- El Cazador in Fresno, CA Presented by Berkadia for $9M
Berkadia is pleased to announce the exclusive listing of El Cazador, located at 4851 North Cedar Avenue in Fresno, CA. The asking price for the 100-unit apartment community is $9,000,000. The seller has engaged Robin C. Kane and Gordon J. Larkin of Berkadia's Fresno office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Brokers Sale of Two Apartment Communities in Metro Tampa Totaling $96.4M
BRANDON AND TAMPA, FLA. - Berkadia has brokered the sale of two apartment communities in the Tampa area for a combined $96.4 million. Hamilton Bay Apartments, located at 1801 Princeton Lakes Drive in Brandon, sold for $43.6 million. Tampa-based Blue Rock Partners purchased the 444-unit asset from Nashville-based Covenant Capital Group. Built in 1989, the apartment community’s amenities include two swimming pools, a clubhouse, tennis court, recreation room, playground, laundry facility, controlled-access gate, child care center, complimentary coffee bar, community garden and a dog park. Viera at Westchase Apartments, located at 12401 W. Hillsborough Ave. in Tampa, sold for $52.8 million. Glendale, Colo.-based Forum Real Estate Group purchased the 390-unit property from Covenant Capital Group. Built in 1999, the property’s community amenities include two resort-style swimming pools, a hot tub with a waterfall and grotto, cabana lounges, clubhouse, business center, fitness center, tennis courts and a controlled-access gate. [Real Estate Business Online]
- Berkadia Brokers $12.4M Sale of Apartment Community in Charleston
CHARLESTON, S.C. - Berkadia has brokered the $12.4 million sale of East Central Lofts, a 72-unit, Class A apartment community located at 274 Huger St. in Charleston. Built in 2013, East Central Lofts comprises studio, one- and two-bedroom units with granite countertops, stainless steel appliances, hardwood floors and floor-to-ceiling windows. The property's amenities include laundry facilities on each floor, a bocce ball court, barbecue area and covered and gated parking. The property offers views of the Ravenel Bridge and is located within walking distance of historic downtown Charleston. East Central Lofts LLC sold the asset to a group of buyers, including Federal Capital Partners, Kane Realty Corp., Randolph Development and Canongate Capital. Mark Boyce of Berkadia's Charleston office brokered the transaction. [Real Estate Business Online]
- Sierra Pointe in Tucson, AZ On the Market with Berkadia for $5.4M
Berkadia is pleased to announce the exclusive listing of Sierra Pointe, located at 2350 East Water Street in Tucson, AZ. The asking price for the 84-unit apartment community is $5,400,000. The seller has engaged Art Wadlund and Clint Wadlund of Berkadia's Tucson office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Becomes Freddie Mac TAH Seller/Servicer
Washington, D.C.—Freddie Mac has tapped Berkadia as a formally designated and licensed Freddie Mac Multifamily Targeted Affordable Housing (TAH) Seller/Servicer. New York-based Berkadia is one of only 13 lenders in the country to earn the designation.
Being a TAH means that a company is allowed to sell and service Freddie Mac Multifamily TAH loans secured by properties located anywhere in the United States. Other TAH Seller/Servicers currently include Bellwether Enterprise Real Estate Captial, Citibank, Greystone Servicing Corp., NorthMarq Capital and Pillar Multifamily.
TAH loans through Freddie Mac include mortgages on properties subject to low-income housing tax credits. They also include mortgages on properties that receive federal subsidies and transactions in which Freddie Mac will credit-enhance a mortgage that backs tax-exempt bonds.
Berkadia is a joint venture of Berkshire Hathaway and Leucadia National Corp. Among other things, the company is a Freddie Mac Program Plus lender, Fannie Mae DUS(r) Multifamily Seller/Servicer, insurance company correspondent and HUD, MAP and LEAN originator and servicer.
About 90 percent of the loans Freddie Mac finances in any given year support low- and moderate-income households who earn no more than area median income, according to the GSE. The company tends to have lower borrowing costs than other funding sources, which is a prime factor in obtaining financing for properties that might otherwise have difficulty securing any, including aging properties, those in need of capital improvements and apartments in smaller towns. [Multi-Housing News]
- Apartment Land Site in Chandler, AZ Listed by Berkadia for $5.6M
Berkadia is pleased to announce the exclusive listing of Elizann Site, located at 1135 East Germann Road in Chandler, AZ. The asking price for the 17.8-acre apartment land site is $5,600,000. The seller has engaged Mark Forrester and Ric Holway of Berkadia's Phoenix office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Tacoma's Winthrop hotel building has a new owner
Downtown Tacoma’s Winthrop hotel building is officially in the hands of its new owners, who already have permits to begin the historic building’s most extensive renovation in four decades.
The sale closed Tuesday, making California-based Redwood Housing Partners the latest owner of the historic 1925 property that now holds 194 low-income apartments.
Redwood plans to maintain the Winthrop as an affordable-housing apartment complex. The company received a lot of its funding for the building’s purchase and repair from the state’s affordable housing commission. The work planned for the Winthrop is as much for deferred maintenance issues as it is for upgrades, since the building suffered from neglect by its previous owners.
Redwood bought the Winthrop for $8.5 million from the trustee overseeing the bankruptcies of the previous owners, Tom Price and Hyun Um of Prium Cos. Redwood plans extensive constructoin. The two permits secured from the city so far estimate work valued at $6.8 million, and a third is being processed.
“I’m very happy the building is getting some investment,” said city historic preservation officer Reuben McKnight.
The sale has been in the works for almost a year, and Redwood founder Ryan Fuson has said he wouldn’t comment on his company’s plans for the building until the sale closed. On Monday, he said he likely wouldn’t comment even then.
One of the brokers on the sale said the city should celebrate the influx of millions to restore one of Tacoma’s most historic buildings.
“This is a big day for Tacoma,” said Jim Jensen, a senior vice president at Berkadia who helped broker the sale.
This spring, Redwood received approval from the Tacoma Landmarks Preservation Commission for its plans. According to the approved work plan, Redwood plans to:
Repair, not replace, two main passenger elevators, which have had problems operating predictably for years. According to an architect hired by Redwood, the elevators are not original to the building but were installed during the hotel’s conversion to low-income in apartments in the 1970s. In March, the last working elevator stopped running and forced some residents to temporarily move out.
Repair existing, original 1925 windows on street levels as well as those for the Crystal Ballroom and the penthouse.
Replace existing apartment windows with ones that match the building’s historic character. The last time many of those windows were replaced was in the 1970s, and many of them don’t work any more and are in rotted sills. Several years ago, the Tacoma Housing Authority commissioned a capital needs report to get an idea of how much it would cost to repair or replace everything that needed it. That report estimates that replacing just the residential windows would cost just over $1 million.
Install new roofing and insulation, as well as repair or replace clay tiles on the penthouse roof.
Clean, paint and fix the floor in the Crystal Ballroom, the room many Tacomans still recall with fondness as the site of proms and weddings. According to Redwood’s architect, the new owners don’t plan to use the room for anything. The ballroom is “still mostly intact, but its arched plaster ceiling and wood flooring are deteriorating due to plumbing leaks from the apartment floors above.” The water lines and drain lines for apartments above will be replaced. The chandeliers and wall sconces are in good condition. The original maple floors are covered by vinyl tiles.
Clean and paint the penthouse, as well as remove the nonoriginal “shed” from the balcony and install new French doors to match the originals. But it won’t be used — the elevator to get there was removed sometime in the past, and there’s no heat.
Renovate and upgrade common rooms for residents to include a computer room, library and fitness room.
Make laundry room on South Ninth Street and common area restrooms ADA-accessible.
Repair corridor walls and hallways, and install new carpet.
Install new ceilings, a new hot- and cold-water system, and boilers.
Replace cabinets, countertops and appliances in each unit. Replace select bathroom fixtures, but existing tile, tubs and sinks will remain. [The News Tribune]
- Berkadia: ATL Investor Appetite Will Persist
First Communities bought The Springs apartments, a 148-unit multifamily property first built in 1975 at 1898 Spring Rd in Smyrna, for $18.3M, or nearly $70k/unit. Berkadia's Andrew Mays (who brokered the deal with Paul Vetter and Matt White) tells us investors will continue placing their bets in Atlanta given the healthy local job market and investment opportunities. “We're expecting economic growth in Atlanta to continue and outpace most metropolitan areas in the next two years, so investor appetite should persist.” That, plus being two miles from the underway SunTrust Park probably helps things as well, he says. [Real Estate Bisnow]
- Berkadia brokers sale of California property for over $55.5M
Oxnard, Calif.—Berkadia announced the sale of The Vines, a Class A multifamily property that is part of RiverPark, a master planned community located at 3040 N. Oxnard Boulevard in Oxnard, Calif. Partner Adrienne Barr of the West Los Angeles office negotiated the transaction. The property sold for more than $55.5 million on April 10, 2015. The sale price reflects a per-unit price of $338,628, which is the highest per-unit price paid in the last 10 years in Ventura County among multifamily rental communities with 100 or more units.
The buyer was Champion Real Estate, led by Bob and Parker Champion based out of Los Angeles. The sellers were Corona Riverpark Promenade LLC and Corona Riverpark Luminaria LLC, negotiated by Tony Koeijmansof RSF Partners, based in Dallas.
“The sale is indicative of a strong investor appetite for new product in retail-oriented locations,” Barr said. “The combination of sustained job growth, high home prices and an abundance of new apartment product in the Ventura County area is expected to draw investors throughout 2015.”
The 164-unit property was built in two phases: the first 80 units were built in 2013 and the remaining 84 units were completed in 2014. The community features two- and three-bedroom layouts, and unit amenities include fully equipped kitchens with granite countertops, washer and dryer units, balconies or patios, walk-in closets, hardwood flooring and attached two-car garages. RiverPark amenities include seven different parks with playgrounds, basketball and tennis courts, picnic areas with barbecues, water fountains. Leasing an average of two units per week, Cirrus Asset Management delivered the property at 95 percent occupancy.
The Vines is situated near Pacific Coast Highway and State Route 101. It is within walking distance to high-end retail shops, dining, entertainment and less than 10 miles from both Ventura Beach and Channel Island Beach. The top employers in the area are St. John’s Regional Medical Center, Boskovich Farms Inc., Ventura Superior Municipal Court and Walmart Supercenter.
Apartment vacancy in the Ventura County metro area declined 70 basis points last year, reaching 3.7 percent by year-end. Average asking rent was $1,710 per month by the end of 2014. [Multi-Housing News]
- Berkadia Markets Sylmar Gardens in Van Nuys, CA for $11.34M
Berkadia is pleased to announce the exclusive listing of Sylmar Gardens, located at 6310 Sylmar Avenue in Van Nuys, CA. The asking price for the 54-unit apartment community is $11,340,000. The seller has engaged Dean Zander of Berkadia's West Los Angeles office and Vince Norris and Spencer Scott of Berkadia's Los Angeles North office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Barrington Regent in Phoenix, AZ Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Barrington Regent, a 124-unit apartment community, located at 825 West Osborn Road in Phoenix, AZ. The seller has engaged Mark Forrester, Ric Holway and Dan Cheyne of Berkadia's Phoenix office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia negotiates financing and sale of multifamily property in Greater Phoenix
Mesa, Ariz.—Berkadia announced the recent loan origination and sale of Gilbert Square Apartments, a multifamily property located at 1821 E. Covina Street in Mesa, Ariz. The sale price reflects a per-unit price of $64,939.
Assistant Vice President Chad Williams of the Phoenix office originated the fixed-rate loan through Berkadia’s Fannie Mae Program. Senior Partner Mark Forrester, Partner Ric Holway and Vice President Dan Cheyne, also of the Phoenix office, negotiated the sale of the property, which sold for $10.7 million on April 15, 2015. The seller was Exchange Services LLC of Long Beach, Calif., and the buyer was Gilbert Square Equity LLC of Portland, Ore.
Berkadia arranged the acquisition loan for the property. Loan terms included a 75-percent loan-to-value ratio and 10-year term.
Built in 1979, the 164-unit property features one- and two-bedroom floor plans. Unit amenities include fully equipped kitchens, and select units have walk-in closets. Community amenities include a swimming pool, laundry facility, barbecues and more than 250 open parking spaces. The property was 93 percent occupied at the time of sale.
Phoenix metro area vacancy tightened 20 basis points in the last three months to 5.7 percent. Market-wide asking rents reached $861 per month in the first quarter, up 0.5 percent from the end of 2014. [Multi-Housing News]
- El Cajon Apartments Sold for $5 Million
Bel Vue Terrace Properties LLC of San Diego has purchased the 40-unit Jamacha Apartments in El Cajon for $5 million, according to brokerage company Berkadia, which represented the buyer.
The sellers of the property, at 437 Jamacha Road, were Mary Kathryn King and Henry Christian Bierwirth of San Diego, successor co-trustees of the Lucille Patlaf Trust. The buyer was represented by Berkadia’s Allen Chitayat.
The property was built in 1973. [San Diego Business Journal]
- Investors Want Assets Near Employment Hubs
GLENDORA, CA—Employment centers are driving multifamily investment demand. An unnamed domestic investor has purchased the Glendora Park Place Apartment Homes from Glendora Park Place Inc. for $14.5 million, or $303 per square foot. The buyer was attracted to the property for its great location near major employment centers.
“The property’s recent construction near major employment centers of Los Angeles made this an attractive investment for the buyer,” Peter Hauser, a broker in Berkadia’s Newport Beach office, who transacted the sale, tells GlobeSt.com. “We’re seeing a continuance of the upswing in commercial real estate, particularly in the multifamily market across all Southern California submarkets, and we expect that momentum to continue in the coming months.” The top employers in the area include Azusa Pacific University, Citrus Community College District, Citrus Valley Medical Center and Raging Waters.
Located at 633-641 West Route 66 in Glendora, the property has both multifamily and commercial space, which boast a 95% occupancy rating. The three ground levels of the complex are dedicated to commercial space, while the 50 multifamily units include a mix of studio, one- and two-bedroom apartments. The interior units feature granite countertops, in-unit washers and dryers, hardwood floors, walk-in closets and private balconies, and the property’s amenities include a clubhouse, controlled gate access and covered onsite parking.
Glendora is part of the South Los Angeles market, which has been experiencing healthy growth. “Apartment vacancy in the Los Angeles South market ended the first quarter  at a healthy 3.6%, with asking rents up 4.4 percent annually,” says Hauser. “With historically low vacancy and robust rent trends, we’re seeing significant investor interest in all submarkets, and among all classes of apartment communities. Glendora Park Place, in particular, garnered a lot of attention from prospective buyers due to the age and location of the asset.”
The demand for housing has attracted developers to the area as well. City Ventures recently assembled an 8.76-acre land site from five parcels in the area to build a 144-townhome community of for-sale properties. The developer has closed on one of the five parcels and will close on the remaining four parcels throughout the year. [GlobeSt]
- Berkadia Presents Sierra Oaks in Turlock, CA for $37.5M
Berkadia is pleased to announce the exclusive listing of Sierra Oaks, located at 3025 West Christoffersen Parkway in Turlock, CA. The asking price for the 211-unit apartment community is $37,500,000. The seller has engaged Robin C. Kane of Berkadia's Fresno office and Brian Anderson of Berkadia's Sacramento office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Industry predicts strong year for local real estate
The spotlight shone brightly on the Valley’s real estate market Thursday night at the Fresno County Economic Development Corporation’s 12th Annual Real Estate Forecast event.
From multi-family, residential and retail to industrial, commercial, ag and investment, a procession of local experts provided snapshots of current market conditions — and their best crystal ball readings of where the market is headed.
The event, which drew about 400 people to the Fresno Convention Center, kicked off with a moving, 20-minute tribute to Charles Tingey, founder of Colliers International and also a founding member of the Fresno County EDC.
A pivotal and charismatic figure for many years in Valley real estate, Tingey died several months ago at the age of 74.
Bobby Fena, one of the principals at Colliers and a long time associate of Tingey’s, said, “Chuck was a mentor to all. He was a delight to be around and made a lot of people successful in this industry.”
John Brelsford, Tingey’s former partner, said, “Chuck was like a magnet. He could draw people in from all areas of life.”
Following the tribute to Tingey, Lee Ann Eager, EDC president and CEO, turned the mic over to Matt Renney and Doug Cords, who served as emcees for the evening.
The first expert to take the podium was Robin Kane of Berkadia, introduced as “the maestro of multi-family.”
Kane said that in 2014, multi-family sales in the Fresno-Clovis area “almost doubled” those of 2013.
Citing a “perfect storm” that includes historically low interest rates and continued growth in so-called “urban centers,” Kane predicted another strong year for the sector in 2015.
With home ownership rates for Californians at their lowest levels since 1990 — just above 50 percent — Kane said recent rent increases “have been eating away” at renters’ available equity to purchase a home.
Predicting that the apartment industry “will continue to benefit from a dysfunctional housing market,” he also said that stagnant wages and “difficulty arranging financing today” continue to be factors keeping more Valley residents renting rather than owning.
At the same time, he added, multi-family construction across the country “has just gone nuts.”
He predicted “2015 will be another record-setting year” for the sector.
Kane’s short presentation was followed by upbeat speeches by Colleen Wiginton of the Fresno Association of REALTORS, Ethan H. Smith and Brett Visintainer from Newmark Grubb Pearson Commercial, Brett Todd of Colliers International, Stanley Kjar from Pearson Realty and Peter Orlando from Retail California.
Keeping with the evening’s “Rock and Roll” theme, all of the evening’s speakers confirmed that real estate fundamentals in the Fresno area continue to improve.
“Two years ago, distressed sales represented 50 percent of the market activity,” said Wiginton. “Today, that number is down to just 17 percent. And it continues to fall.”
“We’ve officially hit the reset button,” she added. “Compared to other parts of the state, Fresno is still a very affordable place to live.”
Wiginton said first-time homebuyers currently comprise 41 percent of the local market and the pace of new home construction in the area should average about 1,800 single-family homes per year for the next decade.
“All of the fundamentals are in place for a healthy 2015,” she added.
Smith characterized Fresno’s industrial real estate sector as “pretty tight,” with current commercial vacancy rates hovering around 6.7 percent.
He said new incentives from Fresno County as well as the cities of Fresno, Clovis, Sanger and Kingsburg would spur additional construction of industrial buildings in those areas.
Smith’s prediction for 2015: Vacancy rates will continue to drop. Land prices will rise. And construction of the high-speed rail line will “create uncertainty and opportunity” in the market.
Ag broker Kjar began his presentation by noting that farm real estate values hit an all-time high in 2014. “Commodity prices drive the price of farmland,” Kjar said, “and right now, almonds are leading the charge.”
Predicting both the drought and a strong dollar could put a damper on growth in 2015, Kjar added, “Farm properties in areas with better water conditions will still be in demand.”
Todd said he expects commercial construction to “ramp up” late in 2015 and early 2016. “We are bullish and expect the market to continue to flourish,” he added.
Echoing those sentiments, Visintainer said, “more demand than supply” and “prolonged low interest rates” would continue to provide real estate investors with positive returns. “This could be one of the strongest years ever,” he added.
The final speaker of the night, Peter Orlando, said the area would only see the opening of two major new shopping centers in 2015 — Campus Pointe near Fresno State and Park Crossing in north Fresno.
He said the shopping center industry was “poised for growth” going forward and noted technology was playing an increasingly more important role in retailers’ courtship of consumers.
“The success of online retail has forced developers to create higher-quality shopping environments” in order to compete, he said, adding that outside-oriented environments were beginning to replace traditional, enclosed malls.
Orlando also predicted “social networks will serve more and more as shopping networks” and that Hispanics and millennials will “continue to heavily influence” retail shopping trends. [The Business Journal]
- Berkadia: Capitol Village Is Sold
AUSTIN—On behalf of Los Angeles-based InterGroup Corp., Berkadia has sold Capitol Village Apartments. The buyer was a San Francisco-based private investor.
Senior vice president George Deuillet III and vice president Forrest Bass of the Austin office negotiated the sale.
“Capitol Village was a unique investment offering that presented investors with an opportunity to acquire a property that was already performing well within its submarket, but was also in need of moderate exterior and interior renovations which inevitably should drive value further,” Bass told GlobeSt.com. “The submarket has experienced substantial rent growth in the most recent years and continues to benefit from its close proximity to the Mueller redevelopment and conversion of Highland Mall to the Austin Community College Highland campus.”
Located at 6855 East Highway 290, the asset was built in 1969. The 249-unit property features studio, one-, two- and three-bedroom layouts. Unit amenities include fully equipped kitchens with electrical appliances, balconies, patios, fireplaces, ceiling fans and walk-in closets. Community amenities include a swimming pool, clubhouse, playground, fitness center and business center, as well as barbecues, carports and two laundry facilities. The property, which is 96 percent occupied, is located on Highway 290 and near State Route 183.
“This was a highly attractive asset, receiving over 15 offers from a wide variety of investors,” says Bass. “The seller owned the property—its last holding in Austin—for more than 10 years, and the purchase represents the largest Austin acquisition to date for the buyer. We were happy to facilitate the transaction, which was an advantageous and strategic move for both parties.” [GlobeSt]
- The Villages at Bonita Glen in Chula Vista, CA Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of The Villages at Bonita Glen, a 295-unit apartment community, located at 250 Bonita Glen Drive in Chula Vista, CA. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Brokers $36M Multifamily Sale
PHOENIX—Berkadia closed the recent sale of The Springs at Gilbert Meadows Apartments, a multifamily property located at 275 W. Juniper Ave. in Gilbert. The seller was LMREC CDO II REO XIII, Inc. of Beverly Hills, and the buyer was First American Exchange Company, LLC, a qualified intermediary for RRE Bristol Holdings of Philadelphia.
Senior partner Mark Forrester, partner Ric Holway and vice president Dan Cheyne of the Phoenix office negotiated the sale of the property, which sold for $36 million. The sales price reflects a per-unit price of $78,431.
Forrester tells GlobeSt.com about the key points that sealed the deal: “There was a very significant value add opportunity to upgrade interiors and public space. The property is located in one of the best school districts in Metro Phoenix. It’s located in Gilbert, which is one of the best areas of Metro Phoenix—and in downtown Gilbert with its many amenities. Lastly, the buyer could put a new loan on it. All of these factors were key to the sale.”
Phoenix apartment vacancy declined 60 basis points to six percent in 2014 as increased leasing activity exceeded the sharp rise in year-over-year deliveries. Supported by healthy demand, average asking rents advanced by 3.9% to $846 per month.
“Multifamily transactions in the Phoenix metropolitan area were elevated in 2014, which we continue to see in 2015 because of steady job gains,” says Forrester.
The Springs at Gilbert Meadows Apartments is located near Route 60 and State Routes 202 and 101. The property is approximately one mile from Gilbert Historical Museum and fewer than five miles from Golfland Sunsplash Amusement Park. The area’s top employers are American Commerce Insurance, Dillard’s Distribution Center, FastMed Urgent Care, Gilbert Unified School District and Banner Health.
Built in 1986, the two-story, 459-unit property features one- and two-bedroom floor plans. Unit amenities include balconies or patios, washer and dryer units, storage, mini-blinds and optional cable. Select units also include ceiling fans and walk-in closets. Community amenities include a barbeque area, covered playground, heated pool, spa, fitness and business centers, as well as racquetball and tennis courts. The property was 95 percent occupied at the time of sale. [GlobeSt]
- Berkadia Markets Sandpiper in Las Vegas, NV
Berkadia is pleased to announce the exclusive listing of Sandpiper, a 488-unit apartment community, located at 4650 West Oakey Boulevard in Las Vegas, NV. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office and Brian Anderson of Berkadia's Sacramento office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- This Week's LA Deal Sheet - Sales
Glendora Park Place Apartments, a mixed-use property in Glendora, traded to an out-of-state buyer for $14.5M. Located at the northeast corner of Forestdale Avenue and Route 66 near the future Glendora Metro Gold Line Station, the property consists of 50 apartments and 7,919 SF of retail. Sperry Commercial Real Estate's Frank Dinari repped the buyer, while Berkadia Real Estate Advisors' Peter Hauser repped the seller. [Real Estate Bisnow]
- Berkadia does deals in Tacoma, Portland
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corp., negotiated apartment sales in Tacoma and Portland. Kenny Dudunakis of the Seattle office and Jim Jensen of the Tacoma office negotiated the sale of Eagles Landing Apartments, a 230-unit property in Tacoma, for $18.5 million, or $80,435 per unit. Goodman Real Estate was the buyer. Phil Oester and Joe Nydahl of the Portland office negotiated the sale of Westover Tower Apartments in Portland's popular Alphabet District. The 70-unit building was 95 percent leased when the sale closed last month. No price was given. [Seattle Daily Journal of Commerce]
- Unpriced Multifamily Portfolio Located Throughout Puget Sound Region Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of the Bianco Portfolio, a four-property, 985-unit multifamily portfolio, located in Federal Way, Olympia and Tacoma, WA. The seller has engaged Kenny Dudunakis, David Sorensen and Ben Johnson of Berkadia's Seattle office and Jim Jensen of Berkadia's Tacoma office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- Berkadia Arranges Sale of Multifamily Property in San Antonio
SAN ANTONIO — Berkadia has arranged the sale of Sun Park Apartments, a multifamily property located in San Antonio. Mike Miller, Chris Ross, Will Caruth and Cody Courtney of Berkadia’s San Antonio office negotiated the sale. Sun Park Apartments was built in 1985 and is located at 1830 Bandera Road. The fully occupied, 334-unit property features studio, one- and two-bedroom units, with amenities including kitchens, pantries, walk-in closets as well as balconies or patios. Select units include two-tone paint, vaulted ceilings and pool views. Community amenities include a swimming pool, spa, barbeque area, clubhouse, playground, fitness center, sports courts, gazebos, carports and controlled-access gates. A private investor from San Diego purchased the property. A private investor from Los Angeles was the seller. [Real Estate Business Online]
- Californians take over NW apartments for $12.4M
A California limited partnership has purchased a 70-unit apartment building in Portland's Alphabet District for nearly $5 million more than the property sold for just two years ago.
Westover Tower LP of San Mateo, Calif., recently paid $12.4 million for the Westover Tower Apartments at 930 N.W. 25th Place. The seller was Langley/Westover Tower LLC of Portland, who bought the building at the end of 2012 for $7.5 million.
Berkadia partner Phil Oester and vice president Joe Nydahl negotiated the sale. According to the company, vacancy in the Portland metro area declined 30 basis points to 3.9 percent in 2014. Average asking rents increased 6 percent to $1,163 per month last year.
“The Portland multifamily market is booming right now, which we expect to continue in the immediate future,” Oester said.
Built in 1950 and renovated in 2014, the Westover Tower Apartments building features 70 studio and one-bedroom floor plans. Unit amenities include fully equipped kitchens with energy efficient appliances, and extra storage. Select units have panoramic city views, island kitchens and walk-in closets.
Berkadia also recently negotiated the $18.5 million sale of Eagles Landing Apartments, a 230-unit property in Tacoma, Washington. [Portland Business Journal]
- Berkadia Brokers $10.5M Sale of Apartment Community in Augusta
AUGUSTA, GA. — Berkadia has brokered the $10.5 million sale of Georgian Place Apartments, a 324-unit multifamily community located at 1700 Valley Park Court in Augusta. The apartment property is located across the street from Georgia Regents University and roughly five miles from Augusta National Golf Course. The property features a swimming pool, playgrounds and a laundry facility. The buyer was a New York-based entity and the seller was a South Carolina-based entity. Mark Boyce, Andrew Mays and Paul Vetter of Berkadia brokered the transaction. Georgian Place Apartments was 96 percent occupied at the time of sale. [Real Estate Business Online]
- Resource Real Estate Enters Valley Market... Pays $36 Million For 459 Apartments
Gilbert - Resource Real Estate Inc. in Philadelphia, Pa. has entered the multi-family market in the Valley by paying $36 million ($78,431 per unit) to buy the 459-unit Springs at Gilbert Meadows apartments located at 275 W. Juniper Avenue in Gilbert. The seller was LMREC CDO II REO XIII Inc., formed by Latitude Management Real Estate Investors Inc. in Los Angeles, Calif. (Glenn Sonnenberg, pres.). The deal was brokered by Mark Forrester, Ric Holway and Dan Cheyne of Berkadia in Phoenix. The investment was made through Resource Real Estate Opportunity REIT Inc.a non-traded real estate investment trust sponsored by Resource Real Estate Inc. (Alan Feldman, CEO). Maricopa County records show RRE Gilbert Holdings LLC (Resource Real Estate entity) acquired the property in a cash transaction. The investment is the first in the Phoenix market for Resource Real Estate, which owns and manages $3.3 billion in assets across the U.S. The company is looking to purchase additional multi-family properties in the Valley. Resource Real Estate Inc. is a wholly-owned subsidiary of Resource America Inc. in New York City, N.Y. (NASDAQ:REXI), which has $20 billion in assets. The previous owner of Springs at Gilbert Meadows lost the multi-family asset to foreclosure after defaulting on a $32.5 million credit line that was secured by the apartment property. The loan was originally issued by Legg Mason Real Estate Capital, which is now Latitude Management Real Estate Investors (LMREI). In September 2006, BREW reported Residential Equity Partners in Portland, Ore. paying $31.95 million ($69,608 per unit) to buy Springs at Gilbert Meadows. The complex was built in 1986. The Gilbert rental community is the second multi-family property in the Valley that LMREI sold in the past week. The other project to sell, the 314-unit Copper Ridge on McKellips apartments at 550 E. McKellips Road in Mesa, was also previously owned by Residential Equity Partners. As reported in the March 20 issue of BREW, Deancurt Mesa LLC in Agawam, Mass. paid $18.75 million ($59,713 per unit) to purchase Copper Ridge on McKellips (see story below). Susan Pohl is v.p. of acquisitions at Resource Real Estate...reach her at (713) 559-1194. Wallace Sellers, Jr. of LMREI is at (310) 234-2100. Talk to the Berkadia agents at (602) 955-1122. [Brew]
- Multifamily Monday: Berkadia Surfers Sell Two
As the weather warms up, three seasoned surfers, Berkadia's Chip Nash, Wade Schmitz and Bob Heard will be hitting the waves more often. But they're still getting deals done; the team (including partner Greg Austin) just closed two multifamily investment sales, Avalon Square and Blalock Woods.
Chip (who's been surfing since he was 15) tells us Avalon Square was the most intricate deal he's ever done. The property is 220 units and in a very attractive location—Westheimer and Kirby. But it involved a short-term land lease that the landowner did not want to renegotiate, and 99% of potential buyers weren't willing to take that on. It also made finding financing difficult. It took three years to close the sale, finally to a private buyer from Austin, but that added another moving part to the complicated deal—it was a 1031 exchange, so the team had to immediately arrange a new loan.
Blalock Woods sold to a local developer, says Wade (showing off one of the 21 vintage surfboards he's collected), and it'll eventually be redeveloped. The 17-acre tract is in a great location in Spring Branch and has solid revenue while the new owner designs and picks its timing to redevelop. The seller (a family) had owned it for many years and felt like the property had lived its economic life and it was time for it to be something new.
Next up, the Berkadia team is closing a deal in Galveston at the end of the month and one in Southwest Houston in April. Both are loan assumptions that were under contract last year and are just taking a while to work through financing. The gents also have some tax credit deals under contract near The Woodlands. When not at the closing table, Chip, Wade and Bob (pictured) will be spending as much time in Matagorda and Surfside as possible, and planning frequent surf trips to Nicaragua and Costa Rica. [Real Estate Bisnow]
- Berkadia Offers Multifamily Development Site in Los Angeles, CA for $13.95M
Berkadia is pleased to announce the exclusive listing of Magnolia Development Site, located at 955-965 Magnolia Avenue in Los Angeles, CA. The asking price for the up-to-209-unit site is $13,950,000. The seller has engaged Brent Sprenkle of Berkadia's West Los Angeles office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Plymouth Manor in Riverside, CA Listed by Berkadia for $9M
Berkadia is pleased to announce the exclusive listing of Plymouth Manor, located at 5360 Van Buren Boulevard in Riverside, CA. The asking price for the 70-unit apartment community is $9,000,000. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Brokers Two Multifamily Sales in South Carolina Totaling $7.3M
COLUMBIA AND GREENVILLE, S.C. - Berkadia has brokered the sale of two multifamily communities in Columbia and Greenville totaling $7.3 million. The transactions include the $5.5 million sale of the 152-unit Shandon Crossing in Columbia and the $1.8 million sale of the 37-unit Hampton Harbor in Greenville. Warrendale, Pa.-based DBC Shandon Crossing LP purchased Shandon Crossing from Atlanta-based Varden Capital Properties LLC. Mark Boyce, Andrew Mays and Paul Vetter of Berkadia brokered both transactions. [Real Estate Business Online]
- Sierra Ridge Apartments in Clovis sold for $18.3 million
The Sierra Ridge Apartments, a multifamily property in Clovis, has been sold for $18.3 million.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, negotiated the deal, which closed on Feb. 24.
Berkadia provides investment sales advisory and research services for multifamily and commercial properties.
The sale price reflects a per-unit cost of $101,667 - or $120 per square foot.
Located at 100 Fowler Ave., Sierra Ridge is a 180-unit property built in 1991 and offers one-, two-, and three-bedroom floor plans.
Berkadia's Senior Vice President Robin C. Kane identified the buyer as a local investor and the seller as Sun Valley Pacific LLC of Tokyo, Japan.
"The multifamily market is surging right now in California, which we believe will continue for the remainder of 2015," Kane said. [The Business Journal]
- Berkadia's Investment Sales Top Producer for 2014 - Alex Mogharebi
Berkadia Real Estate Advisors is pleased to announce that Partner and Director of Affordable Housing Alex Mogharebi was the company's top-grossing investment sales advisor in 2014. Mogharebi, based in the company's Ontario, California office brokered the sale of more than 1,800 apartment units across the state of California last year.
In the fourth quarter alone, Mogharebi's sales totaled more than $100 million in apartment dispositions. Among the late-year sales, Monte Vista Gardens sold for $28.9 million. The 144-unit San Jose, California apartment community sold for $200,700 per unit and featured both market-rate and low-income units. The 160-unit Ridgeline in San Bernardino, California also sold in the final quarter of 2014, transacting for $18.5 million, or $115,625 per unit.
Other notable sales in 2014 include Highlander Pointe, located in Riverside, California, which sold for $14.1 million in the third quarter, and Four Winds, located in Santa Fe Springs, California that sold for $13.5 million in the first quarter.
"We are proud that Alex has notched another consecutive year as Berkadia Real Estate Advisors' top investment sales advisor. His success is a testament to his hard work and the deep resources at his disposal," said Brent Long, President of Investment Sales. [Arizona Real Estate Rama]
- Agoura Apartment Sells for $53 Million
The Lexington apartment complex in Agoura Hills has sold for $53 million.
Gary Freedman, principal of Erzalow Co., purchased the 178-unit property from Chicago apartment developer Equity Residential, according to real estate data firm CoStar Group Inc.
The sale price represents $299,000 per unit. The 11-building, 142,000-square-foot complex at 30856 Agoura Road is the second-largest multifamily property in the Agoura Hills market. It was formerly known as Archstone Agoura Hills but has been renamed The Lexington. It is 96 percent leased. The sale was financed by City National Bank.
This is the second largest transaction the real estate investment trust has made locally in recent months. Last fall, Equity Residential acquired The Hesby, a 308-unit upscale apartment building in North Hollywood, for $126 million. The REIT’s motivation for selling the Agoura property was to redeploy capital, according to CoStar.
The buyer of the complex plans to spend between $25,000 and $30,000 per unit to upgrade the interiors.
Dean Zander, senior partner at Berkadia, and his colleagues in the brokerage's Woodland Hills office, Vince Norris and Spencer C. Scott, represented both buyer and seller in the transaction.
The Lexington was built in 1986 on 15 acres. The mix of one- and two-bedroom apartments command average rents of $1,800 a month. The property features a fitness and business center, a pool, spa, barbeque area and tennis courts as well as hiking trails. [San Fernando Valley Business Journal]
- Cap Hill apartments sold for $11.5M
After just a year and half, a developer has sold the building he designed and built.
Chris Fulenwider last week sold a year-old Cap Hill apartment building at Emerson Street and 8th Avenue.
Illinois-based Inland Real Estate Group paid $11.5 million for The Emerson Lofts apartments, a 42-unit apartment building.
FarrellRES broker Frank Farrell and Berkadia broker John Laratta handled the deal on behalf of seller CF Studio.
"Emerson Lofts is located in the hottest submarket in Denver - there is no better apartment market for investment," Farrell said. "It's popular with renters because it's close to downtown. Whether you look at downtown as a place for nightlife, entertainment or your job, it's very convenient."
Fulenwider - who is also the building’s architect - said he had been working on the project for about two years before opening it to its first tenants in July 2013.
The three-story building has 31 one-bedroom apartments, 10 two-bedrooms and a single three-bedroom unit. Most of the building's tenants are young professionals, Fulenwider said, and it’s fully leased at about $2.60 per square foot.
Those lease rates overshot Fulenwider's own estimates for the project. His initial plan was to keep Emerson Lofts as a long-term investment, but he listed it last summer to capitalize on a hot apartment sales market. The final sales price came to just less than $274,000 per unit.
"The market said the time was right," he said.
Emerson Lofts makes at least three Denver-area acquisitions for Inland over the past year. Farrell said the company popped on his radar after going on a $50 million shopping spree just before Emerson Lofts hit the market.
Last April, Inland paid $43.5 million for a 263-unit Aurora apartment complex. And In June the company bought the Waneka Marketplace shopping center in Boulder for almost $10 million.
Inland representatives did not return phone calls seeking comment on the Emerson Lofts acquisition by press time. [Business Den]
- North County apartments sell for $6 million
A North County apartment complex has changed hands for nearly $6 million.
Circusdome LLC sold the Brighton Apartments, which counts 201 units at 2745 Rottingdean Drive, to SM-T.E.H. Realty 2 LLC. The deal closed in January.
SM-T.E.H. Realty 2 LLC was organized in September by Wyomissing, Pennsylvania, lawyer Kelsey Frankowski. Circusdome LLC was organized by Greg Zes of Chesterfield, according to records kept by the Missouri Secretary of State's office.
The complex, built in 1973, features 96 one-bedroom units and 105 two-bedroom units.
Andrea Kendrick of Berkadia Real Estate Advisors LLC negotiated the transaction. [St. Louis Business Journal]
- Berkadia Lists Villa Las Brisas in La Puente, CA for $20M - Bid Deadline: 3/12
Berkadia is pleased to announce the exclusive listing of Villa Las Brisas, located at 500-560 Leverett & 500-558 Dora Guzman Avenue in La Puente, CA. The asking price for the 104-unit apartment community is $20,000,000. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Provides Financing, Negotiates $40M Sale
Portland, Ore.—Berkadia announced the financing and sale of The Union and sale of The Commons at Pilot Butte, both located in Oregon. The seller for The Union was project^ and the buyer was Horizon Realty Advisors. Sellers for The Commons at Pilot Butte included several private trusts and Evergreen Housing Development Group was the buyer.
Senior Vice President Jeff Stuart of Berkadia's Seattle office arranged a $12.4 million acquisition loan for The Union, a student housing community located at 2750 NW Harrison Boulevard in Corvallis, Ore. Stuart secured the seven-year, fixed-rate, interest-only loan through Berkadia's Freddie Mac Program. National Director of Student Housing and Partner Kevin Larimer, Partner Phil Oester and Vice President Joe Nydahl of Berkadia's Portland office negotiated the sale of the property, which sold for $19.1 million on Jan. 9, 2015. The sale price reflects a per-unit price of $280,882 or $301 per square foot.
Oester and Nydahl also negotiated the sale of The Commons at Pilot Butte, a multifamily property built in 2004, which sold for $20.9 million on Jan. 8, 2015. The sale price reflects a per-unit price of $102,328 or $111 per square foot. [Multi-Housing News]
- Vista Springs in Moreno Valley, CA Marketed by Berkadia
Berkadia is pleased to announce the exclusive listing of Vista Springs, a 212-unit apartment community, located at 21550 Box Springs Road in Moreno Valley, CA. The seller has engaged Alex Mogharebi and Otto Ozen of Berkadia's Ontario office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Lists Ashton of Richmond Hill in Georgia for $14.79M
Berkadia is pleased to announce the exclusive listing of Ashton of Richmond Hill, located at 505 Harris Trail in Richmond Hill, GA. The asking price for the 232-unit apartment community is $14,790,000. The seller has engaged Andrew Mays and Paul Vetter of Berkadia's Atlanta office, Mark Boyce of Berkadia's South Carolina office and Cole Whitaker of Berkadia's Orlando office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]