and retail properties in New York City and Long Island. The portfolio buy comes on the heels of Blackstone’s purchase of a shopping mall and parking garage in Queens for $400 million. That sale closed in late June. New York-based Blackstone currently has about $92 billion in investor capital under management. Fairstead Capital is a real estate investor and asset manager specializing in New York City multifamily properties. The firm owns and manages $2.3 billion of property, which includes more than 4,750 rental units.
Cleveland will host the Republican National Convention in July 2016. In response, hospitality firms have steadily expanded payrolls with the addition of 9,200 workers, the biggest relative gain among all employment sectors. The overall labor force will expand 1.6 percent this year, or by 16,500 new workers. Thousands of these newly employed workers are seeking rental housing, particularly in the urban core where housing prices are much higher than the metro average. In addition, the urban core’s transformation to a 24-hour city has created its own momentum. Demand Exceeds Supply High net absorption outpaced construction during the past four quarters, putting downward pressure on vacancy. Last year, average vacancy dropped 160 basis points as tenants absorbed more than 3,400 units. In the last 12-month period ending in June, nearly every Cleveland submarket posted a drop in vacancy. Net absorption is expected to end the year more than 40 percent higher, with vacancy projected to slide 50 basis points to 3.4 percent, one of the lowest levels in the country. Builders have responded by expanding the project pipeline. More than 1,700 rental units have already come on line during the past year. However, compared with almost any other major metro in the country, this is just a drop in the bucket. …
Lately, Charlotte seems to have more of everything: jobs, residents, young people — all of which has driven more demand for quality multifamily properties in urban neighborhoods with multiple lifestyle amenities. Renters’ desire for parks, transit options and walkable access to work, culture, and entertainment has led Charlotte’s Uptown/South End region to become the fastest-growing apartment submarket in the nation, according to a study by MPF Research. Since the recession, Uptown/South End has experienced a period of remarkable growth in the multifamily market, and has seen an 82 percent increase in units since 2012, the study says. Overall, renter-occupied units make up just over two-fifths, or 40 percent, of the city’s housing market, a percentage that is already higher than the national average and anticipated to increase. As more properties are built, Charlotte’s 5.1 percent vacancy rate is likely to increase over the long term, but demand is expected to remain strong as the city’s dynamic economy and population continue to grow. The area’s population is set to increase about 2 percent annually over the next five years, far outpacing the country’s overall rate of 0.75 percent. Much of that is due to an influx of well-educated, younger people moving …