OAK LAWN, ILL. — Capital One Multifamily Finance has provided a $10.9 million fixed-rate, HUD 232/223(f) loan to refinance a 133-bed skilled nursing facility in Oak Lawn. Joshua Rosen of Capital One originated the transaction for the undisclosed borrower. The property was built in 1962, with an addition in 1985 and substantial renovations and improvements between 2005 and 2012. The current owners acquired the property in 2012, and have upgraded resident rooms and bathrooms.
Spring has come to Birmingham, and with it the sound of multifamily developers breaking ground. Their success in finding tenants for these properties — numbering more than 1,000 units — will be a litmus test for the future of the Birmingham market. Right now, the market activity leads one to be cautiously optimistic. Work on the $66 million renovation of the historic Pizitz Building in downtown commenced in March, which will add 143 apartments to the market in fall 2016, and the newly dubbed 20 Midtown project is finally underway. This mixed-use project, featuring a Publix and a Starbucks, will have at least 122 apartments when completed. Construction has also started on the $22 million renovation of the Thomas Jefferson Tower, another mixed-use project that will yield 96 apartments. These projects join the 236-unit Venue at the Ballpark, which broke ground last year and promises views over the outfield fence into Regions Field. The cranes are also busy east of the expressway in Lakeview. Work there has started on the 67-unit Iron City Lofts and is slated to begin later this spring on the 260-unit Metropolitan Apartments. Testing the Millennial Market Taken together, these developments highlight a number of facts …
NEW PRAGUE, MINN. — Dougherty Mortgage LLC in partnership with the Minnesota Housing Finance Agency has arranged a $2 million HUD 223(f) loan for the refinance of Westgate Townhomes in New Prague. The 37-unit affordable multifamily rental property includes a Section 8 HAP Contract. The loan was underwritten by the Minnesota Housing Finance Agency for borrower New Prague Westgate Townhomes LLC and assigned to Dougherty Mortgage LLC to close and service the loan. The principal of the borrower entity is Southwest Minnesota Housing Partnership. Westgate Townhomes is a newly renovated, smoke-free property that features private entrances, neutral décor, off street parking and a playground.
Fort Worth, which makes up the core of the western side of the Dallas/ Fort Worth Metroplex, has seen expansive growth both economically and in its resident base, making it an attractive destination for businesses and consumers alike. The population of the Fort Worth- Arlington Metropolitan Division has grown by more than 35 percent since 2000, according to estimates from Moody’s Analytics. Forecast data from Moody’s indicates a continuation of this trend, with projections through 2030 anticipating a total population of over 3.1 million, which is the current size of Iowa. Personal income is another demographic that has experienced a strong growth rate in recent years. Moody’s Analytics forecasts the fourth quarter to have been the strongest quarter of year-over-year growth in 2014, with 8.7 percent growth for personal disposable income and 7.9 percent growth for total personal income. This may be a telling sign that the impact of lower oil prices has accelerated consumer spending at the onset of the oil price decline in June 2014. Furthermore, retail sales growth steadily increased throughout 2014 in the Fort Worth metropolitan division, with the most recent figure for Fort Worth (4.9 percent) outpacing the national rate (4.1 percent) at the close …
COLUMBUS — KeyBank Real Estate Capital has secured a $22.1 million Freddie Mac loan for Polaris Place, a multifamily apartment community in Columbus. The community was built in 2014 and includes 11, three-story, garden-style apartment buildings, totaling 224 units. The property also includes 10 detached garage buildings, a leasing office and a clubhouse. Timothy Migchelbrink of Key’s Commercial Mortgage Group arranged the financing, which was used to pay off an existing KeyBank construction loan.
CHICAGO — Waterton Associates LLC has acquired Pensacola Place, a 264-unit mixed-use property in Chicago’s Uptown neighborhood. The seller was undisclosed. Built in 1981, the Stanley Tigerman-designed building includes a mix of studio, one- and two-bedroom apartments, as well as 12 two-bedroom townhomes overlooking the property’s fourth-level sundeck. The property includes more than 81,000 square feet of retail space anchored by a recently renovated Jewel-Osco grocery store on the lower level of the building. Waterton will make upgrades to individual residences and also plans to update the community’s common areas. Waterton will serve as the manager for the property.
ELDORADO, ILL. — BARBERMurphy Group has arranged the sale of a 40,000-square-foot, 24-unit apartment complex in Eldorado. The asset is located at 1901 Organ St. BONLUKE Apartments purchased the property for an undisclosed sales price. Jerry Hunt of BARBERMurphy Group represented the buyer and the undisclosed seller.
Just like Omaha’s diverse and strong economy — a 3.2 percent unemployment rate as of December 2014 — the local apartment market continues to shine. Occupancy remains high, rents are up significantly over the past year as additional charges continue to be passed through to tenants, and new construction has not yet overtaken demand. In short, 2014 was another golden year for apartments. We expect more of the same in 2015 because the market has not yet peaked. The latest estimate by the Institute of Real Estate Management (IREM) is that there are now 95,128 apartment units in the Omaha metro area, with an overall occupancy level of nearly 96 percent as of fall 2014. This strong occupancy level is virtually unchanged from the fall of 2013 when it stood at 96.17 percent. From a historical perspective, the occupancy level for Omaha’s market over the past decade has remained strong, ranging from a low of 92 percent to a high of 96 percent. We expect Omaha’s occupancy rate in 2015 to remain strong, likely in the 95 to 96 percent range. Rents on the Rise Not surprisingly, the higher occupancy gives landlords greater pricing power. Historically we have observed about …
CARMEL, IND. — Mainstreet and Trilogy Health Services have completed construction on a transitional care facility in Carmel. Wellbrooke of Carmel is located at 12315 Pennsylvania St. The new facility will provide transitional care (short-stay rehabilitation and therapy) and assisted living. Construction on Wellbrooke of Carmel started in April 2014. The 68,590-square-foot property includes 94 beds. Amenities include a therapy gym, an outdoor rehabilitation courtyard, a movie theatre, a game room, a spa and an on-site chef. The project, which represents a total investment of $15 million in the community, created 374 construction jobs and 120 permanent jobs. A community open house for Wellbrooke of Carmel will take place on May 3.
ZION, ILL. — Cohen Financial has arranged $9.2 million in acquisition loans through Pillar’s lending program for two multifamily properties in Zion. Dan Rosenberg of Cohen Financial’s Chicago office secured a $5.3 million loan for Country Chalet Apartments and a $3.85 million loan for Park Trails Apartments. The two properties purchased included a total of 247 units. The fixed-rate, 15-year loans include 30-year amortization schedules. The borrower is an affiliated entity of The Ferndale Realty Group LLC, a Chicago-based real estate investment company.