Tech Boom in Texas Capital Creates Jobs and Demand for Apartments
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November 9, 2021 • Issue 35
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Morgan Properties Acquires Two Southeast Multifamily Portfolios for $780.5M
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Hampton Greene Apartments in Columbia, S.C., was part of a 15-property portfolio — one of two portfolios — acquired by Morgan Properties in a recent transaction.
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KING OF PRUSSIA, PA. — Morgan Properties has purchased two separate multifamily portfolios in the Southeast totaling 4,724 units. The portfolios comprise 18 communities in four states: Georgia, Florida, North Carolina and South Carolina. The King of Prussia-based investor acquired the portfolios from Charleston, South Carolina-based Middle Street Partners (MSP) and Massachusetts-based Northland Investment Corp. for a combined $780.5 million.
The MSP portfolio comprises 4,102 units spread across 15 Class B and workforce housing communities in the following markets: Columbia, S.C.; Fayetteville, N.C.; Jacksonville, Fla.; Augusta, Ga.; Greenville, S.C.; and Charlotte.
The Northland portfolio comprises Windward at the Villages, The Royal St. George and Village Place, all located in West Palm Beach, Fla. Berkadia Institutional Investors brokered the $132.5 million portfolio sale.
Morgan Properties plans to execute a $47.5 million value-add repositioning strategy throughout both portfolios that includes washer and dryer installations; kitchen upgrades such as new backsplashes, granite countertops and stainless steel appliances; Amazon Hub package rooms; bike-share programs; new fitness equipment; and upgraded outdoor amenity spaces with grills, new furniture and fireplaces. The firm also plans to hire more than 90 new employees from the portfolio of acquired properties.
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Toll Brothers, EJF Capital to Develop 218-Unit Rafferty Apartments in Santa Ana, California
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Located in Santa Ana, Calif., Rafferty will feature 218 apartments, a fitness center, resident lounge, co-working space, maker space, jam room, swimming pool and outdoor fitness equipment.
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SANTA ANA, CALIF. — Toll Brothers, through its Toll Brothers Apartment Living rental subsidiary, has partnered with EJF Capital to develop Rafferty, a multifamily property in Santa Ana.
Chinmay Bhatt, Noam Franklin and Cody Kirkpatrick of Berkadia JV Equity & Structured Capital identified the joint venture partner and helped structure the deal. The project is being financed through $31.7 million in joint venture equity from EJF Capital, along with a $66 million loan facility from Santander Bank. Toll Brothers’ in-house finance department arranged the financing.
Rafferty will feature 218 apartments in two five-story and seven-story buildings with 328 parking spaces. The community will offer a fitness center, resident lounge, maker’s room, jam room, speakeasy, co-working space and sky lounge with an outdoor terrace. Additional amenities will include a swimming pool, seating with grills and fire pit and outdoor fitness equipment.
The property will also feature 12,350 square feet of ground-floor commercial space along Main and Fourth streets. Completion is scheduled for 2024.
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Vista Realty Partners Sells Apartment Community in Metro Atlanta for $63.3M
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Community amenities at Carmel Vista apartments include a business center, playground, dog park, fitness center, 24-hour package concierge lockers, controlled access gates, clubhouse with game room and coffee bar and pool.
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MCDONOUGH, GA. — Vista Realty Partners has sold Carmel Vista Apartments, a 228-unit multifamily community in McDonough. Equus Capital Partners Ltd. purchased the property for $63.3 million. David Gutting of Newmark represented Vista Realty in the transaction.
Located at 91 Mt. Carmel Road, Carmel Vista has access to Interstates 75 and 285. The property was fully occupied at the time of sale.
Trustmark Bank provided an undisclosed amount of construction financing for the project. A joint venture among The Radco Cos. and Blue Vista Asset Management LLC., Eduard de Guardiola’s Family Office, provided an undisclosed amount of equity.
Click here for more about Carmel Vista.
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JLL Arranges $53.5M Acquisition Loan for Apartment Complex in Stamford, Connecticut
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STAMFORD, CONN. — JLL has arranged a $53.5 million acquisition loan for Glenview House, a 146-unit apartment complex in Stamford. The property offers one-, two- and three-bedroom units that average 1,280 square feet and are furnished with stainless steel appliances and full-sized washers and dryers.
Amenities include a pool, courtyard, outdoor grilling area, fitness center, clubroom with a bar and a business center. Elliott Throne, Mona Carlton, Alex Staikos, Amit Kakar and Kenny Cutler of JLL arranged the three-year, floating-rate loan through MetLife Investment Management on behalf of the borrower, Beachwold Residential.
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Western Multifamily & Affordable Housing Business — September/October Issue
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In this issue:
- Secondary Markets Pull Out all the Stops
- Development Opportunities in Seattle Suburbs
- How Multifamily Owners Can Handle Emerging Cyber Threats
- Managers Must Become Text-Savvy
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For advertising information, contact:
Scott France
404-832-8262 x 108 scott@francemediainc.com
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MC Cos. Acquires Two Adjacent Multifamily Properties Totaling 455 Units in Metro Austin
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PFLUGERVILLE, TEXAS — Investment and development firm MC Cos. has acquired The Sage at 1825 and Sage Cottages, two adjacent multifamily properties totaling 455 units in the northern Austin suburb of Pflugerville. MC Cos. will implement a value-add program and rebrand the communities as a single property known as The Place at 1825.
Once capital improvements are complete, The Place at 1825 will feature studio, one-, two- and three-bedroom floor plans ranging in size from 690 to 1,350 square feet. Amenities will include a pool, clubhouse, business center, fitness center, soccer field, onsite dog park and a playground. Michael Thompson and Frances Rodgers of CBRE arranged acquisition financing for the deal. The seller was not disclosed.
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Affordable Housing Investment Brokerage Closes Sale of Two Properties
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Briarwood Meadow Apartments features 27 two-bedroom units, three one-bedroom units and three three-bedroom units. The property has undergone exterior renovations in recent years, including new windows, siding, parking lots and more.
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BLACK RIVER and SYRACUSE, N.Y. — Affordable Housing Investment Brokerage (AHIB) has brokered the sale of two affordable properties in New York — Briarwood Meadow Apartments in Black River, a village about three miles east of Watertown, and Summit Apartments in Syracuse. The combined total of both transactions was $11.3 million.
Summit Apartments includes 108 units spread across five sites near Syracuse University. Ninety-three of the 108 units are covered by a 20-year HAP (housing assistance payments) contract that began in 2006. AHIB’s Managing Director Kyle Shoemaker and Associate Neal Wolf represented both the purchaser, a national affordable housing developer, and the seller, a private individual, to complete the $8.8 million transaction.
Briarwood Meadow Apartments, just outside Watertown in Black River, New York, is a 33-unit apartment community with full HAP coverage from a project-based Section 8 contract that sold for $2.5 million. The property’s current rents trail the market. Shoemaker and Wolf also represented the buyer and seller in this transaction.
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CBRE Investment Management Fund Provides $37.2M Loan for Multifamily Community in Roswell, Georgia
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Enclave at Roswell offers a mix of one- and two-bedroom apartments with units that range in size from 706 to 1,237 square feet. Community amenities include a swimming pool, fitness center, business center, tennis court, children’s playground area and a dog park.
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ROSWELL, GA. — A fund sponsored by CBRE Investment Management, formerly known as CBRE Global Investors, has provided a $37.2 million loan to TerraCap Management for the acquisition of Enclave at Roswell, a 236-unit multifamily community in Roswell. Matt Williams and Kyle Schlitt of Newmark arranged the floating-rate loan. The loan has an initial term of four years, which can extend up to one additional year, and features future funding for TerraCap’s planned renovations.
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Urban Atlantic Opens 282-Unit Apartment Community in Metro D.C.
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Stella is a 282-unit property developed by Urban Atlantic. It offers studios, one-, two- and three-bedroom and penthouse units ranging in size from about 500 square feet to more than 1,200 square feet.
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HYATTSVILLE, MD. — Urban Atlantic has opened Stella, a 282-unit apartment community located at 3950 Garden City Drive in Hyattsville, about 11 miles from Washington, D.C. The property’s monthly rent ranges from $1,865 to $4,004, according to Apartments.com.
Located in Prince George’s County, Stella was developed near New Carrollton, a transit-focused community where the Washington Metropolitan Area Transit Authority (WMATA) and Kaiser Permanente have committed to new office space. In 2019, Urban Atlantic delivered the first phase of the New Carrollton office complex, which was a 176,000-square-foot administrative building for anchor tenant Kaiser Permanente. Stella is located right on the Metro line at New Carrollton Station.
Click here for more.
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Active Adult Communities Thrived During Height of Pandemic, Say NIC Panelists
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Panelists at 'The Investment Market for Active Adults' at the NIC Fall Conference, held Nov. 1-3 in Houston, included (from left): Jeff Patterson, CEO and co-founder, Sparrow Partners; Zachary Crowe, principal, The Carlyle Group; moderator Aron Will, vice chairman of debt and structured finance, CBRE; and Ayesha Menon, senior vice president of wellness and housing development, Welltower.
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HOUSTON — Although the seniors housing industry as a whole suffered big setbacks throughout the COVID-19 pandemic, hitting record-low occupancy rates across the board, one sub-segment was an exception to the rule.
“During COVID there were clear winners and losers in commercial real estate,” said Aron Will, vice chairman of debt and structured finance at CBRE, where is also co-head of CBRE Senior Housing. “Industrial, life sciences, medical office and multifamily were very clear winners. But one asset class that’s been overlooked is active adult, as it was also a very clear winner.”
Although there is much discussion around how to define the active adult segment, generally it’s an age-restricted apartment community for physically healthy seniors who don’t yet need the services in independent living such as meal preparation, cleaning or assistance with activities of daily living.
Without temporary government regulations stopping move-ins to active adult communities, plus a younger, healthier resident than in independent living or assisted living, active adult communities thrived during the pandemic. Lease renewals were 80 percent, collections were close to 100 percent and the segment experienced “phenomenal rent growth,” according to Will.
Will’s comments came during a panel he moderated titled “The Investment Market for Active Adults” at the National Investment Center for Seniors Housing & Care (NIC) Fall Conference, held Nov. 1 to 3 in Houston.
Click here to read the rest of the report from NIC.
— Jeff Shaw
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— FROM THE MAGAZINES —
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Tech Boom in Texas Capital Creates Jobs and Demand for Apartments
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Cushman & Wakefield represented Stillwater Capital Investments earlier this year as it sold The Conley apartments in Leander, Texas, to a partnership between Constellation Group and Beacon Real Estate Group.
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It’s almost easier to name the tech companies that are not located in Austin than to list those that are. A bit of an overreach perhaps, but the biggest names in business, tech and culture today — Tesla, Apple, Google, Facebook, Oracle, Dell, Hewlett Packard and more — are either already located in Austin or about to set up shop.
Tesla’s recent announcement marks the latest leap forward in Austin’s transition to “Silicon Hills,” a nickname given the area as numerous tech companies originally established in California build corporate campuses around the capital city of Texas.
According to a report from the Austin Chamber of Commerce, more than 8,300 employers in the Austin metro area were in high-tech industries in 2020. Jobs in Austin’s tech industries total 176,406, or 17.1 percent of all jobs, compared with 9.2 percent nationally.
In early October, Tesla Chief Executive Officer Elon Musk said that while the electric carmaker will continue production in California, the company will move its headquarters from Palo Alto to Austin. The company plans to build a $1.1 billion car- and battery-manufacturing complex on the east side of the city, near the airport.
Click here for the rest of the article.
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France Media publishes 13 free e-newsletters, covering commercial real estate by region or with a focus on specific property types, including retail, multifamily & affordable housing, student housing and seniors housing.
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