- Berkadia Completes $16.5 Million Sale of Apartment Building in California's Inland Empire
Berkadia announced today the recent sale of Tuscan Townhomes, a multifamily community located in Riverside, California to Advanced Real Estate Services, Inc. (ARES). Managing Director Vince Norris of the Los Angeles office and Senior Director Margie Molloy of the Inland Empire office completed the $16.45 million transaction for the seller, Pathfinder Stratford Tuscan Holdings LLC.
“This was a very attractive investment with lots of upside potential,” Norris said. “Based on the asset’s excellent location along Magnolia Avenue and proximity to the city of Corona, where rents for Class A apartments have been on the rise, the buyer anticipates that this investment will provide healthy returns.”
This sale attracted the attention of nearly 100 capital sources from both private individuals and institutional capital markets, culminating in nine qualified offers.
“The market fundamentals for the Riverside/Corona submarket are incredibly strong,” added Molloy. “This area has seen rents grow over 8.5 percent in the past year alone, while holding at nearly 97 percent occupancy and no market concessions.”
Originally planned as condominiums, and completed in 2010, Tuscan Townhomes is comprised of 63 two-bedroom, townhome units with private, direct access two-car garages. The interior amenity package includes full-size washer and dryer units, new black appliances, granite countertops and a breakfast bar. Many of the homes have been upgraded with a custom tile backsplash in the kitchen and wood-style flooring in the living areas.
ARES, which owns the adjacent 714-unit Corona Pointe Resort Apartments, will manage Tuscan Townhomes as if it is part of the larger community. This will allow the Townhomes residents to utilize the newly finished, resort-style amenities at Corona Pointe Resort. [RenTV]
- Berkadia Expands Investment Sales Platform in Philadelphia with the Addition of Matt Stefanski
Berkadia Invests in its Clients with Bolstered Northeast Investment Sales Presence
Berkadia today announced the expansion of its investment sales platform in the thriving Philadelphia market with the hiring of Matt Stefanski as Managing Director. Stefanski will be based in the Philadelphia office and will report to National Head of Investment Sales Keith Misner, effective immediately. He will be responsible for expanding Berkadia’s sales platform regionally. Stefanski’s hiring sets the stage for increased production activity on both a regional and national level as Berkadia seeks to grow its reach.
"Matt’s decision to join and build-out Berkadia’s apartment sales team immediately strengthens our capabilities in Philadelphia,” said Misner. “We’re looking forward to further demonstrating our investment sales platform to our Philadelphia clients, who are already familiar with the strength of our mortgage banking unit.”
Stefanski will work alongside Bob Falese, who leads the office’s mortgage banking team. Consistently recognized as Philadelphia’s top mortgage banking office, the Philadelphia team has arranged over $2 billion in financing annually for the last three years.
“Our team looks forward to collaborating with Matt and offering an enhanced level of service to our clients,” said Falese. “With seven established mortgage bankers and a deep bench, we will surely continue to grow in coming months. Matt’s expertise and reputation make him the perfect fit for this responsibility.”
Most recently, Stefanski served as vice president of CBRE’s Philadelphia multifamily team for nearly six years, specializing in the sale of apartment properties throughout the region. In that role, Stefanski was involved in over $1.5 billion in transactions.
“While the decision to leave my former team was not an easy one, I could not be more excited to join Berkadia. I look forward to developing a top-tier investment sales presence in Philadelphia. The long-term vision of the firm and people make this a unique opportunity,” added Stefanski.
Stefanski earned a Bachelor of Science degree in Business from Penn State University. He currently serves on the business advisory board for Rosemont College and is a member of the Pennsylvania Apartment Association East. [GlobeSt]
- Berkadia Adds Greg Brown to South Florida Investment Sales Team
Berkadia, an industry-leading commercial real estate services company, today announced the hiring of Greg Brown to its multifamily investment sales team as director. Based out of the Boca Raton, Florida office, Brown will report to Senior Director Tal Frydman. The addition of Brown, who brings 19 years of development, construction and investment sales experience, will enhance Berkadia’s efforts to assist clients looking to buy or sell land for development.
“Greg’s background and expertise in multifamily development is extensive, and we found him to be a perfect fit,” Frydman said. “He brings a unique perspective from the developer side and adds tremendous value to our team, which will further strengthen our presence in South Florida.”
At Berkadia, Brown will be responsible for growing the multifamily land division across South Florida by assisting in entitlements and consultant selection, providing micro- and macro-analysis of competition and market trends, helping with product development and site planning, and ultimately marketing approved land to multifamily developers and builders.
“I’m pleased to join such a prestigious company that is nationally recognized for its expertise in the multifamily space,” Brown said. “I was especially impressed with the company’s integrated investment sales and mortgage banking platform, and I look forward to contributing to the success and growth of the investment sales team.”
Most recently, Brown worked as a Land Acquisition Manager at Toll Brothers, one of the nation’s largest homebuilders. Prior to joining Toll Brothers, he was a Vice President of Acquisitions & Dispositions for The Pugliese Company, a real estate acquisitions, sales and development company with a particular focus on the South Florida region.
Brown graduated from Florida Atlantic University and holds a Bachelor’s of Science in Finance. [MBA Newslink]
- Berkadia Completes $36 Million Sale of South Florida Multifamily Property
Berkadia today announced the sale of Viera of the Palm Beaches, a multifamily property located at 4860 Sandstone Lane in West Palm Beach, Florida. Senior Director Tal Frydman and Directors Yoav Yuhjtman and Fernando Polanco of the Boca Raton office worked with Managing Director Cole Whitaker of the Orlando office to complete the $36.4 million sale, which reflects a price of $121,166 per square foot.
A San Francisco-based company partnered with a New York-based company to purchase Viera, and assumed the loan they had on the property. The seller was Palm Beach Multifamily Partners, LLC of Nashville, Tennessee.
“The strong West Palm Beach rental market made Viera a particularly attractive investment,” Frydman said. “Over the past four years, the property has received a significant amount of rehabilitation and upgrades, and the buyer plans to continue the renovations through to completion.”
The 300-unit property was built in 1987 and was 93 percent occupied at the time of sale. Viera offers one- and two-bedroom units with balconies or patios, in-unit washers and dryers, stainless steel appliances and wood laminate flooring. Residents enjoy community amenities including a clubhouse, fitness center, business center, swimming pool, tennis courts, barbeque area, and running, hiking and biking trails. The community is pet-friendly.
Bucking the South Florida metro trend, where the vacancy rate was 30 basis points under the five-year average of 4.9 percent at the end of the second quarter of 2016, vacancy in the West Palm Beach/Palm Beach submarket declined 40 basis points year-over-year to 6.4 percent, despite more than 760 apartments coming online in that time. [The Real Deal]
- Berkadia Adds John W. Bray to Atlanta Office
Former JLL Regional Managing Director to Grow Berkadia’s Southeast Mortgage Banking Footprint
Berkadia, an industry-leading commercial real estate services company, today announced the hiring of John W. Bray as senior managing director. Bray will be co-leading the growth of Berkadia’s production in the Atlanta market alongside Senior Managing Director Richard Levine, and will report into Warren Higgins, executive vice president and head of mortgage banking.
“John fortifies our already strong and knowledgeable mortgage banking team in Atlanta with his deep industry experience,” said Higgins. “This addition to our Atlanta office positions Berkadia and our clients to close more deals in the coming months and years.”
Bray brings more than 20 years of commercial real estate experience to Berkadia. Together with Levine, the pair will grow the Atlanta team’s mortgage banking group while providing clients and business partners alike with Berkadia’s best-in-class service. The team will focus on leveraging the firm’s integrated investment sales and servicing platforms.
According to Levine, “We believe that Berkadia Atlanta has the best functioning mortgage banking and investment sales platform in the industry. Adding a veteran like John positions us to serve more market share in this cycle and the next.”
Prior to joining Berkadia, Bray acted a regional managing director of JLL’s Atlanta Markets Capital Group. He is a graduate of the University of Georgia, where he earned a Bachelor of Business Administration degree in Finance.
- Berkadia Completes Sale of San Diego Multifamily Property
Berkadia today announced the sale of Mission Trails Apartments, a multifamily property located at 6975 Golfcrest Drive in San Diego. Managing Directors Ed Rosen and John Chu and Directors Kyle Pinkalla and Erin Dammen facilitated the sale, which closed on July 22.
The seller was Jackson Square Properties of San Francisco and the buyer was SARES-REGIS Multifamily Value-Add Fund II, L.P. based in California.
“Mission Trails provided a rare opportunity to purchase an asset with tremendous upside potential in a prime location,” said Rosen. “The seller repositioned the property, focusing on deferred maintenance and renovating 109 units, which will afford the buyer the ability to continue and expand the renovation with further enhancements.”
Built in 1987, the 208-unit property includes one- and two-bedroom floor plans, which offer central heat and air conditioning, stainless steel appliances, patios or balconies and walk-in closets. Community amenities include underground gated parking, pool and spa, fitness center, tennis and basketball courts, outdoor barbecue area, business center and dog park.
Mission Trails Apartments is located within close proximity to Mission Trails Regional Park and Golf Course, Lake Murray and Cowles Mountain. It also offers convenient access to Interstates 8, 125 and 15. Downtown San Diego is just four miles away and San Diego State University is within a ten-minute drive.
As of June 2016, the average apartment vacancy rate in the San Diego area had dropped 80 basis points to 3.9 percent. Asking rents increased 7.2 percent to $1,916 per month. [RenTV]
- Berkadia's Atlanta Team Completes Nearly $30 Million in Combined Sale and Financing for Georgia's Multifamily Property
Berkadia announced today the recent sale and financing of The Reserve Apartments, a multifamily property in Lithonia, Georgia. The Atlanta-based team of Senior Directors Andrew Mays and Paul Vetter completed the $16.3 million sale, and Senior Managing Director Richard Levine and Associate Director Josh Finley arranged a $12.2 million loan through Freddie Mac on behalf of the borrower, 5650 Hillandale, LLC. The buyer was Benimax Investment Group, Inc., and the seller was Audubon Communities, both of Atlanta. The transaction was completed on July 15.
“We were pleased that this transaction allowed us to work with Benimax for the fourth time,” said Finley. “They have a unique track record of successful execution of value-add investments on similar assets.”
“This relationship, combined with the power of Berkadia’s integrated mortgage banking and investment sales capabilities platform, allowed us to deliver and secure the most competitive terms available,” added Mays.
The seven-year, permanent fixed-rate loan includes a 3.9 percent interest rate with two years of interest only payments, a 30-year amortization schedule and a 75 percent loan-to-value ratio.
Built in 1988, the 252-unit property offers studios, one-, two- and three-bedroom floor plans that include fully equipped kitchens, fireplaces, ceiling fans, extra storage, washer/dryers and balconies or sunrooms. The community features a swimming pool, lighted tennis courts, playground, landscaped grounds and 24-hour maintenance.
The Reserve’s convenient location at 5650 Hillandale Rd. affords residents easy access to Interstates 20 and 285 and is roughly 10 miles from Stone Mountain National Park. Top employers in the area include DeKalb Medical Center, Marshall's Southeastern Distribution Center and Kaiser Permanente Panola Medical Center. [GlobeSt]
- Berkadia Completes Over $11 Million in Sales, Provides Financing for Missouri Multifamily Property
Berkadia announced today the completion of both the brokerage and financing for Victorian Village Apartments, a multifamily property in St. Louis. Senior Directors David Gaines and Alex Blagojevich, Director Michael Sullivan and Associate Director Patrick Sullivan facilitated the $11.3 million sale, alongside Managing Director Aaron Abelson who secured the $7.9 million loan through Freddie Mac on behalf of the buyer, AndMark Investment Fund II, LLC, which is operated by AndMark Management Company, a California LLC. The seller was Mills Properties.
“Through Berkadia’s unified national investment sales platform, we were able to cultivate a pool of highly qualified bidders—the majority of which were not from the local market,” said Gaines. “This sale truly exhibits a broader market trend with assets of this size.”
“As readily available financing and higher potential yields draw new investors to the market, buyer demand continues to outpace supply in the St. Louis area,” noted Patrick Sullivan. “Assets with more than 150 units have had the strongest appeal to investors who are drawn to the Class B/C assets at initial yields that generally start in the low-to-mid-7 percent.”
“We were able to obtain a very attractive Freddie Mac acquisition loan for the buyer – a strong existing client,” added Abelson. “The integrated mortgage banking and investment sales’ capabilities of the team allowed us to deliver competitive terms and close within 45 days of application.”
The loan features a 10-year fixed-rate term of 3.9 percent and a 30-year amortization schedule.
Built in 1984, the 210-unit property offers two- and three-bedroom floor plans that include washer/dryers, storage closets and bay windows. The community features a swimming pool, sauna room, cardio fitness center, clubhouse and business center.
Victorian Village is located at 11969 Continental Drive and within close proximity to State Route 367 and major employers such as BJC Healthcare, Boeing Defense Space & Security, Washington University at St. Louis and Scott Air Force Base. Other nearby attractions include the Lambert-St. Louis International Airport, St. Louis Outlet Mall and NorthPark Business Park. [Multi-Housing News]
- Berkadia Completes $15.5 Million Sale of Arizona Multifamily Property
Berkadia today announced the recent sale of Park Shadows, a multifamily property located in Goodyear, Arizona. Senior Managing Director Mark Forrester, Managing Director Ric Holway, Senior Director Dan Cheyne and Associate Tom Wolff of the Phoenix office facilitated the $15.5 million sale that closed on July 22.
The buyer, JB Partners, LLC, a Nevada limited liability company based in Newport Beach, California, purchased the property from Park Shadows Country Homes, LLC, an Arizona limited liability company based in Goodyear.
“Park Shadows represents a rare 1940's community set upon 38 lush acres,” noted Holway. “We’ve continued to observe investor interest in unique properties such as this, and it’s a trend we don’t expect to die down anytime soon.”
The 237-unit, single-story property was built in 1944 and was 98 percent occupied at the time of sale. Floor plans feature one-, two- and three-bedroom options with washers and dryers and large back yards. Residents can enjoy community amenities including a pool, a playground, a volleyball and a basketball court, and barbeque areas.
Located at 620 N. Litchfield Rd., the property affords convenient access to Interstate 10, and is less than one and a half miles from Phoenix Goodyear Airport and under five miles from Cancer Treatment Centers of America at Western Regional Medical Center. Top employers in the area include the Phoenix Goodyear and Glendale Municipal Airports and Luke Air Force Base.
Earlier this year, Berkadia’s Phoenix team also facilitated $61.5 million in combined sales for two separate multifamily properties in Goodyear: Serafina Apartment Homes and Lunaire Apartments. [Commercial Executive Magazine]
- Berkadia Completes $10 Million Sale of California Development Site
Berkadia today announced the recent sale of a development site located at 6500 Sepulveda Blvd. in Van Nuys, California. Director Daniel Withers of the North Los Angeles office facilitated the $10.15 million sale, which was completed on July 8.
The buyer, IMT Residential, purchased the property from Maryland Estates Inc. in an all cash transaction.
“This is a great purchase for IMT Residential in that it allows them to continue to grow their footprint in the San Fernando Valley and enhance the overall makeup of the Van Nuys submarket,” said Withers.
The 1.22-acre lot with a R4 zoning has “By-Right” development potential of about 133 units without density bonus. It is conveniently located near Interstate 405, U.S. Route 101 and State Route 118, and within close proximity of the Sepulveda Basin Recreational Center, which features two parks and an 80-acre sports field, as well as Valley Presbyterian Hospital.
“We are excited to continue the expansion of our portfolio with the addition of another multifamily development project in the area,” said David Tedesco, principal of IMT Capital. “We will continue to provide the residents of San Fernando with a high standard of living that IMT is known for upon its completion.”
IMT plans on implementing its professional and strategic managing techniques to ensure steady and continual growth while maintaining the superior service that has allowed them to realize their well-earned reputation.
“We are excited to see what IMT Residential has in store for this site and believe that they will benefit tremendously with the current market conditions,” said Michael Bastan of Maryland Estates.
Vacancy rates in the Van Nuys market have fallen to 3.3 percent and rents have grown approximately 7.8 percent over the last year.
Originally located on the site was the 128-room Voyager Motor Inn, which was destroyed when a fire broke out during the marketing campaign. [San Fernando Valley Business Journal]
- Berkadia Arranges Sale and $26 Million of Acquisition for Newly Constructed Student Housing Property Near Notre Dame
Berkadia today announced the sale and financing of University Edge, a dedicated student housing property located at 130 South Dixie Way in South Bend, Indiana. Managing Director Kevin Larimer, who heads Berkadia’s student housing division, represented the seller, Columbus, Ohio-based Hallmark Campus Communities. Managing Director Jeff Stuart of the Seattle office secured the $26.8 million, 10-year, fixed-rate loan with seven years of interest-only payments through Fannie Mae for the Seattle-based borrower, Horizon Realty Advisors. The deal was completed on July 13.
“Berkadia’s deep knowledge and extensive experience in the student housing space allowed us to deliver the best possible terms for the borrower,” Stuart said. “As a seasoned owner and operator of dedicated student housing properties, Horizon Realty Advisors was excited to purchase the property due to its optimal location and walking distance to both the University of Notre Dame and Saint Mary’s College.”
The 216-unit, 528-bed property was built in phases, with final completion in 2015. It was 98 percent occupied at the time the loan was secured. [Multi-Housing News]
- Berkadia Completes Sale of Two Tampa, Florida Properties for More Than $27 Million Combined
Berkadia today announced the recent sale of two Tampa multifamily properties, Newport Villas and Pinetree Apartments, which sold for a combined $27.3 million. Senior Director Jason Stanton of the Tampa office and Senior Director Hal Warren and Managing Director Cole Whitaker of the Orlando office completed the transactions.
“Both of these communities represent a great opportunity for a value-add renovation program, making them appealing to investors in the Tampa Bay market,” Stanton said. “Additionally, the employment opportunities offered by the booming business in the downtown area makes this a particularly attractive market.”
Located at 4902 N. Macdill Ave., Newport Villas was sold by Newport Lakeside, LLC of Miami to The RADCO Companies of Atlanta for $20.3 million on June 30. The 372-unit property, which was just over 97 percent occupied at the time of sale, offers one- and two-bedroom floor plans. Unit amenities include ceiling fans, ceramic tiled kitchens and bathrooms, oversized patios, pantries and walk-in closets. Residents also enjoy community amenities including 24-hour laundry facilities, a business center, a cardio fitness center, a clubhouse with a TV room, floating sun deck, a fishing lake, lakeside boardwalk, picnic and barbeque areas and a swimming pool.
Pinetree Apartments, located at 3706 W. Idlewild Ave., was sold by Miami-based Newport Pinetree, LLC to Tampa-based Idlewood Avenue Apartments, LLC for $7 million. The 110-unit property, built in 1985, offers one- and two-bedroom floor plans that feature air conditioning, basic cable, ceiling fans, energy efficient appliances, self-cleaning ovens, and patios or balconies. Select units also include vaulted ceilings and walk-in closets. The community has two laundry facilities, a fitness center, a clubhouse, on-site maintenance and management, package pick-up, a picnic area with barbeque grills and a swimming pool.
Both properties are less than seven miles from downtown Tampa and less than five miles from the Westshore District. Nearby Tampa Bay Park Office Complex is a 469,000-square-foot corporate office space and home to tenants including T-Mobile, The Art Institute of Tampa and New York Life.
The Tampa Bay market has a current occupancy of 95.67 percent with average effective rents of $1,100 in the second quarter of 2016. Average effective rents increased 6.61 percent year-over-year during the second quarter of 2016. Tampa Bay ranks second among Florida cities for year-over-year job growth, with 42,900 new private-sector jobs added by March 2016. In that time, the area’s unemployment rate decreased to 4.3 percent. [Multi-Housing News]
- Berkadia Closes Sales for Melbourne Florida Multifamily Properties
Berkadia today announced the sale of two multifamily properties in Melbourne, Florida: the Veridian Townhomes and Savannahs at James Landing. The sales were completed by Managing Director Cole Whitaker and Senior Director Hal Warren of the Orlando, Florida office and Director Jason Stanton of the Tampa, Florida office.
The seller of Veridian Townhomes was Central Park Multifamily Partners, LLC of Nashville, Tennessee and the seller of Savannah at James Landing was Melbourne Multifamily Partners, LLC. Both properties were more than 95 percent occupied at the time of sale.
“The Melbourne market is continuing to experience strong interest from investors across the U.S. who are attracted to the rental market and opportunities for growth,” said Whitaker. “The buyer in this transaction is very familiar with the area and saw strong potential in these two properties.”
Built in 1983, the Veridian Townhomes are located at 2420 Central Park Drive. The 120-unit property includes one-, two- and three-bedroom floor plans. Unit amenities include ceiling fans, appliances, balconies or patios, and extra on-site storage facilities. The community features a swimming pool, playground, tennis court, fitness center, clubhouse, and barbecue area.
Savannahs at James Landing is located at 3051 Savannah Way. Built in 1989, the 256-unit property features one- and two-bedroom floor plans. Unit amenities include European style cabinetry, stainless steel appliances, balconies or patios, walk-in closets and granite countertops. The community offers many amenities including a clubhouse, swimming pool, business center, fitness center, clothes care center, lake, dog park, volleyball court and tennis court as well as biking and walking trails.
One of the top employers in the area is Harris Corporation, the largest technology company in Central Florida, located approximately six miles from both properties and headquartered in Melbourne, Florida. [Multi-Housing News]
- Berkadia Completes $11 Million Sale of Indiana Multifamily Property
Berkadia today announced the recent $11.3 million sale of Willowbrook Lake Apartments, a multifamily property located in Indianapolis. Senior Directors David Gaines and Alex Blagojevich along with Associate Director Chris Bruzas of the Chicago office facilitated the sale, which closed on July 8.
The seller was an investment fund based in Greenwich, Connecticut. The buyer was an entity of Sundance Bay, based in Orem, Utah.
“Out-of-state investors are gravitating toward the Indianapolis metro area, including many exchange buyers who are drawn by the high yield investment opportunities in the area,” said Bruzas. “We’ve seen strong demand from investors for apartment properties, likely caused by a recent surge in value-add deals like Willowbrook Apartments.”
Built in 1972, the 392-unit property includes one-, two- and three-bedroom floor plans with air conditioning, ceiling fans, renovated kitchens, spacious closets, separate dining rooms and patios or balconies. The community features a swimming pool, laundry facilities in each building, carports and 24-hour emergency maintenance.
Located at 4803 Round Lake Road, Willowbrook Lake affords convenient access to Interstates 65 and 70 and is within close proximity to Indianapolis International Airport. Tops employers in the area include St. Vincent Health, IU Health, Eli Lily and Company and Community Health.
? [Multi-Housing News]
- Berkadia Expands Hotels & Hospitality Group with Addition of Kyle Stevenson
Berkadia, an industry-leading commercial real estate services company, today announced the hiring of Kyle Stevenson as managing director of investment sales for the Hotels & Hospitality Group. He will be based out of the Bethesda, Maryland office and report to Senior Managing Director and Head of the Hotels & Hospitality Group, Andy Coleman. The addition of Stevenson, who brings 23 years of hospitality investment sales and finance experience to Berkadia, will significantly enhance the capabilities and depth of the group.
“Kyle’s background and deep-rooted relationships in the hospitality investment sales and finance community will be a tremendous benefit to our team and our team approach,” said Coleman. “We look forward to having the benefit of his industry knowledge and personality, which will help Berkadia continue to deliver competitive, comprehensive financing solutions.”
Most recently, Stevenson worked as a servicing liaison within Berkadia, which manages a loan portfolio in excess of $240 billion. Prior to joining the company, he was a managing director of investment sales for Hunter Hospitality in Washington, D.C. Stevenson has experience in corporate banking and has worked with affiliates of Chase Manhattan and SunTrust Banks. He has also financed hotels at a portfolio company owned by Allied Capital, a $4 billion investment firm based in Washington, D.C.
Stevenson is a graduate of Georgetown University, where he earned a degree in International Economics. He has been involved with Chris Kids in Atlanta, Northern Virginia Autism Society, Rotary Club and the National Committee for the Prevention of Child Abuse.
- Berkadia Completes $12.5 Million Sale of Arizona Multifamily Property
Berkadia today announced the recent $12.5 million sale of Superstition Villas, a multifamily property located in Mesa, Arizona. Senior Managing Director Mark Forrester, Managing Director Ric Holway, Senior Director Dan Cheyne and Associate Tom Wolff of the Phoenix office facilitated the transaction, which closed on July 1.
The seller was Arizona-based MRI Saddlehorn Superstition Investment Fund, LLC. The buyer from Nevada, Omni Capital, LLC, plans to reposition the property.
“This is a rare sale as most transactions in the current market are stabilized or partially rehabbed assets,” said Holway. “The buyer intends to make significant improvements to the property’s units and amenities, which will not only increase their potential return on investment, but also help augment Superstition Villas’ renter appeal.”
Built in 1981, the 249-unit property includes one- and two-bedroom floor plans with air conditioning, kitchens with wet bars, walk-in closets and balcony or patio. Community amenities include a laundry facility, a pool, a clubhouse and a barbeque area.
Located at 2055 E. Hampton Ave., Superstition Villas affords convenient access to U.S. Route 60 and is within close proximity to the Phoenix-Mesa Gateway Airport.
? [Commercial Executive Magazine]
- Berkadia Completes $164 Million Sale of Southern California Multifamily Property
Berkadia today announced the recent sale of Eaves by Avalon, a 628-home residential apartment community in Tustin, California. The $164 million transaction represents the largest sale price for a single asset market rate sale in Orange County over the past five years, reflecting a $260,000 price per unit. The sale, completed by Senior Managing Director Dean Zander of the Los Angeles office and Managing Director Joe Leon of the Irvine office, marks the third time in the past decade this team has sold this community. Berkadia represented the seller, AvalonBay, and the buyer was Raintree Partners of Laguna Niguel, California.
Completed in 1972, Eaves by Avalon is located in an affluent neighborhood bordering Irvine and Tustin Ranch
“Eaves by Avalon is the epitome of a value-add opportunity,” Leon said. “With planned interior upgrades, the buyer will achieve a significant premium over the current rental rates, and still remain at rates below the newer competitive set nearby.”
“The immediate neighborhood is considered an affordable alternative to the Irvine market, and Tustin has enjoyed recent average market rent increases above 6 percent while still maintaining one of the lowest vacancy rates in Orange County at just 3.7 percent,” added Zander. “With high barriers to entry in the immediate area, the rents and occupancy rate are only expected to increase further as the market struggles to meet the housing needs of the expanding population.”
Situated on lots totaling more than 26 acres, property amenities include multiple pools and spas, two regulation tennis courts, a remodeled leasing office and fitness center, large clubhouse and more.
Apartment homes feature in-suite washer/dryers and many include a private garage or patio space.
Eaves by Avalon is located at 13921 Tustin East Drive. The location affords convenient access to Interstate Route 5 and is within close proximity to over 500,000 jobs in Orange County, in addition to nearby attractions such as nearby Disneyland, South Coast Plaza and John Wayne Airport. [Bisnow]
- Berkadia Closes Over $10 Million in Sales for Two Minnesota Multifamily Properties
Berkadia today announced the $10 million combined sale of two multifamily properties in Minnesota, Goldenstar Apartments and Sun Place Apartments. Senior Director David Gaines and Associate Director William Ryan of the Chicago office facilitated the transaction, which was completed on June 7. The buyer was Golden Sun Preservation, LLC, an entity controlled by the Minneapolis-based non-profit group AEON. The properties were 100 percent occupied at the time of sale.
“What’s interesting about this sale is the attention the two properties received from a national pool of buyers, which resulted in 80 registered bidders and 13 qualified offers,” said Gaines. “As improving operations and the low cost of borrowing drive competition and lift prices in the Minneapolis-St. Paul market, we are seeing a trend of yield-seeking investors moving farther from the metro core in order to acquire properties like these that meet their target returns.”
Goldenstar Apartments, built in 1966, includes 109 units and offers one- and two-bedroom floor plans ranging from 670 to 910 sq ft. They feature air conditioning, ceiling fans, private garages and spacious closets. Community amenities include a playground, on-site management with 24-hour emergency maintenance, an outdoor pool with sundeck and a private courtyard.
Built in 1971, the 30-unit Sun Place Apartments offers two expansive floor plans with one- and two-bedroom units ranging from 715 to 850 sq ft. Units feature private garages, walk-in closets, lighted ceiling fans, air conditioning and window treatments. The property includes a barbecue area, on-site management and 24-hour emergency maintenance.
Goldenstar Apartments is located at 321 Larpenteur Ave. E. in Maplewood, and Sun Place Apartments is located at 1721 Marion St. in Roseville. Both properties are centrally located in the acclaimed Roseville school district, and afford convenient access to public transportation and Interstate 35 to visit downtown Minneapolis. Major employers in the area include Medtronic, the University of Minnesota, the 3M Company, Land O’Lakes and St. John’s Hospital. [StarTribune]
- Berkadia Facilitates $79.5 Million Sale of Detroit Luxury High-Rise Apartments
Berkadia today announced the $79.5 million sale of Riverfront Towers, a luxury high-rise apartment community, considered the gem of Downtown and nestled along the Detroit River. Managing Director Rick L. Vidrio and Senior Director Rick Brace of the Southfield, Michigan office brokered the sale of this 557-unit apartment complex, reflecting a new watermark for the market at $142,729 per-unit price.
Image Capital LLC, a New York City real estate investor, purchased two of the three towers: 26-story Tower 100 built in 1992 and 29-story Tower 200 built in 1982-83. Tower 300, the first Riverfront Towers building completed in 1983, was not part of the sale. The seller was Riverfront Tower Holding LLC, which is controlled by a group of private New York City investors.
"Interest was through the roof for these high-rise luxury apartments, which have housed a number of high-profile residents,” Vidrio said. “There were 21 offers to purchase the towers, which speaks to the robust demand for quality apartments in the downtown area.”
Brace added, “At the time of sale, the property boasted strong stabilized occupancy and rent levels, which created the opportunity for the buyers to invest in new and exciting improvements to both the individual apartments, as well as the common area amenities. These improvements will take Riverfront Towers to the next level and further prove the exciting resurgence of downtown Detroit.”
Riverfront Towers exhibits luxury and sophistication, offering an unparalleled downtown location with stunning panoramic views of international waters and bustling city scenes. Accessible through a covered skywalk is the “People Mover,” which provides residents easy access to many of Detroit attractions, such as Joe Louis Arena, Cobo Center, Hart Plaza, Fox Theatre, Comerica Park, Ford Field and the Detroit “Riverwalk.” Additional amenities include an existing 77-slip marina, the Signature Grill and Market and many others. [Multi-Housing News]
- Berkadia Completes $13.2 Million Sale of Multifamily Property South of San Diego
Berkadia today announced the sale of Vista Hermosa, a multifamily property in Chula Vista, California. Director Dave Andrews of the La Jolla, California office, closed the $13.2 million sale on June 6, reflecting a $188,708 per-unit price.
"Vista Hermosa was particularly appealing due to the potential to add value to the property itself, and its location in the strong Greater San Diego market,” Andrews said.
The California-based buyer, HCA Vista Hermosa Apartments L.P. has plans to upgrade unit interiors and exteriors and was enticed by the strong Chula Vista rental market. The seller was 1045 4th Ave., LLC, based in Los Angeles.
Vista Hermosa features studio, one- and two-bedroom floor plan options. Each unit comes with fully equipped kitchens, balconies or patios and heating. Residents enjoy access to a swimming pool and spa, on-site rental office and a controlled-access gate. The property is conveniently located near Interstate Routes 5 and 805. [San Diego Business Journal]
- Berkadia Closes More Than $15 Million in Sales for Las Vegas Multifamily Property
Berkadia today announced the recent sale of Pine Village, a multifamily property located in Las Vegas. The $15.95 million sale reflected a $58,000 price per-unit. Senior Directors Brian Anderson and Angela Powers of the Las Vegas office facilitated the sale.
The seller was Pine Village Apartments, L.P. of Encinitas, California. The buyer, Westland Pine Village LLC, a Nevada limited liability company of Long Beach, California, plans to upgrade the interior units. The property was 96 percent occupied at the time of sale.
“Pine Village is an attractive investment infill, in a west side location approximately three miles from the Las Vegas Strip,” said Anderson. “In this particular instance, the buyer already owned the adjacent property and recognized the opportunity to further expand their presence for the long term.”
Built in 1973, the 275-unit property includes two-bedroom/one-bathroom, two-bedroom/two-bathroom and three-bedroom/two-bathroom floor plans. Unit amenities include air conditioning, ceiling fans, refrigerators, stoves, dishwashers and garbage disposals. The community offers amenities such as three swimming pools, courtyards, two grilling areas, children’s playground, laundry facility and 24-hour maintenance service.
Pine Village is located at 3011 Arville St. The property features convenient access to Oran K. Gragson Freeway (U.S. Route 95) and Interstate 15. Other nearby attractions include the Las Vegas Premium Outlets North and University of Nevada-Las Vegas.
? [Western Real Estate Business]
- 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 $23.8 Million Sale of Southern California Multifamily Property
Berkadia today announced the sale of Windwood Apartments, a multifamily property in West Covina, California. Managing Director Robin D. Ossenbeck of the West Los Angeles office facilitated the $23.8 million sale, which reflects a per-unit price of $250,172. The sale closed on May 26.
The buyer, Lark Ellen Investor, Inc. of Culver City, California, has major renovations planned to further increase the value of the property. The seller, DCP Lark Ellen Apartments, LLC of Los Altos, California, was a long-term owner looking to sell after rents had increased by 60 percent over the past 10 years.
“This was an attractive investment opportunity for the buyer due to the high potential to create value post-renovation,” Ossenbeck said. “The marketing effort yielded 26 tours and 13 offers. Coupled with an active market and an even more active buyer pool, the seller was able to receive a full cash payout for the property.”
Windwood Apartments, a 116-unit property that was 98 percent occupied when the sale closed, offers one- and two-bedroom floor plans. Residents have access to community amenities including a pool, spa, tennis court, clubhouse and fitness center. The property offers easy access to Interstate Highways 10, 60 and 605, and is within five miles of both West Covina Mall and City of Industry. Top employers in the area include City of Industry, Queen of the Valley Campus and West Covina School District.
Apartment vacancy in the West Covina area was at 4.4 percent as of Q3 2015, and rent growth has risen by 12 percent since 2011. Average asking rent was $1,530 in Q3 of 2015. [RENTV.com]
- Berkadia Completes $28.8 Million Sale of Arizona Multifamily Property
Berkadia today announced the recent sale of Park Place Apartments, a multifamily property located at 11 East Orange Grove Road in Tucson, Arizona. Senior Managing Director Arthur Wadlund and Associate Director Clint Wadlund of the Tucson office completed the $28.8 million sale, reflecting a $78,836 per-unit price. Managing Director Clay Akiwenzie and Senior Director Rick Salinas of Berkadia’s San Francisco office provided $22 million in financing for this sale. The Freddie Mac loan, which features a 75 percent loan-to-value ratio, was funded on a floating rate interest only basis to allow for the renovation and repositioning of the community.
The buyer, Town West of Tucson, also owns a nearby retail property and has plans to renovate both. The seller was Prime Group of San Francisco.
“Demand in the Tucson area surged during the first quarter of the year, making investments into multifamily properties particularly attractive,” Arthur Wadlund said.
Built in 1973, Park Place Apartments comprises 365 units with one- and two-bedroom floor plans. Amenities include air conditioning, dishwashers, garbage disposals, refrigerators, full-size washers and dryers, private balconies or patios and walk-in closets. Select units include pantries, kitchen windows and linen closets. Community residents enjoy access to a clubhouse with a kitchen, business center, fitness center, two swimming pools, a spa, shuffleboard court, two lighted tennis courts and barbeque areas. The property is located near State Routes 77 and 79 and is less than eight miles from the University of Arizona’s campus. [Real Estate Daily News]
- Berkadia Closes Record Sale of Washington State Property
Berkadia announced today the sale of 77 Central, a Class A, mid-rise multifamily property located at 2630 77th Ave. SE in Mercer Island, Washington. Senior Managing Director Kenny Dudunakis completed the $97 million sale, reflecting a per-unit price of $567,261. The sale was a record high per-unit price for a mid-rise building in the Puget Sound area.
The seller was SECO Development of Renton, Washington. The buyer, TIAA of San Francisco, plans to continue improvements to the property’s operations.
"TIAA recognized the opportunity to acquire an elite core asset in one of the most affluent areas for single-family real estate on the West Coast,” Dudunakis said. “Mercer Island can only support the construction of a finite number of assets, thus proving 77 Central to be quite an attractive investment with the potential for large return.”
Built in 2008, 77 Central is a 171-unit property that offers studio, one-, two- and three-bedroom floor plans. Units include private patios or decks, fully-equipped kitchens with stainless steel appliances and granite countertops, designer interior selections and full-size washers and dryers in select units. Residents enjoy community amenities such as dedicated concierge services, a residents’ club with a catering kitchen, a conference and banquet facility, a business center, billiards parlor, fitness club, an outdoor pool and spa, a courtyard with a barbeque area and rooftop terrace.
Located near Interstate Route 90 express lanes and Island Crest Way, 77 Central is five miles from Bellevue Square Shopping Mall and six miles from downtown Seattle. The area's top employers include Expedia Inc., Eddie Bauer, Symetra Financial Corporation and Overlook Hospital Medical Center.
Seattle-Tacoma area vacancy decreased 10 basis points to 4.3 percent in March 2016, the lowest first quarter rate in more than two decades. Heightened demand drove rent growth, increasing monthly asking rents increased 7.1 percent annually to $1,619--up from a 6.9 percent rise in the preceding year. [Seattle Daily Journal of Commerce]
- 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]