- 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.]
- Unsold Artesia condo units sell in bulk
Fifty-three units in the 81-unit Artesia Escondido at 101 S. Spruce St., Escondido 92025, have been sold for $9.01 million.
The buyer was Artesia Escondido LLC of San Diego. SENTRE Artesia LLC is the manager of the seller, and Douglas M. Arthur is the manager of SENTRE Artesia.
Each of the units was financed individually with a $76,500 loan from First Republic Bank (NYSE: FRC). The bank also provided construction financing of $901,000.
The sellers of the property (assessor's parcels between 232-220-24-03 and -78) were Escondido Condo Holdings LLC and DR Condo Holdings LLC of Logan, Utah. Randy M. Hansen is the manager of both.
Dave Andrews, vice president of the San Diego office of Berkadia Real Estate Advisors, negotiated the transaction.
The sales price reflects a per-unit price of $170,000, or $195 per square foot. The property was 98 percent occupied at the time of the sale.
Built in 1989, Artesia Escondido is a low-density, garden-style community that features two- and three-bedroom floor plans.
Each unit features fully equipped kitchens, washer and dryers, balconies or patios, and private garages.
Community amenities include a swimming pool with cabanas, fitness center, barbecue areas and clubhouse.
Vacancy in the San Diego metro reached 3.7 percent by the end of 2014, dropping 50 basis points from the start of the year.
After increasing rents 3.3 percent in 2013, operators advanced average asking rent 4.3 percent since January of 2014 to $1,673 per month in December.
Berkadia, a joint venture of Berkshire Hathaway (NYSE: BRK.B) and Leucadia National Corp. (NYSE: LUK), is a commercial real estate company providing capital solutions and investment sales advisory and research services for multifamily and commercial properties.
Berkadia also provides interim and short-term financing through its Proprietary Bridge Lending Program. Commercial mortgage loan banking and servicing businesses are conducted by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Both firms also conduct investment sales and real estate brokerage businesses. [San Diego Daily Transcript]
- Apartment living growing
Apartment living is poised to grow as a lifestyle instead of being just a temporary living situation, a Fresno apartment expert said.
Seniors are looking to downsize and want to be in an urban setting where they can live, work and play, said Robin Kane, senior vice president at Berkadia Real Estate Advisors in Fresno. Meanwhile, millennials - young professionals between 20 and 35 years old - have roadblocks to homeownership.
Kane spoke to students and real estate professionals at Fresno State's Gazarian Real Estate Center Speaker Series on Wednesday about apartments and whether renting is the new American dream.
A survey of renters conducted by online housing company Trulia showed that 70% of renters still view homeownership as the American dream, Kane said. But today's potential homebuyers aren't moving quickly to make happen.
Millennials are mobile, delaying marriage and children, and have more student and credit card debt than generations before them, Kane said.
"They're more conservative," he added. "They saw what happened to us, their parents, with (the real estate crash). So, when it comes to housing, their choice isn't to rush into the homebuying cycle like we did."
Then there's the money thing.
Affordability diminishes as home prices increase. Tightened lending restrictions make it harder to get approved for a mortgage loan. And today's potential homebuyers are dealing with stagnant wage growth.
"These are all impediments for renters to become homeowners," Kane said.
But on a positive note, urban development in major cities across the country is reviving city centers with mixed-use developments that include apartments on top of ground level retail spaces.
That puts both seniors and millennials closer to city services, shops and activities, Kane said.
"They want that urban lifestyle," Kane said. "It's different than what we remember." [The Fresno Bee]
- Berkadia's Alabama office adds multifamily expert
Berkadia's Alabama office has added David D. Wilson, who will serve as senior investment advisor to the Arizona firm's Birmingham office.
Wilson has more than 25 years experience in commercial real estate, and he has specialized in multifamily development and transactions for over 20 years.
"We're excited to have David join our team," said Berkadia Partner David Oakley, in a statement this week. "We're in a fast-moving apartment investment market and adding his talents and dedication to our group will create a substantial impact for our clients in the management of their investment portfolios."
Wilson has owned a commercial real estate appraisal, research and consulting company in Huntsville, and the company has focused exclusively on multifamily for the past eight years.
Wilson has provided brokerage and advisory services to buyers and sellers of multifamily developments in Alabama and Tennessee over the past decade.
Wilson is a graduate of the University of Southern Mississippi and is a 12-year member of the Apartment Association of North Alabama. [Birmingham Business Journal]
- LSU-area apartment complex sells for $32.5M to Illinois firm
The Ohio developer of University Edge apartments has sold the complex at 650 W. McKinley St. for $32.5 million to an Illinois firm that specializes in student housing. Hallmark Student Housing Baton Rouge sold the two-year-old complex—which includes 474 beds in 158 units—to Scion BR Apartments, which owns and operates some 16,250 beds of university housing near 24 college campuses across the country.
"LSU is a market we really wanted to be in, and we actually hope to expand our presence there," says Eric Bronstein, principal and executive vice president of Scion. "It is a good asset property in a good location in what we see as a strong market."
Like many newer student housing complexes, University Edge counts beds rather than individual units. That's because most of its apartments are designed to house several students, who each have a private bedroom and bath but share common areas. The model is appealing, particularly with younger students, because it is more economical and enables several students to live in close proximity.
Bronstein says Scion has enjoyed plenty of success managing complexes under the model and is bullish on the Old South Baton Rouge neighborhood that is home to University Edge because of its proximity both to LSU and the planned Water Campus.
"We feel we'll be sandwiched between two big pieces of land that are run by the university, and it's walking distance to the main campus," he says. "We feel over the coming years it will improve even more as a satellite."
Gregg Cordaro with the Berkadia Louisiana office represented the seller in the transaction. At $221,088 per unit, or $68,856 per bed, he says the sale marks the highest price-per-unit paid for a student housing community in Louisiana. [Greater Baton Rouge Business Report]
- Crossing at Daybreak Listed by Berkadia, Tours: February 10th, 11th, 18th and 19th
Berkadia is pleased to announce the exclusive listing of Crossing at Daybreak, a 315-unit apartment community, located at 4950 West Frog's Leap Drive in South Jordan, UT. The seller has engaged James Wadsworth and Greg Barratt of Berkadia's Salt Lake City office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- RK Properties Adds to Multi-Family Holdings...Drops $23.25 Million for 160 Units
Cave Creek - A company formed by RK Properties in Long Beach, Calif. (William Rance King, Jr., mgr.) paid $23.25 million ($145,313 per unit) to buy the 160-unit Azure Creek at Tatum Ranch apartments at 29862 N. Tatum Boulevard in Phoenix. The seller was Sunstone Azure LP, a limited partnership formed by Sunstone Realty Advisors in Vancouver, British Columbia, Canada (Steve Evans, principal). The deal was brokered through Mark Forrester, Ric Holway and Dan Cheyne of Berkadia in Phoenix. Maricopa County records show RK Azure Creek LLC (RK Properties entity) acquired the property with a $13.25 million loan from BB&T Real Estate Funding LLC, a subsidiary of Grandbridge Real Estate Capital LLC in Chicago, Ill. At year-end 2010, the Sunstone Realty Advisors company paid $17.5 million ($109,375 per unit) to acquire Azure Creek at Tatum Ranch. The complex was built in 2001. The privately-held RK Properties has been an investor in the Valley for 10 years and has completed $500 + million in multi-family transactions in the U.S. since 1976. The company owns 1,930 apartments in the Phoenix area and also has multi-family properties in California, Colorado, Utah, Nevada and Florida. In its last Valley apartment investment reported by BREW in June 2014, RK Properties paid $21.2 million ($50,476 per unit) to acquire the 420-unit Northern Greens apartments at 8150 N. 61st Avenue in Glendale. RK Properties is interested in purchasing additional apartment projects in the Phoenix area. Find out more from King at (800) 677-7333. Talk to Evans at (604) 681-5959. Call the Berkadia agents at (602) 955-1122. [Brew]
- Berkadia Showcases Elan at Desert Ridge in Phoenix, AZ
Berkadia is pleased to announce the exclusive listing of Elan at Desert Ridge, a 370-unit apartment community, located at 21155 North 56th Street 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.]
- Glendora Park Place in Glendora, CA Listed by Berkadia for $14.5M
Berkadia is pleased to announce the exclusive listing of Glendora Park Place, located at 641 West Route 66 in Glendora, CA. The asking price for the 50-unit apartment community is $14,500,000. The seller has engaged Peter M. Hauser of Berkadia's Newport Beach office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Mogharebi of Berkadia Presents Ariana at El Paseo in Palm Desert, CA for $7.65M
Berkadia is pleased to announce the exclusive listing of Ariana at El Paseo, located at 45278 Deep Canyon Road in Palm Desert, CA. The asking price for the 63-unit apartment community is $7,650,000. 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 CEO Sees U.S. Property as Hot Space Amid Global Shocks
Justin Wheeler, who was named chief executive officer last week of the commercial-mortgage business owned by Berkshire Hathaway Inc. (BRK/A) and Leucadia National Corp. (LUK), said global investors are increasingly betting on U.S. property.
"People just want to pump dollars into the U.S." amid volatility in other markets, he said in a phone interview Tuesday afternoon New York time. Commercial real estate is a "hot space right now."
Wheeler's Berkadia Commercial Mortgage LLC originates and brokers loans, some of which are sold to U.S. government agencies. The company is also among the largest servicers of commercial real estate debt. Berkshire and Leucadia formed the company in 2009 after buying a business from bankrupt Capmark Financial Group Inc.
U.S. commercial property values surpassed the November 2007 peak by 2.4 percent, as measured by the Moody's/RCA Commercial Property Price Index. Prices in major markets, which include cities like New York and San Francisco, have exceeded prior records by about 16 percent, Moody's said this month in a report.
Markets have been rattled by plunging oil prices and central-bank moves like last week's decision by the Swiss National Bank to abolish a currency ceiling. That's driven investors to the U.S. even as its economy is still rebounding.
Chinese insurance companies are flooding into the global market for prime commercial real estate, helping to drive up property values. And Blackstone Group LP agreed to buy 36 apartment properties across the country for about $1.7 billion, two people with knowledge of the deal said this week.
The U.S. is the "tallest building in Idaho," Wheeler said, referring to one of the least-densely populated states.
Berkadia has expanded in recent years through acquisitions. In May, it bought Keystone Commercial Capital, a mortgage-banking company. In 2013, it purchased Hendricks & Partners, a firm that advises clients on multifamily real estate.
Wheeler, who used to work on mergers and acquisitions for Leucadia and has been acting CEO of Berkadia since April, said there will be more chances for Berkadia to buy businesses. The company's owners have the resources and long-term focus to do bigger deals when opportunities arise, he said. Berkshire is run by billionaire Warren Buffett and Leucadia by CEO Richard Handler.
"It's rare to be part of an organization that thinks in decades, not months and quarters," Wheeler said. "That's a real competitive advantage for us." [Bloomberg]
- Multifamily market to stay hot in 2015
Birmingham's red hot multifamily market in 2014 has reshaped the dynamic of downtown.
Although there is a lot of pint-up demand for apartment units in the Magic City, that isn't the only thing driving action in the sector.
Berkadia recently released its 2015 forecast for the nation, which looks at 60 metros, including Birmingham.
Overall, job growth across the country has driven urban apartment developments in metros like Dallas and Nashville.
While CBD job growth in Birmingham has not been as strong as other metros, investors see the Magic City as a place that provides solid vintage product, as well opportunities for new developments.
"It looks very positive," said David Oakley, partner at Birmingham's Berkadia office. "We're very excited about it. People are proceeding cautiously, but optimistically."
In 2014, Birmingham saw a small population increase of 0.6 percent, while employment grew at 0.5 percent. The median home price grew 1.2 percent to $166,800, while the median household income grew by the same percentage to $48,200.
Rising incomes facilitated rental demand, which led to 1,200 units being absorbed during 2014, compared to the 10-year average of 250 per year, the report said.
Developers delivered 1,100 units in the metro area, the highest number since 2005.
"I see it continuing," Oakley said, noting that developments like the 300-plus unit Highland apartment tower is seeing some demolition work on the site.
Also, Iron City Lofts developer KRE Development Holdings plans to start construction on the 67-unit development by Pepper Place this month.
Bomosada Group said it will break ground on a 300-plus unit development in Lakeview in late May or early June.
The development that will bring Publix, Starbucks and other retailers to 20th Street South and Third Avenue South also involves over 100 apartment units.
"We're seeing some newer deals come on online that are seeing some extremely strong demand, which is surprising a lot of people," Oakley said.
Oakley said he expects older product will continue to move in the area after over $150 million in apartments were sold between November 2014 and this month.
As far as new areas to look for for new development, Oakley said to keep an eye out for Irondale.
"The real area that I think is going to sneak up on everyone and surprise everyone is Irondale-east," Oakley said, noting recent traffic producers like Grant's Mill and Church of the Highlands as potential catalysts for development. "I think that market will be a point of interest in the next 24 months. It's prime for new development."
As young professionals continue to move to Birmingham because of downtown employers like UAB, Oakley said to expect night life and entertainment options to keep growing.
If that happens, there should be no slacking off in apartment developments near the central business district. [Birmingham Business Journal]
- Unpriced Two-Property Portfolio in Newport News, VA Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of Hanover & Kopenhaven, a two-property, 113-unit multifamily portfolio, located in Newport News, VA. The seller has engaged David Hudgins and Alan Meetze of Berkadia's Newport News office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- North County apartment complex sells for $6.1 million
The Springwood apartment complex in Bel-Ridge has sold to a Reading, Pennsylvania, corporation for $6.1 million.
Taterville LLC, organized by Gregory Zes of Chesterfield, on Dec. 30 sold the 272-unit complex to SM-T.E.H. Realty 1 LLC, its first purchase in the St. Louis region.
The complex, at 4212 Springdale Ave., about one mile from the University of Missouri - St. Louis, was built in 1967, and features one- and two-bedroom floor plans. Ken Aston and Andrea Kendrick of Berkadia Real Estate Advisors negotiated the transaction. [St. Louis Business Journal]
- Berkadia Markets Four-Property Portfolio in Missouri for $8.28M
Berkadia is pleased to announce the exclusive listing of the Southeast Missouri Portfolio, a four-property, 184-unit multifamily portfolio, located in Park Hills, Perryville and Farmington, MO. The seller has engaged Andrea Kendrick and Ken Aston of Berkadia's St. Louis office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- Acting CEO Wheeler Takes Helm at Berkadia
HORSHAM, PA-Justin Wheeler, who has held the title of acting CEO at Berkadia Commercial Mortgage since this past spring, now gets the job on a permanent basis. Currently COO at Leucadia National Corp., which owns Berkadia in a 50/50 joint venture with Berkshire Hathaway, Wheeler stepped in as interim CEO for Berkadia when Hugh Frater relinquished the position to become chairman.
With his interim CEO duties now permanent, Wheeler will be stepping down from his position as Leucadia's COO, which he has maintained while serving as acting CEO for the Berkadia JV. He joined Leucadia as a VP in 2006, and previously served as president and CEO of American Investment Bank, a Leucadia subsidiary.
"As 50% owner of Berkadia, we will work closely with Justin to create further value at the company," Richard B. Handler and Brian P. Friedman, the respective and president of Leucadia. "We are sincerely grateful to Justin for all he has done for Leucadia, and we look forward to our continuing partnership with Justin and the outstanding team at Berkadia."
For his part, Wheeler says, "Over the previous 10 months, Berkadia has significantly strengthened its market position, brand and overall momentum." He looks forward "to working with our exceptional clients, employees and shareholders to further accelerate growth and leverage our unique platform." [GlobeSt]
- El Dorado Villas in Sherman Oaks, CA Listed by Berkadia for $21.5M
Berkadia is pleased to announce the exclusive listing of El Dorado Villas, located at 4510 Murietta Avenue in Sherman Oaks, CA. The asking price for the 33-unit apartment community is $21,500,000. 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.]
- Berkadia Presents Two-Property Portfolio in El Paso, TX for $11.35M
Berkadia is pleased to announce the exclusive listing of the Shadow Mountain Portfolio, a two-property, 236-unit multifamily portfolio, located in El Paso, TX. The seller has engaged Winston Black of Berkadia's Colorado Springs office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- This Week's Chicago Deal Sheet
Berkadia SVP Ralph DePasquale completed the $26.3M sale (nearly $90k/unit) of the 300-unit Forest Cove Apartments, 1706 Forest Cove Dr in Mount Prospect. Berkadia's Matt Ewig and Jeff Robbins refinanced the 97% occupied asset in 2013 for seller Forest Cove Venture, allowing the new buyer to assume the existing debt. The buyer, TLC Ventures, headed by Stuart Handler, was attracted to the property for its renovation potential and has upgrades planned. [Real Estate Bisnow]
- Boulders on the River in Eugene, OR Listed by Berkadia's Portland Office
Berkadia is pleased to announce the exclusive listing of Boulders on the River, a 249-unit apartment community, located at 655 Goodpasture Island Road in Eugene, OR The seller has engaged Phil Oester and Joe Nydahl of Berkadia's Portland office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Firm brokers $27M sale of Smyrna Mission Galleria Apartments
Berkadia Real Estate Advisors, one of the nation's largest and most active multifamily investment banking and research companies, recently brokered a $27 million sale of the 416-unit Mission Galleria apartment community at 5000 South Lincoln Trace Ave. NE in Smyrna.
Andrew Mays and Paul Vetter, senior vice presidents at Berkadia's Atlanta office, represented the buyer RADCO Investments LLC on the deal and worked with David Oakley, partner in Berkadia's Birmingham office, who represented the seller Mission Galleria LLC.
"RADCO recognized in Mission Galleria an excellent value-add opportunity buoyed by the adjacent development of SunTrust Park, and moved expeditiously to get this done," said Mays.
"A deal of this size and complexity would have never come to fruition without the collaboration of our Southeastern offices using their creativity and leveraging existing relationships within the region," said Brent Long, president at Berkadia’s Phoenix headquarters.
Mission Galleria is within walking distance and adjacent to SunTrust Park, the future home of the Atlanta Braves, which is slated to open in 2017 at an estimated cost of more than $600 million, seating more than 40,000.
"Major developments like the Braves' SunTrust Park in Cobb County bring additional development opportunities creating a domino effect," said Vetter.
"Buyer and seller were exceptional to deal with and we were excited to bring the two relationships together for a successful transaction, the first of many our Atlanta team will deliver and I'm thrilled to be a part of their positive momentum," said Oakley.
Built in 1975, and situated on more than 25 acres, Mission Galleria was 85-percent leased at the time of the sale. [Marietta Daily Journal]
- ColRich Adds to Valley Holdings- Picks Up 332 Apartments in $31 Million Deal
Scottsdale - A joint venture formed by ColRich in San Diego, Calif. (Danny Gabriel, principal) and Harbert Management Corp. in Birmingham, Ala. (Raymond Harbert, principal) paid $31 million ($93,373 per unit) buy The Cortesian, a 332-unit apartment community located at 7749 E. Camelback Road in Scottsdale. The seller was Camelback Cortesian LLC, a company formed by El Dorado Holdings Inc. in Phoenix (Mike Ingram, chairman). The deal was negotiated by Mark Forrester and Ric Holway of Berkadia in Phoenix. Maricopa County records show CH Cortesian Communities LLC (ColRich/Harbert venture) acquired the apartment property with a $7.79 + million down payment, by assuming a $12.657 million Freddie Mac loan owed to the registered holders of Deutsche Mortgage & Asset Receiving Corp. Multifamily Mortgage Pass-Through Certificates Series 2011-K11 and with $10.55 million in supplemental financing issued through Centerline Mortgage Partners Inc. The escrow was handled by Kristina Gooding of Thomas Title & Escrow LLC in Scottsdale. In April 2012, BREW reported the El Dorado Holdings entity paying $25.85 million ($77,861 per unit) to buy The Cortesian. The complex was developed in 1971. ColRich and Harbert Capital, both privately-held companies, have been active buying and selling multi-family properties in the Valley. At year-end 2014, BREW reported a company formed by ColRich and Harbert selling the 124-unit Solaire apartments at 801 E. McKellips Road in Tempe. The buyer in that $12.4 million sale ($100,000 per unit) was PAM Real Estate Group in Kirkland, Wash. (Michael Thayer, principal). Learn more from Gabriel at (858) 490-2303. Jon-Paul Momsen is the contact for Harbert Management . . . call him at (415) 442-8380. Jim Kenny, pres. of El Dorado Holdings, is at (602) 955-2424. Reach Forrester and Holway at (602) 955-1122. [Brew]
- Berkadia Markets Student Housing Property Near West Virginia University
Berkadia is pleased to announce the exclusive listing of The Lofts, a 218-unit student housing community, located at 5000 Station Street in Morgantown, WV. The seller has engaged Kevin Larimer and Michael Tassoni of Berkadia's Michigan office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]