- Berkadia Negotiates Multifamily Sale in Winnetka, CA - LA Deal Sheet
A 42-unit apartment building in Winnetka (20006 Roscoe Blvd) traded for just over $6M or $144k/unit. According to Berkadia's David Harrington, the buyer closed at the original offering price after a short contingency period. Built in 1963, the property is adjacent to Winnetka Avenue Elementary School. [Real Estate Bisnow]
- Berkshire Mortgage Venture Hires Team for Texas Apartment Deals
Berkadia Commercial Mortgage LLC , the joint venture of Berkshire Hathaway Inc. and Leucadia National Corp., hired a team from Marcus & Millichap Inc. to expand in Texas.
William Jarnagin, Michael Ware and Taylor Hill joined the firm as senior directors, Berkadia said Monday in a statement. The three previously worked at Marcus & Millichap's Dallas office, focusing on multifamily properties, and together completed sales covering more than 12,300 units, according to the statement.
"This group of professionals has worked together for many years and their track record speaks for itself," Brent Long, president of investment sales at Berkadia, said in the statement. "Their addition immediately broadens our expertise in the Texas market."
Berkadia is pursuing growth under Justin Wheeler, the former Leucadia manager who was named chief executive officer of the mortgage venture this year. Loan originations exceeded $13 billion last year at the operation, which expanded in the apartment market with the purchase in late 2012 of Hendricks & Partners.
A representative for Marcus & Millichap didn't immediately return a message seeking comment. [Bloomberg]
- Trio of Tucson Sales for Berkadia
TUCSON-Berkadia has closed on three multifamily properties in Tucson: Pantano Park, located at 200 S. Pantano Rd.; Woodridge, located at 8225 E. Speedway Blvd.; and El Conquistador, located at 1881 E. Irvington Rd. Senior managing director Art Wadlund and associate Clint Wadlund of the Tucson office negotiated the transactions.
Clint Wadlund tells GlobeSt.com, "Interest rates are creeping up a little bit, but there are some programs in place in that $7 million range that are helping with that. Overall the market is healthy. People are coming to Tucson chasing that yield. Of course we would like to see more job growth here-we're always looking for job growth. One great thing about Tucson is that it doesn't have the highs and lows like Phoenix; the market is less cyclical. People can come here and get that cash flow."
Pantano Park sold for $7.2 million. The sales price reflects a per-unit price of $53,015, or $71 per square foot. Associate Rick Salinas of Berkadia's San Francisco office arranged financing.
Built in 1981, the 136-unit property features one- and two-bedroom floor plans. Each unit features fully equipped kitchens, pantries, ceiling fans, vertical and mini-blinds, balcony or patio, storage, walk-in closets and cable/internet access. Select units have fireplaces. Community amenities include a clubhouse with kitchen and fireplace, heated swimming pool, spa, laundry facility, barbecue areas with grills and health club passes.
The community is located near Broadway Boulevard, providing residents access to the entire Tucson area. Pantano Park is two and a half miles from Park Place Mall and eight miles from University of Arizona. Top employers in the immediate area include Tucson Medical Center, St. Joseph's Hospital, Davis-Monthan Air Force Base and Honeywell. The seller was Roy and Sandy Uelner of Milwaukee. The buyer was Mark McMillin of San Diego. Metrowide apartment vacancy in Tucson fell 50 basis points year over year to 8% at the end of the first quarter of this year. Operators advanced rents 1.2% on average in the first quarter to $666 per month.
Woodridge sold for nearly $9.8 million. The sales price reflects a per-unit price of $47,794, or $83 per square foot. Built in 1981, the 204-unit property features one- and two-bedroom floor plans. Each unit features fully equipped kitchens, mini-blinds, balcony or patio, cable access and extra storage. Select units have ceiling fans, frost-free refrigerators, and walk-in closets. Community amenities include a clubhouse with a kitchen, high-speed internet, fitness center, heated swimming pool, spa, laundry facility and garage rentals.
The community is located on Speedway Boulevard, providing residents access to the entire Tucson area. Woodridge is four miles from Park Place Mall and eight miles from University of Arizona. Top employers in the immediate area include Tucson Medical Center, St. Joseph's Hospital, Davis-Monthan Air Force Base and Honeywell. The seller was HSL Properties of Tucson. The buyer was Charles Harris of San Diego.
El Conquistador sold for more than $4.5 million. The sales price reflects a per-unit price of $22,537, or $56 per square foot. Built in 1981, the 201-unit property features studio, one- and two-bedroom floor plans. Each unit features air conditioning, mini-blinds, walk-in closets, built-in dining room tables and cable access. Community amenities include a heated swimming pool, spa, gazebo, fitness center, laundry room with a television lounge, tennis, sand volleyball, racquetball and basketball courts, jogging track, shuffleboard and horseshoes.
The community is located on Irvington Road and near Campbell Avenue and Interstate 10, providing residents access to the entire Tucson area. El Conquistador is three miles from Tucson International Airport and five and a half miles from the Tucson Convention Center. Top employers in the immediate area include University of Arizona, Raytheon Missile Systems, Providence of Arizona Inc., and University Medical Center. The seller was Coordinated Partners Inc. of Salt Lake City. The buyer was Oksenholt Corporation of Lincoln City, OR. [GlobeSt]
- Berkadia Brokers $47M Sale of Multifamily Portfolio in Florida
PALM BAY AND MELBOURNE, FLA. - Berkadia has brokered the $47 million sale of a three-property multifamily portfolio in Palm Bay and Melbourne. Agawam, Mass.-based Deancurt Melbourne LLC purchased the portfolio from Denver-based HC II LP for roughly $85,454 per unit. Cole Whitaker, Hal Warren and Jason Stanton of Berkadia brokered the transaction. The three communities include the 112-unit Malabar Lakes in Palm Bay, the 300-unit Grand Oaks at the Lake in Melbourne and the 138-unit Park Village in Melbourne. [Real Estate Business Online]
- Three SoCal Multifamily Properties Trade
ONTARIO, CA—Berkadia has executed the sale of three multifamily properties located in Southern California's Inland Empire. Managing director Alex Mogharebi of the Ontario office completed the sales, which totaled $85 million. Highlights include:
Mogharebi negotiated $49.1 million for the sale of The Villages at Bonita Glen, located at 240, 250, 254 and 260 Bonita Glen Drive and 72 Sandalwood Drive in Chula Vista, California. The sale price reflects a per-unit price of $166,271. The buyer was RRE Bonita Glen Holdings, LLC of Philadelphia, and the seller, who had owned the property since 1997, was Granite Investment Group of Irvine, CA. Over a dozen offers were received for the property.
Built in two phases in 1970 and 1988, the 295-unit property consists of studio, one-, and two-bedroom layouts. More than 35 unique unit layouts are available. Unit amenities include fully equipped kitchens, double-basin stainless steel sinks, fireplaces, skylights, and a patio or balcony. Community amenities include a swimming pool, spa, fitness center, club house, recreation room, and picnic and barbeque areas. The property is fully occupied.
The Villages at Bonita Glen, located near Interstate Route 805 and State Route 5, is fewer than 10 miles from downtown San Diego and fewer than 16 miles from Sea World. Top employers in the immediate area include 32nd Street Naval Station, Southwestern Community College, San Diego Police Department and San Diego Trolley, Inc.
At 3.8% in March, vacancy in the San Diego metro area has decreased 70 basis points over the last year. Average monthly asking rents reached $1,712, advancing 5.4% across the area annually.
"This property is well-maintained and located in between downtown San Diego and San Ysidro, an area that is quickly becoming quite popular," said Mogharebi. "These factors, among others, were key attributes that attracted the buyer, and our team was able to leverage our proprietary market intelligence and extensive experience to close the sale efficiently."
Mogharebi also closed for the sale of Oasis at Bermuda Dunes, which sold for $19 million and is located at 79090 42nd avenue in Bermuda Dunes, California. The buyer was Pacific Development Partners of San Juan Capistrano, the seller was Tri-Millennium Properties of Los Angeles. Built in 2005 by the seller, the 140-unit property features one- and two-bedroom layouts. Unit amenities include raised ceilings, granite countertops, and washer and dyers, and community amenities consist of a swimming pool, business center, playground and media room. The buyer plans to put new property management in place to increase revenues through renovations and operational efficiencies.
Finally, Mogharebi brokered the $16.9 million sale of Harbor Grand, located at 15120 Grand Avenue in Lake Elsinore. The buyer was Providence Capital Group in Encinitas, who purchased the property as the upleg of 1031 exchange. The seller was Positive Investments of Arcadia. The previous owner acquired the property out of foreclosure and completed upgrades throughout the community. The 192-unit property features one-, two- and three-bedroom layouts. Unit amenities consist of fully equipped kitchens, walk-in closets, vaulted ceilings, and a patio or balcony, and community amenities include two swimming pools, spas and laundry facilities, a courtyard and a playground.
Vacancy in the Inland Empire metro area was 4.5% at the end of the first quarter, 30 basis points lower than a year ago. Average asking rents have increased 5.4% since the first quarter of 2014, reaching $1,324 per month in March this year.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industryleading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia is among the largest, highest rated and most respected primary, master and special servicers in the industry. [GlobeSt]
- Value-Add Multifamily Fetches $44M
MORENO VALLEY, CA—Los Angeles-based investor MJW Properties has purchased the Broadstone Overlook from an unnamed institutional multifamily owner for $44 million. The value-add sale attracted 160 interested investors, and resulted in dozens of tours. According to the seller’s sales team at Berkadia, this transaction illustrates the high demand for value-add multifamily in suburban markets.
"Original ownership had invested in the property with a 7-year horizon; at the 7th year they decided to wait another year as operations were steadily improving and new residents were paying the increased rate for interior improvements, including new hardwood floors," Dean Zander, managing director at Berkadia, tells GlobeSt.com. "During this time they also upgraded the common areas including refreshing the leasing office, clubhouse, business center, fitness center and pool/spa areas." Zander represented the seller in the transaction along with his colleagues Vince Norris and Margie Molloy.
Located at 12963 Moreno Beach Drive within Rancho Belago submarket of Moreno Valley, the 256-unit class-A property sits on 16 acres and features a community lounge, pool. Spa, fitness center and business center. It has a mix of one-, two- and three-bedroom apartment homes in 15 building. Recently, the seller began making significant interior renovations, adding hardwood floors and stainless steel appliances. The buyer plans to continue making the renovations to the interior units.
The marketing process was incredibly competitive. The asset was already consider class A, and has experienced escalating rents because of the ongoing interior improvements. Although 160 investors inquired about the sale, some thought that rental rates were reaching a peak. "Quite a few of the prospective investors felt the rents were trending towards the high end of the market and had more perceived risk than upside," adds Zander. "However, the strongest collection of prospects actually realized the compelling new job formation situation in Moreno Valley was creating an entire new class of renters who wanted and could afford all the finest amenities both in the common areas and in the unit interiors. We had interested investors from all over Southern and Northern CA, plus the Pacific Northwest and even Chicago, come tour the asset and submit offers. The successful bidder has a very long-term ownership perspective and understands the job formation, rent growth and demographics trends are clearly in the owner's favor." In the end, the asset drew several competitive offers.
Alliance Residential built this property in 2007. In December of last year, a similar Alliance-built property traded hands. An institutional buyer bought Lasselle Place for $45 million in a sale led by Zander. [GlobeSt]
- Berkadia Negotiates Sale of Multifamily Property in Kansas City
KANSAS CITY, KAN. — Berkadia has brokered the sale of Waterstone Apartments, located at 1100-1056 County Line Road in Kansas City, for an undisclosed price. The property was 90 percent occupied at the time of sale. The buyer was Waterstone of Kansas City, Mo., with Worcester Investments serving as general partner. The seller was VIRTU KC1 Associates of Larkspur, Calif. The 372-unit property was built in 1969 and features one-, two-, and three-bedroom layouts. Unit amenities include fireplaces, fully equipped kitchens, decks or patios and walk-in closets. Community amenities include two swimming pools, a playground and covered parking. Phillip Brimble of Berkadia's Kansas City office brokered the sale. [Real Estate Business Online]
- Washington investor buys Beaverton apartments for $64M
A Vancouver, Washington real estate investment firm has scooped up two apartment communities in Beaverton and has plans for a substantial remodel.
Holland Acquisition Co. LLC of Vancouver acquired Wyndham Park I and II, two apartment communities on Southwest Scholls Ferry Road and Southwest 147th Terrace in Beaverton, for a combined total of $63.9 million.
The seller was KI-Wyndham Park LLC of Liberty Lake, Wash. Phil Oester and Joe Nydahl of Berkadia facilitated the transaction.
Wyndham Park I sold for $34.5 million, reflecting a per-unit price of $151,342, and Wyndham Park II sold for $29.4 million, reflecting a per-unit price of $150,738.
According to Berkadia, Holland plans to renovate the properties' units and common areas and merge the two into one cohesive garden-style community. This acquisition involved an assumption of two Freddie Mac loans.
"This is a great example of creating value through expansion," Oester said in a release. "This is an ideal value-add property where a small investment in interior upgrades and repositioning the combined properties into a larger, amenity rich community can have big rewards."
Wyndham Park I is a 228-unit property that was built in 1996 and features one-, two- and three-bedroom layouts. Unit amenities include fully equipped kitchens with stainless steel appliances in select units, breakfast bars, balconies or patios, washer and dryer units and large closets.
The community's amenities include two swimming pools, a Jacuzzi, sauna, wading pool, clubhouse, playground, fitness center, barbecues, a business center and bicycle storage.
Wyndham Park II is a 195-unit property that was built in 1987. Unit amenities include fully equipped kitchens, fireplaces, balconies or patios, storage, stacked washer and dryer units and private entries in select units.
Community amenities include a swimming pool, sauna, Jacuzzi, fitness center, clubhouse, playground, car care areas and garages.
Wyndham Park I and II share an entryway across from the Murray Scholls Town Center.
According to Berkadia, the Portland metro area vacancy tightened 40 basis points over the last three months to 3.8 percent in March 2015. Monthly asking rents advanced 6.7 percent across the metro area annually, with the Beaverton submarket leading the increase at 9.8 percent to an average rent of $1,151. [Portland Business Journal]
- MF Investors Look to Middle America
OMAHA, NE-Multifamily communities in the top US markets have been hot commodities for some time now, and the compression of cap rates there has caused many coastal investors to begin looking for opportunities in the nation's interior. Grandridge 930, LLC of Brooklyn, New York, for example, just bought the Grandridge Apartments, a multifamily property located at 5439 N. 100th Plaza in Omaha, NE.
"The investor inquiries seem to be up more than 50% from a few years ago, with a lot of interest coming from out-of-state buyers with no previous presence in Omaha," Ralph DePasquale, the Chicago-based managing director for Berkadia, tells GlobeSt.com. "These markets don't have a great deal of institutional following and are dominated by leveraged buyers."
DePasquale and director Laurel Wallerstedt of the Kansas City office worked together to complete this sale. The property was marketed without an asking price and sold on June 29, 2015.
"This was an appealing investment to the buyer due to the size and many value-add opportunities the property offers," he adds. “The acquisition marked the buyer's first investment in the Omaha market."
The price was not disclosed. The seller was a private investment partnership based in Salt Lake City, UT.
Built in 1974, the property's 470 units offer one-, two-, and three-bedroom floor plans in both apartment and town-home layouts. Unit amenities include fully equipped kitchens, balconies or patios, internet access and ceiling fans. The community has a clubhouse with a swimming pool, spa, tanning beds, laundry room, fitness center and extra storage.
Grandridge Apartments is adjacent to I-680, fewer than four miles from Westroads Mall and about seven miles from the University of Nebraska at Omaha. Top area employers include University of Nebraska Medical Center, Offutt Air Force Base, Children's Hospital and Medical Center and Blue Cross Blue Shield of Nebraska.
"Investors are always looking for class B properties in class A locations," DePasquale says. "Many of these markets have not seen much new development, so the majority of the product is a little older but offers investors the kind of returns that they desire." [GlobeSt]
- Berkadia Markets Student Housing Community in Tempe, AZ
Berkadia is pleased to announce the exclusive listing of The Mark, a 161-unit, 229-bed student housing community, located at 1115 East Lemon Street in Tempe, AZ. The seller has engaged Mark Forrester, Ric Holway and Dan Cheyne of Berkadia's Phoenix office and Kevin Larimer of Berkadia's Michigan office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Rising rents drive value of Seattle 'trophy' apartment complex up 52 percent
From the outside, the 66-year-old apartment complex on Seattle's First Hill doesn't seem like much to look at, but a Walnut Creek, California investment company saw things differently.
This week the company, Sequoia Equities, paid $92.9 million for the full-block property that's named for the address, One Thousand 8th Avenue. That's $32 million more than what the asset sold for just three years ago.
The seller had drawn up plans to expand the 351-unit property by another 256 units, but that's not the main reason for the dramatic increase in value. It was spurred by something more basic: rising rents.
That the buyer paid 52 percent more for the property than the seller did is a good indication that investors expect rents will continue to climb in Seattle even though developers are bringing thousands more competing units to the market.
Sequoia Equities bought One Thousand 8th from Acacia Capital Corp. The 1949, steel-and-concrete complex is made up of two 14-story towers, and its location on the west slope of First Hill gives the property dramatic skyline views from the rooftop decks and some of the apartments.
Real estate broker Kenny Dudunakis, a senior partner in the Seattle office of Berkadia, said One Thousand 8th is one of about a half dozen "trophy assets" for properties of this size and age. [Puget Sound Business Journal]
- Rockside Place Apartments in Garfield Heights, OH Listed by Berkadia for $10.03M
Berkadia is pleased to announce the exclusive listing of Rockside Place, located at 12205 Valley Lane in Garfield Heights, OH. The asking price for the 324-unit apartment community is $10,030,000. The seller has engaged Rick L. Vidrio and Rick Brace of Berkadia's Michigan office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Berkadia's Michigan Office Markets Three-Property Portfolio in Elyria, OH
Berkadia is pleased to announce the exclusive listing of the Cleveland West Three Portfolio, a three-property, 360-unit multifamily portfolio, located in Elyria, OH. The seller has engaged Rick L. Vidrio and Rick Brace of Berkadia's Michigan office to market the portfolio. For additional information, please visit the [Dedicated Property Website.]
- Grand Rapids Sees Another Big MF Sale
GRAND RAPIDS, MI—Ramblewood Apartments, a multifamily property in suburban Wyoming, MI, just outside of Grand Rapids, just sold for $100.4 million, according to officials from Berkadia, who brokered the sale. MLive.com reports that the new owners are a Georgia-based investment group, making this the second time in just a few months that an outside investor plunked down more than $100 million for a multifamily community in the area.
As reported in GlobeSt.com, in December Marcus & Millichap helped complete the $102 million sale of the Grand Rapids 6 Apartment Portfolio, a 1,651-unit portfolio of six multifamily properties located in and around the city. Officials from the firm said it was the largest commercial real estate transaction recorded in the state up to that point in 2014.
Berkadia's managing director Rick Vidrio, senior directors David Walstrom and Rick Brace, and director Jason Krug of the Detroit office negotiated the sale of Ramblewood. Senior managing director Pete Benedetto, managing director David Sibbold, and assistant vice president Jillian Maki of Berkadia's Detroit office arranged the acquisition loan through Fannie Mae.
Built in phases between 1971 and 1983, Ramblewood is located at 4277 Stonebridge Dr. SW and features 1,710 studio, one-, two- and three-bedroom units. Featured amenities include balconies and patios, vaulted ceilings, fireplaces, skylights, cable and internet with free WiFi, and walk-in closets. Community amenities include a community center with an indoor pool, an outdoor pool with a sundeck, a tennis and health club with indoor and outdoor courts, basketball and volleyball courts, a playground, and 188 acres of woods and a pond.
"The Grand Rapids rental market is registering historically low vacancy and healthy rent growth," says Walstrom. "The market's appeal, coupled with the potential to add value through strategic unit upgrades, made Ramblewood an extremely attractive investment." [GlobeSt]
- 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]