Latest News from MultifamilyBiz.com
Updated: 2 hours 29 min ago
PANAMA CITY, FL - Lexerd Capital Management, a New Jersey-based sponsor of private equity funds, announced that one of its funds has acquired Spring Valley Club Apartments in Panama City, FL and Avenue 29 Apartments in Tallahassee, FL, each a multifamily property in their respective locations.
Spring Valley Club consists of twenty (20) three-story multifamily apartment buildings and one (1) community building, totaling 160 individual units. The existing amenity package of the property consists of a fitness center, private pool with sundeck and grilling area, clubhouse with business center, dog park, and a fire pit gathering area.
Avenue 29 consists of eighteen (18) two and three-story multifamily apartment buildings and one (1) community building, totaling 324 individual units. The existing amenity package of the property consists of a newly renovated 24-hour fitness center, private pool with sundeck, jacuzzi, hammock garden, and grilling area, computer lab and business station, library with study, and a gated entrance.
Spring Valley Club is centrally located within minutes of two of the largest employers in Panama City, Tyndall Air Force Base and Bay Medical Center. All major transportation arteries are easily accessible from the property including Front Beach Road, FL-79, and US-98. It is one of the country's largest business container ports in the U.S. with FedEx and North American having distribution center locations. Panama City is the county seat of Bay County, which has 186,366 residents and over 7 million tourists visit annually.
Avenue 29 is optimally located near access to major thoroughfares such as N Monroe Street and I-10. Tallahassee is the state's capital with a population of 390,489, per the 2018 census, and home to two major universities. It is a leading-edge, high-tech region with world-class research, and the Innovation Park, a hub for emerging technology, and commercial development. Companies based in Tallahassee include Citizens Property Insurance Corporation, the Municipal Code Corporation, the Mainline Information Systems, State Board of Administration of Florida (SBA) and the United Solutions Company. The top employers are government with over 25,200 employed, education with over 17,600 employed and medical with more than 5,600 working at Tallahassee Memorial and Capital Regional Medical Center.
Both Spring Valley Club and Avenue 29 are ideally located providing residents close proximity to demand drivers, making them suited for dual income households working in different areas of their respective MSAs.
Spring Valley Club will be rebranded as The Lory of Panama City and Avenue 29 will be rebranded as The Lory of Tallahassee.
"We are enthusiastic about the acquisition of Spring Valley Club Apartments in Panama City and Avenue 29 Apartments in Tallahassee," said Albert Lord III, Founder and CEO of Lexerd. "Each located in bustling and growing regions, these new properties will provide tenants with quality living in thriving areas."
Lord continued, "The decision to re-brand the properties under Lexerd's Lory umbrella of properties conveys their consistency and alignment with the Lory brand, which provides tenants with quality they can trust and an exceptional community reputation, wherever you may find it. We are committed to upholding those brand qualities with these two new acquisitions in Florida. The Lory of Panama City and The Lory of Tallahassee will help Lexerd continue to serve our mission of achieving strong risk adjusted returns for our investors, while supporting their communities in a meaningful way."
ATLANTA, GA - JLL Income Property Trust, an institutionally managed daily NAV REIT, announced the acquisition of Siena Suwanee Town Center, a 240-unit, luxury apartment community in the affluent north-Atlanta suburb of Suwanee, Georgia. The purchase price was approximately $70 million.
Suburban Atlanta is a recommended portfolio "overweight" and is ranked within the top quartile of LaSalle's Research & Strategy Group's proprietary market tracking database. Atlanta-area apartment investments have outperformed overall U.S. apartments within the NCREIF institutional index over 1, 3, 5 and 10-year periods. Sienna Suwanee Town Center is complemented by JLL Income Property Trust's 2017 acquisition of The Reserve at John's Creek Walk, a 210-unit Class A apartment community located in Johns Creek, less than 10 miles away. This northeast Atlanta submarket ranks favorably due to above market population and job growth, ranking 12th out of 150 U.S. cities in forecasted employment growth over the next four years.
Constructed in 2018, Sienna Suwanee Town Center features luxury unit finishes and provides residents with a robust community amenity package including a salt-water resort style pool and 24-hour multipurpose fitness center. The community also has desirable live/work/play features and is walking distance to numerous retail stores and restaurants, in addition to local community parks.
"This addition to our growing apartment portfolio fits extremely well with our suburban strategy to invest in amenity-rich, newer communities located in highly-rated school districts with high barriers to entry for new competition," noted Allan Swaringen, JLL Income Property Trust President and CEO. "This investment brings our aggregate apartment allocation to over $1 billion, with 3,842 apartment units across 16 communities representing 33 percent of our $3.3 billion, 82-property portfolio. Our unique UPREIT structure along with our diversified portfolio and daily valuation were attractive to the sellers who chose to contribute this property in exchange for interests in our fund rather than selling for cash. This provided the owners of Sienna Suwannee a tax efficient sale with the benefit of long-term estate planning while allowing our fund to make a strategic acquisition with no cash outlay."
JACKSON, MS - Carter Multifamily announced its acquisition of the 392-unit The Reserve of Byram for approximately $46.4 million.
Built in two phases in 2000 and 2006, The Reserve of Byram apartment community is well located in Byram, Mississippi on 33.24 acres of land near the area's top shopping, dining, entertainment and recreational activities. The community features spacious one, two and three-bedroom floorplan options with modern amenities.
In addition to its thoughtfully designed apartment homes, The Reserve at Byram offers gated entry, a resort-style pool and spa with a sundeck, outdoor grilling areas, a billiards room, a fitness center, a clubhouse, and an on-site car wash facility. Residents also enjoy The Reserve at Byram's close proximity to the area's top employers and convenient access to downtown Jackson, Mississippi via Interstate 55.
"The high-quality features and location of this property, along with our 'management improvement' strategy, enables us to deliver a desirable community for residents of this growing area at an attractive price point," said Ray Hutchinson, chief investment officer of Carter Multifamily. "We are excited about the strong rental performance of this market, which has fared well during the pandemic, and the upgrades we have planned to enhance the resident experience at The Reserve of Byram."
Carter Multifamily intends to execute a substantive value-add strategy by enhancing the amenity package, completing interior and exterior upgrades, and by implementing institutionally based property management best practices.
TUSTIN, CA - The REMM Group started 2021 by adding two new multifamily communities to their management portfolio. Paradise Gardens Apartment Homes, a 318 multifamily community in Long Beach and Towne Centre at Orange, with 135 units in Orange, California. Both joined The REMM Group on January 1st.
Christine Dales, The REMM Group COO, said, "The COVID-19 pandemic created tremendous difficulties for multifamily management. Property owners weigh heavily how a company has dealt with these challenges in selecting management. The REMM Group adjusted rapidly, adapted, and worked hard to keep everyone up to date. We are proud that these two outstanding properties recognized that, selecting The REMM Group."
Sara D'Elia, CEO of The REMM Group added, "Personalized attention from senior management is the niche advantage our regional company offers. That direct attention by the most experienced talent in our company gives us agile leadership to respond to COVID 19. It's hard for national companies to match that. More and more commercial property owners recognize that Southern California has unique challenges. It takes in-depth local and regional knowledge to manage at the highest level."
Paradise Gardens Apartment Homes offers studio, one-bedroom, one-bath and two-bedroom, two-bath units ranging from 365 to 898 square feet. Community amenities include an Olympic sized swimming pool, fitness center, yoga studio, luxurious spas, off-street parking, basketball, and tennis courts.
Towne Centre at Orange is a multifamily community that offers residents three pools with cabanas, double pane windows and covered parking with storage. Many of the apartments include newer cabinets, granite countertops and stainless-steel appliances.
D'Elia said, "I know these two new properties will benefit from the dedication and creativity of our teams. They have excelled this year. Beyond virtual tours, sanitation protocols, and countless zoom meetings, they even found ways to relieve the boredom of stay-at-home orders for residents. We held COVID-safe resident appreciation events and had a successful virtual toy drive."
TAMPA, FL - Robbins Property Associates, a vertically integrated multifamily owner operator, has partnered with a repeat private equity limited partner to acquire Century Cross Creek. The expansive 297-unit complex was completed in 2008 and 2014. The property, which was re-branded The Parq at Cross Creek, is located in the fast-growing New Tampa/Tampa Palms submarket.
The property is centrally located with ease of access to Interstate 75, via Morris Bridge Road or Bruce B. Downs Boulevard, which provides access to over 17.7 million square feet of corporate office space within a twelve-mile radius. The area provides a high proportion of healthcare, finance, and education jobs, including USAA, Coca-Cola, multiple hospitals, and the University of South Florida.
"New Tampa/Tampa Palms is a dynamic submarket that has rapidly transformed over the past two decades and continues to experience strong population and job growth," said Neal Herman, Managing Director of Investments at RPA. "The property is well-built, and as a testament to the Tampa MSA's resiliency, the property's operations maintained strong collections and occupancy during 2020."
The Parq at Cross Creek features spacious floor plans, open kitchen layouts, 9-foot ceilings, and expansive screened-in porches. RPA's comprehensive value-add program will include upgrading unit interiors to include sleek quartz countertops, modern tile backsplashes, stainless-steel appliance packages, and wood plank flooring.
Community amenity upgrades will highlight a complete renovation and expansion of the clubhouse and leasing center and an expanded 24-hour state-of-the-art fitness center. Additionally, RPA will modernize the resort-style pool by adding a screened-in patio lounge and summer kitchen.
"There is strong demand from renters for upscale garden-style apartments in the New Tampa area," said Kristi King, Chief Operating Officer & Principal of RPA. "The Parq at Cross Creek offers residents the kind of space, comfort, and amenities they expect in the Tampa market. Our renovations will significantly change the look and feel of the community and resident experience."
FLAGSTAFF, AZ - Olympus Property announces the successful acquisition of Mountain Trail, a garden style Class-A multifamily community in Flagstaff, Arizona.
Mountain Trail is strategically located at the intersection of Interstate 40 and 17, Flagstaff's primary thoroughfares, only 150 miles north of Phoenix. It is the only multifamily community in the Flagstaff market with direct-access garages, which is a popular demand in colder climate cities. Community amenities include a large hot tub and fireplace, state-of-the-art fitness center, sauna room, putting green, and hiking and jogging trails. Mountain Trail homes feature 9-foot ceilings, stainless steel appliances, granite countertops, plank flooring, and smart home technology.
"Mountain Trail is one of the most desirable assets within the Flagstaff market due its superior location and unique direct-access garage design. The lack of supply and government restrictions in Flagstaff in turn make this an appealing opportunity to our Partners and Olympus," said Chase Bennett, Director of Acquisitions.
The city of Flagstaff is a flourishing market that is seeing expanding growth for those seeking a quieter alternative to Phoenix – so much so that Flagstaff made USA today.com's 2018 list of "Ten Best Places to Avoid Noise, Light, and Air Pollution." Flagstaff is the primary educational, commercial, and cultural center for northern Arizona including a large number of High Tech and Development Industries. With more than 44% of residents holding a bachelor's degree or higher, it is Arizona's most educated workforce. All within five miles of Mountain Trail are the city's largest employers: the 3rd largest university in the state North Arizona University (3,500 jobs), Gore Creative Technologies (3,000 Jobs), and Flagstaff Medical Center (2,000 jobs). Known as the city of seven national wonders, Flagstaff offers everything from the Grand Canyon National Park to the San Francisco Peaks which includes the Arizona Snowbowl, one of Arizona's only two ski resorts just 30 minutes north of property. Additionally, just three miles from the property is Aspen Place at Sawmill, a retail center anchored by Whole Foods Market and REI.
Founded in 1992, Olympus Property owns and manages some of the most desirable multifamily opportunities across the United States. Olympus Property is headquartered in Fort Worth, Texas. Over a 28-year history, the firm has become a successful and recognized name in the multifamily industry owning and operating approximately 17,000 units across ten states.
LAUREL, MD - Mission Rock Residential, a Denver-based multifamily property management company, is further expanding its northeast regional presence, announcing a new management contract for The Views at Laurel Lakes Apartment Homes in Laurel, Maryland. Formerly named "The Point," the company has been issued an agreement for the management of the apartment community by new owner Hamilton Zanze.
"The lifestyle offered at The Views at Laurel Lakes stands apart from the surrounding residential options with the comfortable and updated apartment interiors, and outdoor-centric amenities including a unique two-level swimming pool. We're thrilled to enhance the resident experience for all current and prospective residents," said Patricia Hutchison, President of Mission Rock Residential.
The community offers 308 apartment homes and is located conveniently midway between Baltimore and Washington. Residents have easy access to Interstate 95, the Laurel MARC commuter rail station, and these major urban centers. The community offers noteworthy amenities such as a two-level pool, outdoor grill areas, a 24-hour fitness center, and direct lake access. This access is especially notable given the property's quiet, park-like setting.
Each individual apartment home includes a washer and dryer, stainless-steel appliances, wood-burning fireplaces, and a private patio. All bathrooms and kitchens feature new cabinetry and countertop surfaces and updated energy efficient light fixtures thanks to a recent renovation undertaken across the complete property.
While a largely residential community, Laurel is home to a historic Main Street district along with significant retail presence. In addition to its easy access to Baltimore and Washington D.C. for employment opportunities, Laurel is also host to several major employers. The Department of Defense is a prominent presence in the Laurel area, with the Fort Meade Army base, the National Security Administration, and Johns Hopkins' Applied Physics Laboratory all located nearby. Laurel Park, a thoroughbred horse racetrack, is also located just outside the city limits.
NEW YORK, NY - CIM Group announced that Related Fund Management has acquired 265 - 275 Cherry Street, two 26-story towers with 490 units in Manhattan s Lower East Side in the Two Bridges community. CIM sold the approximately 450,560-rentable-square-foot property with L+M Development Partners, its joint venture partner. The land parcel located at 260 Cherry Street was not included in the sale.
265 - 275 Cherry Street is a fully-leased, Section 8 housing community originally built in 1979, which features one-, two-, and three-bedroom units. Amenities include an on-site community room, a convenience store, and outdoor courtyards with playgrounds. The property is well located off FDR Drive, on the East River Esplanade in close proximity to public transportation including trains and buses with the nearest subway stop just two blocks away.
In 2014, L+M and CIM voluntarily entered into a 40-year regulatory agreement to preserve the asset as affordable housing for low-income households. Driven by the belief that every person deserves a quality home, Related is committed to maintaining and operating 265 - 275 Cherry Street as high-quality affordable housing.
Related has a long and proud history in affordable housing which has been a foundational element of the company since its formation. The company started exclusively as an affordable housing developer in 1972 and today is one of the largest private developers and preservationists of affordable and workforce housing in the country.
For more than 25 years, CIM has been an owner, operator, developer, and lender of real assets across North America, enhancing the communities in which it invests. For more than 10 years, CIM has been actively investing in New York City including properties such as 432 Park Avenue condominiums, 11 Madison office building, 15 William condominiums, 1440 Broadway office building, 16 Court office building, The Dominick Hotel, Front & York residential and retail development in DUMBO, and 111 Montgomery condominiums in Crown Heights.
Cushman & Wakefield represented both the seller and buyer in the transaction.
BOSTON, MA - Lincoln Property Company (LPC) and Phoenix Property Company (PPC) presented Ora, a mixed-use development offering high-end studio, one, two and three bedroom apartments, now open in Boston's Seaport District.
Ora is a 12-story, mixed-use apartment community with 304 luxury units, as well as restaurant, retail and innovation space on the ground and garden levels. The building has been designed with a commitment to progressive thinking, innovation, luxury and connectivity. Select units feature open concept floor plans, private balconies, waterfront views, quartz countertops and keyless entry.
The themes of connectivity and luxury are reinforced by the building's shared amenities, which include concierge services, valet parking, a central public courtyard, a rooftop pool and a sky deck on the 12th floor with over 8,500 square feet of outdoor amenity space and sweeping views of downtown and Boston Harbor.
This project is the latest development among the growing residential and commercial activity in the Seaport District. LPC and PPC are committed to continuing this area's transformation and fostering growth across the entire region through public and private partnerships.
As part of this initiative for smart growth, Ora was designed with a commitment to climate resiliency and sustainability. The property is surrounded by a barrier built to withstand three feet of floodwater, based on FEMA and Massachusetts guidelines for rising sea levels over the next 30-40 years. It has also been awarded LEED Silver certification by the U.S. Green Building Council, the most widely used green building rating system in the world.
The team behind Ora's leasing and marketing efforts describes the project as "a new way of urban living." The building's mission is to reflect the essence of the Seaport as a representation of "the new Boston." Through its architecture, services, and amenities, Ora has been deliberately designed to facilitate real connections for its residents, while offering the convenience and vibrancy of an urban neighborhood just steps from the Silver Line and minutes from South Station.
ATLANTA, GA - FCP announced the $30.0 million acquisition of Villas at Princeton Lakes, a 210-unit apartment community in the South Fulton area of Atlanta, GA. The acquisition marks FCP's 18th investment in Atlanta. FCP assumed the existing loan at the property.
"The Villas at Princeton Lakes is a very well-maintained asset next to the booming South Fulton Industrial corridor," said FCP's Scott Reibstein. Reibstein continued, "We're excited to have acquired our second community there, central to so much growth." The property was purchased in an off-market transaction, was recently renovated and has experienced steady 95% occupancy throughout 2020.
Located at 751 Fairburn Road, SW in Atlanta, Villas at Princeton Lakes is an attractive garden-style community built in 2004 with hardi-plank and brick siding. The community features large one, two and three-bedroom, family-friendly floorplans, with extra storage, private patios and excellent access to Hartsfield Atlanta International Airport, Interstates 285 and 20 and nearby convenience and amenity retailers and restaurants.
FCP extends its appreciation to Travis Presnell at Cushman & Wakefield for his representation
FCP is a privately held real estate investment company that has invested in or financed more than $8.3 billion in assets since its founding in 1999. FCP invests directly and with operating partners in commercial and residential assets. The firm makes equity and mezzanine investments in income-producing and development properties.
DORAL, FL - Walker & Dunlop, Inc. announced that it structured $84,000,000 in financing for Sanctuary Doral, a newly constructed, 226-unit, Class A, mid-rise apartment building in Doral, Florida with nearly 27,000 square feet of ground floor retail space.
Jeremy Pino and Livingston Hessam led Walker & Dunlop in structuring the financing on behalf of Shoma Group, a strong, repeat client with extensive experience in developing multifamily properties throughout Florida. Pino and Hessam worked alongside Geoff Smith and Kimberly Schmitz of Walker & Dunlop Commercial Property Funding, the company's specialty finance first mortgage and mezzanine lending platform. Bringing a solutions-oriented approach to every deal, the team specializes in addressing the most complex commercial real estate transactions.
Together, Walker & Dunlop's team provided interest-only bridge financing with a three-year term. The debt served as a construction loan takeout prior to lease-up of the development, which is currently approximately 30 percent occupied.
"We're very pleased to obtain financing for Sanctuary Doral with Walker & Dunlop. This is the second deal we have completed together this year and is a true endorsement of the strength and market appeal of our offering," commented Masoud Shojaee, President and Chairman of the board of Shoma Group. "Each team worked together to make this happen. We look forward to continuing our forward momentum on this development and collaborating on other projects in the future."
Sanctuary Doral, located in one of Miami's most desirable submarkets, offers a mix of one-, two-, and three-bedroom apartments within two, six-story mid-rise buildings. The luxury rental community is situated on eight acres and features ample outdoor space, resort-style amenities, and the unique Shoma Bazaar food hall.
"This transaction highlights WDCPF's ability to deliver competitively priced capital in the midst of the development's final phase of lease-up," Mr. Smith commented. "We believe in Shoma Group's track record and vision for the area. Once lease-up is complete, Shoma also benefits from the position and strength of the larger Walker & Dunlop platform, which can provide permanent financing through our agency, CMBS, and life company relationships."
DENVER, CO - Mission Rock Residential, a Denver-based, national multifamily property management company, is further expanding its Colorado presence, announcing a new management contract for the Summit at Flatirons apartment community. Formerly named "Bell Summit at Flatirons," the company has been issued an agreement for the management of the apartment community by its new owner, Treeline Multifamily Partners.
"This community offers a prime location in the Denver and Boulder metro area, and we are thrilled to be able to bring our Mission Rock standards to residents right here in our own home city," said Patricia Hutchison, President of Mission Rock Residential. "Our growing collaboration with Treeline Partners demonstrates our strong alignment on values and multifamily community building. We are excited to expand our partnership at this new site."
The 500 residential homes at Summit at Flatirons have recently been upgraded to include gourmet kitchens with quartz counter tops, new stainless-steel appliances, large pantries, full-size washers and dryers, garden tubs, spacious walk-in closets, private patios or balconies. One, two, and three-bedroom apartment homes are offered within this community, each with well-appointed finishes and spacious floorplans.
The community also offers state-of-the-art amenities such as a saltwater swimming pool and jacuzzi, a 24-hour fitness center with On-Demand classes, two on-site dog parks, a movie room, and a business center. The central pool area offers an outdoor fireplace and expansive BBQ grilling area, surrounded by lush landscaping. The views to the nearby Rocky Mountains are dominant across the skyline throughout the community.
Summit at Flatirons is conveniently situated midway between Denver and Boulder, making it a great option for residents with jobs located in either city. The nearby shopping district, Flatiron Crossing, offers wonderful shopping, dining, and night life venues.
The Denver metro region has seen remarkable growth in the last 15 years and continues to see a high demand for market rate, residential lifestyle options around the region. Between new companies moving into the region, and the high demand for a mountain-friendly lifestyle, new residents are continuing to migrate to the region.
LOUISVILLE, KY - Stoneweg US, a real estate investment Company specializing in acquisitions and developments announced the Company s final acquisition for 2020 with the closing of Breckinridge Square. The acquisition, the sixth for Stoneweg US this year, will add an additional 294 units to the Company s portfolio currently totaled over 12,500 units. Breckinridge Square marks the Company s second acquisition in Louisville, Kentucky.
The acquisition of Breckinridge Square gives us an excellent opportunity to increase our presence in the robust Louisville market that we ve witnessed experience tremendous growth first-hand, said Ryan Reyes, Chief Investment Officer for Stoneweg US. We think Louisville will continue its exorbitant growth and are excited about Breckinridge Square s future.
Built in 1972, Breckinridge Square is located 15 minutes from downtown Louisville which is home to major employers such as UPS, Humana Inc, and 2 Ford Motor Co. plants, contributing ~45,000 jobs to the Louisville MSA. The property features generous 1, 2, and 3-bedroom apartments across 20 two-story buildings. The previous owner invested over $3MM in capital improvements at Breckinridge to increase property conditions and overall value.
Stoneweg US will commit an additional $2.2MM in capital expenditures to complete roof replacements, install modern kitchen appliances, add new vinyl plank flooring, and upgrade kitchens and baths with trendy backsplashes and updated countertops. Exterior grounds and amenities are scheduled for upgrades including a remodeled playground, a clubhouse kitchen, cozy firepits, and resort-style pool furniture. Updated property signage is also in the business plan for more consistent branding throughout.
Breckinridge Square is poised to deliver, if not exceed, the extremely positive results we ve seen with our other Louisville asset, Rollings Hills, said CEO Patrick Richard. We re looking forward to another success story in Louisville.
The PMR Companies, who currently oversees operations at Rolling Hills, will also assume property management responsibilities at Breckinridge Square.
SOUTH BEND, IN - Watermark Residential, a wholly owned affiliate of Thompson Thrift and one of the nation's leading multifamily developers, announced the completed sale of The Villas on Fir, a 290-unit Class A, Big House multifamily community in the South Bend-Mishawaka MSA to Gray Capital for an undisclosed price.
"The South Bend-Mishawaka area offered an opportunity to develop a quality site with best-in-class product in a market with limited new market rate competition," said Brian Southworth, senior vice president, acquisition for Watermark Residential. "That combination provided for a successful lease up and allowed us make an opportunistic sale based on the appetite of capital chasing new construction."
The Villas on Fir started welcoming residents in early 2019. The property is located at the southwest corner of Fir Road and the Indiana Toll Road and features Humphreys and Partners Architects modern Big House design. The Big House concept allows residents the luxuries of a single-family home, combined with the benefit of the maintenance-free lifestyle of a professionally managed multifamily community. Each of the one-, two- and three-bedroom homes includes a private front door, attached garage, a walk-out balcony or porch, gourmet bar-kitchens with quartz countertops and designer light fixtures, nine-foot ceilings and much more. Additionally, residents can enjoy the community amenities such as the professionally decorated clubhouse, resort style swimming pool, community gardens, fitness trails, dog park and doggie spas and a 24-hour, state-of-the-art fitness center.
The strategic location of the property near the area's major thoroughfares allows for easy access to the iconic University of Notre Dame and numerous high-end retail and dining options, all within five miles from the community. The Villas on Fir is also convenient for commuters, as it is near several of the region's major employers, including Beacon Health System, AM General and St. Joseph Regional Medical Center.
"With limited land parcels available for development and comparable area properties 95 percent occupied, there remains strong demand for luxury multifamily communities in the South Bend-Mishawaka area," said Josh Purvis, managing partner with Watermark Residential. "The Villas on Fir has been an unqualified success, and Watermark remains diligent in its pursuit of sites to develop across the Midwest."
George Tikijian, Hannah Ott and John Baker of Cushman & Wakefield brokered the sale.
The Villas on Fir is just one of several Watermark communities located across the Midwest and the U.S. Since 2010, Watermark Residential has constructed more than 50 projects totaling in excess of 13,000 multifamily apartment homes. The company has consistently focused on developments in areas experiencing rapid job growth, increased rental demand and barriers to new supply.
COVINGTON, GA - Haven Communities announced the construction start for The Cove at Covington Town Center, 350 Class A apartments across 24 acres that will deliver mid-2022 and represent the first new market-rate apartment development the area has seen since 2000. Located within the master-planned 131-acre Covington Town Center, this major multifamily undertaking is indicative of the area's thriving economic landscape and its overall growth in terms of both career prospects and population.
Haven Communities looks forward to playing a significant role in the ongoing growth of Covington and is pleased to partner with Asia Capital Real Estate (ACRE) on this project, with financing provided by IberiaBank and Great Southern Bank.
"Working with the City of Covington and Newton County to bring this concept into being has been a pleasure," said Haven Communities' Founder & CEO Jay Williams. "We recognized a need for new multifamily residences in this growing market and wanted to ensure our vision was 100% aligned with that of the community. We look forward to building an apartment community that sets the standard for Covington."
The Cove at Covington Town Center is noteworthy for its use of high-quality building materials and for its above-grade construction and amenity program, all of which set it apart within the submarket. The community itself will be walkable within Covington Town Center for local shopping and entertainment outings.
The three-story, garden/urban-style community's 350 units will include studio, one-, two- and three-bedroom floor plan options, along with select townhome layouts. Unit size will range from 620 to 1,945 square feet. Such variety promises to answer a diverse spread of lifestyle needs and residential preferences.
Located in the emerging mixed-use Covington Town Center, easily accessible to the City of Covington's most important economic drivers and employers including -- General Mills, Cinelease Studios – Three Ring, Facebook, Oxford College of Emory University, Takeda Pharmaceutical, Piedmont Hospital, SKC, Nisshinbo Automotive, CR Bard, Pactiv, Mannington Mills, Clarion Metals, Bridgestone and Michelin -- residents of The Cove at Covington Town Center will find themselves at the center of a major employment and attraction hub. The community is right off Interstate 20 which is convenient for getting to and from the greater Atlanta area.
Featured on site are premium amenities such a luxury clubhouse, resort-style pool, coworking spaces, state-of-the-art fitness center, linear park, dog park and pet spa. In addition, the community will be adjacent to a five-acre park complete with walking trails.
ANGELS CAMP, CA - A partnership between Auerbach Funds and Prado Senior Living, an affiliate of Mello Group LLC, has recently acquired "Foothill Village", an independent living, assisted living and memory care community in Angels Camp, CA.
Located at 1400 Foothill Village Drive, the property is a private pay community specializing in senior assisted living. The partnership has planned to revitalize and modernize common areas that will provide residents and their families with a comfortable and modern living environment. This includes adding additional dining outlets to accommodate a "grab and go" concept, a lounge that overlooks the Sierra Nevada Mountains, and added outdoor amenities for residents to take advantage of the favorable climate.
Foothill Village is situated at the base of the Sierra Nevada Mountain range and southeast of Sacramento, CA. The area has been notoriously known as a popular retirement destination for Bay Area residents.
Peter Auerbach, Founder and Managing Partner of Auerbach Funds, stated, "This acquisition is another example of our deal sourcing capabilities, as we were able to acquire the asset off market during the height of COVID-19 pandemic. We are confident that our value-add initiatives, upgrades, and leasing strategy will create a better experience for our residents and their families, while also giving our investors upside potential. We are excited to partner with Wyatt Melloof the Mello Group LLC, a strong sponsor whom I've worked with on multiple transactions over the past 8 years."
"Foothill Village is an exciting opportunity for us on multiple levels. It will expand our operating footprint to California, re-energize a great community, and it allows us to work with Auerbach Funds. We are eager to be part of the Calaveras County and Angels Camp community, and look forward to fostering meaningful relationships between residents, staff, family members, and the larger community," said Wyatt Mello, Principal of Mello Group LLC.
This marks the third acquisition since Auerbach Funds announced its first close in mid-October for Auerbach Opportunity Fund III. The fund has a target size of $100 million and is currently open to new investors.
SEATTLE, WA - Blokable unveiled Blokable at Phoenix Rising, the world's first Vertically Integrated Modular housing development, delivering high-quality and energy efficient rental housing in western Washington State. At a cost to the State of $125,000 per door, the project cost less than half the average new apartment to build, in a region that faces a severe shortage of affordable housing. Developed on land owned by Valley Cities Behavioral Health Care, in Auburn, Wash., Blokable at Phoenix Rising is a community of five studio and seven 1-bedroom apartments, which are reserved for individuals earning 30% of the Area Median Income. The facility will cost 60% less for heating and cooling, and 30% less for overall utilities, and meets strict energy and environmental metrics that are becoming the standard for new construction in many states and municipalities — including all-electric systems and a highly energy efficient building envelope.
Vertically Integrated Modular (VIM) development is Blokable's proprietary platform for developing high-quality, low-cost housing at scale. As the developer and builder, Blokable owns and streamlines the entire development process, eliminates unnecessary costs, and de-risks every project, offering both market rate and not-for-profit landowners a turnkey, design-build service for a set price and guaranteed delivery.
"Four years ago, we launched Blokable because we could see that the housing industry is really struggling to address the dire shortages of housing across the United States," said Aaron Holm, Co-CEO of Blokable. "Technology innovation alone cannot change the fact that it simply costs too much to build either market rate or affordable housing. In this highly fragmented industry, innovation is swallowed whole by the fragmented nature of the development process, forever driving up the cost to build. To rapidly create multi-family housing at prices that middle- and lower-income Americans can truly afford, Blokable has vertically integrated the development process — from design, planning, and permitting, to almost completely off-site assembly, delivery, and ongoing operational support."
Blokable at Phoenix Rising cost $1.5 million and was financed through an innovative partnership between Blokable and the State of Washington. The building has a state-of-the-art, steel structural system, with all-electric energy and a 50 to 100-year useful life. Interior features include antimicrobial surfaces, a sound attenuated living space, dimmable cove lighting, independent ventilation for comfort, and energy recovery ventilation for efficiency and lower utility costs. The floor plans range from 280 square feet for a studio, to 340 square feet for a 1-bedroom.
"We believe dignified housing is a human right," added Nelson del Rio, Co-CEO of Blokable. "A roof over your head is the foundation for human health and wellbeing, education, and economic opportunity. Put simply, if you have housing instability, everything else in your life is so much more complicated. Blokable at Phoenix Rising is the culmination of four years of work streamlining our process and our cost structure so that we can create as much equity as possible in communities. In addition to developing turnkey affordable housing for a fee, our next step is to develop and own real estate using the next generation of our building system."
Blokable has developed a prefabricated building system that is standardized and repeatable while offering endless site variation. The Blokable Building System produces modular structures called "Bloks" that are 95% assembled under a factory roof and delivered to a site by crane. They can be combined into studio and 1-3 bedroom living environments, for buildings that are 1-5 stories tall from the ground up, or up to 8 stories with a podium. Because the Bloks are standardized, they are pre-approved for development in a wide range of environmental and seismic conditions in the U.S.
Since November 2019, Blokable has been a part of the Wells Fargo Innovation Incubator (IN²), a technology incubator and platform funded by the Wells Fargo Foundation and co-administered by the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), to validate and enhance the energy performance of its prefabricated building system against industry standards. Blokable is also working with IN² to develop metrics for zero energy readiness and the full lifecycle impact of multi-family housing development in various infill locations.
"Because we are vertically integrated, we have a different perspective on the value created by the buildings we develop and own," said Holm. "We believe affordability and energy efficiency go hand in hand, so part of expanding housing access is pushing the industry toward a performance basis for environmental regulations. We envision our building system as a platform for future energy innovations that could decarbonize the built environment and enhance climate resilience."
Added del Rio, "If you're building housing for low-income residents, why should the quality standards be different? Why is it OK for a low-income community to have lower quality and poorer energy performance? The reason is that these are costs that developers may not want to bear, and that can make it extremely difficult to finance that development. Blokable is flipping that script."
HUDSON, WI - The Massey, an 85-unit luxury apartment complex that features a coffee and wine bar, dog park, communal workspace, fitness center, and many other desirable, high-end amenities, is under construction in Hudson, Wisconsin. Located near the St. Croix River, the project is the first of its kind in the city and will pioneer luxury apartment space in the Twin Cities metro area.
Historically linked to Hudson founder Louis Massey, The Massey is in a prime location rich with natural beauty. Residents can embrace the building's strong connection to the history of an area that was once home to pioneers, sawmills, and the lumber industry. The $15 million complex will be located at 1850 Mayer Road and is being developed by Mayer Road Ventures, LLC, a company owned by Richard and Fay Morris of Edina, Minnesota.
The Massey is certain to stand out, as there are no other luxury apartments in the city. Conveniently located less than 30 miles from Minneapolis and only 20 miles from St. Paul, the apartments are likely to attract residents who work in the Twin Cities but want to escape noise, congestion, traffic, and higher rent prices. At the same time, The Massey's community building will offer unique features appealing to working professionals of all ages, including workspace, a meeting and media room, WiFi, clubhouse and event space, and more.
Each apartment will represent luxury living at its finest, with high ceilings, stainless steel appliances, granite countertops, ample storage space, premium interiors, and parking. Outside, residents of The Massey can enjoy an on-site dog park, a play area for children, outdoor dining and grilling areas, and balconies.
The building is located near restaurants, bars, and shopping. It also is close to mountain biking and hiking trails in an area widely recognized for fishing, hunting, and for being a playground for outdoor enthusiasts.
ATLANTA, GA - 37th Parallel Properties Investment Group announced the recent acquisition of Hawthorne at Clairmont, a 269-unit, 2009-built multifamily asset located in Atlanta, GA, on behalf of their investors and joint venture partner, Sophus Investments. This acquisition is 37th Parallel 's fifth transaction in 2020 and adds to the firm's growing footprint in the Southeast.
"We are excited to add this high-quality asset to our growing portfolio and continue our strategic expansion in suburban Atlanta," said Dan Chamberlain, Managing Partner. "Suburban, garden-style and mid-rise multifamily has demonstrated material resiliency throughout the Covid-19 spread. We have been able to add several well-placed assets worth over $100 million this year focusing primarily on submarket stability and employment diversity. We look to accelerate this strategy into 2021."
Located in the Peachtree Corridor directly off I-85 and I-285, the property provides residents exceptional access to some of Atlanta 's largest economic centers, such as Buckhead, Perimeter Center, Emory/CDC, Clifton Corridor, and Midtown. The property features a mix of one- and two- bedroom units with large floorplans averaging 1,011 square feet. Community amenities include balconies, nine-foot ceilings, a state-of-the-art fitness center and cardio studio, dog park with agility equipment, large saltwater swimming pool, outdoor stainless-steel grilling stations, and a parking deck with covered parking.
"This investment gives us the opportunity to secure a core-plus, institutional-quality asset at an attractive basis, with both revenue and operational upside potential," said Doug Fraser, who leads the acquisition efforts for the firm. "The asset is well-located in a high barrier-to-entry submarket that has exhibited persistent demand growth and limited new supply," says Fraser. "With only one multifamily asset under construction in the submarket, a mid-rise product with replacement costs well in excess of our asset's all-in basis, we expect the supply shortfall to put upward pressure on rental rates, helping us to capitalize on our business plan. These favorable supply-demand characteristics have resulted in average rent growth over 6% annually since 2015 and one of the lowest vacancy rates in the metro, further reinforcing our investment thesis."
The property was 96% occupied at the time of acquisition.
This acquisition marks the fourth investment from 37th Parallel 's inaugural fund. 37th Parallel Fund I, launched in November 2019, seeks to acquire value-add and core-plus multifamily real estate in the Southeast and Texas. "The purchase of Hawthorne at Clairmont in Atlanta further diversifies the fund portfolio and brings some excellent upside potential for our investor family," says Chad Doty, Managing Partner. The fund has made investments in Dallas, Austin, San Antonio, and now Atlanta.
The Hawthorne acquisition, structured as a joint venture with Sophus Investments, was funded with a blend of 1031 Exchange equity, 37th Parallel Fund I equity, and new investor capital from Sophus Investments. "We are thrilled to partner with 37th Parallel on this compelling opportunity as we look to grow and provide communities with access to clean, safe, and quality affordable housing, all while delivering attractive returns for our investors," says Vinay Upasani, President of Sophus Investments.
The asset will benefit from floating-rate agency debt financing, arranged by Cutt Ableson and Colin Marusak of Berkadia. The properties will be managed on-site by First Communities, based in Atlanta, who manage over 18,500 units in metro area and over 57,000 units overall. 37th Parallel extends its appreciation to Kevin Geiger of CBRE's Southeast Multifamily Team, who represented the Seller in the transaction.
The property is undergoing a complete rebrand and has taken the new name of Haven on Peachwood. Community-wide renovations will accompany the new brand.
WHEAT RIDGE, CO - Los Angeles-based Orion Real Estate Partners has acquired Yukon Court Apartments, a garden-style apartment community in Wheat Ridge, Colorado. Orion purchased the 96-unit apartment community and plans to transform the property with a full exterior and interior renovation.
"We are very excited to add Yukon Court to our growing Denver portfolio," said Orion founder Marc Venegas. "The property represents our eighth acquisition in the Denver MSA and our first in the western suburb of Wheat Ridge. Denver's western suburbs, including Wheat Ridge and Arvada, have proven to be very desirable housing areas given their close proximity to major employment centers and convenient access to outdoor recreation."
Yukon Court Apartments is located within a 15-minute drive to downtown Denver and has excellent access to major west side employment centers including Lutheran Medical Center, The Denver Federal Center and Jefferson County Municipal Offices. In addition, the property is located just off the bustling commercial retail corridor of Wadsworth Boulevard and five minutes south of charming Olde Town Arvada.
Yukon Court Apartments consists of two and three-bedroom units located in a quiet, residential enclave and includes a community swimming pool, playground and sports court. Orion will implement a full renovation program that will revitalize the six two-story buildings, modernize the unit interiors, improve the property's existing recreational features and add more outdoor amenity areas for the residents to enjoy. Orion has engaged Denver-based UV Residential to provide property management services and is excited to implement their Urban Village Program to engage the residents and promote a sense of community at the property.