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Market Report
Chicago-based Equity Residential has unveiled a major deal to sell $1.5 billion worth of multifamily properties to a joint venture of Goldman, Sachs & Co. and Greystar Real Estate Partners. The transaction will involve 27 properties in various parts of the country. Under the terms of the sale, the buyers have the right to acquire all of the assets for $1.5 billion, but are obligated to purchase no less than $1.38 billion of them. The buyers have deposited $150 million in escrow and waived their due diligence contingency. Thus the deal, which will occur in two separate closings, will be finalized sooner rather than later, sometime during the first quarter of 2013. According to Equity Residential, the funds generated by the sale of the assets — which it calls "non-core in primary markets" — will be put toward its acquisition of Archstone. Late last year, Equity Residential partnered with Avalon Bay Communities to buy Archstone for $16 billion in a deal in which the Chicago-based REIT will own 60 percent of Archstone. The assets that the Goldman-Greystar JV are acquiring include more than 2,100 units in Washington, D.C., and northern New Jersey, and and 1,600 in Phoenix. The portfolio also includes about 1,000 units in Denver, and 700 or so each in southern California and the San Francisco Bay area. The sale includes 1896 units in Florida for a sales price of $276.7 million, or $145,938.82. The total number of units is 8,010. And Equity spokesman said that they sold off about one-fifth of their assets in South Florida. In terms of units, the sale actually represents a relatively small fraction of Equity Residential’s holdings. Currently it owns 412 properties totaling more than 117,300 units nationwide. Northeast Florida Philip Rachels of Capital Advisors has arranged $16.2 million in refinancing for the 256-unit Oasis at Mandarin Apts. in Jacksonville. The 10-year loan was arranged on behalf of the borrower, Claire Pointe JAX Developers LLC, through Freddie Mac. The property includes one-, two- and three-bedroom units in 16 three-story buildings that were constructed in 1986 and partially renovated in 2006. Central Florida CBRE has completed the sale of the 558-unit Carlton Arms South Apts. for $15.300 million, or $27,419 per unit. Shelton Granade, Luke Wickham, and Justin Basquill of CBRE’s Orlando office exclusively represented the seller in the transaction. Built in 1972, Carlton Arms South offers studio, one-, two- and three-bedroom floor plans averaging 721 SF. The community features two pools, a large clubhouse, and a fitness center, and was 90 percent occupied at closing. Centennial Holdings has purchased the 37-building, 336-unit Citrus Tower in suburban Orlando for $32 million, or $95,238 per unit. The multifamily community was built in 2006 and is situated on nearly 30 acres. Jubeen Vaghefi, Denny St. Romain and Jeff Morris of Jones Lang LaSalle’s Capital Markets team represented the institutional seller. Plans for a new 104-unit affordable-housing midrise slated for downtown Orlando were approved by the Orlando City Council on Monday, the Orlando Sentinel reported.. The project, which was proposed by Winter Park-based Concord Lexington LLC, will be built on 2.07 acres just west of Interstate 4 and Hughey Avenue near the Crowne Plaza Orlando Downtown, facing Concord Street. The first phase of the project will be a six-story affordable-rent housing unit built on 1.2 acres. The remaining land is planned for a 6,550-square-foot commercial space, the Sentinel reports. Springboard Nonprofit Consumer Credit Management Inc. and Money Management International (MMI) closed escrow Dec. 21, 2012, on a 240-unit multifamily affordable housing property in Orlando. The $12.5 million acquisition of Seminole Ridge Apts., which will assist an estimated 850 Orlando residents annually, is the first step in a joint venture by the nonprofit organizations to provide affordable housing options in areas of high-need. "We hope that in bringing our Social Conscious Management approach to Seminole Ridge, we will not only help hundreds of residents improve their quality of life, but will also set the foundation for the future of affordable housing in the U.S.," said Todd Emerson, Springboard President and CEO. Through a $25 million Affordable Housing Fund, Springboard and MMI are raising funds to bring this affordable housing initiative to thousands of low- to moderate-income individuals and families in states impacted most by the housing crisis. This affordable housing initiative is unique in that it combines financial education and housing counseling with affordable rent rates. Residents will have access to rental units at a rate of no more than 30 percent of the household's income — which is significant considering 12 million Americans are currently paying more than 50 percent of their gross income on rent, according to the U.S. Department of Housing and Urban Development (HUD). In addition, through the Social Conscious Management approach, residents will be given the opportunity to take part in special community events and activities aimed at facilitating personal growth. Residents will also participate in housing counseling sessions and financial education workshops designed to give families and individuals the tools needed to successfully live within a fixed budget — while also planning for the future. "The time is right to provide a real, lasting solution for a population that's been struggling for too long," said Ivan Hand, MMI President and CEO. "In combining affordable housing with financial education and community engagement, we will be arming families with invaluable resources they'll be able to use for the rest of their lives." Bay Area Tampa-based Blue Rock Partners LLC, in partnership with Deerfield Beach-based Konover South LLC, has acquired a multifamily portfolio totaling 1,218 units in three communities in Brandon and Lakeland for $66 million. Blue Rock Partners will invest another $9 million in improvements into its newly acquired portfolio. The 712-unit Plantation Key Apts. and adjacent 270-unit Providence Park Apts. are being rebranded and marketed as Park at Siena in Brandon. Additionally, the 236-unit Martin’s Landing Apts. in Lakeland, will undergo improvements and be marketed as Park at Verona. Miami-based Aztec Group secured the acquisition and renovation loan. Tampa-based Elco Landmark Residential, a real estate investment firm that owns and operates multifamily properties throughout the Southeast, announced that its private label partnership with Timbercreek Asset Management acquired a portfolio of four multifamily properties from Colonial Properties Trust for approximately $95.4 million. The assets are located in Texas, North Carolina and Virginia and total 1,380 units. Collectively, the portfolio is 95 percent occupied. Houston-based Sterling University Housing, the student housing division of The Dinerstein Companies, sold to institutional pension fund advisor Sterling North Campus, their 206-unit, 734-bed student housing community in Tampa. Sterling North Campus was 95 percent occupied at closing. CBRE’s National Student Housing Group represented the parties in the transaction and the property was purchased for an undisclosed amount. Built in 2010, Sterling North Campus received LEED for Homes Gold certification and features high-end amenities including fully-furnished all-inclusive residences, two expansive pool plazas, aqua lounge with multiple 42" outdoor high-definition televisions, billiards, multifunctional club house with private study rooms, cyber cafe, athletic center and computer center featuring Apple and PC products. Southeast Florida Codina Ventures Fund has sold the Doral site approved for the Doral Blue apartment community to ZOM for $13.65 million. The Doral Blue site consists of 4.15 acres that has been approved for an eight-story apartment community with 249 units. The master-planned community, which is adjacent to the Doral Country Club & Spa on Northwest 87th Avenue, had been of interest to Archstone, which is being sold to a partnership between Equity Residential and AvalonBay Communities for $6.5 billion. Related Urban Development Group has been awarded $46 million in tax credit-related funding that will improve the lives of the elderly poor. The money will be used to rehab Jack Orr Plaza, an existing 200-unit community, and Collins Park Apts., a new 117-unit development in Miami's Allapattah neighborhood. The Florida Housing Finance Corp. awarded the money through the 9 percent tax credit program. The projects, which are slated to start in January, can come none too soon. Currently, there are more than 50,000 people waiting for an affordable unit in Miami-Dade County. Some of the areas with the greatest need include Overtown, Little Havana and other parts of the county with large minority and immigrant populations. David Woida of NorthMarq’s Milwaukee regional office has arranged approximately $62 million in combined first mortgage refinancing for three South Florida multifamily properties totaling 926 units. The 362-unit Waterford Landing Apartments was financed at $25.2 million and the 244-unit Waterford Point Apartments at $16.5 million in Miami. The 320-unit Reflections of Boca Apartments was also financed at $20.25 million. Financing for these properties was based on a 10-year term and a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its seller/servicer relationship with Freddie Mac. Alison Williams and Stephen Whitehead of NorthMarq’s Dallas regional office have arranged $38 million in acquisition financing for the 560-unit Parrot’s Landing Apts. in North Lauderdale, as part of an overall sales price of $56.3 million. Financing was based on a 10-year term and a 30-year amortization schedule. The property was constructed in two phases in 1987 and 1997. It consists of one-, two- and three-bedroom units and amenities include two clubhouses, three swimming pools, a sundeck, fitness center, lighted tennis court, car care center, business center and running trails. Toronto, Canada-based private real estate investment company Brass Enterprises purchased the property from Grand Peaks Property Mgmt. Marcus & Millichap has facilitated the $2.12 million sale of Sans Souci Gardens, a 34-unit apartment property at 1790 NE 117th Road in North Miami. Felipe Echarte and Joseph Thomas of Marcus & Millichap’s Fort Lauderdale office represented the seller, a private investor from Aventura, Fla. The buyer, which was secured by Marcus & Millichap’s Arthur Porosoff, was a Fort Lauderdale-based limited liability company. San Souci Gardens consists of three adjacent apartment buildings with one- and two-bedroom units. Atlantic | Pacific Management has been appointed as the new property management company for Coquina Cove at Martin Downs and Willoughby Cove. Under the new agreements, A|P Management will handle all property management responsibilities for each property. Coquina Cove at Martin Downs is a Class A apartment community located in the popular Martin Downs area of Palm City. The property has 256 luxury rental units with convenient access to the Florida Turnpike in Martin County. Property Manager Shanon Pereira and Regional Manager Lissette Sabatino manage the propert. The 304-unit Willoughby Cove is a Class A apartment community conveniently located in the prestigious Willoughby neighborhood within minutes from the heart of downtown Stuart. Property Manager Ginger Vyterna and Regional Manager Lissette Sabatino manage the property. A|P Management’s Sr. Managing Director, Mark Briggs, says "A|P continues to grow its rental apartment management business throughout the southeast. A|P has now added more than 2,500 new units under management in 2012 with even greater expansion plans for 2013." Richard F. Cohen of Cohen Real Estate Capital LLC, a seven-year-old commercial real estate company located in downtown Orlando, arranged a $16,250,000 loan to finance the stabilization of a 520-unit apartment community in Palm Beach County. The total debt represented nearly 90 percent of the acquisition closing costs, and also included funds to finish the planned upgrades. The bridge loan came from a large national bank and carries an exceptional rate below 6 percent, which will save the borrowers over $1,500,000 in interest over the life of the loan. A second, more challenging, loan was to finance the $5,000,000 acquisition and renovation of an 80-unit new town home rental community in Tampa that was acquired from a large regional bank via FDIC. The project has all three-story units with large 2-car garages. Although new construction, the project was poorly occupied and three of the twelve buildings were never completed by the original developer. Southwest Florida Miromar Development plans to develop an 100-acre university village next to fast-growing Florida Gulf Coast University. The company plans to break ground in the fall on the development, located east of Ben Hill Griffin Parkway at the intersection of Estero Parkway. Details of the scope and cost of the project were not disclosed but will include off-campus housing, shops, cafés and restaurants. "University Village will create an environment for the university where students, staff and faculty can shop and eat, and it will help meet the housing needs of faculty members and a growing student population," says Margaret Antonier, president and CEO of Miromar Development, in a statement. "With our current student enrollment nearing 14,000 and our more than 1,000 employees, FGCU and the University Village will enjoy important synergies through our proximity and mutual interests," says FGCU president Wilson Bradshaw, also in a statement. Construction of Discovery Village at the Forum off Colonial Boulevard near Interstate 75 is scheduled to be completed in the fall. The assisted-living project recently held a "topping out" of its first wing, which will consist of 30 residences for memory-impaired residents. When completed, Discovery Village will also have 30 supervised independent living and 66 assisted-living residences. Besides living quarters, the facility will have on-site medical providers and recreational amenities such as an ice-cream parlor and a movie theater. |
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