Market Report

The borrower bought Huntington Place off-market and had a tight time frame for closing. In response, Beech Street created a dedicated team to accelerate the underwriting. "We do what it takes to deliver for the client," Sinberg said. "In this case, we went from application to closing in 30 days, which is what the client needed."

A key element in the approval of the application was the borrower’s commitment to invest a significant amount of capital improvements over the life of the loan, making such interior renovations as new carpets and vinyl flooring, new front doors, new bathroom fixtures and flooring, and new kitchen appliances, countertops, cabinets, and kitchen fixtures. "We’ve seen the borrower complete similar improvements on other apartments that significantly improved their marketability and cash flow, and we were confident that they would follow through here," Sinberg pointed out. "This is an example of the level of confidence that develops when lenders and borrowers build a relationship by working together."

Hendricks-Berkadia, among the nation’s largest and most active multifamily investment banking and research firms, recently negotiated the sale of Ravenwood Apartments off N. John Young Parkway in Kissimmee.

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The Orlando office of Atlanta-headquartered ARA, the largest privately held, full-service investment advisory brokerage firm in the nation focusing exclusively on the multihousing industry, has arranged the sale of Oak Reserve at Winter Park, a 142-unit multihousing community located in the affluent city of Winter Park, within the Orlando MSA.

The Central Florida-based sales team of Principals Kevin Judd, Patrick Dufour and Senior Vice President Matt Wilcox, along with Principal Marc deBaptiste, represented Aventura, Florida-based Trade Street Residential, Inc., in the sale. The REIT sold the property in order to re-allocate capital to newly constructed assets. Rockville, Mary.-based BAF Associates purchased the property for $11,710,000.

The property enjoys a superb location less than ten minutes from major employment, world-class entertainment, shopping and dining in downtown Orlando. Oak Reserve at Winter Park enjoys excellent accessibility throughout the Orlando MSA. Downtown Orlando, Central Florida Research Park and the University of Central Florida, which are the area’s major employment and educational centers with a combined total of over 70,000 employees, are all located within minutes from Oak Reserve at Winter Park.

"Demand for infill product in core locations is unprecedented in today’s market. We had over 160 requests for investment packages on this asset," noted Kevin Judd, lead advisor on the transaction.

"Full Sail University is located less than one mile south of Oak Reserve. The University of Central Florida — recently named Florida’s largest state university with enrollment of 58,500 — is just over six miles from the property," he added.

Greater Orlando’s apartment market continues to show signs of growth as occupancy rates have increased a substantial 590 basis points since its trough in 1Q 2010 to 94.7 percent, as of 4Q 2012. Occupancy is expected to continue increasing over the next two years.

The ARA Central and North Florida-based sales team, led by Principals Kevin Judd and Patrick Dufour, along with Senior Vice Presidents Matt Wilcox, represented Orlando-based Contravest in the $30,250,000 sale. Jacksonville-based GMC Property Management purchased the asset, which was 96 percent occupied at the time of sale.

"Courtney Villages’ convenient location in immediate proximity of the 'The Villages' active adult community allows residents a vast number of employment options in various high-paying fields," said Kevin Judd, lead advisor on the transaction.

The Villages is the largest single-site residential development in the United States, spanning more than 26,000 acres in three adjoining counties in Central Florida. The Villages possesses integrated mixed-use developments containing retail, office and hotels with a planned 2.7 million square feet of space and an astonishing annual average household income of more than $84,000.

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Beech Street Capital, LLC, announced that it closed a $22.1 million Freddie Mac CME loan for the acquisition of Highpoint Club, a 348-unit garden-style apartment complex in Orlando. Senior Vice Presidents Mitch Sinberg and Michael Wallace, headquartered in Beech Street’s Fort Lauderdale office, originated the transaction.

"The borrowers were concerned about the time it would take to complete the transaction," Wallace said. "We were able to move things along quickly so that they closed within the terms of their purchase and sale agreement." The borrowers’ extensive experience and the property’s excellent condition and superior amenities were also instrumental in facilitating the timeline. The 43 two-story buildings comprising Highpoint Club had been well maintained by the previous owner.

Common area amenities include a swimming pool with spa, tennis and basketball courts, picnic areas with grills, a clubhouse with business center, a private dock on the community lake, Wi-Fi at the swimming pool and clubhouse, and a 24-hour fitness center. The units feature fully equipped kitchens with breakfast bars, spacious walk-in closets, wiring for intrusion alarm systems, full-size washer/dryer connections, vaulted 15-foot ceilings in select units, private ground floor entrances and foyers, and sunrooms.

Gateway Apartments was built in 1986 and is located at 2000 Gandy Boulevard North in St. Petersburg. The property consists of eleven one and two-story buildings. The buildings are comprised of 144 one-bedroom/one-bath units with 600 rentable square feet. All units have central heating and air conditioning.

Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Rose Tree Gardens, a 53-unit multifamily property located in Seminole, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset commanded a sales price of $1,380,000 or $26,038 per unit.

Casey Babb, a CCIM and senior multifamily specialist, and Luis Baez, associate in Marcus & Millichap’s Tampa office, represented the local seller, a private estate. Babb and Baez also procured the buyer, a private 1031 exchange investor from Tampa.

Rose Tree unit mix features one-, two- and three-bedroom apartments. Unit amenities include large fully-equipped kitchens with a pass-through feature to the dining room, walk-in closets and central air conditioning. The community features a swimming pool, several resident gathering areas and covered private parking.

"Rose Tree Gardens was a highly distressed property which had been owned for almost 40 years before being sold as an estate sale," Baez said in a statement. "The buyer was a local rehabber who happened to be in a 1031 exchange and closed all-cash after a short inspection at nearly full price."

Babb added, "1031 exchange buyers are back in the marketplace in a big way and have accounted for 44 percent of our team’s deals since December. Due to the limited supply of available product and since 1031 exchange buyers are primarily motivated by tax deferral, they are great to work with and usually close quickly and with very little hassle."

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Beech Street Capital, LLC, announced that it closed an $8.5 million Fannie Mae conventional loan to refinance Avenue Club Apartments, a 216-unit apartment complex in Tampa. This is the third transaction the borrower has completed with Beech Street since 2011. Brian Sykes, senior vice president of originations in Beech Street’s Boston office, originated the transaction.

The borrower purchased the property in 2011 and immediately began a program of capital improvements that included a new clubhouse with fitness center, landscaping and exterior painting. Thanks to these measures, occupancy has increased dramatically, rents have gone up and the property’s value has risen substantially. The borrower’s goal was to maximize the proceeds of the loan in order to recapture their equity investment in the apartments.

The borrower was interested in receiving maximum proceeds at an attractive rate, therefore it was determined that a lower leveraged loan at a strong rate with a component of interest only would give the borrower the best returns. "Our practice is to look at a transaction from a number of angles — and then recommend the one that we feel best serves the interest of our customer," Sykes said. "We share our analysis so that the borrower better understands their options."

The Avenue Club Apartments are divided among 19 buildings. Amenities include a swimming pool with large deck and gazebo area, grill area, tennis court, gated entry, and a fitness center with state-of-the-art equipment. In addition, the recently finished clubhouse features a lounge area with kitchen that residents can also reserve for events.

Michael Donaldson and Nicholas Meoli, senior multifamily associates in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the local seller, a fund manager. Meoli and Donaldson, along with Earle Hyman, a senior vice president investments in Marcus & Millichap’s Encino office, procured the buyer of the property, a limited liability company.

The twin spiraling towers will rise above the lush flora and fauna for which The Grove is known, offering pristine waterfront views of Sailboat Bay and the marina. Removed from the busy pace of South Beach and Downtown Miami, yet still minutes away by car, this microcosm will be within walking distance of the village's charming restaurants, boutiques and entertainment venues. Sales for the South Tower have officially launched; 100 percent of the units in the North Tower have sold in less than one year.

"Grove at Grand Bay will serve as an area landmark, setting the bar for future development in Coconut Grove," says Pedro, Terra Group's Chairman, Chief Executive Officer and Founder who, together with son and Co-Founder David Martin, is developing the project. "Since Grove at Grand Bay launched, we have sold more than $250 million worth of inventory, a figure that shows buyers' eagerness to become a part of this exciting new wave of design."

David adds, "Among South Florida's most in-demand communities, Coconut Grove has a unique history renowned for embracing the arts and nature. Some of history's most creative minds have made Coconut Grove their home over the decades, including Robert Frost, Alexander Graham Bell , Tennessee Williams, David Crosby and Howard Hughes."

"Our vision was to create an eco-conscious residential project so sculptural and visually spectacular that it would become a statement for a new Coconut Grove. There was no architect in the world better suited to realize this than Bjarke Ingels," continues Martin, who is committed to bringing world-class architecture and design to Miami.

Bjarke Ingels, founder of BIG (Bjarke Ingels Group) is an award-winning architect acclaimed for designing buildings "as programmatically and technically innovative as they are resource-conscious." Bjarke's singular vision for the LEED-certified Grove at Grand Bay has resulted in the creation of a modern masterpiece: Two glass-and-steel-encased towers rising in the sky 20 stories high, elegantly twisted at a 38-degree angle and housing 98 expansive residences. "There are some architects who only care about their sculpture," said David. "Bjarke on the other hand, really approaches things in a really genuine, humble manner and is really conscientious and respectful."

"Grove at Grand Bay is inspired by 'engineering without engines,' or using contemporary technology to create buildings that look different because they perform differently," says Ingels. "By creating balconies at an unprecedented 12 feet tall and 12 feet deep, we combine generous views and outdoor space with natural shade, maximizing daylight and optimizing shade. The sliders are also hurricane-proof, something all South Floridians can appreciate."

Individual condominium units are spacious and designed to integrate interior living space with Coconut Grove's natural splendor, featuring floor-to-ceiling sliding doors that open to terraces offering panoramic views of Sailboat Bay and the marina, as well as the Miami skyline and coastline. Priced from $3 million, these residences in the sky are tailored to a modern lifestyle that values both family life and entertaining at home, with living, dining, kitchen and family rooms configured in a continuous rectangular space.

Central to the project's architecture is the 're-Groving' of the site, led by award-winning landscape architect Raymond Jungles, whose vision will be translated into a flow of lush vegetation through shared lobby spaces, walkways and terraces to reinforce the idea of continuity.

Grove at Grand Bay's amenities include a multi-lingual butler, on-site chef, curator-maintained art gallery, a gym and spa with separate facilities for men and women, a pet spa, and four pools — a 25-meter lap pool, 25-meter swimming and lounging pool, and two rooftop pools with covered cabanas.

Johnson Capital, a national real estate capital advisory firm, announces that Eric Fixler, Managing Director in the firm’s Boca Raton office, arranged an $18,500,000 loan secured by The Fountains Center, a seven-building mixed-use office and retail property containing 182,000 square feet in Boca Raton.

The Fountains Center sits on 15 acres and was built between 1978 and 1988. The seven buildings vary in use from smaller executive suite offices to full-floor corporate tenants. In addition, there are two banks, SunTrust and Citibank, each with drive-thru lanes.

Situated in southern Palm Beach County, Boca Raton is one of South Florida’s most desirable communities in the country with an overall population exceeding 200,000. It is known for its luxury neighborhoods and upscale shops, restaurants and country clubs. The property is located just south of West Palmetto Park Road, one of Palm Beach County’s main east/west thoroughfares, and along Powerline Road, a main north/south roadway.

The owner is a partnership comprised of local investors who bought the REO property in 2012 from Capmark Bank. Since then, they have significantly turned around the asset by implementing a substantial renovation and revitalization of the asset and by aggressively leasing the vacant space.

The new non-recourse loan is interest only with a five-year term. It was provided by a regional bank and includes reserves for tenant improvements and leasing commissions. The interest rate was based on a spread over LIBOR, which was swapped for a fixed rate below 4 percent.

Commenting on the transaction, Fixler said, "We worked closely with the buyers and helped them develop the business plan for the turnaround of the property. They purchased a well-located asset below replacement cost that possessed significant upside in occupancy and rental rates. Our financial marketing efforts saw a strong level of interest from national and local lenders, as they understood the inherent strengths of the transaction and the borrower’s capabilities to execute on the turnaround strategy. "

Casey Babb, a CCIM and senior multifamily specialist, and Luis Baez, associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the South Florida-based seller, ICM Seville, LLC. Josh Talberg, an associate in the firm’s Minneapolis office procured the buyer of the property, a private investor based in Minneapolis.

Seville Apartments unit mix features one- and two-bedroom apartment homes. Property amenities include fully-appointed kitchens and baths, sizeable walk-in closets, ceiling fans, stackable washer and dryer connections, outside storage closets, semi-private breezeway entries and private screened-in patios and balconies.

Since 2007, there has been more than a half-million dollars’ worth of capital improvements, including new roofs, air handlers, air compressors, appliances, landscaping, site drainage, parking lots, amenity upgrades and exterior fencing.

"The Seville Apartments was a short-sale that took almost a year to complete, but in the end, it commanded one of the highest prices on record in the current market cycle for southwest Florida apartments sized between 50 and 100 units," said Babb in a statement.

"Our platform was able to generate eight offers from a mix of local and international investors and our Tampa and Minneapolis offices worked in collaboration to execute the transaction over seven months of negotiation," adds Babb.