- Berkadia Brokers Sales of Two Multifamily Communities in Metro Atlanta Totaling $28.8M
ATLANTA AND NORCROSS, GA. - Berkadia has arranged the sales of two apartment communities in metro Atlanta totaling $28.8 million. The transactions included the $14 million sale of The Retreat located at 3475 Pleasantbrook Village Lane in Atlanta and the $14.8 million sale of Huntington Ridge located at 2400 Windsor Woods Lane N.W. in Norcross. Atlanta-based Marquis Investments purchased The Retreat from Atlanta-based Rosdev Group, and Atlanta-based Sabra Associates bought Huntington Ridge from Atlanta-based Greentree Real Estate Services. Paul Vetter, Andrew Mays and Judy MacManus of Berkadia's Atlanta office brokered both deals. [Real Estate Business Online]
- Berkadia Brokers $54M Sale of Apartment Community in Metro Tampa
LARGO, FLA. - Berkadia has brokered the $54 million sale of Madison at Largo, a 444-unit property located at 601 E. Rosemary Road N.E. in Largo, a city in the Tampa Bay area roughly five miles from downtown Clearwater. Since purchasing the property in 2011 for $14.3 million, the seller, West Springfield, Mass.-based Largo Landry LLC, completed major interior and exterior renovations of Madison at Largo. Jason Stanton, Cole Whitaker, Hal Warren and Tal Frydman of Berkadia brokered the transaction. Community amenities include three resort-style pools, a 24-hour fitness center and a lounge with pool tables and bistro seating. Individual residences include breakfast bars, carpet and wood-style flooring, washer and dryer connections and private patios or balconies. [Real Estate Business Online]
- Berkadia Completes Sale of Indiana Multifamily Property
Parkway Apartments and Townhomes, a 446-unit community in West Lafayette, sold for nearly $10.9 million.
West Lafayette, Ind. - Berkadia has arranged the sale of the Parkway Apartments and Townhomes, a 446-unit apartment community located in West Lafayette, Ind.
Senior Director David Gaines, Senior Director Alex Blagojevich and Associate Director Chris Bruzas of the firm's Chicago office completed the approximately $10.9 million sale, reflecting a $24,327 per-unit price. The transaction closed on May 9.
The seller was an affiliate of FM Capital from New York. The buyer, Abbott Properties from Kansas City, Mo., was drawn to the property’s strong value-add potential and plans to renovate both the interior and exterior, and streamline operations.
"We continue to see high demand from investors across the country for similar value-add properties, where their construction and management teams can go in and efficiently operate the properties," Gaines said in prepared remarks.
"Abbott Properties recognized a great opportunity to upgrade its portfolio," added Bruzas. "In this instance, the Parkway Apartments and Townhomes is their second large property in central Indiana, and they now own and manage over 1,000 units in the area."
Located at 2601 Soldiers Home Road, Parkway Apartments and Townhomes was built in 1965 and offers a mix of studio, one-, two- and three-bedroom floor plans. Community residents have access to amenities such as a pool, fitness center and computer lab. The property is situated within convenient access to Interstate 65 and U.S. Route 52 and just three miles from Purdue University and seven miles from the Tippecanoe Mall. Top employers in the area include Purdue University, Wabash National Corp., Evonik Industries and TRW Automotive. [Multi-Housing News]
- $5.8M townhome sale keeps Portland's multifamily fires burning
Multifamily properties continue to grab new buyers in the metro region, one of the latest being a 32-unit townhouse community in outer Southeast Portland.
San Diego-based Pathfinder Partners LLC announced last week that it had sold Springwater Court Townhomes for $5.8 million. It was the firm's second sale in the metro region.
Miller Baker LP, a California limited partnership, was the buyer, and the Portland-based Berkadia multifamily team led by Joe Nydahl and Phil Oester brokered the deal.
According to a release about the sale, Pathfinder purchased the townhome community, which was built in 2009, from the real-estate owned department of the original construction lender in August 2013. The community was being operated as a rental community at the time of the acquisition, and Pathfinder continued to lease the homes throughout their ownership.
The property had been in good shape, according to Lorne Polger, senior managing director of Pathfinder Partners, but had been neglected during a foreclosure process. To spruce up Springwater Court, Pathfinder invested about $100,000 in capital improvements, including a new irrigation system, several landscaping upgrades and exterior painting, among others.
The release also noted that Pathfinder has been investing in Portland since 2010 and will continue to acquire new properties in the region.
"Portland has always been a great market for us and we look forward to expanding our presence here," Polger said. "Rents in this region have been increasing at an average annual rate of 6 percent since 2013, and vacancy is at an all-time low. New housing has not kept pace with population growth, so the outlook here continues to be good."
According to Steve Morris, a senior advisor with Sperry Van Ness | Bluestone & Hockley, apartment sales have remained fairly strong so far in 2016, though sales volume in April was down over the same month last year.
Morris noted that April 2015 saw 16 sales totaling about $142.5 million. The same month this year saw 20 sales totaling more than $79 million.
The average price per unit, however, was up to $133,947 this April versus $107,229 last year.
Year-to-date, however, sales are "almost dead even" with last year's numbers, Morris said. [Portland Business Journals]
- Berkadia Arranges $24.6M Sale of Multifamily Portfolio in Orlando
ORLANDO, FLA. - Berkadia has brokered the $24.6 million sale of a two-property multifamily portfolio in southeast Orlando. Located across Curry Ford Road from one another, the portfolio includes the 210-unit Pendelton Park Villas and the 100-unit Carlyle Court Apartments. At the time of sale, Pendelton Park Villas was 97 percent occupied and Carlyle Court was 94 percent occupied. Both properties have undergone capital improvements totaling more than $1.2 million since 2012. Cole Whitaker and Hal Warren of Berkadia represented the seller, West Springfield, Mass.-based Florida Pendelton LP, in the transaction. The buyer was Miami-based Lloyd Jones Capital LLC. [Real Estate Business Online]
- Berkadia completes midtown Phoenix multifamily sale
Berkadia completed, Wednesday, the sale of Barrington Regent, a Class B rental community in Phoenix. The $11 million sale was completed on May 18, and reflects a $88,709 per-unit price.
Located at 825 W. Osborn Road, Barrington Regent is less than a mile from the Metro Light Rail and approximately one mile from the Downtown Phoenix Corridor. Top employers in the area include both city and state governments and TGEN Bioscience Research.
Senior Managing Director Mark Forrester, Managing Director Ric Holway, Senior Director Dan Cheyne and Associate Tom Wolff of the Phoenix office helped facilitate the sale.
The seller was Su Casa properties of San Rafael, California. The buyer, Curtis Capital Group of Bellevue, Washington, was looking for strong value-add opportunity in the heart of midtown Phoenix.
"The proximity to downtown Phoenix and the unique property features of this mid-rise asset made Barrington Regent a particularly attractive investment," said Forrester. "In addition to upgrades to the property's interior and exterior, Curtis Capital Group plans to rebrand the community."
Built in 1980, the 124-unit property includes spacious one- and two-bedroom floor plans with kitchens equipped with dishwashers and garbage disposals. Community amenities include a resort-style pool, whirlpool spa, poolside cabana, clubhouse, fitness center, gated community, reserved covered parking, on-site laundry facilities and barbeque areas. [AZ Big Media]
- Elevation Financial Group Announces Sale Of Greenville, SC Multifamily Property For $9.25 Million
WINTER PARK, Fla., May 18, 2016 /PRNewswire/ Elevation Financial Group, LLC is pleased to announce the disposition of Elevation Real Property Fund IV asset, Serenity Apartments at Greenville. The 200-unit multifamily community, located near downtown Greenville, South Carolina, was acquired for a purchase price of $9.25 million or $46,250/unit. For Elevation Real Property Fund IV investors, the disposition delivered a project Internal Rate of Return (IRR) of 77.8% and a Multiple of Invested Capital (MOIC) of 6.6x. The transaction was brokered by the South Carolina office of Berkadia Real Estate Advisors, LLC.
Elevation purchased the multifamily apartment community in 2014 for $3.8 million and immediately initiated its Serenity rebranding process. This involved significant capital renovations and upgrades throughout the property, including replacement of all windows and the creation of a new leasing office. Through the strong oversight of Elevation Property Management, the community increased its Net Operating Income by over 320% in only 15 months. With over 2,400 units in the management portfolio, Elevation Property Management manages multifamily apartment communities and senior towers throughout the Southeast United States.
"This 2014 acquisition and 2016 disposition represents the strongest Elevation transaction to date. Remarkably, through the implementation of cost-reducing environmentally sustainable systems, Elevation created such significant value without displacing residents or dramatically raising rents. This property has been properly re-positioned to deliver safe, clean and affordable housing for years into the future and we wish the new owner much success," said Chris King, CEO and President, Elevation Financial Group, LLC.
Elevation Financial Group, through its subsequent fund, continues to own and operate the nearby 419-unit Serenity Apartments at Three Rivers, located in Columbia, South Carolina, as well as the 152-unit Serenity Apartments at Spartanburg, located in Spartanburg, South Carolina. [Broadway World]
- Berkadia Brokers $24.5M Sale of Apartment Community in Columbia
COLUMBIA, S.C. - Berkadia has brokered the $24.5 million sale of The Crossroads Apartments, a 622-unit apartment community located at 716 Zimalcrest Drive in Columbia. Built in 1979, the property was 95 percent occupied at the time of sale. Apartment units include fully equipped kitchens, carpeting, hardwood floors, cable and wireless internet access and fireplaces and washer and dryer connections in select units. Community amenities include two swimming pools with sundecks, four tennis courts, two picnic and playground areas, a clubhouse, fitness center and a laundry facility. David Oakley, David Etchison, Mark Boyce and Blake Coffey of Berkadia brokered the transaction between the buyer, Asia Capital Real Estate Management LLC, and the seller, AMAC I Crossroads LLC. [Real Estate Business Online]
- Crescent Heights lists 149-unit bulk condo in Sunrise
Crescent Heights paid about $209,000 per unit at Tao in 2011
Crescent Heights is looking to sell a bulk condo portfolio it owns at Tao in Sunrise, a lakefront luxury condominium development.
The real estate firm is listing the 149 units it owns at the two-tower, 396-unit condo project at 2681 Flamingo Road, with bids due by June 8, listing brokers Fernando Polanco and Tal Frydman told The Real Deal.
Polanco, Frydman and Yoav Yuhjtman of Berkadia Real Estate Advisors put the portfolio on the market, unpriced, on Thursday. Crescent Heights, a national development, investment and property management company with a regional office in Miami, purchased about 240 Tao units in 2011 and has sold individual units since then.
The bulk listing means the company will sell them at up to a 30 percent discount, Polanco and Frydman told TRD. They include 35 one-bedroom units, 69 two-bedroom units and 45 three-bedroom units – all totaling 197,397 square feet of residential space with an average unit size of 1,325 square feet.
On average, condos at Tao sell for $340,000 to $350,000 per unit, which would mean that including the discount, the units could sell for more than $35 million. On a unit-by-unit basis, it could sell for more than $50 million.
Crescent Heights bought the 240 units in mid-2011 for $50 million from Starwood Capital Group, paying about $209,000 per unit.
The units have a projected net operating income of more than $1.67 million for the first year, according to marketing materials. The Sunrise submarket is seeing an uptick in development, including Metropica, a 65-acre, mixed-use community. When Metropica is completed, it will include eight residential towers with 1,900 units, 400,000 square feet of retail, 650,000 square feet of office space, and landscaped parks. Also in Sunrise, American Express is building its regional headquarters, a 400,000-square-foot corporate office.
Tao, which sits on a 6.7-acre site, was built in 2009. The 26-story towers are near Sawgrass Mills. Amenities include a lagoon-style pool, tennis court, playground, putting green, fitness center, sauna and Jacuzzi.
Crescent Heights, led by managing principal Russell Galbut, is also developing a number of projects in Miami Beach. The developer recently closed on a $34 million mortgage for its Baptist Health outpatient and medical facility at 709 Alton Road. [The Real Deal]
- Glemont Capital Adds Two Student Housing Communities to South Bend Portfolio
Berkadia facilitated Prime Property Investors' sale of Clover Village and Clover Ridge, located near the University of Notre Dame campus.
South Bend, Ind. - Berkadia recently closed the sales of two student housing communities located near the University of Notre Dame campus. Managing Director of Student Housing Kevin Larimer, Managing Director Rick Vidrio, Senior Director Jason Krug, Associate Director of Student Housing Greg Gonzalez and Senior Director David Gaines completed the transactions. Glenmont Capital Management acquired both properties from Northbrook-based Prime Property Investors Ltd.
The first acquisition was of Clover Village, a 328-bed property sitting on 11 acres. The student housing facility features studio, one- and two-bedroom apartments. Common amenities include a clubhouse, fitness center, swimming pool and business center.
The second purchase, Clover Ridge, is a 221-bed property across eight acres with one-, two- and three-bedroom floorplans. Community amenities include a clubhouse, fitness center and swimming pool.
"Both properties have tremendous potential for value-add investment, and the buyer has plans to make extensive renovations to unit interiors, exteriors and common areas," Larimer said in a prepared release. "Additionally, the proximity was very appealing, as each of the properties afford Notre Dame students a short walk to the school's campus." [Multi-Housing News]
- Acre Sells for $11 Million in Sherman Oaks
A 1-acre development site in Sherman Oaks has sold to investors for $11.4 million.
The site, which includes 150 feet of frontage on Ventura Blvd., is currently the Star Hotel Inn & Suites and a vacant restaurant. The buyer plans to develop the land in the future.
The seller was a private investment group led by Ben Nehmadi at Republic Investment Co. in Century City. Berkadia, a real estate advisory firm, brokered the deal.
"The buyer was interested in the site predominantly due to its prime location and opportunities for future development," Adrienne Barr, managing director at Berkadia, said in a statement. "This sale presented a rare opportunity to purchase an acre of land in one of the San Fernando Valley's most affluent areas."
The parcel is located at 15485 Ventura Blvd. near the Sherman Oaks Galleria shopping mall. [San Fernando Valley Business Journal]
- Koreatown land sale prices rise while inventory narrows
Koreatown has $5.8 million in land sales already recorded for 2016, more than quadruple the $1.25 million it registered the previous quarter and a 10-fold increase from Q3 2015, according to data provided by JLL.
While the Koreatown submarket hasn't yet reached the $23 and $24.4 million land sales it saw in the first and second quarters of 2011, respectively, it is well into an attractive upswing.
"As young Angelenos discover the convenience, dining options and nightlife of Koreatown, demand for multifamily housing is increasing quickly in this submarket," Dan Tenenbaum founding principal of Pacific Crest Realty, told The Real Deal. "This is driving up land prices for developers, and this should continue over the next few years as rents are expected to rise."
The seeds of the current land harvest in Koreatown were sown during the economic downturn. Investors bet on the area during the height of the recession, introducing significant building projects like the conversion of a mid-century office tower into posh condos called Summit on 6th at 3223 West Sixth Street. During the same period, a $165 million condo and loft tower called Solair rose from the dirt, and is now home to two-bedroom units that fetch $1.5 million each.
As a result of these and similar projects, Koreatown has become a population-dense area that now challenges its five-square-mile boundary.
The Koreatown submarket continues to boom with recent sales, although vacant land is at a minimum. In February, for example, 400 to 416 South Catalina Street sold for $5.79 million - a hefty price for a .64-acre parcel.
According to Brent Sprenkle, managing director of Berkadia Real Estate Advisors, the land sold as a development site and includes two lots with a potential for 70 new residential units. The location, just west of Vermont and north of Wilshire Boulevard, has high visibility and drew $234,000 a year from its existing income properties, which are expected to be razed by the new owner.
"The lack of land is a challenge to developing in Koreatown," Tenenbaum said. "But there is also some neighborhood resistance to new apartment buildings that will have rents that current residents are unable to afford." [The Real Deal]
- Berkadia Completes $27M Multifamily Sale Along Future Light Rail Line In Mesa, Ariz.
Berkadia today announced the recent sale of Valencia Crossing, a multifamily property located in Mesa, Arizona. The $27.25 million sale - completed on April 8 - reflected a per-unit price of $68,640. Senior Managing Director Mark Forrester, Managing Director Ric Holway, Vice President Dan Cheyne and Associate Tom Wolff of the Phoenix office helped facilitate the sale.
The seller was Bridge Investment Group of Salt Lake City, Utah. The buyer, Janet LePage, of Vancouver, British Columbia, has plans to renovate unit interiors through upgrading appliances, such as adding washers and dryers.
"Valencia Crossing is an attractive investment with strong value-add potential," said Forrester. "In addition to planned improvements to the property’s already desirable amenity package, completion of the nearby light rail station in 2018 will further boost renter demand."
Built in 1984, the 397-unit property includes one- and two-bedroom floor plans with standard amenities such as air conditioning, dishwashers, and kitchen appliances. Select units also include walk-in closets. Community amenities include a clubhouse with kitchen and wet bar, fitness center, pool and spa, tennis, basketball, volleyball and racquetball courts, horseshoe pit, laundry facilities, shuffleboard and a car care area.
Valencia Crossing is located at 111 N. Gilbert Road, near U.S. Route 60 and Loop 202. It is less than five miles from Hohokam Stadium, spring training home of Major League Baseball's Oakland Athletics and Mesa Riverview Shopping Mall. Top employers in the area include city and state offices, Empire Southwest and Otto Trucking.
Vacancy in the Phoenix multifamily market lowered 30 basis points over the course of 2015, reaching to 5.6 percent by December 2015. During this time, metro-wide asking rents advanced 6.2 percent annually to $914 per month, up from 4.9 percent growth in 2014. [Commercial Executive Magazine]
- Investment continues in local apartment communities
The sale of several Birmingham area apartment communities closed in the first quarter, signaling another strong start to the year for investments in Birmingham multifamily properties.
Berkadia-Alabama said it closed deals equaling more than $100 million and more than 1,230 units in the first quarter of this year. In a press release, David Oakley, managing director of Berkadia-Alabama, said that should be compared to the Alabama division's $420 million in sales of 6,299 units in the entire year 2015.
A few of the firm's first quarter deals were located in the Birmingham metro area. Berkadia also sold properties in Huntsville, Montgomery, and in Hinesville, Ga.
Berkadia brokered the sale of 116-unit Chapel Park in Hoover for $8.1 million as well as Summer Rise and Summer Terrace in Birmingham, two communities that together total 236 units, which sold for $6.25 million.
Several other deals were in the Birmingham metro, including Waterford Landing in Hoover for $18 million, and Chesterfield in Birmingham for $3 million.
"2016 is rivaling last year from the start and we expect a continuation of the high velocity of apartment sales during the remainder of this year," Oakley said, in a statement. [Birmingham Business Journal]
- Two Tacoma apartment buildings sold for $9.3M
Two multifamily complexes in Tacoma have been sold, according to an announcement from Berkadia, which brokered the deal.
The Vintage and Pennington, located just a half-mile from each other in the Hilltop neighborhood and owned by Monticello Properties of Bellevue, were sold for a combined price of $9.3 million ($68,000 per unit) to Orbeth LLC of Seattle.
The Vintage (518 South 7th Street) was built in 1929, has 84 units and was 98 percent occupied at the time of the sale. The 52-unit Pennington was built in 1931 and was 96 percent occupied. Both feature studio and one-bedroom floor plans.
"The Vintage and Pennington are established properties purchased at a very low cost per unit for the surrounding market," Ufkes said. "The buyer saw the portfolio investment opportunity as a way to enter a new market, and they selected downtown Tacoma based on the projected growth in the central business district, improving demographics and anticipated gains in rents."
According to the announcement, Orbeth plans to renovate units and update the properties. [Business Examiner]
- Berkadia Completes $36 Million Sale of Arizona Multifamily Property
Berkadia today announced the recent sale of the Bellagio Apartments, a multifamily property located in Scottsdale, Arizona. The $36.25 million sale was completed on March 31, reflecting a $179,455 per-unit price. Senior Managing Director Mark Forrester, Managing Director Ric Holway, Vice President Dan Cheyne and Associate Tom Wolff of the Phoenix office helped facilitate the sale.
The seller, Bellagio Owner, LLC, a Delaware LLC managed by Holland Partner Group of Denver, owned the property for more than three years and completed their business plan, which included partially upgrading the interior units and public areas. The buyer, Saltzman Properties, an Oregon LLC of Portland, Oregon, has plans to complete renovations of all units within the property.
"As one of the premier markets in Arizona, Scottsdale offers strong real estate value add opportunities and the buyer was seeking a high quality property with upgrade potential through renovation," said Forrester. "This sale demonstrates the robust activity we are seeing throughout the market."
Built in 1995, the 202-unit property includes one-, two- and three-bedroom floor plans with fully-equipped kitchens, walk-in closets, balconies or patios, fireplaces in select units, laundry facilities and optional cable TV and security systems. Community amenities include a clubhouse with a kitchen and wet bar, fitness center, pool and spa, barbecue grills, carports, garages and security gate.
The Bellagio Apartments are located at 5635 East Bell Road, near State Routes 51 and 101 and within five miles of TPC Scottsdale Golf Club and Kierland Commons Shopping Mall. Top employers in the area include Honor Health, Mayo Clinic, Verifone and The Vanguard Group, Inc.
Vacancy in the Phoenix multifamily market lowered 30 basis points to 5.6 percent in December 2015. During this time, metro-wide asking rents advanced 6.2 percent annually to $914 per month, up from 4.9 percent growth in 2014. [Commercial Executive Magazine]
- Advanced Real Estate Services Buys Olivewood Apartments in Lakewood for $30.9M
LAKEWOOD, CALIF. - Advanced Real Estate Services (ARES) has purchased the 149-unit Olivewood Apartments in Lakewood for $30.9 million. The community is located at 5800 South St.
Olivewood Apartments was built in 1976. The property has never undergone a renovation. ARES plans to completely renovate and rebrand the community as The 5800 Apartment Homes.
ARES assumed a loan worth approximately $16 million. The company plans to add $6 million in improvements to the property. Dean Zander of Berkadia executed the sale. The seller was Interstate Equities Corp. [Real Estate Business Online]
- Berkadia Brokers $8.1M Sale of Apartment Community in Montgomery
MONTGOMERY, ALA. - Berkadia has arranged the $8.1 million sale of Woodmere at the Lake, a 200-unit apartment community located in Montgomery. Built in 1978, the garden-style property has an average unit size of 870 square feet. Woodmere Apartment Partners LLC purchased the community from ABACO Partners LLC. Josh Jacobs and David Oakley of Berkadia’s Birmingham office represented the seller in the transaction. [Real Estate Business Online]
- Skokie Apartments Sell for $44 Million
The community was originally developed as condos in 2008, but the new owner will preserve units as class A rentals.
CHICAGO-Many suburban condo developments hit rough patches in the aftermath of the recession, and Optima Old Orchard Woods in Skokie, originally developed in 2008, was no different. But Berkadia officials say they have helped facilitate the sale of 172 units located within the class A community for $44.2 million, reflecting a price per unit of $256,977.
The buyer, Trilogy Real Estate Group of Chicago, plans to make minor renovations and maintain the units as rentals. The seller, which also developed the community, is Glencoe, IL-based Optima, Inc.
"The opportunity to invest in this iconic, class A property was attractive for many due to its phenomenal location near the north shore of suburban Chicago," says senior director of investment sales, Ralph DePasquale of Berkadia's Chicago office. "The amount of interest this sale generated and the offers the seller received are both strong indications of the desirability of the asset, as well as the broad-based strength of the Greater Chicago market."
Optima Old Orchard Woods offers one-, two- and three-bedroom floor plans. Unit amenities include floor-to-ceiling vistas, private balconies or terraces, washer and dryer units and fully equipped kitchens. Gas fireplaces are available in select units. Residents can also enjoy community amenities such as heated indoor parking, a sky garden, a large party room with a catering kitchen, a courtyard with reflecting pool and fountain, a resort-style indoor swimming pool with spa, a fitness center and tennis courts.
Located at 9725 Woods Dr. adjacent to the Edens Expressway, the property is near Westfield Old Orchard Mall, less than five miles from Northwestern University in Evanston and adjacent to the Harms Woods Forest Preserve. Top employers in the area include Northwestern University, Presbyterian Homes, Illinois Tool Works Inc. and Skokie Hospital.
According the Berkadia's most recent market report, vacancy in the Chicago metro area dropped 30 bps to 4.7% by the end of 2015. During that same time, asking rents advanced 3.4% annually to $1,504 per month. [GlobeSt]
- Dobson Ranch multifamily complex sells for $19.5M
Berkadia announced the recent sale of La Costa at Dobson Ranch, a multifamily property located in Mesa. The $19.5 million sale was completed on March 15, reflecting a $100,515 per-unit price.
Senior Managing Director Mark Forrester, Managing Director Ric Holway and Vice President Dan Cheyne of the Phoenix office all helped facilitate the sale.
The seller, Optimus La Costa LP of Scottsdale reached the end of the property's holding period. The buyer, Virtu Investments, LLC, of Larkspur, California, has plans to renovate the building's interior and exterior.
"La Costa at Dobson Ranch is an attractive investment in terms of both asset and market quality," Forrester said. "This sale compares well with others in the greater Mesa sub-market."
Built in 1979, the 194-unit property includes two-bedroom, two-bathroom floor plans with dishwashers, refrigerators, balconies or patios, cable and internet access, stackable washers and dryers and custom cabinetry in select units.
Community amenities include a heated swimming pool, spa, fitness center, clubhouse with a business center and WiFi, barbecue grills and covered parking.
La Costa at Dobson Ranch is located at 1820 W. Lindner Ave., near U.S. Route 60 and Arizona State Route 101, less than two miles from Dobson Ranch Golf Course and under nine miles from downtown Tempe. Top employers in the area include Arizona State University, Banner Desert Medical Center, Isola Group, the City of Tempe and Mesa Community College.
Vacancy in the Phoenix multifamily market lowered 30 basis points to 5.6 percent in December 2015. During this time, metro-wide asking rents advanced 6.2 percent annually to $914 per month, up from 4.9 percent growth in 2014. [AZ Big Media]
- Drever Capitalizes on Apartment Shortage in Houston's Booming Brazoria County with 174-Unit Acquisition
LAKE JACKSON, TX - The Villages at Lake Jackson, a Class A 174-unit garden apartment community, has been acquired by Drever Capital Management in a region short of rental housing where rapid growth is being fueled by Dow Chemical's largest petrochemical plant in the Western Hemisphere.
The 96% occupied multifamily property at 504 South Texas 288, was bought by the Drever Capital Management (DCM) value-add PF Lightning Club Fund from Spyglass Capital Partners of Demarest, N.J. The price was not disclosed.
"This acquisition is a classic supply-demand investment," says Noah Drever, managing partner of Tiburon, CA based DCM. "Houston, overbuilt with multifamily assets, is grappling with a weak oil industry. But an hour away, where Lake Jackson is booming with petrochemical manufacturing and a liquefied natural gas shipping hub, attractive rental housing is undersupplied."
Drever said timing was fortunate. "One month after we went under contract, Dow Chemical and DuPont announced a $121 billion merger, generating a $4 billion development throughout the Gulf Coast. Dow Chemical is completing a 900,000 square foot office north of its plant and will be relocating 3500 new jobs to Lake Jackson where it already has 4300 employees. Freeport LNG is building a $14 billion facility that will add 3500 construction jobs and 160 management and operations positions. Plus, there's a $2 million downtown revitalization project in the works. At the moment, the Villages is the only upmarket rental community in Lake Jackson."
Adds Drever: "Being an apartment owner/investor in the epicenter of all this explosive growth is music to our ears."
The new owner is launching an extensive property improvement program. The bulk of the renovation budget will be used to modernize the apartment interiors. The dated kitchen bar tops will be lowered to counter height with granite added throughout the kitchen and bathrooms. A stainless steel appliances, modern cabinets, plank flooring and two-inch wood blinds will be added.
Additionally, the exterior of the property will be freshened up with new landscaping, full exterior painting, improved lighted monument sign and by enlarging the pool area with two GE gas grills and resort-style pool furniture.
"Spyglass Capital did a great job during its ownership in maintaining the Villages to institutional standards and tastefully upgrading the clubhouse and common areas," points out Drever. "We're focusing on dramatically improving the interiors of the residences to compete with the newer apartment product coming on line as well as upgrading the landscaping and our visibility South Texas 288. We believe we'll be the most affordable, desirable alternative to new construction in the marketplace," he contends.
Tom Cabibi, who rejoined Drever Capital to head up acquisitions, worked with Ryan Epstein, senior managing director for Berkadia’s Houston office, brokered the transaction and represented the seller. Acquisition financing through Freddie Mac was arranged by Brant Smith, senior vice president of Berkadia Commercial Mortgage in Austin.
Epstein agrees Lake Jackson's "recent transformation from small company town to high-growth petrochemical and LNG manufacturing and distribution center created a massive demand for upmarket rental communities and other forms of housing.
"There was also a tremendous demand from institutional investors nationwide when we marketed this property because the petrochemical R&D and manufacturing plants are bringing in thousands of construction and high-paying permanent engineering and management jobs," says Epstein.
He says Drever Capital was selected because the firm's founder-chairman "Maxwell Drever has a great reputation for getting an acquisition across the finish line and, on this deal, closed on time at the contract price."
The seller says the timing of the sale was also perfect for him. Adam Cohen, president of Spyglass Capital Partners, says "we loved the supply-demand imbalance for the three-years we owned the Villages at Lake Jackson but it's time to redeploy our capital."
Cohen says 20 potential buyers made offers for the apartment community "but we liked Drever Capital's the best. We also liked that their chairman, Maxwell Drever, personally flew down to visit the property. His track record as an apartment investor in Houston speaks for itself and his firm had sufficient equity capital to close per all the terms of the contract. As a buyer, they were flawless." [Multifamily Biz]
- RADCO Sells Two South Atlanta Apartment Communities for $23.4M
UNION CITY AND FAIRBURN, GA. - The RADCO Cos. has sold two Class B apartment communities totaling 392 units for a combined $23.4 million. An Atlanta-based investment firm purchased both assets from RADCO in a deal brokered by Berkadia. RADCO has owned the 260-unit Ashford Oaks in Union City since December 2011 and the 132-unit Ashford Town & Country in Fairburn since November 2012. They were among the first properties RADCO acquired after implementing its value-added strategy in 2011. RADCO invested in property improvements and enhancements at the properties, including building exterior renovations, windows, roofs, extensive lighting upgrades, security enhancements and life safety measures. Interior unit upgrades and community amenity additions were also made. Occupancy exceeded 95 percent at both properties at the time of sale. Since April 2015, the properties have been managed by RADCO Residential, the property management branch of RADCO. [Real Estate Business Online]
- Berkadia Arranges $25.2M Sale of Apartment Community in South Georgia
HINESVILLE, GA. - Berkadia has brokered the $25.2 million sale of Tattersall Village, a 222-unit upscale apartment community located in Hinesville, roughly one hour southwest of Savannah. Built in 2010, Tattersall Village is a garden-style community with an average unit size of 1,110 square feet. Pillar Income Asset Management Inc. purchased the property from BF/EBSCO Hinesville LLC. David Oakley, David Etchison, Mark Boyce, Paul Vetter and Andrew Mays of Berkadia represented the seller in the transaction. [Real Estate Business Online]
- Berkadia negotiates sale of Heatherbrook Gardens in St. Louis
Berkadia has announced the sale of Heatherbrook Gardens, located at 1100 Kingbolt Circle Drive in St. Louis, Missouri.
Built in 1986, the 105-unit property features one- and two-bedroom floor plans. Each unit features a fully equipped kitchen, washer and dryer, patio or balcony, and Internet and cable access. Unit features include newly updated amenities such as brushed-nickel hardware throughout, light fixtures and thermal windows. Community amenities include a courtyard, outdoor swimming pool with sundeck, spa, gazebo, picnic area and private pet park.
The community is located near Interstate 55 and Interstate 255, providing residents access to the entire St. Louis area.
The seller was HGA Partners, LP. The previous owner sought to monetize the value of their asset to redeploy the capital in new investments. The strategy of the buyer, Heatherbrook, LLC, was to add to their local portfolio.
Berkadia Managing Director, Ken Aston, and Director, Andrea Kendrick, of the St. Louis office negotiated the transaction. [Midwest Real Estate News]
- Iconic Bremerton Property Acquired by New Standard Equities
The property was purchased for $13 million in an off-market transaction from a private party.
Bremerton, Wash.-Los Angeles-based New Standard Equities has acquired the 182-unit Bremerton Gardens on Parkside Drive in Bremerton, Wash. An early 1940s wood-framed, garden-style apartment community, the property was purchased for $13 million in an off-market transaction from a private party. Redwood-Kairos Real Estate Partners supplied the joint venture equity and Freddie Mac the financing through CBRE.
"Every deal has its challenges; however this particular one had more than its fair share," New Standard Equities founder and CEO Edward Ring told MHN.
"Over my career, I've acquired and repositioned only a small handful of properties built prior to 1960, and even fewer built in the 1940s. Not surprisingly, the main challenge in purchasing older vintage properties is in making sure that we're sufficiently capitalized in order to address aging infrastructure. I had roofers, electricians, plumbers, geologists, and three or four general contractors out to the site during escrow for that very purpose. Once we're confident that our capital expenditure program is sufficient, we really dig deep into the market to determine the appropriate rents that can be achieved upon the completion of a wide-scale repositioning. Since we're all about creating fantastic living experiences for our residents, it's vitally important to us that the market conditions support our level of renovation. We absolutely want our residents to feel they're getting a good deal—that is, that the improved amenities, unit interiors, and customer service is worth their rental dollar."
Bremerton Gardens fits New Standard Equities' strategy of investing in properties with excellent upside potential achieved through strategic repositioning and “heavy lifting” value add, the company noted in a statement. Planned enhancements include new walking paths, signage, landscaping and hardscaping, gazebos, lighting and façade treatments evoking a 1940s village vibe. Units will receive refinished hardwood flooring, upgraded cabinetry, new appliances, paint and countertop treatments. Expected cost of the repositioning will be $3.5 million.
Bremerton Gardens is set on an almost 20-acre parcel, with an average 9.1 units per acre. The community features 113 one-bedroom, 63 two-bedroom and five three-bedroom apartments, as well as one single-family home. Apartments feature spacious floor plans, vaulted ceilings and inlet and mountain views. A laundry center, dog park, viewing platforms, access to waterfront parks and 242 parking spaces are included.
"Keys to this property are the incredible 180-degree views of Puget Sound on one side and the Olympic Mountains on the other. Breathtaking, really," Ring said.
"In looking at the real estate, I couldn’t help but think that 'view property' such as this in any other major metro area along the west coast, if not the world, would command significantly higher rents in relation to non-view properties in the same submarket," he said. "Here was a case where the view premium was literally being cannibalized by deferred maintenance, lack of amenities and aged unit interiors. When we cure the asset’s deficiencies, including building new amenity spaces and infusing the community with character and charm that reflect the romance and simplicity of a bygone era, we're confident that our expected rental premium will be realized."
Jim Jensen and Kenny Dudunakis from Berkadia represented both buyer and seller in the transaction. New Standard Equities has acquired two other properties in the region over the past six months, bringing its investment in the region to $26 million since August. [Multi-Housing News]
- Riviera Village in Tempe sells for $10M
Berkadia announced, Wednesday, the sale of Riviera Village, a multifamily property located at 1532 S. Price Road in Tempe.
Senior Managing Director Mark Forrester, Managing Director Ric Holway, Vice President Dan Cheyne and Associate Tom Wolff of the Phoenix office completed the $10 million sale. The deal closed on February 29.
The buyer, Riviera Partners, LLC, of Scottsdale, Arizona plans to reposition the property through renovations. The seller was MRI Saddlehorn Riviera Investment Fund, LLC of Santa Monica, California.
"In addition to rent-growth potential, the layout and the low density of the property were attractive to the buyers," Forrester said. "The single-story community averages just 15.9 units per acre, which is among the lowest in the densely populated city of Tempe."
Built in 1980, Riviera Village is a 165-unit property that offers one- and two-bedroom floor plans. Units come cable ready and include refrigerators, dishwashers, microwaves, disposals and private balconies.
Community amenities include a pool, fitness center, clubhouse, business center with Wi-Fi access, basketball court, picnic areas with barbecue grills, playground and a 24-hour laundry facility.
Accessible by U.S. Highway 60 and State Route 101, the property is located two miles from Tempe Marketplace and seven miles from Arizona Mills. The area's top employers include UPS, Arizona State University, State Farm and Banner Health.
Metro-wide asking rents advanced 6.2 percent annually to $914 per month in December 2015. At the same time, overall vacancy decreased 30 basis points to 5.6 percent. [AZ Big Media]
- Boulders On The River Sold for $45.8M
JV Acquires 249 Units in Eugene
Templeton Vista Associates LP and John Family Partnership Ltd. acquired the 249-unit Boulders On The River apartments at 655 Goodpasture Island Rd. in Eugene, OR from Boulders on the River, Inc. for $45.8 million, or about $184,000 per unit.
The 246,798-square-foot multifamily complex was constructed in 1991. The apartments are located on the Willamette River and feature a heated swimming pool, indoor and outdoor Jacuzzis, sauna room, volleyball and basketball courts, playground, barbeques, RV parking, and a clubhouse.
Phil Oester and Joe Nydahl from Berkadia represented the buyer and the seller in the sale. [CoStar]
- Berkadia Arranges Sale of University Villa Apartments near Brigham Young University
PROVO, UTAH - Berkadia has arranged the sale of University Villa Apartments, a 125-unit student housing property located three blocks from the Brigham Young University campus in Provo, for an undisclosed price.
The buyer intends to complete major renovations on the complex, which was originally built in 1965.
James Wadsworth and Greg Barratt of Berkadia represented the seller, a California-based entity, in the transaction.
The complex offers two- and three-bedroom units with fully equipped kitchens, high-speed Internet, cable, air conditioning and outdoor storage. Community amenities include a recreation room, swimming pool and hot tub, laundry facility and a barbecue area. [Real Estate Business Online]
- Berkadia Negotiates Trio of Multifamily Sales in South Texas
BAY CITY AND SWEENY, TEXAS — Berkadia has negotiated the sale of two apartment communities located in Bay City and one in Sweeny. Mike Miller, Chris Ross, Will Caruth and Cody Courtney of Berkadia’s San Antonio office negotiated the transactions. The sellers were Dallas-based private investors that plan to use the capital in other markets. A private investor in California was the buyer. Hamman Oaks, located at 2300 Hamman Road in Bay City, was built in 1974. The 84-unit property features one-, two- and three-bedroom floor plans. Community amenities include a laundry facility, basketball court and tennis court. Located one-half mile from Hamman Oaks, the 107-unit Bay Brook is located at 5001 Ave. F. The affordable housing community was built in 1979 and consists of one-, two- and three-bedroom floor plans. Units feature full kitchens, air conditioning and private patios or balconies. Amenities include laundry facilities, a swimming pool and a playground. Oak Bend Estates is located at 1000 W. Ashley Wilson Road in Sweeny. The 120-unit property was built in 1981 and was 96 percent occupied at the time of the sale. The property features one- and two-bedroom floor plans. Each unit features fully equipped kitchens, cable TV, high-speed internet and private patios or balconies. Community amenities include a clubhouse, laundry facilities, swimming pool and playground. [Real Estate Business Online]
- Berkadia arranges $107M in sales
The Seattle office of Berkadia said it recently facilitated three big apartment sales in the region over. In December, Senior Managing Director Kenny Dudunakis arranged the sale of 19th & Mercer, a 50-unit apartment building on Capitol Hill, for $25.1 million. Washington Trust Bank purchased the project from Meriwether Partners, according to a press release from Berkadia. Dudunakis and Berkadia associates Ben Johnson and David Sorensen completed the $46 million sale of the Landing at Dash Point in Federal Way in January. FPA Multifamily of San Francisco bought the 388-unit complex from Bridge Investment Group of Salt Lake City. Dudunakis and senior director James Jenson of Berkadia's Tacoma office facilitated the sale of The Pacifica, a 177-unit complex in Tacoma. Rush Cos. of Gig Harbor sold the complex to Green Leaf Partners of Danville, California, for $36.25 million. [Seattle Daily Journal of Commerce]
- Stone Crossing apartment community in Huntsville sold for $15 million
A 276-unit apartment community in Huntsville was sold recently for more than $15 million.
Commercial real estate company Berkadia said today it has negotiated the sale of Stone Crossing on University Drive to Stone Crossing 2014, LLC, for $15,150,000. The two-story complex was built 30 years ago and features an average unit size of 733 square feet.
Managing Director David Oakley and David Etchison, senior director of Berkadia Real Estate Advisors, represented the seller, Engel Stone Crossing, LLC.
Stone Crossing, located minutes from Cummings Research Park and Bridge Street Town Centre, has not been renovated since 2009. The garden-style property offers one- and two-bedroom layouts, a clubhouse, fitness center, tennis court, sundeck and swimming pool. [AL.com]
- South Florida apartment portfolio of 701 units offered for sale
The owner of three apartment buildings in Miami-Dade and Broward counties has put them up for sale.
Berkadia Real Estate Advisors' Tal Frydman, Yoav Yuhjtman and Fernando Polanco are the listing agents for the 701-unit portfolio. They're all owned by American Federated Title, headed by Dr. Robert Cornfeld. Frydman said they could be sold individually or as a portfolio.
Apartment prices in South Florida have been soaring as rents increase and vacancy rates tighten.
The largest property for sale is the 365-unit Carib Villas at 11105 S.W. 200th Street in Miami-Dade. It was built in 1972 on 10.4 acres. It recently had $8 million spent on renovations, Berkadia said.
The 174-unit Palm Gardens at 5500 Washington Street in Hollywood is also for sale. It was built in 1973 on 3.8 acres. Berkadia said $2.3 million was recently spent to renovate the property.
Finally, Cutlerwood has 162 units at 10960 S.W. 200th Street in Miami-Dade. It was built in 1965 on 5.1 acres. The owner recently spent $1 million on renovations. [South Florida Business Journal]
- Turlock group buys Fresno apartments for $6.15M
The Cedar Creek Apartments in southeast Fresno have been sold to an investment group for $6.15 million.
Turlock-based Boohmi Investments purchased the 106-unit property located at 4893 E. Lane Ave. from a Los Angeles-based corporation.
Robin Kane and Gordon Larkin of Berkadia Real Estate Advisors brokered the deal.
Cedar Creek was built in 1980 and sits on approximately four acres. The property was originally renovated in 2004, and in 2014, there were capital improvements including landscaping, asphalt and fencing.
The gated complex, which is near Fresno Pacific University, includes a mix of one- and two-bedroom units, with an average unit size of 821 square feet. [The Business Journal]
- Why one of Houston's top multifamily brokers switched firms
Ryan Epstein founded CBRE Group Inc.'s multifamily investment sales group in Houston and built it into one of the top-producing teams nationally.
The eight-member team has marketed and sold apartment properties across Texas valued at more than $4.5 billion.
In late January, however, Epstein announced his team was moving from CBRE (NYSE: CBG) to Berkadia, a private joint venture between Omaha, Nebraska-based Berkshire Hathaway(NYSE: BRK-A) and New York-based Leucadia National Corp.(NYSE: LUK).
The New York-based joint venture has been making inroads into Houston's commercial real estate market, poaching brokers and teams from its competitors.
Why did you decide to leave CBRE for Berkadia?
Berkadia approached us nine months ago, after they brought in Tucker Knight and his team from HFF who handles business on the debt side. Berkadia wanted to complement them with an investment sales team. We started discussions, and we saw a company that is aggressively growing and aggressively investing in technology and innovation. We wanted to be a part of that and put our DNA on it.
What was the hardest part of your decision to switch companies?
The hardest part of our decision was leaving everyone at CBRE. I have nothing but good things to say about CBRE and the management there. But this was one of those opportunities where if we hadn't done this, I knew we would have regretted it. Berkadia is a private company whose complete focus is on multifamily, especially on the transaction side. It's their entire business, and they have to do it well.
How have your clients reacted to your decision to switch firms?
We've found a lot of the clients we work with are national companies who own and operate apartments across the country. The majority of these groups have already been doing business on the debt side with Berkadia. We'll be working hand-in-hand with Tucker to provide the investment sales side now. This is now a one-shop solution. The reception from the clients we've been talking to has been positive. I can't think of one client who hasn't followed us.
What are your goals now that you're with Berkadia?
We want to be the investment adviser of choice for majority of apartment sales in this market. We also want to help grow Berkadia's Texas platform and the capabilities of other teams in Texas. We have a long way to go to get that bigger market share, but we've made great headways in the past five years. Our business will continue as before. We really haven't missed a beat. It's the same team with a different uniform. [Houston Business Journal]
- Berkadia Continues National Expansion with Addition of Top Investment Sales Team in Houston
Former CBRE Group to Accelerate Berkadia's Texas Growth Efforts
NEW YORK--(BUSINESS WIRE)--Berkadia, an industry-leading commercial real estate company, today announced the hiring of an eight-person multifamily investment sales team in Houston. The team previously worked together in CBRE's Capital Markets Multi-Housing Group based in Houston, where they focused on Houston, San Antonio and other Texas markets. All will report to Head of Investment Sales Keith Misner, effective immediately.
"This group of individuals is known throughout the industry as one of the top multifamily investment sales teams in the country, specifically in Houston," said Misner. "Adding a team of this caliber - which has worked together for a number of years - immediately strengthens our Texas presence. We're truly excited for them to join Berkadia."
The team is led by Senior Managing Director Ryan Epstein and Managing Director Clint Duncan and includes Associate Directors Wes Breeding and Jennifer Ray. They will work closely with Berkadia's existing brokers and mortgage bankers in Houston and across the state to provide integrated investment sales, mortgage banking and servicing solutions.
"Berkadia is one of a kind because its platform strengthens the company's ability to offer clients comprehensive real estate solutions," said Epstein. "Our entire team looks forward to elevating the company's presence in Texas and leveraging a full suite of products to help current and future clients alike."
Since 2006, the team has marketed and sold assets valued at more than $4.5 billion and has continually been ranked as top producers nationally, working with a diverse client base of REITs, pension funds, private investment companies and local and national developers. [Business Wire]
- Berkadia Arranges Sale of Apartment Complexes in College Station
COLLEGE STATION, TEXAS - Lutz Real Estate Investments, in a joint venture with Harrison Street Real Estate Capital, has sold University Square and Laurel Ridge Apartments located near Texas A&M University in College Station. Kevin Larimer of Berkadia represented the seller in the transaction. Lutz and Harrison Street acquired University Square and Laurel Ridge in December 2012. Upon acquisition, Lutz upgraded the unit interiors, amenities and technology infrastructure, and made cosmetic upgrades at both properties. [Real Estate Business Online]
- Berkadia Stakes Claim in Southern California, Bolsters Investment Sales Capabilities with Four Industry Veterans
NEW YORK--(BUSINESS WIRE)--
Berkadia, an industry-leading commercial real estate company, today announced the hiring of Managing Director Joe Leon and Senior Director Jeff Rowerdink in Irvine, California and Managing Director James Fisher and Senior Director Mike Smith in West Los Angeles, all joining the company's multifamily investment sales team. Each will report to Head of Investment Sales Keith Misner, effective immediately, and work with Berkadia's existing brokers and mortgage bankers in Southern California.
Berkadia's expansion in Southern California comes three months after adding five team members to its multifamily investment sales team in San Diego, including Managing Directors Ed Rosen and John Chu.
"We remain committed to growing our investment sales capabilities in regions where investor demand and need is strong, and Southern California is no exception," said Misner. "Combined, our four newest team members bring more than 100 years of brokerage and advisory experience in the California real estate market, and we look forward to their positive contributions with our integrated mortgage banking, servicing and investment sales platform."
Leon joins from Jones Lang LaSalle, where he was a managing director of the firms' Southern California multifamily practice for nearly five years. He previously served as a partner at Hendricks & Partners for 10 years and senior vice president at CB Richard Ellis for 15 years. During his 29-year real estate tenure, he has been responsible for the sale of more than 26,000 multifamily housing units whose total value exceeds $4 billion and has also successfully executed the sale of over 176 acres of multifamily land sites, resulting in the development of close to 5,300 apartment homes. Leon earned a Bachelor of Arts degree in Liberal Studies from California State University Fullerton. After graduation, he became a U.S. Marine Corps Officer and completed the OCS & TBS Leadership Program in Quantico, Virginia. He is currently an active member of the National Multifamily Housing Council (NHMC), Urban Land Institute and NAIOP.
Rowerdink was previously at Essex Property Trust, Inc. for 15 years, where he served as first vice president and head acquisitions officer for Southern California. While there, he specialized in large, Class A and B assets in Orange and San Diego counties and the south coast of Los Angeles, and oversaw more than $4.5 billion in acquisitions and dispositions. Prior to that, he was an apartment broker for Sperry Van Ness for eight years.
Most recently, Fisher served as principal for Lee & Associates in Southern California, representing buyers, sellers and developers in multifamily and land acquisitions and dispositions. He brings 35 years of experience including previous roles as vice president of Barry Powell Real Estate Investment Company. To date, he has successfully negotiated transactions in excess of $3 billion including some of the largest portfolio sales in Southern California and been recognized by industry publications as one of California's top brokers. Fisher is an active member of the NMHC and National Apartment Association.
Smith also joins from Lee & Associates, where he spent his entire 12-year career and most recently served as a principal along with Fisher. Throughout his career, he has been responsible for the sale of approximately 8,000 units accounting for approximately $1 billion in Southern California. In 2015, he was named one of Real Estate Forum's emerging leaders in multifamily commercial real estate. Smith earned his Bachelor of Business Administration degree from the University of Notre Dame's Mendoza College of Business and is currently a member of the California Association of Realtors and NMHC. [Business Wire]
- Bham area apartment portfolio purchased for $66M
Four apartment communities in the Birmingham area recently sold as a portfolio to a Nashville firm for $66 million.
Elmington Capital Group purchased the properties in partnership with Los Angeles-based Summit Equity Investments.
Elmington said in a release that it bought the Abbey at Lakeshore, the Abbey at Vestavia Falls, the Abbey at Wisteria Crest and the Cliffs at Rocky Ridge. It's a total of 882 units between the four properties.
The firm already owns Emerald Pointe in Hoover. The new purchase brings its Birmingham area portfolio to 1,074 total units.
"We are very excited about these acquisitions given their desirable locations in Homewood, Vestavia Hills and Hoover," said Hunter Nelson, a Birmingham native and SVP of acquisitions, in a press release. "We look forward to providing high-quality residences at an affordable price in communities with topnotch school systems and convenient access to retail and jobs."
Elmington said it plans extensive renovations at each property, including interior upgrades and amenity additions among other features. Additionally, the company has already begun to rebrand the properties as "Elevation Homewood," "Elevation Vestavia Hills," and "Elevation Hoover."
David Oakley, managing director of Birmingham's Berkadia office, and senior director David Etchison negotiated the transactions.
According to Berkadia, Abbey at Wisteria Crest was built in 1972 and renovated in 2008 and 2014; Abbey at Lakeshore was built in 1971 and renovated in 1998 and 2015; and The Abbey at Vestavia Falls was built in 1972 and renovated in 1998 and 2015. The transaction for the three properties closed Dec. 1.
The Cliffs at Rocky Ridge transaction closed Dec. 15. That property was built in 1975 and renovated in 2005 and 2014. [Birmingham Business Journal]
- Berkadia Beefs Up Hotels Platform
NEW YORK CITY - Bolstering the hotel platform in launched last year, Berkadia has brought in a trio of senior hospitality executives. John J. DePaul, David Weymer and Mark Morris have joined the company as managing directors in its hotels & hospitality group, each with 30-plus years’ experience in the lodging sector.
When Berkadia hired Andrew Coleman this past April to lead the newly formed hotels & hospitality group, the company was looking "to grow into a full-service commercial real estate advisory firm across all platforms, moving out of what would be just the debt space," Coleman tells GlobeSt.com. At Walker & Dunlop, Coleman's previous employer, "we were primarily focused on debt, and I see the market moving toward where we need to provide ancillary services across an entire platform."
Coleman tells GlobeSt.com that this past April, "Berkadia expressed to me that I would be able to custom-build a group that met what I thought were our client's needs, which was very exciting to me." DePaul will be responsible for the capital markets and asset management & advisory functions of the hotels platform, while Weymer and Morris will focus on the investment sales function of the platform.
"Prospective clients in the hotels & hospitality sector expressed the need for integrated finance solutions, which is why we hired Andrew last year to lead our efforts in the space," says Ernest Katai, EVP and head of production at Berkadia. "By adding John, Dave and Mark, three of the most well-known and respected hospitality professionals in the industry, we're showing our continued commitment to expanding our platform and becoming a leader in the space."
Based out of Berkadia's Ambler, PA office, DePaul has advised, acquired or managed assets with an aggregate value of more than $5 billion. Most recently, he served as executive vice president of strategic advisory & asset management with JLL's hotels & hospitality group in New York City.
Both Weymer and Morris have three decades' experience in hospitality lending. Weymer joins Berkadia from Lantern Realty Advisors, where he represented clients in an advisory and legal capacity on multiple transactions totaling over $1 billion between 2012 and 2015. Before that, he held senior principal positions at Noble Investments and Thayer Lodging Group.
Morris most recently was SVP at Hunter Hotel Advisors. Focusing on the Mid-Atlantic, he has successfully structured and completed hotel sales transactions totaling more than $3.5 billion in North America. Along with experience, Morris brings to Berkadia a team of investment sales professionals, including John Testerman and Matt Bailly. [GlobeSt]
- Huntington MF Changes Hands
HUNTINGTON BEACH, CA - Berkadia closed recenlty on the sale of Artisan Apartments, a 277-unit multifamily property located at 15555 Huntington Village Lane in Huntington Beach.
Senior directors Shane Shafer and Peter Hauser of the Irvine office negotiated the sale, which closed at $87.5 million on December 10, 2015. The seller was Kennedy Wilson and the buyer was Domino Realty Management Company, Inc., both based in Beverly Hills. The sale price reflects a per-unit price of $318,181. Additionally, managing director Allan Freedman of Berkadia's Los Angeles office assisted with the assumable financing.
"Quality of life, the strong job market and healthy apartment operations continue to support robust investment activity in the Orange County multifamily market," said Keith Misner, head of investment sales. "Activity is brisk in the area, so Berkadia's regional team of investment advisors and mortgage bankers collaborated quickly to execute this deal on time for both the buyer and the seller."
"Kennedy Wilson purchased the property in June of 2012. During their time as owners, they added value to the asset through interior and exterior renovations and, as the submarket improved, was able to realize a substantial return through this sale," said Shafer. "Domino Realty purchased the property as a long-term hold in anticipation of the property's appreciation and to take advantage of current cash flow and tax benefits. It also is conveniently located near additional Domino Realty-owned assets within Orange County, creating strong management economies between properties."
Domino Realty plans to continue renovations to the property's interiors, while adding additional common area amenities in order to meet renter demand and fuel strong future rental growth.
uilt in 1977, Artisan's unique layout combines three different designs: urban mid-rise units over podium parking, two-story, garden-style apartments and two-story townhouse style apartments. The 275-unit property features one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens with granite countertops and stainless steel appliances, gas fireplaces, walk-in closets, cable access and balconies or patios. Community amenities include two heated swimming pools, laundry facilities, tennis courts, a fitness center, barbeques, and gated community access. The property was 97% occupied at the time of sale.
"Rarely does an apartment asset of this size sell in the coastal sub-market of Huntington Beach," Hauser added. "Due to its locale, quality condition and unique unit designs, Artisan was a highly attractive investment opportunity that generated a lot of buyer interest."
The Artisan, located near the 405 and 22 freeways and adjacent to the newly renovated Bella Terra Mall. The property is also within six miles of popular beaches and 11 miles from Disneyland. Top employers in the area include Fountain Valley Regional Hospital, StorCase Technologies Inc., IBM, Zodiac Aerospace and Hyundai corporate headquarters.
Orange County area vacancy rose 40 basis points to 4.2% by the end of 2015. The average asking rent increased 4.4% year-over-year to an average of $1,955 per month.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industry-leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia is among the largest, highest rated and most respected primary, master and special servicers in the industry. [GlobeSt]