- Eagle's Nest Apartments Lands New Owner
Berkadia announced completing the sale of Eagle's Nest Apartments in San Antonio.
Berkadia announced completing the sale of Eagle's Nest Apartments on October 2. Managing Director Mike Miller, Director Chris Ross, Director Will Caruth and Associate Cody Courtney of the San Antonio office were part of the team arranging the sale.
The seller was Eagle Apartments LTD of San Antonio, a longtime property owner in Texas. The buyer, a private investor from Orem, Utah, was looking to add to its portfolio. Financial details about the transaction were not disclosed.
"The buyer was looking to add well-located, value-add assets to their already impressive San Antonio portfolio," said Miller. "The renovated units and highly visible, medical center location made Eagle's Nest Apartments an appealing and strategic acquisition."
The residential community that sits on 7.84 acres at 5211 Fredericksburg Road, was built in 1980. Eagle's Nest Apartments is less than six miles from North Star Mall and one mile from Wonderland of the Americas Mall. Top employers in the area include USAA, South Texas Medical Center, University of Texas Health Science Center San Antonio and University of Texas San Antonio.
The community consists of 226 units including studio, one- and two-bedroom floorplans. Apartment amenities include balconies or patios, fully equipped kitchens, walk-in closets, vaulted ceilings, fireplaces, hardwood floors and extra storage. Community amenities feature volleyball courts, barbeques, a swimming pool, clubhouse, laundry room and outside storage. [Multi-Housing News]
- Investors snapping up multi-unit residential properties
Investor interest in multi-unit residential real estate is picking up considerably around the Central Valley, with three large apartment complexes changing hands in October.
The 32-unit Villa Palmilla property in Madera sold last month for $3.2 million. The property, located at 102-190 South Granada, was built in 2006.
Also in October, investors purchased two big Fresno apartment complexes. The Summertree Apartments on N. Maple Ave. sold for $2.05 million and the Vintage Wood Apartments, also on N. Maple, changed hands for $4.67 million.
Summertree was built in 1984 and has 39 units. Vintage Wood is vintage 1981 and includes 66 units.
Robin Kane, senior director of investment sales at Berkadia, closed all three deals, which totaled nearly $10 million.
"We had a pretty good October," Kane said. "No complaints there."
A Southern California investor purchased the Summertree property and local investors picked up Villa Palmilla and Vintage Wood, according to Kane.
"The market is at the part of the business cycle where prices are getting overheated in the coastal areas. Properties there aren't providing good enough yields. So investors in Southern California start turning their attention to places like the Inland Empire and then the Central Valley," Kane said.
"Same thing with the Bay Area," he added. "Buyers there are tending to gravitate eastward toward the Delta and then to Sacramento. And then when Sacramento gets too pricey, those investors tend to look to the Central Valley too."
Kane said the current trend reflects "capital coming out the primary markets to the tertiary markets chasing yields. It's hard to say how much runway we have left in this cycle but I think it's longer than we thought," he added.
Industry watchers say that in a strong real estate cycle, when more people become homebuyers, it tends to take renters out of the market.
"But now that home prices have risen and the inventory is lower, the rental market cycle has been extended," Kane said. "Because of that, people are staying renters longer. Couple that with the lack of new construction and it's created a very favored asset class of investment with multi-family apartments because you have that demographic working in your favor."
Kane thinks 2016 will be another strong year for multi-family. "I think next year will be as good a year as this year," he said. "We thought we would start running out of steam this year and clearly we haven't. During an election year, there should be a strong interest in keeping interest rates down. And that should be favorable for the entire real estate market."
But Kane noted that the Central Valley real estate market has now been in recovery for five years. "We're going into our sixth year in 2016," he said. "That's pretty long for an up cycle. Next year should be solid but after the election, all bets are off."
But the good news for multi-family investors could turn out to be bad news for renters.
"For the first time in a long time, management companies are starting to think about raising rents," Kane said. "Most apartment managers will tell you that their business has been very good. And that's a reflection of a stronger economy - kids moving out of the house, people upgrading and moving up."
Kane confirmed that Berkadia has closed close to $100 million in apartment property sales just in the Central Valley area alone in 2015.
This summer, the company also sold a $28-million apartment complex in Sacramento.
"That sale was another example of Bay Area investors being unable to find anything in the San Francisco area," Kane said. [The Business Journal]
- Berkadia Brokers $29.2M Sale of Apartment Community in Birmingham
BIRMINGHAM, ALA. - Berkadia has brokered the $29.2 million sale of Stonecrest at Double Oak Mountain, a 315-unit apartment property located in Birmingham. Built in 1998, the garden-style community features two- and three-story buildings housing units that average 1,176 square feet. Atlanta-based Waypoint Residential purchased the property from Rodman Properties. David Oakley and Royce Emerson of Berkadia's Alabama office represented the seller in the transaction. [Real Estate Business Online]
- Berkadia Facilitates Sale of Brookhaven Portfolio
Nine multifamily assets in Brookhaven have changed hands recently, in a transaction managed by Berkadia.
Berkadia recently completed a $75 million sale and financing for nine C-class multifamily assets located in Brookhaven. SP Brookhaven LLC, a partnership between a hedge fund and a local operator of undisclosed identity acquired the properties. The seller was Marquise at Brookhaven LLC of Atlanta.
The portfolio comprising 1,187 units was 98 percent occupied at the time of sale and the price represents around $63,000 per unit. A $61 million loan was used for the acquisition and small improvements on the properties and featured a 4.65 percent floating interest rate and full-term interest only. The three year facility was provided by Resource REI and represented 78 percent of total project costs.
Senior Directors Paul Vetter and Andrew Mays and Director Matt White Berkadia’s investment sales team represented the seller. Senior Managing Director Richard Levine of the firm's mortgage banking team spoke for the buyer in the transaction and negotiated the financing. [Multi-Housing News]
- TruAmerica Acquires Greater Salt Lake City Multifamily Portfolio for $102M
Salt Lake City - TruAmerica Multifamily and the Guardian Life Insurance Company of America have completed their purchase of two apartments in metro Salt Lake City for $102 million. Both properties are of mid-1980s vintage and are about seven miles from one another on Redwood Road, one of the state’s busier thoroughfares.
The properties include the 486-unit Somerset Village Apartment Homes in West Valley City, and the 440-unit Southwillow Apartments in West Jordan. The seller was San Francisco-based Jackson Square Partners. Altogether, the properties are 99 percent leased.
TruAmerica plans to invest an additional $8 million to reposition the two properties to market to an increasing renter pool of young professionals and working families in Salt Lake City. The renovations will include new countertops, appliance packages, cabinets and flooring, as well as such common area upgrades as community outdoor kitchens, dog parks and pool enhancements.
"We see Salt Lake City as the perfect apartment market," said Greg Campbell, TruAmerica's senior managing director of acquisitions. New jobs, he added, are attracting an increasing number of Millennials to the area, helping make Utah into the nation’s youngest state, with 32 percent of its population under the age of 32, according to U.S. Census Bureau data. "We find that 18 to 31 year olds are much more likely to rent than to buy."
James Wadsworth and Greg Barratt of Berkadia represented both the buyer and seller in the transaction. The deal comes after TruAmerica's acquisition last month of Settler's Point, a 416-unit property in Salt Lake City, from Equus Capital Partners Ltd. for $46 million.
The L.A.-based TruAmerica entered the market in May with the acquisition of the Crossing at Daybreak, a 315-unit apartment property in South Jordan. The deals bring the total number of units under management in the Salt Lake City area for the company to 1,657. [Multi-Housing News]
- This Week's LA Deal Sheet - Sales
San Sebastian Properties bought Villa Grande, a 78-unit apartment property in Reseda, for $21.5M. Built in 1987, the complex consists of all two- and three-bedroom individually deeded townhomes. Berkadia's Dean Zander and Vince Norris listed and sold the property, marking their seventh sale in the SF Valley in Q3. The property (Yolanda Avenue and Saticoy Street) attracted 120 interested buyers representing a variety of capital sources, including private investors, sponsored equity groups and condo converters. The buyer plans to spend $15k/unit in upgrades. [Real Estate Bisnow]
- Berkadia's Tampa, Orlando Offices Arrange Sale of Two Properties in Florida
TAMPA & CLEARWATER, FLA. - Berkadia's Orlando and Tampa offices have arranged the sale of two Florida properties totaling nearly $53 million. Berkadia negotiated the sale and financing of Mainsail South Residences, a multifamily property located at 4711 S. Himes Ave. in Tampa. Jason Stanton of the Tampa office, along with Cole Whitaker and Hal Warren of the Orlando office, completed the sale on Sept. 10. Justin Ownby of the Tampa office negotiated the $25 million acquisition loan through Berkadia's Fannie Mae Program. The sellers were Mainsail Villas II LLC and Mainsail Villas Holdings LLC of Tampa. Avesta Acquisition LLC, of Tampa, was the buyer and plans to renovate the property's interior, exterior and common areas.
The 10-year loan features a 2.6 percent floating interest rate and a 30-year amortization schedule. Mainsail South Residences is a 319-unit property built in 1984. Unit amenities include fully equipped kitchens, ceiling fans, cable and Internet access, washer and dryer units, vaulted ceilings and patios or balconies. Select units have fireplaces. Community amenities include a swimming pool, Jacuzzi, sun deck, laundry facility, business center, clubhouse, recreation room, extra storage space and secured access gating. The property is 95 percent occupied and is located on a community lake with a pedestrian bridge to a waterfront trail. Located near Gandy Boulevard, Gandy Expressway and Dale Mabry Highway, Mainsail South Residences is less than one mile from Britton Plaza Shopping Center and 1.5 miles from Ballast Point Park.
Stanton, Whitaker and Warren also recently completed the $21.4 million sale of the Enclave at Northwood, a multifamily property located at 2390-2692 Enterprise Road East in Clearwater. Preston Giuliano Capital Partners was the buyer, and the seller was StoneBridge Investments. Built in 1984, Enclave at Northwood is a 188-unit property featuring one-, two- and three-bedroom floor plans. Unit amenities include fully equipped kitchens with updated cabinets and appliances, balconies or patios, ceiling fans, washer and dryer hookups, window coverings and fireplaces. Community amenities include two swimming pools, a fitness center, two lighted tennis courts and 24-hour emergency maintenance. Enclave at Northwood is located near Florida State Route 19 and is seven miles from downtown Clearwater. [Real Estate Business Online]
- Berkadia Negotiates Sale and Financing of Utah Multifamily Property
Berkadia announced the recent sale and financing of a multifamily property in Taylorsville, Utah.
Salt Lake City - Berkadia announced the recent sale and financing of a multifamily property in Taylorsville, Utah. James Wadsworth and Greg Barratt of the Salt Lake City office completed the sale of Settler's Point on September 24, 2015. Managing Director Allan Freedman of the West Los Angeles office negotiated the interim acquisition loan through Berkadia's Freddie Mac Program.
The seller, Equus Capital Partners, decided to sell to capitalize on the price appreciation happening for this age and quality of multifamily asset in the market. The buyer, TruAmerica Multifamily, was interested in capitalizing on Salt Lake City's growing economy and has plans to upgrade the property's units.
The seven-year loan highlights a 2.45 percent floating interest rate and three years of interest-only payments followed by a 30-year amortization schedule.
"The Salt Lake City economy is currently on the upswing, and the entire metro area is becoming more and more enticing from an investment standpoint. We received 24 written offers, which is an indication of the strong buyer demand," Wadsworth said.
Madison at Settler's Point is a 416-unit property built in 1984. Unit amenities feature fully equipped kitchens, balconies or patios, cable and Internet access, walk-in closets, fireplaces, ceiling fans, and washer and dryer hookups. Select units are furnished. Community amenities include two heated swimming pools, two clubhouses, a hot tub, playground, fitness center with a weight roomk and two tennis courts. The property is currently 99 percent occupied.
The property, situated near I-15 at I-215, is one mile from Salt Lake City Community College and 2 1/2 miles from Valley Fair Mall. Top employers in the area include Discover Financial Services, American Express, Saint Mark’s Hospital, Zions Bank and Utah Transit Authority.
"We were able to work closely with the buyer to negotiate excellent loan terms," Freedman said. "The low initial interest rate and flexible prepayment were both attractive. Moreover, between the application process and eventual closing, we worked to get the client an additional five percent in proceeds."
Apartment vacancy in the Salt Lake City metro area stood at 4.6 percent in the third quarter, while rents averaged $974 per month, up 3.4 percent year over year. [Multi-Housing News]
- Berkadia Arranges Sale of Student Housing Community
A student housing community in Austin changes hands.
Berkadia has arranged the sale of Lonestar Lofts, a student housing community in Austin's West Campus submarket. Forrest Bass, a senior director of the Austin office, completed the sale on Sept. 28. The seller was a local private partnership, and the buyer was a private investor from New York City. Financial details about the transaction were not disclosed.
"There continues to be tremendous demand for multifamily properties in Austin, and this is attracting significant interest from local, out-of-state and international investors alike," said Bass. "This transaction marked the buyer's first acquisition in Austin. The buyer was drawn to the property's strong infill location, stable operating history, strong occupancy rate and steady rent growth over past years."
Lonestar Lofts is located at 2408 Leon St., one mile from the University of Texas and two miles from downtown Austin. Major employers in the area include St. David's Medical Center, Southwest Airlines, Texas Department of Transportation, University of Texas at Austin, and University Medical Center.
Built in 1971, Lonestar Lofts offers 50 units, including studio, one-, two-, three, and four-bedroom floor plans. Community amenities include a swimming pool with a pergola lounge area, barbecue grill, and parking garage. Units feature stained concrete floors, black appliances, washers and dryers, and a loft-style layout. [Multi-Housing News]
- Dealmaker: Berkadia Closes Retail and Multifamily Deals in N.Y., Ariz.
Berkadia, New York, closed a $15.4 million loan for Latham Crossing, a 100,000-square-foot retail property in Latham, N.Y.
Managing Director John DiCrocco of Berkadia's New York City office closed the 10-year, fixed-rate loan through a conduit lender.
"There were several challenges in this deal, including a short-term ground lease that needed to be re-negotiated, an extremely short time frame before the borrower went into maturity default and maximum proceeds for a deal in a challenging submarket," DiCrocco said.
DiCrocco said the 75 percent loan-to-value ratio financing had 1.25 times debt-service coverage. The loan included two years of interest-only payments.
PetSmart and Staples anchor the fully occupied Latham Crossing center at 609 Troy Schenectady Road.
In another deal, Berkadia represented Aerie Development LLC when it sold 184-unit Tucson, Ariz. apartment property Avilla Preserve to M3 Multifamily, Santa Barbara, Calif. for $27.6 million.
Berkadia Senior Managing Director Art Wadlund and Associate Clint Wadlund of the firm's Tucson office completed the sale on October 9. The sale reflects a per-unit price of $150,000.
"This property is located in a submarket with very few Class A assets," Art Wadlund said. "As such, M3 Multifamily will be able to capitalize on the pent-up demand for luxury apartments." He said the buyer likes the property's low-density one-story layout and its recent construction.
Clint Wadlund said asking rents at top-tier properties in the area reach $1,300 per month, "[so] there is certainly investment demand for this product despite the low level of supply available for sale." [Mortgage Bankers Association]
- Berkadia Arranges Sale of Multifamily Asset in Moreno Valley
Moreno Valley, Calif. - Bridge Investment Group LLC of Salt Lake City has expanded its Inland Empire multifamily portfolio with the acquisition of The Reserve at Rancho Belago, a 176-unit apartment community located at 15100 Moreno Beach Drive in Moreno Valley, Calif.
Bristol Brokerage Company Inc. of San Diego sold the property for $30.1 million, or $171,023 per unit.
Senior Directors Margie Molloy and Spencer Scott of the Inland Empire and North Los Angeles Berkadia offices, respectively, completed the transaction on October 20th.
Bridge Investment is now planning to continue the property's revamp, which has been initiated by the seller.
Completed in 2005, The Reserve at Rancho Belago offers a mix of one-, two- and three-bedroom floor plans. Unit amenities include fully equipped kitchens with pantries, crown molding, vaulted ceilings, custom lighting, fire places, cable and Internet access, full-size side-by-side washers and dryers, and extra storage. Select units feature walk-in closets, hardwood inspired floors and detached garages. Community amenities include barbeque and picnic areas, a resort-style swimming pool with fountain, clubhouse, business center, conference room and fitness center.
The community is situated near Interstate 215 and State Route 60, within 10 miles of the Moreno Valley Mall at Towngate and less than five miles from the World Logistics Center. The area's top employers include Riverside County Regional Medical Center, March Air Reserve Base, and numerous distribution centers including Walgreens, Proctor and Gamble, Amazon, Ross Dress for Less and Sketchers.
"The buyer saw The Reserve as an opportunity to purchase a value-add asset and expand its Inland Empire portfolio," Molloy said in prepared remarks. "The property, and the Southern California region overall, holds a great deal of investment potential, and the buyer plans to continue renovations and upgrades."
According to Berkadia, during this year's third quarter, the metro-wide vacancy rate in the Inland Empire decreased 40 basis points to 4.4 percent, while average asking rents reached $1,367 per month. [Multi-Housing News]
- SD Apt. Owners: A Tale of Two Cities
SAN DIEGO - With small and large assets in the market, both private and institutional investors tend to play in the San Diego multifamily investment market, Berkadia's president of investment sales Brent Long tells GlobeSt.com. As we recently reported, the firm's San Diego office added five new professionals to its investment-sales team, led by new managing directors Ed Rosen and John Chu - formerly of Cushman & Wakefield. We spoke with Long, Rosen and Chu about the new team, the multifamily market and how San Diego’s multifamily market compares to others in Southern California.
GlobeSt.com: What was the impetus behind adding the new San Diego sales team?
We are an investment-sales and mortgage-banking company with a strong presence in Southern California and San Diego. In fact, the San Diego office was one of the early offices we opened in the late '90s. Our goal was to build on the strength we have here on the private-capital side and by adding what is clearly the best institutional and asset-sales team in San Diego and the Western US. We wanted to take what's been a good office for us and make it a leading regional office that covers both the private-capital and institutional-sales arenas and an integrated mortgage-banking team. It's integrated for San Diego and Southern California. This team has been a dominant player in San Diego for more than 25 years and is also very strong in Southern California overall. We are super excited to have them as part of the team, and they're really going to lead our efforts here in the mid to large institutional space for apartment sales.
GlobeSt.com: What does the addition of the new team say about the multifamily market here?
The market is really changing, and you need to have a fully integrated platform to service the needs of the market.
Southern California is a core market, and what we're seeing is that those markets are shrinking in size. Southern California will always be one, but because institutional capital wants to be in those core markets, we will leverage off Berkadia's platform with its expertise in equity and debt and use it in combination with what we bring to the table to provide extra services to our clients.
It's not just the San Diego market - it's really the Southern California marketplace. There's tremendous activity across all those markets and they need to be serviced in unison. We will work with the rest of the team throughout the US - we have five offices in Southern California and 75 offices nationwide. This builds on the legacy of our office in San Diego. This is actually an expanded office, a new regional office for us, since we moved out of our existing space into expanded space and consolidated the team into one location in La Jolla.
GlobeSt.com: How does the multifamily investment market in San Diego compare to other Southern California markets?
There are a lot of similarities. They are all supply-constrained markets with limited development opportunities. More assets than in the past are owned by institutional groups that are less included to have more volatility in their portfolio. They're looking for more long-term holds.
There are two primary parts to the market. San Diego has a large number of small to mid-size assets owned by small sponsors or private investors, and on the large side a lot of larger institutional-grade assets. It's a tale of two cities, and they do work together in some respects.
Most of the investors with assets in California would like to diversify so that they have properties in L.A., San Diego and San Francisco. It's good to have offices in all of those areas with which to share info.
The supply-constrained nature of our market keeps returns and prices at an aggressive level. It keeps people coming in from other markets where there is more supply, and everyone wants to be in the Golden State right now. It's a great place to be with the Berkadia platform and collaborating with all of our offices in California and in other states.
GlobeSt.com: What else should our readers know about this move?
Ed and John and their team have some very significant stats behind them and a history that is unequalled in most parts of the country. Over their careers they've traded more than 80,000 units and in excess of $12 billion in Southern California. It’s dramatic in terms of what they've been able to accomplish, and they can continue to accomplish more by building on what we have and adding on the capital markets element.
Our firm is in a very strong growth mode. It has grown dramatically in terms of platform and presence and debt-and-investment sales. We are dramatically expanding our mortgage-banking and investment-sales platform. [GlobeSt]
- Rare Broken Condominium Community in Scottsdale, AZ Listed by Berkadia
Berkadia is pleased to announce the exclusive listing of The Allison Condominiums, a 152-unit (out of 332 units) broken condominium community, located at 14145 North 92nd Street in Scottsdale, 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 Brokers Sale of Two Apartment Communities in Florida for $18M
MELBOURNE AND PALM BAY, FLA. - Berkadia Real Estate Advisors has brokered the sale of two apartment communities in Brevard County for a combined $18 million. The assets include the 138-unit Park Village located at 3099 Park Village Way in Melbourne and the 112-unit Malabar Lakes located at 1018 Malabar Lakes Drive in Palm Bay. White Eagle Property Group LLC purchased Park Village for $10.1 million and Malabar Lakes for $7.9 million. Cole Whitaker, Hal Warren and Jason Stanton of Berkadia represented the seller, Deancurt Melbourne LLC, in the portfolio transaction. [Real Estate Business Online]
- Australian real estate investors plan to invest $100M; buy West Austin property
An Australian investment company is gung-ho on Austin - with plans to spend up to $100 million in the local housing market, according to its broker.
EG Funds recently completed its second multifamily acquisition in a premium West Austin neighborhood.
The company - which has offices in Sydney and Melbourne, Australia - also has boots on the ground in Austin with Kate Braybrook directing its U.S. investments.
In about two years, EG has acquired some $30 million in U.S. assets, according to an announcement.
Forrest Bass of Berkadia in Austin handled the most recent transaction - a 44-unit apartment building at 807 W. Lynn St. near the upscale restaurants Jeffrey's and Josephine House. Built in 1969, the apartment complex is called "The Castile."
Though the purchase price was not disclosed locally, EG's Australian website indicates the company paid $9.2 million, or $209,090 per unit.
Braybrook confirmed that the apartments will be incrementally updated into condos and sold as current leases mature.
Records at the Travis Central Appraisal District indicate the apartments had been owned for less than a year by an entity named 807 West Lynn LLC with a local address that corresponds to that of First Austin Properties.
The complex most recently was valued at $4,822,770.
Berkadia's Bass said EG previously purchased SoCo at Alpine, an apartment complex in South Austin off Alpine Road between South First Street and South Congress Avenue. The 66 units remain rental properties. TCAD records show EG purchased that property in May. It was most recently valued at $1,974,700.
EG also owns about 60 to 70 single family homes in Austin, which are leased, Bass said.
He said EG plans to invest about $100 million in the Austin market.
Bass said investment sales for multifamily properties in Austin are headed for another record year, led by international buyers.
"We've seen mainly Mexican nationals and Japanese conglomerates, but this is our first group we've handled from Australia," Bass said. [Austin Business Journal]
- Berkadia Arranges Sale of Two LA Multifamily Assets
The L.A. multifamily properties known as Catalina Apartments and Hobart Apartments were recently sold for a combined $12.1 million. The transaction was arranged by Berkadia Managing Director Brent Sprenkle who worked on behalf of both parties, a Brentwood-based buyer and the seller, a San Francisco-based investment fund.
Catalina Apartments is located at 862 S. Catalina St. and totals 40 residences. The 87 year-old property's unit mix consists of studio and one-bedroom units.
Hobart Apartments is located at 817 S. Hobart Blvd., and offers a similar range of floorplans. Built in 1926, the multifamily asset offers 47 apartments.
The two properties are located in the bustling Koreatown submarket, and offer proximity to State Route 110, the I-10, and the I-101. Employment centers in the area include the University of Southern California and Paramount Pictures. According to Sprenkle, the area has been undergoing a process of property appreciation and gentrification over the past few years. Vacancy in the West Los Angeles market is trending downward with average levels now at around four percent.
As the latest Matrix Monthly report shows, Los Angeles metro rent growth outpaced Yardi Matrix's forecast, having recorded 6.4 percent appreciation through September. The real estate data provider projected growth of 5.8 percent for the end of the year. [Multi-Housing News]
- Cedar Creek in Fresno, CA Listed by Berkadia for $6.5M
Berkadia is pleased to announce the exclusive listing of Cedar Creek, located at 4893-4894 East Lane Avenue in Fresno, CA. The asking price for the 106-unit apartment community is $6,500,000. The seller has engaged Robin C. Kane and Gordon J. Larkin of Berkadia's Fresno office, Dean Zander of Berkadia's West Los Angeles office and Vince Norris of Berkadia's North Los Angeles office to market the property. Cedar Creek is also part of a 4-property, 410-unit portfolio
. For additional information on the property, please visit the [Dedicated Property Website.]
- Big Skokie project's rented condos put up for sale
Real estate investors with a taste for fractured condominium developments—post-crash projects with lots of units that have been rented rather than sold—now can buy into one of the biggest of its kind in the Chicago suburbs.
The developer of Optima Old Orchard Woods in Skokie hired a broker to sell 173 rental condos in the property, a 660-unit colossus across the Edens Expressway from the Westfield Old Orchard shopping mall.
The developer, Glencoe-based Optima, finished the project at 9725 Woods Drive as the financial markets were melting down in 2008. Like many developers stuck with lots of unsold units, Optima decided to ride out the condo bust by renting them instead.
It has turned out to be a good decision for many developers, thanks to a prolonged boom in the apartment market. But condo sales and prices are recovering, creating an opportunity for Optima to sell the units it couldn't several years ago.
"The market is really coming back," said Tara Hovey, senior vice president at Optima.
Ralph DePasquale, senior vice president at Berkadia, which has been hired to sell the rented units, said he is receiving interest both from investors interested in buying the units in bulk and selling them off individually and from conventional apartment investors that would keep renting them out.
Hovey expects a buyer to sell off the units as condos, considering the strength of the for-sale market. She touts the building's proximity to Old Orchard and the Harms Woods Forest Preserve as selling points.
Optima could convert the units back to condos itself, but Hovey said the firm is busy with other developments in Arizona and Chicago's Streeterville neighborhood, where it's building Optima Chicago Center II, a 490-unit apartment tower. Optima recently hired a broker to sell another 325-unit rental high-rise it recently completed next door, Optima Chicago Center.
Monthly rents for the Skokie condos range from $1,560 to $5,500 and average about $2.00 per square foot, Hovey said. Resale prices of condos in the building have been steadily increasing, according to Berkadia marketing flier for the units. The average resale price exceeds $360,000, up 20 percent from a year earlier, the flier says.
Berkadia has not put an asking price on the units, and Hovey and DePasquale declined to say how much they expected them to fetch. But at $300,000 apiece - factoring in an estimated discount for buying them in bulk - 173 units would cost about $52 million. [Crain's Chicago Business]
- Dominant SoCal Team Joins Berkadia
SAN DIEGO-Berkadia says it is being joined by one of the top multifamily investment sales teams in the Western US. The additions include two managing directors, Ed Rosen and John Chu, who previously served as executive directors for Cushman & Wakefield. At Berkadia, Rosen and Chu will lead a team of three additional members in the company's newly expanded regional San Diego office. Combined their team has completed the sale of more than 80,000 units with a value in excess of more than $12 billion. Collectively the five–person team brings with them more than 70 years of multifamily sales experience.
Rosen and Chu are known as the dominant multifamily advisors in the San Diego marketplace, where they have been ranked as top producers for the past 20 years. Rosen and Chu specialize in the representation of large, institutional-sized deals and have completed sales in excess of $1.6 billion over the past 36 months.
"The addition of Ed and John demonstrates Berkadia’s continued commitment to bring the best advisors to its integrated mortgage banking, investment sales and servicing platform," said Brent Long, president of investment sales at Berkadia. "We are thrilled to welcome them to our investment sales team in San Diego as we continue to grow our presence and service offerings in the Southern California commercial real estate market."
Team member, Kyle Pinkalla, joins Berkadia as a director and will concentrate on the larger institutional grade assets. He has been active in the multifamily sector for more than 10 years.
Erin Dammen, vice president, will assist with marketing and client relations. She has been in the real estate industry for more than seven years. Tyler Sinks, associate director, will assist the team on mid- to large-size private capital assets in the greater San Diego area.
Across the company's 70 offices, multifamily investment sales and mortgage banking production exceeded $17 billion in 2014. Sales and finance volumes are on pace to surpass this number for the current calendar year.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is an industry-leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. [GlobeSt]
- Valley Apartments Sell High on Condo Potential
A Sherman Oaks apartment complex with 33 units individually deeded as condominiums has sold for $19.5 million, or nearly $600,000 a unit.
The sales price translates to roughly $388 per square foot, far above the average square foot sales price of around $210 for similar properties in Sherman Oaks this year, according to real estate data provider CoStar Group Inc.
"It was a huge price, for sure a high-water mark," said Brent Sprenkle, a partner in the El Segundo office of Berkadia Real Estate Advisors who represented the seller, Van Nuys-based developer Shapiro Ben-Basat.
The El Dorado Villas, a 50,000-square-foot property at 4510 Murietta Ave., was built as a luxury condo project in 2008, but Shapiro Ben-Basat decided not to sell the individual units as planned because it was a low point in the housing market. "Instead, they leased it out as a luxury apartment building and operated it for seven years," Sprenkle said.
The high sales price was achieved because of the potential to sell off individual units without having to undergo a condominium conversion process, and because the units are high-end, with an average size of 1,460 square feet. They feature distressed hardwood floors, handmade cabinetry and vaulted ceilings.
The buyer is an Indonesian investor who purchased the entire building with one escrow. "The buyer is going to be really happy long term because the rents will appreciate very well and the exit strategy is obvious since the units are individually deeded as condos," Sprenkle said. The buyer was represented by Calabasas brokerage Marcus & Millichap. [San Fernando Valley Business Journal]
- Phoenix Multifamily Immune to Interest Rate Hikes?
Some investors might be nervous about interest rates or China, but not those looking to buy Phoenix multifamily. The market's too strong. That's why we're excited to present Bisnow's Phoenix Multifamily Boom event, beginning at 7:30am on Sept. 23 at the Hyatt Regency Scottsdale.
If interest rates begin to move - and few expect drastic increases by the Fed in the near term - demand for commercial borrowing, including but not limited to apartments, should continue to be strong for at least the near-term, Berkadia senior managing director Mark Forrester, who will be a speaker at the event, tells us.
For one thing, Mark says, interest rates will likely still be attractive from a historical standpoint, and they shouldn't significantly impact cap rates. Also, other investments - the stock market, overseas holdings, etc. - are still problematic, at least when compared to real estate. Besides, US job growth is quite positive.
More specifically in the Phoenix market, the strong fundamentals for apartments, and real estate generally, aren't in any danger any time soon because of demand from Millennials and Baby Boomers who want to be in apartments, Mark notes. At the same time, single-family development isn't nearly at historical averages, at least near-term. Finally, investing in Phoenix real estate is preferable to the lower cap rates that are characteristic of many other Western cities. [Real Estate Bisnow]
- This Week's LA Deal Sheet - Sales
Symbiont LP bought The Vintage, a 62-unit multifamily property in Corona (1349 Circle City Dr) from Stonebridge Corona Apartments for $11.4M or more than $184k/unit. According to Berkadia's Bruce Furniss, who closed the sale, The Vintage is a relatively new asset in a supply-constrained market. This represents the lowest cap rate and highest price per unit for Corona's multifamily sales this year. [Real Estate Bisnow]
- Berkadia Markets Regency Place in Las Vegas, NV for $8.7M
Berkadia is pleased to announce the exclusive listing of Regency Place, located at 2800-2820 South Decatur Boulevard in Las Vegas, NV. The asking price for the 137-unit apartment community is $8,700,000. The seller has engaged Carl Sims and Angela Powers of Berkadia's Las Vegas office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Two apartment complexes sold in Newport News
A pair of apartment complexes in Newport News have been sold to new owners in South Hampton Roads.
The Hanover, a 64-unit market rate apartment community located at 12847 Jefferson Ave. near the Windsor Park neighborhood, sold earlier this summer for nearly $3.2 million, according to a news release.
Alan Meetze and David Hudgins, senior directors with Berkadia, a joint venture between real estate behemoth Berkshire Hathaway and Leucadia National Corporation that operates a Newport News office, completed the transaction on behalf of the buyer: Norfolk-based Hanover Apts LLC.
Hanover Apts LLC could not be reached for comment Thursday afternoon.
The Hanover was constructed in 1972, the news release said, and includes one- and two-bedroom units that include fully equipped kitchens, large closets and ceiling fans.
During the early July sale, the Hanover was 95 percent occupied.
Meanwhile, in the Saunders neighborhood, Berkadia officials recently closed on the sale of the Kopenhaven Apartments to Norfolk-based Kopenhaven Apts LLC, according to a news release.
The Kopenhaven property is a 49-unit market rate apartment complex located at 149 Louise Drive.
Officials sold the apartment complex, which is 97 percent occupied, for about $2.6 million, the news release said.
Kopenhaven Apts LLC officials could not be reached for comment Thursday afternoon.
With the region's rental market surging, sales of apartment complexes are becoming more commonplace.
The vacancy rate, which determines the number of unfilled apartment units and their market rates, has dipped during the first quarter to 6.9 percent, according to Berkadia reports, signaling a healthy rental market across the Peninsula and South Hampton Roads.
It's also helping to drive regional rents higher.
Monthly asking rents have climbed 1.2 percent in the past 12 months to $1,018 for a one-bedroom unit, according to the report, as demand for apartments continues to grow.
"The apartment market has been red hot for a couple of years," Meetze said. "Our area has a solid and stable economy, and that's driving investors who have never heard of us to this part of the world." [Daily Press]
- Walker Apartments in Tacoma, WA Listed by Berkadia for $10.1M
Berkadia is pleased to announce the exclusive listing of Walker Apartments, located at 405 6th Avenue in Tacoma, WA. The asking price for the 33-unit apartment community is $10,100,000. The seller has engaged Tim Ufkes of Berkadia's Seattle office to market the property. For additional information on the property, please visit the [Dedicated Property Website.]
- Bainbridge Commons in Chesapeake sells for $4.5 million
Bainbridge Commons, a Section 8 multifamily property at 30 Grady St. in Chesapeake, sold for $4.5 million, Berkadia reported.
Bainbridge Commons Associates L.P. of Providence, R.I., bought the 35-year-old property from Southern Terrace Arms Associates of Hampton, according to a news release.
At the time of the sale, the property was 99 percent occupied. The buyer plans to renovate the community through tax-credit financing.
The 35-year-old property is 99 percent occupied.
Berkadia senior directors Alan Meetze and David Hudgins of the Newport News office brokered the deal.
"There are few project-based Section 8 properties available in the market, so investment demand is high for these assets," Meetze said in a news release. [Daily Press]
- Berkadia Brokers Spartanburg Apartments
Berkadia has announced the sale of East Ridge, located at 300 Regency Street in Spartanburg, South Carolina. Director Mark Boyce of the South Carolina office and Senior Directors Andrew Mays and Paul Vetter of the Atlanta office negotiated the transaction. East Ridge sold for $7.75 million on August 28, 2015. The sales price reflects a per-unit price of $53,854, or $65 per square foot.
The property was 97 percent occupied at the time of the sale. Berkadia also provided financing for the transaction. Built in 1972, the 144-unit property features one-, two- and three-bedroom floor plans. Each unit features ceiling fans, washer and dryer connections, and balcony or patio. Community amenities include a swimming pool, laundry facility, clubhouse, barbecue and picnic area, and coffee bar.
The community is located near East Main Street and State Route 29, providing residents access to the entire Spartanburg area. East Ridge is three and a half miles from downtown Spartanburg and within a 10-mile radius of seven colleges and universities Top employers in the immediate area include Spartanburg Regional Healthcare, Mary Black Health System, Kohler Co. and Invista. The seller was a South Carolina entity. The buyer was a Pennsylvania entity. The seller upgraded the units, providing the opportunity to continue pushing rents and adding value via exterior upgrades. [South Carolina Real Estate News]
- Investors Continue to Take Notice of Pacific Northwest Growth
The Pacific Northwest's multifamily market continues to see activity, with a Tacoma-area multifamily property changing hands. Berkadia Senior Managing Director Kenny Dudunakis and Senior Director Jim Jensen of the company's Seattle and Tacoma offices handled the transaction between buyer Hamilton Zanze & Co. and seller Bianco Properties. Acquisition financing of $19.8 million was arranged by Managing Director Clay Akiwenzie of Berkadia's San Francisco office.
Apple Park Apartments is located at 3200 Capitol Mall Drive SW, roughly one mile away from the Capitol Village Shopping Center and a short distance away from downtown Olympia. Offering great proximity to State Route 101, the community is located in an area that features top employers such as the Washington State Department of Revenue, Thurston County Courthouse and Capital Medical Center. The 28-year-old asset offers residents an amenity package that includes a swimming pool, spa, clubhouse and fitness center.
Totaling 274 units, Apple Park is currently operating at around 95 percent occupancy. According to real estate research platform Yardi Matrix, the Seattle metro is one of the fastest-growing multifamily markets in the entire country, ranking behind only Portland, San Francisco, Denver and Sacramento in terms of year-over-year rent appreciation. [Multi-Housing News]
- Berkadia Presents Sierra Vista For Sale in Loma Linda, CA
Berkadia is pleased to announce the exclusive listing of Sierra Vista, a 166-unit apartment community, located at 10558 Mountain View Avenue in Loma Linda, 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.]
- Portland Metro Growth Persuades Buyer to Act on Vancouver Opportunity
As the Portland metro's multifamily market stands at the forefront of growth in the U.S., investors are taking notice. Arnada Pointe Apartments in Vancouver, Wash. was recently acquired by San Diego-based Strata Equity Fund for $28.1 million from a Holland Partners-controlled entity. The deal was closed before the end of last month with the help of Berkadia Managing Director Phil Oester and Director Joe Nydahl of the company's Portland office.
Arnada Pointe Apartments is located at 4820 NE Hazel Dell Ave., offering proximity to the I-5, Main Street Vancouver, and employers such as BNSF Railways and the Vancouver School District. Built in 1996, the community offers 200 residential units, 87 percent of which have since been upgraded. An amenity package that includes a swimming pool, playground, gym, basketball court, clubhouse, business center, as well as carports for units is available to all residents. According to the press statment announcing the transaction, Arnada Pointe is currently 98 percent occupied.
According to Yardi Matrix, the average rent paid for an apartment at Arnada Pointe stands at $1,224, just under the Portland metro’s current average rent level. The Portland metro is leading the nation in terms of year-over-year rent growth, having recorded a 15.3 percent uptick during the 12 months ending in August. [Commercial Property Executive]
- Sares-Regis Shops the Eastern L.A. County
A 30-year-old property in the greater L.A. area was recently acquired by Irvine-based Sares Regis Multifamily Value-Add Fund II from Henderson Global Investors. The transaction was arranged by Berkadia Managing Directors Adrienne Barr and Robin D. Ossenbeck of the company's West Los Angeles office, and Senior Director Margie Molloy of the Inland Empire office. According to real estate research platform Yardi Matrix, the sale price was $45.15 million.
Known as Vista Pointe, the multifamily community is located at 1400 and 1420 ½ North Grand Ave in Covina. The property is currently operating at 5 percent vacancy. The asset has a total of 216 residences and offers a unit mix consisting of one- and two-bedroom apartments. Residents have access to an amenity package that includes two swimming pools, spas, two tennis courts, a business center, a fitness studio, barbecues, laundry rooms and 24-hour emergency maintenance.
The property's location offers proximity to I-210 and I-10, as well as California State Route 57. The Plaza West Covina shopping center is in the vicinity, while the main employers in the area are Torrid, Azusa Pacific University, Sysco and Queen of the Valley Hospital. According to Yardi Matrix data, the average rent paid for an apartment at Vista Pointe is currently $1,658. [Commercial Property Executive]
- 3 Multifamily Trends That Could Impact Your Bottom Line
There's no slowdown on multifamily deals, but there's some trends to watch as you hit the gas pedal on deals. Berkadia senior director Michael Ware tells us three trends his team is closely monitoring.
1. Retail Pricing
Many owners are discussing the potential exit of assets after their value-add strategy is complete. Managing director Jay Gunn says to watch for more retail priced assets coming on the market; that means buyers can anticipate buying an already renovated and stabilized asset. This is the opposite of the value-add deals typically seen over the last several years, Jay tells us. Since so many of those deals have been purchased and sold, many in the near future will be retail deals. You buy the return, it's predictable, and you grow with the market, he summarizes. Potential sellers need to consider market positioning now because there is a difference in marketing these assets as this becomes more common. Michael, Will Jarnigan and Taylor Hill made the move from Marcus & Millichap to Berkadia in late July.
With the smart money betting that rates really are going to start rising at the end of the year, Michael says the market may soon see more attractive assumable debt than what can be obtained today. If rates do rise, the marketplace could demand higher cap rates in order to acquire assets with new financing to meet yield requirements, he tells us. Fannie Mae has been a popular debt source, most commonly with 10-year loans. For those owners who want to get out of that loan before 10 years, there is a significant penalty. An assumption allows one buyer to assume the note penalty free. There are a few issues from leverage to lender approval. If the new buyer has a good record and the lender can put out more debt and the deal makes sense, it will usually get done. Everyone wins, Michael says.
3. Maturing Debt
The peak borrowing years before the recovery—2006 and 2007—mean the market can expect debt and sales activity to be its highest ever during the next two years as both agency and conduit lenders have the highest amount of unpaid loans coming to maturity, Michael tells us. While some of that's already been paid off, there's still a substantial amount that will come due each year into the first part of 2018, Michael tells us. Without any unexpected changes to readily available debt capital from the vast number of resources in the market today, most of these loans will be easily paid off and new debt will take their place. At today's record pricing, most of these investors who have held these assets to loan maturity stand to reap substantial gains from selling. Will tells us the Berkadia team has closed $315M in 2015 and has $70M of deals under contract. [Real Estate Bisnow]
- This Week's LA Deal Sheet - Sales
Berkadia's Dean Zander and Vince Norris closed a pair of San Fernando Valley apartment properties in separate transactions totaling over $32M and 128 units. The deals included the 71-unit Kester Gardens in Sherman Oaks, which the duo sold on behalf of the New Jersey-based developer that built the complex in 1988. The seller put on a condo map during the last cycle, and also added washer/dryers to all units. This marks the third San Fernando Valley property that Dean and Vince have sold for the same developer this quarter. The buyer, Kester Villas LLC, which paid $23M, plans to embark on a significant interior and common area reno. Separately, the Berkadia team sold The Park Sienna II, a 57-unit property in Reseda, for $9.2M cash. KW Commercial's Michael Koshet repped the buyer, which plans to operate the property in tandem with a neighboring property it owns. [Real Estate Bisnow]
- Langley Square apartments in Hampton sold to N.Y. investors
A New York real estate firm specializing in Section 8 housing has snapped up more than 250 low-income units in Hampton.
Sam Horowitz with Spring Valley, N.Y.-based Capital Realty Group said Thursday his firm closed on the 19.8-acre Langley Square I and II apartment community at 100-130 Doolittle Road on Aug. 24 for $14.6 million.
Alan Meetze and David Hudgins, senior directors with Berkadia, a joint venture between real estate behemoth Berkshire Hathaway and Leucadia National Corporation that operates a Newport News office, completed the transaction on behalf of the buyer and seller: Bethesda, Md.-based Mercury II and III Associates, according to a news release.
"Properties within the affordable housing market are highly sought after, and this was one of the larger project-based Section 8 deals in the Hampton Roads market," Meetze said.
Constructed in 1973, the Langley Square apartment community boosts 254 one-, two- and three-bedroom units that were 99 percent occupied by Section 8 residents upon the sale of the property, Horowitz said.
Langley Square amenities include a swimming pool, playground and laundry facilities for each building and on-site parking.
While no timeline or cost estimates have been released, Capital Realty officials plan to renovate the property, Horowitz said, while retaining its Section 8 tenants.
"It will remain affordable housing," Horowitz said.
Section 8, or Housing Choice, is a federal housing voucher program that assists low-income families, the elderly, and the disabled to afford housing in the private market.
Capital Realty is no stranger to Hampton.
The firm owns and operates Paula Maria Village — a 198-unit apartment community at 100 Martha Lee Drive. The firm also owns eight other properties across the state, including a pending apartment complex in Richmond.
Encouraged by the area's recovering economy, Horowitz said purchasing Langley Square was a strategic move for its growing multifamily portfolio given its proximity to Langley Air Force Base and the Coliseum Central Business District.
"We like the city of Hampton," Horowitz said. "We think it has a good and promising future." [Daily Press]
- Berkadia Completes Sale and Financing of Multifamily Property
North Salt Lake-Berkadia announced today the recent sale and financing of The Pointe, a multifamily property located at 55 W Center St. in North Salt Lake, Utah. James Wadsworth and Greg Barratt of Berkadia's Salt Lake City office negotiated the sale of the property, which was completed on July 28. Managing Director Clay Akiwenzie of the San Francisco office originated the loan.
The buyer was based out of Danville, California, and the seller was a private party based in Newport Beach, California.
Built in 1980, The Pointe features 186 two-bedroom units. Select units have a newly renovated interior including updated kitchens with new appliances. Other unit amenities include ceiling fans and either patios or balconies. Certain units also have washer and dryer connections. Community amenities include a swimming pool, sauna, spa, picnic areas with barbeques, laundry facility, clubhouse with WiFi, fitness center and covered parking. The property was 97 percent occupied at the time the loan and sale were complete.
The Pointe is highly accessible via public transportation and is across the street from Hatch Park. It is situated only seven miles north of Salt Lake City, seven miles from City Creek Center and six miles from Energy Solutions Arena, home of the National Basketball Association's Utah Jazz. The area's top employers include L3, PacifiCorp, Goldman Sachs, Fidelity, Delta Airlines, Intermountain Health Care, the University of Utah and VA Medical Center-Salt Lake City.
"The Salt Lake metro area is a great place to invest," Wadsworth said. "The economy is strong with a low unemployment rate and strong job growth. Together with our mortgage banking partners in San Francisco, we were able to complete this great investment opportunity for our client."
Metrowide vacancy in the Salt Lake City metro dipped 10 basis points since mid-2014, reaching 4.3 percent in June. Average rent was $962 per month in June, a 2.6 percent annual increase. [Utah Business]
- Devonshire Place and Sun Valley Apartments sold for $14 million
A large Birmingham apartment property has been sold.
Devonshire Place and Sun Valley Apartments, a 332-unit multifamily property located near the Center Point area, was sold to New York investor Devonshire Apartments AL LLC, according to a release from Birmingham's Berkadia office.
Berkadia Managing Director David Oakley and investment sales associate Josh Jacobs negotiated the $14 million sale at $42,500 per unit at the 2349 8th Street NW location.
Devonshire Place and Sun Valley was built in phases that ranged from 1971 to 1974 and is composed of around 346,260 square feet on 19.76 acres of land. The property contains garden-style units ranging from one-to-three-bedroom floor plans.
The property is located near Jefferson State Community College in Birmingham's northwest corridor near Pinson and Center Point. [Birmingham Business Journal]
- This Week's LA Deal Sheet - Sales
Berkadia's Dean Zander, Vince Norris and Mark Ventre closed the $26.2M sale of J Grant, a newly completed, 50-unit mixed-use property in Downtown Pasadena. The project (119 S Los Robles), which includes a ground-floor commercial space, was purchased vacant by a private investor. The seller, a local Pasadena developer, built the property to luxury condo specs, intending to sell off the individual units. With the strength of the multifamily investment market, the desirable location and limited new supply, the buyer plans to operate the J Grant as luxury rental apartments. The property is just a few blocks from Old Pasadena and the Playhouse District, and minutes from the Gold Line as well as the 210, 110 and 134 freeways. [Real Estate Bisnow]
- Two Multifamily Communities in Phoenix Find New Landlords
Two multifamily properties in Phoenix have found new owners with the help of Berkadia, which recently announced the disposition of The Villages at Metro Center and Oakridge Apartments.
Located at 3106 West Vogel Ave. in Phoenix, the 290-unit Villages at Metro Center complex was sold for $19 million. The community was developed in 1979 and features studio, one-, two-, and three-bedroom apartments. Its amenity package includes four swimming pools, a Jacuzzi and sauna, barbeques, tennis courts and a fitness center. The buyer was Covina Court, LLC of Long Beach, Calif.
The second apartment complex is a 282-unit community located at 3330 West Greenway Road. It features studio, one- and two-bedroom floorplans. Amenities include a swimming pool, spa, clubhouse, and barbeques. WWC Holdings, LLC of Scottsdale, Ariz. paid $17 million to acquire the asset.
The two deals were arranged by Senior Managing Director Mark Forrester and Managing Director Ric Holway, both with Berkadia.
"Steady job growth and rising income levels are driving increasing multifamily demand in the Phoenix market," Forrester said in a prepared statement. "Our team marshaled our significant regional experience and market expertise to close these deals at competitive price." [Commercial Property Executive]
- Berkadia closes four recent multifamily sales in Tennessee, Michigan and Missouri
Berkadia's Affordable Housing Group negotiated four sales totaling more than $30 million for four affordable-housing properties in Tennessee, Michigan and Missouri.
Senior directors Eric Taylor of the Detroit office and managing director Aaron Hargrove of the Oklahoma City office closed the $11.3 million sale of King's Crossing and Tara's Place apartments, located at 1710 E. Northfield Blvd. in Murfreesboro, Tennessee.
Built in 1995, the 184-unit property features one-, two- and three-bedroom floor plans. Unit amenities include fully equipped kitchens, and select units offer washer and dryer connections. Community amenities include a swimming pool, clubhouse and laundry facility. The property is located three miles from downtown Murfreesboro and less than three miles from Middle Tennessee State University.
Taylor and Hargrove negotiated the $10.95 million sale of Waterview Apartments, located at 1300 Waterview Circle in Hendersonville, Tennessee. The 160-unit property offers two- and three-bedroom floor plans, and unit amenities include fully equipped kitchens, as well as washer and dryer connections. Community amenities include a sand volleyball court, clubhouse and laundry facility. The property, which was built in 1995, is located near Anchor High Marina and The Streets of Indian Lake.
The buyer of both properties was Dominium of Plymouth, Minnesota, and the seller and original developer of both properties was T&R Properties of Columbus, Ohio.
Earlier this summer, Taylor, Hargrove, senior director David Walstrom and director Jason Krug of the Detroit office negotiated $4.25 million for the sale of Arbor Crossings, located at 834 Sheridan Road in Muskegon Township, Michigan. The buyer was Read Property Group of New York, and the seller was Sterling Group, Inc. of Mishawaka, Indiana. The 18-unit property offers one-, two- and three-bedroom floor plans. Unit amenities include patios or decks, fully equipped kitchens, pantry storage and ceiling fans. Community amenities include a swimming pool, sundeck, clubhouse and playground. Built in 1995, the property is less than four miles from downtown Muskegon and less than two miles from Muskegon Community College.
Additionally, Taylor, Hargrove and senior director Phillip Brimble of the Kansas City office brokered the sale of Northeast View Apartments, located at 222 Garfield Avenue in Kansas City, Missouri. The buyer was Trinity-Northeast View, LLC of Chicago, and the buyer was Kci-Northeast View, LLC of Coronado, California. Built in 1972, the 137-unit property features one-, two- and three-bedroom floor plans. Unit amenities include spacious layouts and brick exteriors, while community amenities include quiet areas and convenient access to public transportation. The property is less than three miles from LEGOLAND Discovery Center and two miles from downtown Kansas City. [Midwest Real Estate News]
- Bascom Group Acquires 112-Unit Vintage Apartment Community in Downey, California
IRVINE, CA - The Bascom Group has acquired The Square Apartments, a 112-unit garden style apartment community located at 12517 Brookshire Avenue, Downey, California. The $25.5 million sale closed on July 14, 2015. This marks Bascom's 13th recent California acquisition. Shane Shafer and Adrienne Barr of Berkadia were the brokers for the sale. Brian Eisendrath, Brandon Smith and Annie Rice of CBRE Capital Markets arranged the $18.8 million loan with California Bank & Trust.
The community was built in 1965 and consists of 15 two-story buildings situated on 3.4 acres. Rental offerings include a range of one-bedroom through three-bedroom floor plans, with one-bedrooms accounting for 27% of the total units, two-bedroom and three-bedroom units accounting for 38% and 36% respectively. The Square offers an attractive floorplan mix coupled with large units. Bascom plans to implement a modest renovation program to update the property interiors and modernize the look of the exteriors.
Chad Sanderson, Principal for Bascom states, "The Square is a very well located property with access to strong job centers, schools, and numerous retailers. The area continues to gentrify as evidenced by the ongoing retail development projects along with the growing number of young professsionals and families relocating to the City of Downey."
Tim Whiting, Senior Vice President of Bascom, comments, "The property consists of a majority of two and three-bedroom floorplans. It is one of the few properties in the area that offers residents large floor plans with garages. This is an ideal property for families located within walking distance to neighborhood parks and quality schools." [Multifamily Biz]