Latest News from MultifamilyBiz.com
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BROOMFIELD, CO - Titan Development and Pivot Development, leading real estate development and investment firms, have formed a joint venture to close on a new $80 million multifamily development in the Interlocken Technology Park within the MidCities District of Broomfield, Colorado, a suburb of Denver. The project is located directly off the Boulder turnpike, an important area thoroughfare.
Located on a 3.3-acre land parcel within the highly desirable Interlocken area, the new 254-unit luxury apartment complex is called The Lock at Flatirons and will feature upgraded fixtures and finishes in all units, a sky lounge, fitness center, resort style pool, bike storage and stations, secure access parking, technology packages throughout the property and co-working space. The new development is within walking distance from a number of retail, restaurant, and grocery amenities. The new project is uniquely situated at the midpoint between Denver and Boulder, giving future tenants easy access to both cities and nearby employers, including Oracle, CenturyLink, Ball Corporation, Salesforce, Uber, Vail Resorts and Urban Lending Solutions—all representing more than 7,000 jobs.
"This is an important investment for Titan's private equity platform," said Ben Spencer, Fund Manager and Partner at Titan Development. "We are excited to partner with Pivot and Olympus Property to deliver on a fantastic project in this fast-growing market." Olympus Property is a full-service, multifamily investment group and an equity investor in the project.
Titan and Pivot will work closely together to bring the project to fruition. Construction is expected to begin in the third quarter 2021, with completion planned within approximately 28 months.
"Broomfield is a market that has interested us for a while. The Lock at Flatirons not only provides much-needed housing for the influx of young professionals working at Interlocken Technology Park and Westmoor Technology Park, but also adds luxury options for the broader Broomfield community. With this location we are blending the amenities and excitement of urban living with the convenience and comfort of suburban living, offering the live-work-play lifestyle our residents desire," L. Matthew Hare, President and CIO at Pivot Development, said. "Pivot worked on this project for 18 months before the collaboration with Titan came together, along with our team of consultants and the City of Broomfield, to bring The Lock at Flatirons to life. We are very excited for our new collaborative relationship with Titan & Olympus Property."
The Lock at Flatirons is among many other high-end projects that Titan is planning and developing in the region via its Titan Development Real Estate Fund II (TDREF II), which closed in February of this year and is already 50% committed. Titan's previous fund is nearing completion, with more than 70% of the $112 million portfolio completed. Additional funds are coming soon and will support Titan's growing pipeline of multifamily and industrial projects.
"The Lock at Flatirons comes at a crucial time for Denver-area residents, as the local multifamily market has overwhelming demand," Josh Rogers, Vice President of Development at Titan Development, said, referring to Denver's burgeoning multifamily investment market, which puts Denver among the top 10 cities in the nation–even landing on the No. 1 spot for high-income renters, according to a new study published this year. "The ongoing housing shortage has also fueled rising rents," Josh continued. "Our Fund is investing in multifamily projects, like The Lock at Flatirons, and providing an attractive solution to these challenges."
Titan has a strong multifamily track-record, completing eight projects, for a total of 1,772 units, at a development cost of $246 million. In addition, Titan is currently constructing three multifamily projects with a total development cost of $147 million in New Mexico; and it has five multifamily projects in the planning stages in New Mexico and Colorado, while evaluating additional multifamily projects in Texas.
FREDERICK, MD - EquityPlus announces the opening of Ox Fibre Apartments, an 83-unit workforce housing rental complex that is an adaptive re-use of an abandoned paint-brush factory in Frederick, Maryland.
Lt Governor Boyd Rutherford, County Executive Jan Gardner, Mayor Michael O'Connor, and Secretary (Maryland DHCD) Kenneth Holt were all present at the ribbon cutting that was held on July 22,2021.
Ox Fibre of Frederick will provide affordable rental housing for the working-class population of the City of Frederick and Frederick County. The building is 80,000 square feet, providing for a total of 83 units to be built, all with a comfortable amount of square footage. Rent is priced at 20% below market which effectively provides an affordable housing option to those in the appropriate income range, helping address the need for affordable housing within the booming city of Frederick. Units are available to individuals and families earning 40%-60% of the present Area Median Income (AMI).
The 83 units consist of 1-, 2-, and 3- bedroom loft apartments ranging from 500-1,500 sq. feet. All apartment units are newly constructed and quartz countertops, stainless steel appliances, in-home washers and dryers, new windows, and additional amenities. There are six 1-bedroom floorplans, three 2-bedroom floorplans, and two 3-bedroom floorplans from which to choose.
The project's development team is led by EquityPlus LLC, an experienced affordable housing developer with offices in Mississippi and Virginia. To fund the project, EquityPlus utilized a combination of LIHTC and HTC equity along with mortgage financing. The firm also raised opportunity zone equity from private investors (Broad Creek Capital) and received subordinate, below-market financing from both the State of Maryland and Frederick County to help complete the project's ~$25 million capital stack.
The project is one of the first in the nation to combine the LIHTC program with the Opportunity Zone program utilizing different equity investors for each source of equity.
The project has a 1,300 person interest list for pre-leasing.
BOYNTON BEACH, FL - An affiliate of Walton Street Capital announced that it has acquired a newly built 324-unit apartment complex located at 1100 Audace Avenue in Boynton Beach, Florida.
Completed in 2020, the property consists of one-, two-, and three-bedroom apartments across six mid-rise elevator buildings that are currently 99% leased. It features modern amenities and contemporary interior finishes. Unit finishes include 9.6 ft. ceilings, private balcony/patios, soft-close Italian cabinetry, open-concept kitchen with quartz islands and stainless-steel appliances. Community amenities feature a two-story, resort-style clubhouse overlooking a pool, two parks with ample green space, playground, game room, kitchen/bar, state-of-the-art fitness center with yoga room and spin studio, conference rooms, and Luxer One automated package system.
Pacifica is situated in downtown Boynton Beach adjacent to the Town Square complex and features immediate access to I-95 making it a 40-minute drive from downtown Fort Lauderdale and a 15-minute drive to downtown West Palm Beach. Residents at Pacifica enjoy the property s proximity to parks and beaches along with the variety of shopping and dining options nearby.
This was an attractive opportunity to acquire a high-quality, well-leased, and newly built multifamily asset in a growing South Florida market in a direct transaction with the developer. We are excited to further expand our multifamily and housing portfolio in markets that are demonstrating strong employment and population growth, said Stephen Sotoloff, Senior Principal at Walton Street.
HOUSTON, TX - Keener Investments announced that it has acquired a 312-unit multifamily property in the Bay Area of Houston, TX. The property will be managed by Keener Management, a wholly owned subsidiary of Keener Investments.
The Montelago Luxury Apartments is our eighth acquisition of multifamily property in the Houston Bay Area, said Stephen A. Smith, Chief Executive Officer of Keener Investments. Montelago is a Class A, 2004-vintage multifamily property that is well positioned to benefit from both strong submarket fundamentals and our proven value-add strategy, which is known as the Keener Cheeseburger.
Montelago is primarily composed of stucco and stone exterior apartment buildings that sit behind secured gated access. The community is on 13.5 acres and has luxury amenities such as a resort-style pool, covered poolside patio area, 24-hr fitness center, individual enclosed garages, coffee bar, and a pet park.
The location is excellent for tenants that work in the immediate area and for commuters. It has convenient access to some of the largest employment centers in Houston including Downtown, the Port of Houston, the Texas Medical Center, Hobby Airport, and the Petrochemical Corridor. Tenants will be near attractive retail and entertainment options including the Baybrook Mall, Kemah Boardwalk, and Clear Lake.
Keener Investments has now completed approximately $350 million in transactions since 2016 and is continuing to actively purchase multifamily communities in Texas.
HAMILTON, NJ - The value of commercial and multifamily starts in the top 20 metropolitan areas of the U.S. gained 12% during the first six months of 2021 relative to the first half of 2020, according to Dodge Data & Analytics. Nationally, commercial and multifamily construction starts were 10% higher on a year-to-date basis through six months. In the top 10 metro areas, commercial and multifamily construction starts were up 12% through six months, with only three metro areas – Washington DC, Los Angeles CA, and Austin TX – posting declines. In the second-largest group of metro areas (those ranked 11 through 20), starts improved 11% on a year-to-date basis, with only Phoenix AZ, Houston TX, and Chicago IL losing ground.
The early months of the pandemic led to construction moratoriums and project delays in many of the country's largest cities, resulting in very low levels of activity in April and May 2020. Additional insight on the health of these markets can be ascertained by comparing the first six months of 2021 to the same period in 2019 – before the pandemic. On that basis, commercial and multifamily starts were down 9% in the top 20 metro areas. At the same time, nationally, they were 5% lower, indicating that the pandemic affected construction activity more dearly in larger cities. In the top 10 metro areas, commercial and multifamily starts were 20% lower than 2019 through six months, while in metro areas ranked 11 through 20, they were 13% lower.
The New York metropolitan area was the top market for commercial and multifamily starts through six months at $12.6 billion, an 8% increase from the first half of 2020. The Dallas, TX metropolitan area was in second place for commercial and multifamily starts, totaling $4.5 billion through six months, a 12% gain over 2020. The Washington DC metro area was ranked third through six months but lost 7% to $4.3 billion. The remaining top 10 metropolitan areas through the first half of 2021 were: Boston, MA up 34% ($4.0 billion), Miami, FL up 26% ($3.5 billion), Los Angeles, CA down 22% ($3.4 billion), Philadelphia, PA up 86% ($3.3 billion), Seattle, WA up 61% ($3.2 billion), Atlanta, GA up 2% ($2.5 billion), and Austin, TX down less than one percentage point ($2.5 billion).
In summary, the top 10 metropolitan areas accounted for 40% of all commercial and multifamily starts in the United States – the same share as in the first six months of 2020.
The second largest metro group included: Phoenix, AZ down 10% ($2.5 billion), San Diego, CA up 171% ($2.2 billion), Houston, TX down 30% ($2.2 billion), Denver, CO up 64% ($2.1 billion), Nashville, TN up 53% ($2.0 billion), San Francisco, CA up 114% ($1.9 billion), Chicago, IL down 54% ($1.9 billion), Minneapolis, MN up 71% ($1.7 billion), Kansas City, MO up 60% ($1.6 billion), and Orlando, FL up 11% ($1.5 billion).
This group of metro areas accounted for 18% of all commercial and multifamily starts in the United States through six months, the same share as in the previous year.
The commercial and multifamily total is comprised of office buildings, stores, hotels, warehouses, commercial garages, and multifamily housing. Not included in this ranking are institutional projects (e.g., educational facilities, hospitals, convention centers, casinos, transportation terminals), manufacturing buildings, single family housing, public works, and electric utilities/gas plants.
Through the first six months of 2021, total U.S. commercial and multifamily building starts rose 10% to $108.5 billion from the same period of 2020. Nationally, commercial starts were up 3% to $56.1 billion, while multifamily starts were 19% higher at $52.4 billion on a year-to-date basis. Within the top 10 metro areas, commercial building starts were 1% higher to $20.6 billion through six months, while multifamily building starts were up 23% to $23.3 billion. Within the second largest group of metropolitan areas, commercial building starts were 3% lower to $9.8 billion through six months, while multifamily starts totaled $9.9 billion and were 30% higher.
"The recovery from the COVID-19 pandemic has begun but is very uneven," stated Richard Branch, Chief Economist for Dodge Data & Analytics. "Commercial construction has been buoyed by strength in the warehouse sector as large e-commerce companies build out their logistics infrastructure while office, retail, and hotel activity is subdued. Multifamily starts, meanwhile, have rebounded solidly following a weak 2020. The dollar value of commercial and multifamily starts should continue to improve over the coming six months; however, growth will remain muted due to high material prices and a shortage of skilled labor in the construction sector."
In the New York, NY metropolitan area, commercial and multifamily starts were 8% higher through six months to $12.6 billion but remains 18% below the first six months of 2019. Multifamily starts were up 11% through six months. The largest multifamily projects to begin through the first half of 2021 were the $500 million 625 Fulton St mixed-use projects, the $349 million first phase of the Bronx Point mixed-use project, and the $242 million National Urban League mixed-use building. On a year-to-date basis, commercial starts were 4% higher, led by gains in warehouse and parking structures, while office and hotel starts were lower than the first six months of 2020. The largest commercial projects to get underway through six months were the $1.2 billion Terminal Warehouse conversion, a $316 million Amazon warehouse, and Two Penn Plaza's $160 million renovation.
Commercial and multifamily starts in the Dallas, TX metro area were up 12% through six months at $4.5 billion and have also eclipsed the mark set during the first six months of 2019. Commercial starts rose 2% on a year-to-date basis, driven by gains in warehouse, office, and parking structures, while retail and hotel starts were down. The largest commercial projects to get started through the first six months of 2020 were the $150 million Hardwood No. 14 office tower, the $85 million JW Marriott hotel, and the $60 million Facebook Data Center Building 14. Multifamily starts were 30% higher on a year-to-date basis. The largest multifamily projects to get underway six months into 2021 were the $250 million Maple Terrace residential building, the $100 Urby residential tower, and the $90 million North Beckley Avenue apartments.
In the Washington, DC metropolitan area, commercial and multifamily construction starts dropped 7% to $4.3 billion on a year-to-date basis through six months but were down 41% from the first six months of 2019. Multifamily starts rose 12% through six months. The largest multifamily projects to get underway were the $267 million 1851 S Bell South and North residences, the $230 million Mather Senior Living Facility, and the $194 million Holiday Inn Rosslyn residential development. Commercial starts were 22% lower through six months, with only parking structures showing improvement from last year. The largest commercial projects to get started were the $450 million Sterling EdgeCore data center, the $100 million third phase of the Cannon House office building, and the $100 million Dulles Discovery 5 office building.
Boston, MA's commercial and multifamily building starts posted a 34% gain during the first six months of the year, climbing to $4.0 billion, but they remain 8% below the first six months of 2019. Commercial starts have been particularly strong, increasing 47% with gains in all commercial sectors except the hotel sector. The largest commercial projects to get underway through the first half were the $466 million Amazon North Andover fulfillment center, the $225 million 171 Dartmouth St office development, and the $175 million 40 Thorndike office building. Multifamily starts meanwhile, were up 22%. The largest multifamily buildings to get started were the $200 million DOT Block residences, the $165 million Union Square residential tower, and the $165 million SCAPE Boylston residential building.
Commercial and multifamily starts in the Miami, FL metropolitan area rose 26% through six months to $3.5 billion and were 2% higher than the first half of 2019. Multifamily starts were 38% higher through six months. The largest multifamily projects to get started through six months were the $250 million Five Park condominiums and apartments, the $200 million Downtown 1stapartment building, and the $164 million Natiivo mixed-use building. Commercial starts were 11% higher, driven by gains in parking and retail buildings, while hotel, office, and warehouse all pulled back. The largest commercial projects to get started were the $122 million Bridge Point warehouse project, the $75 million Boca Raton Resort, and the $65 million Collection Jaguar & Land Rover dealership.
Los Angeles, CA commercial and multifamily starts were down 22% to $3.4 billion through the first six months of 2021 and were down 10% from the first half of 2019. Commercial starts were 47% off on a year-to-date basis. However, this is entirely due to the office and hotel sectors which saw several large projects break ground in early 2020. All other commercial sectors were above water on a year-to-date basis. The largest commercial projects to get underway during the first half of 2020 were the $100 million Ovation Hollywood mixed-use complex, the $66 million second phase of the Spectrum Terrace office campus, and the $49 million Exposition 3 office building. Multifamily starts were up 6% through five months. The largest multifamily buildings to get underway during the first half were the $250 million 520 S Mateo Arts District mixed-use building, the $215 million Broadway Block mixed-use building, and the $125 million The Line at Burbank apartments.
In Philadelphia, PA, commercial and multifamily starts were up 86% to $3.3 billion on a year-to-date basis and were 19% higher than the first half of 2019. Multifamily starts were up 142% through six months. The largest multifamily projects started through June were the $287 million Schuylkill Yards West Tower, the $100 million 5th & Spring Garden mixed-use, and the $100 million 19th & Sansom apartments. Commercial starts, meanwhile, were up 43% through six months. All commercial sectors posted solid gains over 2020, with the largest increases seen in warehouses and offices. The largest commercial projects to start were the $143 Amazon warehouse, the $99 million Port Logistics Center at Logan warehouse project, and the $95 million Keystone Trade Center Building.
Seattle, WA commercial and multifamily construction starts were 61% higher at $3.2 billion through six months and were 54% higher through the first half of 2019. Commercial starts were up 69% due to strength in the office and warehouse sectors, while hotel and parking posted declines. The largest commercial projects to get underway were the $355 million Project Roxy Amazon distribution center, the $325 million Amazon Bellevue 600 Tower One office project, and the $270 million The Eight office project. Multifamily starts were 48% higher through the first half of 2020. The largest multifamily projects to get underway were the $150 million multifamily portion of the Block 37 Google Campus project, the $131 million First Light mixed-use project, and the $90 million U District mixed-use project.
In Atlanta, GA, commercial and multifamily starts were up 2% to $2.5 billion but remain 28% below the first half of 2019. Multifamily starts were down 7% through six months. The largest multifamily projects to get started during the first half of 2021 were the $73 million 1015 Boulevard mixed-use project, the $67 million Townes of Auburn townhouses, and the $58 million Verge apartments. Commercial starts, meanwhile, were 9% higher through six months. The hotel, retail, and warehouse sectors were all showing gains through six months, while the parking and office sectors were down. The largest commercial projects to get started through six months were the $271 million Signia Hilton Hotel at the Georgia World Congress Center, the $100 million 222 Mitchell Street Redevelopment, and the $59 million Northwest 75 Logistics Center Building B.
Commercial and multifamily building starts in Austin, TX, were down less than one percent through six months and were 9% below the first half of 2019. Commercial starts were 39% lower, with only stores showing growth through six months. The largest commercial projects to get started were the $75 million Applied Material Logistics Warehouse, the $62 million Amazon SAT6 distribution facility, and the $27 million Texas Bankers Association headquarters building. Multifamily building starts were 46% higher through six months. The largest multifamily structures to get underway were the $250 million Waller Apartments, the $232 million Travis Residential Tower Building 1, and the $150 million Hanover Brazos Street Apartments.
LAS VEGAS, NV - The Bascom Group has acquired a 93-unit Single-Family Rental community within a broader housing district in Las Vegas, Nevada. The property, Suncrest Townhomes, consists of zero lot-line paired single-family homes in North Las Vegas. Bascom purchased the 93-unit single-family portfolio for $24,750,000 or $266,129 per unit. Rialto Capital Management provided the debt financing for the acquisition and was arranged by Vincent Punzi, Lowell Takahashi, and Jack Hunsicker with Berkadia. Apartment Management Consultants (AMC) will provide property management services and interior renovations.
Bascom's Acquisitions Manager, Tom Gilfillan, stated "Suncrest Townhomes represents a great opportunity for Bascom to continue our expansion into the single-family rental space. Demand for single family home rentals exploded during 2020 as residents sought more space amid a competitive single family home market with historically low for-sale inventory. Suncrest's expansive floorplans and peaceful neighborhood will provide residents and their families a unique single family community experience in one of the fastest growing markets in the country."
Suncrest Townhomes is located in North Las Vegas, an area experiencing revitalization due to the rapidly growing Las Vegas economy. The property's proximity to the burgeoning Downtown Las Vegas district allows convenient access to retail, entertainment, dining, and major employment centers throughout the Las Vegas metro. Bascom plans to modernize the existing interiors and implement operational efficiencies at Suncrest, while strengthening its portfolio in the Las Vegas market. Las Vegas' affordable, lower density housing, pro-business environment, no state taxes, and tourist rebound since the pandemic have made the city one of the strongest apartment markets in the country.
Bascom's Senior Principal of Operations, Paul Zakhary, added, "The tremendous value-add potential, exceptionally large floorplans, and quiet cul-de-sac neighborhood separates Suncrest from other rental properties in the area. We see this purchase as a great opportunity to provide best-in-class improvements to the property, while still offering residents an attractive and affordable place to live."
The Bascom Group recently acquired a value add, three-property 390-unit multifamily portfolio in Las Vegas for $72 million. The Bascom Group has been the most active apartment buyer in Las Vegas since its first acquisition in 2013, partnering with institutional and private capital. Following the 15-property portfolio acquisition from Camden Property Trust in 2016, The Bascom Group became the largest apartment owner in Las Vegas with 29 properties representing 8,915 units and $1.2 billion in total capitalization. Prior to the pandemic, The Bascom Group sold 19 properties totaling 5,798 units and over $1.0 billion in sales price. Over the past year, The Bascom Group has completed over $778.9 millionin multifamily transactions across its national portfolio.
PORTLAND, OR - Pathfinder Partners, a San Diego-based private equity firm specializing in multifamily real estate investments, announced the acquisition of East of Eleven Apartments in Portland, Oregon for $22.3 million. The investment was made from Pathfinder Partners Opportunity Fund VIII, L.P. (Fund VIII), raised in 2020 to make opportunistic multifamily investments resulting from the pandemic.
East of Eleven is an 84-unit, mid-rise property built in 2019. The property is in the desirable Buckman submarket, known for its tree-lined streets, eclectic shops, and trendy bars and restaurants. While distressed because of high vacancy during the pandemic, leasing activity has accelerated during the past several months, with occupancy approaching 85%.
We believe properties like East of Eleven provide an excellent long-term opportunity well suited for our Fund VIII portfolio, said Mitch Siegler, Co-Founder and Managing Director of Pathfinder. This is a sought after, high-energy, vibrant neighborhood, combined with superior amenities, providing tenants the conveniences they desire while offering our investors exposure to recovering markets in a post-pandemic environment.
East of Eleven s amenities include subterranean parking, an elevator, an indoor/outdoor community room, bike storage room, pet wash station and secure access, among others. The units feature quartz countertops, vinyl plank flooring, stainless steel appliances, high-end washer/dryers, and air conditioning, an uncommon feature in most Portland multifamily apartments.
In addition to Portland, Fund VIII invests in Seattle, Sacramento, San Diego/Southern California, Phoenix and Denver.
ATLANTA, GA - 37th Parallel Properties announced the acquisition of Parkside Vista, a 240-unit, 2007-built multifamily asset located in Atlanta, GA on behalf of their investors and joint venture partner, Apta Properties. With this acquisition, 37th Parallel has acquired over 500 units representing over $100 million in value in the Atlanta MSA in the last twelve months.
"We are excited to add Parkside Vista to our growing portfolio, a quality asset in one of the most transformational nodes in Atlanta," said Dan Chamberlain, Managing Partner. "Atlanta's affordable, pro-business environment has driven significant job and population growth alongside industry diversification. The property is located near 285 and I-85 North East in the I-85 corridor, a booming economic corridor that has been the leader in population and employment growth in the Atlanta MSA for the past decade. Additionally, roughly three miles south of the property is Assembly Yards, a multi-billion dollar, 165-acre mixed-use redevelopment that should spur continued growth in Northeast Atlanta," says Chamberlain.
The property benefits from easy access to several of the region's most powerful economic drivers, such as Perimeter Center (36 million sq ft office), Buckhead (21 million sq ft office), Century Center (2 million sq ft office), and Emory / CDC (40,500 jobs). The property features a mix of one-, two-, and three-bedroom units with large floorplans averaging 1,103 square feet. Apartment and community amenities include nine-foot ceilings, balconies, a state-of-the-art fitness center, and a large saltwater swimming pool.
"Parkside Vista is located in an outstanding, high barrier-to-entry suburban submarket whose growth has only accelerated since the onset of the pandemic," said Doug Fraser, who manages the acquisition efforts for the firm. "The supply-demand fundamentals in the submarket remain stellar, with only one multifamily asset under construction within a 6.5-mile radius of the property, paired with one of the lowest submarket vacancy rates in the metro. This supply-demand imbalance has resulted in 12.7% submarket rent growth over the last 12 months, accelerating our original business plan," says Fraser.
BURIEN, WA - Canyon Partners Real Estate and American Capital Group announced their joint venture to develop Kinect @ Burien, a 230-unit apartment project located in the Seattle suburb of Burien, Washington. Canyon invested $25.6 million of equity into this project, which is located in a qualified opportunity zone. The joint venture also simultaneously closed on a $51.5 million senior construction loan.
This investment marks Canyon's second multifamily project in partnership with ACG in the past two years. Canyon and ACG also partnered on Kinect @ Lynnwood, another apartment project in nearby Seattle suburb Lynnwood. In total, Canyon has invested in nine Qualified Opportunity Zone projects to date, capitalizing over $700 million of real estate development projects.
"Similar to our other qualified opportunity zone venture with Canyon, this multifamily community will provide much needed housing to the greater Seattle area," said B.J. Kuula, President at ACG. "We are proud to offer both an attractive and cost-effective housing option to residents and contribute to the economic growth of the region."
Kinect @ Burien is located in downtown Burien one block west of Burien Town Square. The project will be conveniently located within reach of many of the area's major employment hubs, including Kent Valley, Seattle-Tacoma International Airport and downtown Seattle and Bellevue. Once construction concludes, Kinect @ Burien will offer a mix of studio, one-bedroom and two-bedroom units along with secure, covered parking, a fitness center and outdoor community areas. Kinect @ Burien is participating in the City of Burien's Multifamily Tax Exemption program, dedicating 20% of the project's units as affordable housing.
The project will commence construction immediately and is expected to deliver during the summer of 2023.
DETROIT, MI - Adam M. Lutz of Lutz Real Estate Investments and Matthew Sosin of Northern Equities Group announced that their joint venture has completed its $70 million renovation of The Albert Kahn Building, and its conversion into 206 apartments, now named The Kahn Apartments.
Located in Detroit's New Center/Midtown North neighborhood, the 11-story, 320,000 square foot Art Deco masterpiece was built by The Fisher Brothers and designed by famed architect Albert Kahn. Recognized on the National Register of Historic Places, The Albert Kahn Building first opened its doors in 1931 with opulence and opportunity in mind and was home to prestigious businesses including Kahn's own architectural firm for 90 years. The first floor, with 18-foot-high ceilings and massive windows, once home to Saks Fifth Avenue, is available and ready for a new office, showroom, or retail tenant.
"The Albert Kahn Building was originally designed as one of the crown jewels of Detroit," said Adam M. Lutz, CEO of Lutz Real Estate Investments. "That was the mindset that we had when designing these apartments and restoring a historical landmark. Each of the 700 original windows was removed, hand restored and re-installed back in their original location. It's the attention to these types of details that have impressed visitors and led to significant leasing results."
As two fourth generation Detroiters, The Albert Kahn Building's renovation was an undertaking and a point of pride for Lutz and Sosin, and included the conversion of the office space on floors 2 thru 11 into 206 studios, one-, two-, and three-bedroom apartments with floorplans ranging from 530 to 1,317 sq. ft. The penthouse units feature an interior stairwell unique to each apartment. With interiors designed by Detroit-based Kraemer Design Group, Lutz and Sosin ensured the one-of-a-kind Art Deco architecture remained intact.
The community boasts expansive views of the city and offers its residents the most complete list of amenities in all of metro-Detroit. There are two lounges - "The Drafting Room", a sophisticated workspace area with a library and features the Bar AK, and "The 1931 Room", which provides residents an area to watch events on large screen TV's while playing parlor room games. With Pallister Park nearby, The Kahn is a pet friendly environment and offers a spa area for resident's pets. The Kahn offers residents a full gym experience with 3,000 sq. ft. professionally equipped fitness center, along with a yoga and spinning studio. Additionally, the "Diamond K Club" is an outdoor rooftop deck complete with grilling stations and breathtaking views.
"Our ultimate goal was not only to keep the grandeur of the building, but to improve and modernize where we saw opportunity," said Matthew Sosin, President of Northern Equities Group. "We have been able to establish contemporary, modern homes while honoring the overall legacy of one of Detroit's treasures. We believe everyone in Detroit will be proud of the results and expect The Kahn to further engage the New Center and Midtown North neighborhood.""
The Kahn will be managed by Farmington Hills-based Beztak. A "Grand Re-Opening" ceremony is expected in September.
GLEN COVE, NY - FCP announces that it recently closed on a preferred equity investment to facilitate Fairfield Properties' acquisition of a residential community currently known as Avalon Glen Cove located in the village of Glen Cove, New York. Fairfield Properties, a Melville-based owner and developer of commercial real estate, is the largest multifamily owner and operator on Long Island with over 45 years of experience.
The luxury mid-rise property will be rebranded as Fairfield Metro at Glen Cove and consists of 367 residential units. The transit-oriented property is located near the Glen Cove Station on the Oyster Bay Branch of the Long Island Railroad, which has a 1-hour trip between Glen Cove and New York City. The brand-new Glen Cove Ferry will provide riders with an additional option for their daily commutes to Manhattan.
Fairfield Metro at Glen Cove offers thoughtfully designed studios and one- and two-bedroom apartments that include gourmet kitchens with refined finishes, washers and dryers, spacious walk-in-closets and private patios or balconies. Community amenities include AM/PM concierge-attended lobbies, two outdoor swimming pools with sundeck, two fitness centers, an underground, indoor parking garage, a landscaped picnic area and a resident cinema.
"We are excited to continue to grow our relationship with Fairfield with our investment in this Class A community in the Glen Cove market, which complements Fairfield's portfolio and operational experience," said FCP Senior Vice President, E.J. Corwin.
Fairfield Metro at Glen Cove represents FCP's fifth transaction with Fairfield Properties.
CENTENNIAL, CO - Embrey has closed on its site purchase for Hensley at The District, a 304-unit multifamily community project with mountain views to the west, neighborhood walkability and easy access to jobs, shopping and entertainment.
The project is a six-story multifamily wrap-style project that will help create a pedestrian-oriented promenade within The District, an emerging mixed-use community being developed by Brue Baukol Capital Partners. Embrey purchased its property from Brue Baukol Capital Partners, a Denver-based company.
"We are known for creating places where people want to be. This is a beautiful site and we are excited to contribute our unique development style and skills to the Centennial community," said Jimmy McCloskey, Executive Vice President of Development for Embrey. "Residents will enjoy premium living with luxury amenities and plenty of lifestyle enhancement opportunities."
The site is adjacent to the RTD Dry Creek light rail station and near I-25, creating easy access to the Denver metro area.
The first units and clubhouse are expected to be available in the first quarter of 2024 with project completion later that year.
Amenities will include a clubhouse with gameroom and business center that includes micro offices and a conference room. Outdoor grilling areas, multiple fireplaces and a landscaped courtyard complement a resort-style pool. The property will feature a sports lounge and top floor deck, a leading-edge fitness studio with on-demand technology, a yoga room and a dog spa. A package room, rideshare lounge and structured parking garage will be available for the convenience of residents.
Interior finishes will feature 9 to 12 foot ceilings depending on unit selected. High-end kitchens will feature quartz countertops, side-by-side counter-depth refrigerators, custom cabinetry with designer pulls, stainless steel appliances, undercabinet lighting and upgraded undermount sinks. The baths will feature upgraded undermount sinks, soaking tubs, and walk-in showers in select units. Throughout, there is wood-style flooring and plush carpet, linen closets and walk-in closets with built in shelving, and designer vanity mirrors.
CHATTANOOGA, TN - Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced the acquisition of Lullwater at Big Ridge, a 250-unit multifamily community in the Hixson submarket of Chattanooga, Tennessee. The property was acquired for CS1031 Lullwater at Big Ridge Apartments, DST, a Reg. D private placement.
"Chattanooga was recently ranked number one for employment outlook by Forbes magazine, in part due to its exceptional location just 130 miles from Atlanta and Nashville," said Louis Rogers, founder and chief executive officer. "The city is well-known for healthcare, manufacturing, education, technology and tourism and was named 'Gig City' for its 10-gigabit-per-second fiber internet services. These attributes position Chattanooga as the next booming city, similar to Nashville or Austin."
Located at 6038 Hixson Pike, the gated community was constructed in 2020 and is the newest apartment community in the Hixson submarket. Lullwater at Big Ridge is comprised of one-, two- and three-bedroom units ranging in size from approximately 1,028 square feet to 1,432 square feet. The community features floorplans that have large open kitchens with wraparound granite countertops, faux wood vinyl flooring and stainless-steel appliances.
Community amenities include a dog park, resort-style pool with outdoor kitchen and firepit, clubhouse with lounge, media room, conference room, business center and fitness center. Additional amenities include a secure package delivery locker room, a car care center and 30 detached garages as well as 21 storage units available to rent.
CS1031 Lullwater at Big Ridge Apartments, DST seeks to raise $27.9 million in equity from accredited investors and has a minimum investment of $50,000.
"Lullwater at Big Ridge is a particularly attractive asset, not only because it is the newest multifamily community in the submarket, but also because it features large apartment units and unique interior finishes," said Whitson Huffman, chief strategy and investment officer. "The community is well-located off of Hixson Pike, providing residents convenient access to nearby employment hubs as well as a Publix-anchored shopping center just one street away."
MILWAUKEE, WI - USG/OZI announced the details of its ground-up opportunity zone project, Elevation 1659, as part of its unique investor-directed, multi-asset opportunity zone fund offering. The six-story, Class A, 76-unit multifamily development, located at 1659 N. Jackson St. in Milwaukee, Wisconsin is being developed by Ogden & Company, the largest full-service real estate company in Wisconsin. This qualified opportunity zone project is scheduled for completion in July 2023.
"We focus on working with local developers who have the best relationships with their local economic development organizations and local governments, and who also historically produce the highest returns for their development projects," said Greg Genovese, CEO of USG/OZI, and founder of USG Realty Capital. "Ogden & Company checks all of those boxes, and then some. We are absolutely delighted to have them as our development partner, and to offer Elevation 1659 in our portfolio of qualified opportunity zone projects for investors to choose from."
Located just one mile north of downtown Milwaukee, Elevation 1659 is being built to meet the local demand for market-rate apartments in the area. It also offers a unique design, with almost all units extending from a central core. The result will be natural light exposure from two or three sides in most units. Most apartment units offer light exposure from only one side unless residents are willing to pay a premium for a building-corner unit.
"The combined parcels are triangular, which allowed us to think creatively about how to maximize the look of Elevation 1659," said Jason Pietsch, managing member with Ogden & Company. "This is a unique design. No one else in this marketplace offers it."
Investors Choice OZ Fund by USG/OZI officially launched in June 2021. Since that time, the qualified opportunity fund has been adding more projects to its portfolio and continues to seek qualified, viable ground-up multifamily, senior living, storage, and manufactured housing projects to add to its platform. The focus is on projects with investment equity targets ranging from $10 million to $15 million per project, on average. The fund intends to raise $50 million in new investment equity and can expand the offering to $100 million if needed.
USG/OZI is also tracking the social and economic impact of its developments to honor the spirit and intent of the federal qualified opportunity zone initiative. This is being done by issuing third-party social impact reports for the life of each project, estimated for at least 10 years.
"With this, and other projects, we're tracking the input of new capital raised from investors, and the economic impact of those investments," said Kyle Wiese, president and co-manager of USG/OZI, and founder and managing member of OZI Group. "This displays the positive social impact each of our projects have on the local community. New construction on these projects means new jobs, new tax revenues and other items that are important when it comes to social impact reporting."
NAPERVILLE, IL - MZ Capital Partners, developer of the Vantage Naperville Apartments at 1350 E Ogden in Naperville, Illinois, has announced a key milestone in its new "attainable housing" concept, with the full lease-up of the 112-unit, full amenity apartment community within three months after opening.
Without tax credits or subsidies, and setting no income cap for renters, the Vantage represents a new national model for attainable housing where the market, not government, determines rent.
According to Michael H. Zaransky, founder and managing principal of MZ Capital Partners, "It's the first Chicago suburban experiment with this type of product. There's a broader problem nationally of providing enough rental housing at an affordable price point. Every caring community that's thinking strategically about their future wants to solve that problem."
Built on the site of a dilapidated motel, the Vantage proves how city governments can work with developers to supply housing to those who need it most. The project passed unanimously without significant community opposition when it came before the Planning Commission and City Council.
For Naperville Mayor Steve Chirico, the Vantage "is an investment opportunity that checks all the boxes of the city's goals: adding affordable housing that's also profitable. It's a win-win for everybody."
Situated at the gateway to the revitalized Ogden Area Corridor, the Vantage offers bright studio and 1-bedroom convertible apartments with 9-foot ceilings, in-home full-size washers/dryers, and stainless steel appliances at monthly rents as low as $950. Featuring private work from home office suites, 24/7 smart package delivery and pickup, high speed fiber optic internet connection, and balconies in select units, the Vantage represents what a community might look like in a post-Covid world.
Christine Jeffries, President of Naperville Development Partnership said, "The Vantage Apartments are ahead of the pack by creating an environment that provides for remote working, spacious social interactions, outdoor amenities, and a high-end exercise facility."
To commemorate the opening of the Vantage in April 2021, and to reinforce its commitment to the Naperville community, MZ Capital Partners donated to the Northern Illinois Food Bank to feed a local family of four for a full year.
"We firmly believe in the obligation to give back, support the most vulnerable in our community, and 'do good while doing well,'" says Brad Zaransky, MZ Capital Partners principal.
DALLAS, TX - Kinloch Partners announced it has completed the purchase of multiple lots in Royce City, Texas, on the Eastern part of the Dallas Metroplex. The company plans a Build-to-Rent subdivision, providing affordable Single-Family Rental (SFR) homes to this quickly growing region.
Kinloch Partners plans to aggressively expand its holdings in the Dallas area, with multiple Build-to-Rent projects totaling 500 newly SFR homes in the next 18 months. The homes will range from 2,000 to 2,500 square feet and will be priced from $200,000 to $300,000. Rent will be under $2,000 per month.
"Dallas has a high-growth trajectory with a stable workforce, but like many markets across the country, affordable housing remains a challenge," said Bruce McNeilage, co-founder and CEO in Kinloch Partners. "SFR Build-to-Rent homes provide an affordable option for people who want a single family home, but might find it challenging to find the right home for purchase."
Build-to-Rent subdivisions are an emerging trend in real estate development, attracting investors from Wall Street hedge funds, pension funds and international entrepreneurs. There are more than 72 million Millennials born between 1981 and 1996 in the United States. Many are coming into peak family raising years, would like to purchase a home, but are often saddled with high student loan debt. This makes home ownership challenging and is sparking a rise in Build-to-Rent.
Kinloch Partners is a pioneer in Build-to-Rent and its portfolio of homes across the Southeast and soon to be Texasprovide an excellent example of how the concept works.
"We know the path to traditional home ownership is just out of reach for many people today," McNeilage said. "Newly constructed single-family rental homes are an excellent alternative for people who still want to rent, but also want the amenities of a family home. We're looking forward to expanding this concept in Dallas."
ATLANTA, GA - FCP announces the acquisition of Westwood Glen, a 247-unit apartment community in Atlanta, GA for $24.5 million. The acquisition marks FCP's 21st investment in Atlanta and the 9th in the city's Westside.
"Located in the same submarket as two other FCP communities, Westwood Glen is a well-maintained asset in a location primed for continued growth," said FCP's Scott Reibstein. Reibstein continued, "FCP has a strong presence in West Atlanta, which is proximate to the thriving South Fulton industrial corridor, one of the largest corridors of its kind in the U.S., generating robust job growth and demand for housing."
Westwood Glen is located at 1225 Fairburn Road, SW and features one and two-bedroom floorplans with hardwood floors, pool with sundeck, and a children's playground in a lush, wooded setting. FCP plans to improve amenities at the community, including the addition of a dog park, package lockers and grilling areas.
FCP extends its appreciation to Paul Vetter and Andrew Mays of Berkadia for their representation.
WASHINGTON, DC - Broad Creek Capital and Springer Capital recently expanded their joint portfolio of multifamily assets with the acquisitions of the Square at Forest Acres in Columbia, South Carolina and Tanglewood Apartments in Memphis, Tennessee. The total purchase price was $16.5M and the two properties together consist of 364 units.
The acquisitions are the most recent investments in Broad Creek Capital's Enhanced Income Strategy, which seeks to provide tax-efficient high yield investment income via the acquisition and repositioning of underperforming multifamily properties throughout the United States. The portfolio currently totals over 530 units of multifamily real estate.
Matthew Ruesch, Co-Founder and Managing Partner of Broad Creek Capital stated, "Square and Tanglewood are ideal investments for our Enhanced Income Strategy. U.S. multifamily real estate remains one of the most attractive asset classes for yield and long-term capital appreciation, and the southeast region of the country continues to see strong renter demand. By partnering with Springer Capital, a best in-class real estate investment manager, we believe the execution of this strategy will create substantial value for us and our co-investors."
"We are excited to partner with Broad Creek on these acquisitions in Columbia and Memphis. These properties are located in the southeast, a region that is extremely attractive for long-term investment due to its affordability, strong employer bases, and well-regarded quality of life. The value-add component of these properties is particularly compelling because it provides significant opportunity for near-term realization," said Tom Farnoly, Principal at Springer Capital.
Tanglewood Apartments is a 199-unit apartment community built in 1975 and located in the Bartlett submarket of Memphis. Bartlett is one of the most sought-after submarkets in Memphis due to its easy access to highways, major employers, and retail options. Tanglewood was lightly renovated in 2006 utilizing tax credit investor equity which placed affordability restrictions on rents. The business plan calls for exterior and interior renovations to bring the property in line with competing properties in the submarket.
Square at Forest Acres is a 165-unit apartment complex built in 1970 and located in Forest Acres, a submarket of Columbia. The property is in an affluent demographic center and is near higher-end retail corridor which includes premium brand grocers, restaurants, and fitness retailers. Extensive interior and exterior renovations on Square commenced shortly after acquisition and are scheduled for completion in 2022.
RENO, NV - Canyon Partners Real Estate announced its joint venture with GMH Communities and CRG for the ground-up development of a 755-bed student housing project located at the University of Nevada, Reno ("UNR"). Canyon is investing $36.2 million of equity in this development, which is located in a Qualified Opportunity Zone. The project will commence construction immediately and is expected to achieve completion in time for the start of the 2023 school year. The joint venture also simultaneously closed on a $75.2 million senior construction loan from Citizens and Nevada State Bank.
The project is located at the intersection of North Virginia Street and 15th Street, directly across from UNR's main entrance at the center of campus. The 12-story development will be the first high-rise student housing development in the Reno area, offering expansive views of campus, downtown Reno and the Truckee Meadows and its surrounding mountain ranges. The project is planning to obtain a LEED Silver certification and will include a combination of floor plan options, from one- to five-bedrooms, as well as numerous student-focused amenities.
"Academy at Reno fits in seamlessly with GMH's growing portfolio of first-class student living communities that are designed with students' unique lifestyles in mind," says Steve Behrle, Executive Vice President of Development with GMH Communities. "We're proud to partner with Canyon and CRG as we begin development on this exciting high-rise that will soon provide students at The University of Nevada, Reno with the perfect home-away-from-home while they focus on their academic endeavors."
"We're thrilled to team with both Canyon and GMH, one of the original pioneers of student housing, to bring this best-in-class property to the students of University of Nevada, Reno," said J.J. Smith, CRG's Managing Partner and Residential Group Leader. "I've long respected the GMH and Canyon teams, and given that CRG has considerable experience in this market, this partnership was a logical one. As the market's first high-rise, Academy at Reno will stand out from its competitors with an unmatched amenity package featuring floor-to-ceiling windows and commanding views of the mountains and campus."
NEWARK, NJ - ABANCA USA took part in a $94 million syndicated loan set to finance a 12-story, 403-unit Class A multi-family rental project in the heart of Newark's business district, which will have a total cost of $139 million.
ABANCA USA, the Miami-based bank, joins Valley National Bank, Bank Hapolim, and TriState Capital Bank in providing the funds for this new development located at 55 Union Street, blocks away from Prudential Central, Newark Penn Station and the Passaic River.
Developed by J&L Companies - a Family-owned Real Estate firm based in New Jersey - this project aims to appeal to young professionals by offering a high-quality but affordable product featuring a wide range of amenities such as a rooftop garden and entertainment area, outdoor courtyard, state of the art fitness center and a business lounge with communal and private working space. In addition, this building – expected to be completed by April 2023 - will also feature more than 3,000 square feet of retail space and a parking garage with room for nearly 200 vehicles.
Monica Vazquez, ABANCA USA´s General Manager, explains that their involvement in this deal is a testament to ABANCA USA´s ability to execute top real estate transactions while maintaining a sustainable business model.
"Not only has it has been an absolute pleasure to work with Lopez y Gabriel Lopez from J&L, one of best developers in the business, but we are delighted that this project contributes to the revitalization of Downtown Newark making it a thriving neighborhood for residents and business alike," Vazquez explained.