- Berkadia Brokers MF Sales in Austin, Houston
AUSTIN--Berkadia announced today the sales of Lantana Trace, located at 1830 Rundberg Lane West and 9315 Northgate Blvd. in Austin, and Crystal Falls, located at 10950 Westbrae Parkway in Houston. Director Forrest Bass of the Austin office negotiated the transaction.
The Austin property was 97 percent occupied at the time of the sale. Built in 1972, the 112-unit property features studio, one- and two-bedroom floor plans. Each unit features kitchens with tile backsplashes and double sinks, tiled showers, large walk-in closets, wood-grain vinyl flooring, ceramic tile, ceiling fans and mini-blinds. Community amenities include two swimming pools, two laundry facilities, barbecue and picnic areas, courtyards with mature landscaping, perimeter fencing with controlled-access gate and nearby public transportation.
The community is located near State Route 183 and Interstate 35.
The seller was 1830 W. Rundberg LLC and 9315 Northgate LLC of Austin. The buyer was ACA Lantana Trace LLC, also of Austin.
The seller originally purchased the asset as two separate, 56-unit properties in 2012 and 2013, both at discounted per-unit prices. Since those acquisitions, the operator combined the communities to run as one property. The property was well maintained and had a long history of healthy operation.
The buyer owns and manages other properties in the immediate area and believes that current rents are below the market rate, leaving room for measurable rent growth. The new owner also plans minor interior and exterior renovations.
"The North submarket in Austin continues to see a lot of transaction activity and strong economic fundamental," Bass said. "We have closed four other recent multifamily transactions in the area, and just went to market with another large multifamily asset."
Vacancy in the Austin metro lowered 20 basis points to 4.8 percent in the first quarter. At $1,101 per month in March, average asking rent was up 1.3 percent since December.
In Houston, managing directors Chip Nash and Gregory Austin, director Wade Schmitz and associate director Bob Heard negotiated the Crystal Falls transaction. The property was 96 percent occupied at the time of the sale.
Built in 1984, the 165-unit property features studio, one- and two-bedroom floor plans. Each unit features fully equipped kitchens and balcony or patio. Select units have washer and dryer connections, fireplaces and vaulted ceilings. Community amenities include a swimming pool, Jacuzzi, fitness center and controlled-access gate.
The community is located near Braeswood Boulevard, State Route 59 and Beltway 8.
The seller was Emerge Crystal Falls LLC of Ladera, CA. The buyer was Bear Valley Delaware Crystal Falls LLC of Sausalito, CA.
The seller was at the end of the investment timeline, while the acquisition provided a value-add opportunity for the buyer. The buyer plans to upgrade the unit interiors.
Houston-metro vacancy tightened 30 basis points in the last three months to 5.4 percent by the end of the first quarter. Average asking rents advanced 0.8 percent to $1,052 per month in the first quarter. [GlobeSt]
- Unpriced Student Housing Community in Johnson City, TN Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Heights at 1301, a 132-unit student housing community, located at 1301 Seminole Drive in Johnson City, TN. The seller has engaged Kevin Larimer and Michael Tassoni of Berkadia's Michigan office and Royce Emerson of Berkadia's Alabama office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Brokers $14.7M Sale of Apartment Community, Arranges $11.8M Financing
RICHMOND HILL, GA. - Berkadia has brokered the sale of and arranged financing for Ashton of Richmond Hill, a 232-unit affordable housing property located at 505 Harris Trail in Richmond Hill, a suburb of Savannah, Ga. The community's amenities include a clubhouse, tennis court, volleyball court, picnic area, playground, swimming pool, community laundry room and 24-hour emergency maintenance. Savannah-based Kole Management Co. purchased the property from Ashton Partners GA LLC for $14.7 million. Andrew Mays, Paul Vetter, Mark Boyce and Cole Whitaker of Berkadia brokered the transaction. Berkadia also arranged acquisition financing for the transaction. Lloyd Griffin, Frank Brown and Brett Bennett of Berkadia arranged the $11.8 million Freddie Mac loan with a fixed interest rate of 4.16 percent and a 30-year amortization schedule. [Real Estate Business Online]
- Historic Family-Owned Landmark On 600 Block Of Georgia Avenue To Be Sold
An historic family-owned landmark on the 600 block of Georgia Avenue, including the Hardwick Hogshead Apartments and the Robinson Apartments, is being sold.
Marcus D. Lyons, director at Berkadia Real Estate Advisors, who brokered the transaction, confirmed the sale of the Georgia Avenue real estate. The parties involved, both closely-held LLCs, have agreed not to disclose terms of the transaction. This follows a number of apartment sales in the downtown Chattanooga region.
"There is a booming demand to provide affordable rental housing for young professionals and others who want to work and live in the heart of the city," said Mr. Lyons. "These two apartment buildings have a long history of providing a quality living experience for their residents, and my client is committed to carrying that reputation forward."
Fred Robinson, representing the owner of the Fountain Square real estate, expressed mixed emotions about selling at such an exciting time in Chattanooga.
"We have not been the traditional landlord, in that some of the property has been in this family since ice was delivered by horse and carriage," said Mr. Robinson. "Long term ownership seems to be a rarity in investment real estate today. Collectively, we have leased to several generations of Chattanoogans, and our experience has been overwhelmingly positive."
Mr. Robinson reflects on memories of past residents who recall hearing of the bombing at Pearl Harbor while living in one of their apartments, having their tonsils removed in one of the property's past medical offices, and rumors of hidden whiskey in the property's basement during the Prohibition.
Both apartment buildings underwent historic renovations a number of years ago, early in the renaissance of downtown Chattanooga, and great detail was taken to make sure the original historic detail of the design was preserved. The company is looking forward to transitioning ownership over to another local group which has great ideas for the next century. [The Chattanoogan]
- Berkadia Bolsters Investment Sales Capabilities in Florida With Addition of Three Professionals
Berkadia announces the addition of three investment sales professionals to its offices in South Florida: Tal Frydman joins as a senior director and Fernando Polanco and Yoav Yuhjtman join as directors. All three will work closely within the integrated platform of investment advisors and mortgage bankers across all Florida offices, including Senior Managing Director Mitch Sinberg and Investment Sales Advisor and Managing Director Cole Whitaker from the Orlando office.
"We're constantly looking for ways to improve our integrated mortgage banking, investment sales and servicing platform, whether that's adding new products or personnel," said Ernest Katai, Executive Vice President and Head of Production at Berkadia. "All three of these individuals bring a vast array of investment sales experience and provide depth to our existing team in South Florida. In tandem with our mortgage banking professionals, we're truly a one-stop shop for all of our clients' needs and will continue to integrate our investment sales and mortgage banking capabilities in offices across the country."
Prior to joining Berkadia, Frydman was a first vice president of investments in Marcus & Millichap's Fort Lauderdale office and also a senior director in the company's National Multi Housing Group. In his 16 years with the company, he sold multifamily investment properties in Florida and across the U.S., selling more than $500 million in commercial real estate and over 5,000 units. Yuhjtman, also joining with Frydman, was previously an associate and specialized in the sale of multifamily investment properties throughout Florida.
Polanco was previously the marketing director at Carroll Organization, a privately held owner and operator of high-quality multifamily real estate headquartered in Atlanta. While with Carroll, he was responsible for the due diligence and marketing implementation for 15 asset purchases totaling 5,550 units. The total value of properties acquired was $615 million, with $250 million in equity investment. He brings more than 10 years of director and management level sales and marketing experience to Berkadia.
"I am excited to join Berkadia's South Florida offices along with Fernando and Yoav, and look forward to leveraging the company's integrated platform with current and future clients," said Frydman. [Berkadia]
- Westwood Apartments in Waukegan, IL Marketed by Berkadia's Chicago Office for $8.3M
Berkadia is pleased to announce the exclusive listing of Westwood Apartments, located at 2720-2732 Westwood Drive in Waukegan, IL. The asking price for the 132-unit apartment community is $8,300,000. The seller has engaged Ralph DePasquale of Berkadia's Chicago office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia Presents Stonecrest at Double Oak Mountain in Birmingham, AL
Berkadia is pleased to announce the exclusive listing of Stonecrest at Double Oak Mountain, a 315-unit apartment community, located at One Stonecrest Drive in Birmingham, AL. The seller has engaged David Oakley and Royce Emerson of Berkadia's Alabama office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Unpriced Asset in North Charleston, SC Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Palm Pointe, a 112-unit apartment community, located at 2561 Fassitt Road in North Charleston, SC. The seller has engaged Mark Boyce of Berkadia's South Carolina office and Andrew Mays and Paul Vetter of Berkadia's Atlanta office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia sells multifamily property in Tucson for $14.3M
Berkadia sold The Place at Tierra Rica, a multifamily property located at 3201 and 3225 West Ina Road in Tucson, Arizona. Senior Managing Director Art Wadlund and Associate Clint Wadlund of the Tucson office facilitated the sale. The property sold for $14.3 million on May 28, 2015. The sale price reflects a per-unit price of $49,479, or approximately $69 per square foot.
The buyer was Aspen Square of West Springfield, Massachusetts. The seller was MC Companies of Scottsdale, Arizona.
"Investment activity in the Tucson area has been heating up," Wadlund said. "Recent growth in the local job market over the first quarter of 2015 has driven rental demand, and we expect that to be an ongoing, key factor in investment activity."
Built in 1988, the property's 288 units offer one-, two-, and three-bedroom floor plan options. Unit amenities include ceiling fans, dishwashers and refrigerators. Select units offer full sized washers and dryers, breakfast bars, and built-in bookcases. Community amenities include a clubhouse, business center, fitness center, lighted tennis court, two spas, three swimming pools, laundry facilities, picnic areas and WiFi hot spots.
The Place at Tierra Rica is located near Interstate Highway 10 and is fewer than two miles from both the Foothills Mall and the Omni Tucson National Resort. Top area employers include Northwest Medical Center, Foothills Mall and Omni Tucson National Resort.
Metro-wide apartment vacancy in Tucson fell 50 basis points year-over-year to 8 percent at the end of the first quarter of 2015. Operators advanced rents by an average of 1.2 percent during the first quarter to $666 per month, as rental demand jumped. [AZ Big Media]
- Berkadia's Fresno Office Markets Blackstone Acres for $14.95M
Berkadia is pleased to announce the exclusive listing of Blackstone Acres, located at 1919 - 2040 East Sussex Way in Fresno, CA. The asking price for the 232-unit apartment community is $14,950,000. 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.]
- Three-Property Portfolio in Corpus Christi Listed by Berkadia's San Antonio Office
Berkadia is pleased to announce the exclusive listing of the Corpus Christi Portfolio, a three-property, 287-unit multifamily portfolio, located in Corpus Christi, TX. The seller has engaged Mike Miller, Chris Ross, Will Caruth and Cody Courtney of Berkadia's San Antonio office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- Berkadia Lists Tucson, AZ-Based Sahuaro Point Villas for $5,250,000
Berkadia is pleased to announce the exclusive listing of Sahuaro Point Villas, located at 2326-2366 North 6th Avenue in Tucson, AZ. The asking price for the 20-unit apartment community is $5,250,000. 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 Completes Financing and Sale of Multifamily Portfolio in Tucson, Ariz.
Berkadia announced today the recent financing and sale of FHR Portfolio, a group of eight multifamily properties located across Tucson, Arizona. Senior Vice President Clay Akiwenzie of the San Francisco office originated the $49.8 million loan through Berkadia’s Freddie Mac Program. Senior Partner Art Wadlund and Associate Clint Wadlund of the Tucson office negotiated the sale of the properties, which sold for $66.7 million on May 15, 2015. The sale price reflects a per-unit price of $42,329. The seller was Family Housing Resources of Tucson, Arizona, and the buyer was MC Companies of Scottsdale, Ariz.
"We've worked closely with both clients in the past and our knowledge of their needs within the context of the overall market was key in finding a good fit on both sides of the deal," Art Wadlund said. "FHR sought to free up capital for investment, and was offering an excellent collection of well-maintained, strong-performing assets. MC Companies looked to expand their local holdings by acquiring operationally healthy communities with the potential for moderate renovations that would generate additional rental-rate upside."
MC Companies used the financing to acquire the portfolio, which consists of 1,576 units in total. The seven-year, floating-rate loan features a 2.32 percent interest rate, two years interest only, 75 percent loan-to-value ratio and 30-year amortization schedule.
The portfolio offers a range of studio, one- and two-bedroom floor plans options. Select properties include unit amenities such as cable access, balconies and patios, and fully equipped kitchens, as well as community amenities such as a gym, clubhouse, swimming pool and laundry facilities.
"This portfolio showcases the expertise and collaboration our mortgage banking and investment sales teams bring to the table," Akiwenzie said. "The investment sales team's deep relationship with the buyer and seller coupled with the mortgage banking team’s extensive experience with Freddie Mac allowed our team to complete the transaction seamlessly and transparently."
Top employers in the Tucson area include Davis-Monthan Air Force Base, University of Arizona and Raytheon. Metro-wide apartment vacancy in Tucson fell 50 basis points year over year to 8 percent at the end of the first quarter of this year. Operators advanced rents 1.2 percent on average in the first quarter to $666 per month as rental demand jumped. [Commercial Executive Magazine]
- 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]