Deal boom | apartmentcareers

Callahan Construction breaks ground on luxury waterfront apartment complex in Lynn North Shore

Callahan Construction Managers (Callahan) announces they have broken ground at Breakwater in Lynn, MA. The Dolben Company in joint venture with Minco Corporation is developing the future luxury waterfront apartment complex, with HDS Architecture serving as the architect. The groundbreaking ceremony took place on December 11, 2019, with Governor Charlie Baker, Housing and Economic Development Secretary Mike Kennealy, Senator Brendan Crighton and Lynn Mayor Thomas McGee all in attendance.

The Breakwater apartment complex, which overlooks Lynn Harbor, will completely transform a section of real estate previously vacated for more than 35 years. Construction for the multifamily development is happening on the site of former Beacon-Bel Chevrolet and is scheduled for completion in March 2022.

The development will have 331 apartments in two buildings over structured parking. In addition to spectacular waterfront views, Breakwater will feature many high-end amenities including two courtyards, a fitness center, game room, pet wash, and outdoor fire pit. There will also be a harbor walk and linear park along the waterfront, which is being constructed for public use.

“We are excited to announce our collaboration with the State, City of Lynn, Dolben, and HDS Architecture as we bring additional residential opportunities to Greater Boston,” said Patrick Callahan, President of Callahan Inc. “We are excited to transform the waterfront into a lively housing community that embodies Lynn’s bright future.”

The Breakwater project received two major grants from the State of Massachusetts. The first grant is a $1,000,000 infrastructure grant from the Seaport Economic Council for improvements to the seawall, to ensure the harbor is a viable place to live for years to come. The second grant is from MassWorks to help with traffic on the Lynnway, a busy highway that connects Lynn to Boston.

Callahan Construction breaks ground on luxury waterfront apartment complex in Lynn North Shore

JLL arranges $127.5M financing for EON at Flagler Village

JLL announced today that it has arranged $127.5 million in financing for EON at Flagler Village developed by Alta Developers, a two-phase multihousing community in one of Fort Lauderdale’s most vibrant neighborhoods.

JLL worked on behalf of the borrower, Alta Developers, to secure the three-year, floating-rate loan through Mack Real Estate Credit Strategies, L.P. Loan proceeds will be used to retire the existing construction loan on Phase I and will fund the construction of Phase II.

The properties are located within the popular Flagler Village neighborhood of Fort Lauderdale, which is within one mile of the city’s downtown core. Residents benefit from proximity to seven million square feet of office space, one million square feet of retail along Las Olas Boulevard and public transportation options, including the new Virgin train station, which is within walking distance of the property. Phase I of EON at Flagler Village was completed in May 2019 and consists of 206 residential units along with 3,320 square feet of retail. Phase II, which is currently under construction, and expected to be completed by Spring 2021, will consist of 270 residential units and 2,400 square feet of retail space.

“Ahead of the curve with fresh concepts and design, our exclusive sky lounges have panoramic views of downtown Las Olas and the Atlantic Ocean delivering a creative new lifestyle in the heart of Flagler Village,” said Raimundo Onetto, Principal of Alta Developers.

The JLL Capital Markets team representing the borrower was led by Director Brian Gaswirth and Associate Reid Carleton.

“Alta Developers flawlessly executed on their business plan for Phase I, and are experiencing tremendous lease-up velocity,” Gaswirth said. “Identifying Mack as a strategic partner moving forward will help set the stage for the future success of the project. The new partnership gave Alta Developers the ability to realize the value it created in Phase I while providing funding to develop Phase II thereby creating a denser, more efficient project.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.

Aeon acquires 306-unit Village Club Apartments to preserve affordability

Today Aeon, a nonprofit developer, owner, and manager of affordable homes, completed the purchase of Village Club Apartments, a 306-apartment property in Bloomington. Key partners in the acquisition include the City of Bloomington, the Housing and Redevelopment Authority of the City of Bloomington, and National Equity Fund. Twin Cities Local Initiatives Support Coalition also provided leadership and funding commitments to support improvements at Village Club.

The City of Bloomington provided critical assistance in the acquisition with its first investment from its new Housing Trust Fund, recently approved by the City Council.

“We are proud to work with the City of Bloomington as it provides groundbreaking leadership to preserve and create affordable housing for all residents,” said Aeon President & CEO Alan Arthur. “We’re excited to partner with National Equity Fund for the first time on a NOAH acquisition. By supporting Aeon’s purchase of Village Club, our partners were able to keep hundreds of individuals and families in their homes.”

Village Club Apartments is an example of naturally occurring affordable housing (NOAH) properties that have aged into affordability. Aeon has purchased more than 2,000 NOAH apartment homes in the past several years, keeping rents affordable. Village Club is a mixed-income acquisition, with more than half of the units affordable at or below 60% of area median income. The remaining units will be affordable at or below 80% of area median income.

NOAH affordability is threatened in the Twin Cities’ strong real estate market where a growing number of building sales are leading to increased rents, pricing out current residents, and resulting in their displacement. In Minneapolis alone, more than 1,800 NOAH apartment homes were lost in 2017 according to Minnesota Housing Partnership’s 2018 Market Watch report.

Preserving existing affordable homes benefits communities by keeping residents in their homes and children in their schools. It also ensures that aging properties remain long-term assets to the community.

East Highland apartments in Seattle’s Capitol Hill Neighborhood trades for $5.6 million

Seattle multifamily investment team, led by Dylan Simon and Jerrid Anderson of Kidder Mathews, closed the sale of the East Highland Apartments on Friday, December 20, 2019. The property, located in the vibrant north end of Capitol Hill in Seattle, sold for $5,600,000, or $467,000 per unit, and $617 per net rentable square foot.

East Highland Apartments (1903-1907 E Highland Drive, Seattle, WA 98112) comprises 12 units across two buildings. The property, constructed in 1928, has been meticulously maintained, exuding the classic character of the neighborhood’s brick buildings, with discerning updates such as modernized kitchens.

Spacious units, tranquil outdoor amenity spaces, and an unbeatable location among residential blocks just minutes from charming retail corridors along 15th Avenue East and 19th Avenue East make the East Highland Apartments a rare find for discerning Seattle renters.

Dylan Simon, executive vice president; Jerrid Anderson, executive vice president; and Matt Laird, senior associate, at Kidder Mathews’ Seattle office represented the seller, East Highland Apartments LLC.

Tower 16 Capital Partners acquires Lilly Garden Apartments, its first multifamily project in Phoenix, for $11.7 million

San Diego-based Tower 16 Capital Partners, in partnership with HG Capital, has acquired Lilly Garden Apartments, a 180-unit multifamily project in Phoenix. The property was acquired on an off-market basis from a private seller for $11,700,000, or $65,000 per unit.

“Lilly Garden Apartments fits very well with our investment strategy of purchasing assets with significant operational upside below replacement cost,” said Tower 16 Principal Mike Farley.

This is the firm’s first purchase in the Phoenix market, with its second property in escrow and scheduled to close early next year. Tower 16 has plans to acquire over 2,000 units in the Phoenix MSA over the next 18 months.

“We are excited about the Lilly Garden purchase as part of a broader acquisition strategy in the Phoenix market given the strong demand drivers and limited new supply of workforce housing,” said Tower 16 Principal Tyler Pruett.

Lilly Garden Apartments is located at 4903 W. Thomas Road, within a few miles of five Amazon distribution centers and seven miles from downtown Phoenix. The community consists mostly of studios and one-bedroom apartments with covered parking, three swimming pools, a playground and a leasing office.

Tower 16 will be overseeing $2.7 million in renovations to the project including new outdoor amenities, an upgraded leasing office and interior renovations.

Real estate brokers Dan Cheyne, Ric Holway and Mark Forrester of Berkadia represented both the buyer and seller in the transaction.

Newmark Knight Frank Multifamily closes sale and financing of The Palms at 2800

Newmark Knight Frank Multifamily announces the $16,200,000 sale and financing of The Palms at 2800 (fka Peppertree Lane Apartments), a 168-unit community located in Jacksonville, FL. Director John Rutherford represented the seller Carter Multifamily in the sale to Quad Property Group.

Newmark Knight Frank Executive Managing Director Matthew Williams, Associate Director Kyle Schlitt and Assistant Vice President James Maynard provided the financing of a $11,198,000 Fannie Mae loan for Quad Property Group. Schlitt said “We were pleased to work with Quad Property Group to secure the financing for The Palms at 2800. The interest only component allows the borrower to invest additional capital into property and implement their value-add strategy.”

According to Rutherford, “The Palms at 2800 is a premier investment property in the Arlington/Southside submarket of Jacksonville, FL. With well-thought-out capital expenditure already deployed into the property, there is a clear and proven demand for an upscale rental in the given submarket. With direct access to Downtown and brand-new retail construction underway within two blocks, The Palms at 2800 should continue to prove out the submarket demand for continued value-add investment.”

Constructed in 1971, the community features spacious 1 and 2-bedroom townhome units. Amenities include two large pools, a beautiful clubhouse, fitness center and more.

Thayer Manca Residential acquires third multifamily property in New Mexico

Thayer Manca Residential (TMR) has purchased Mirabella Heights, their newest multifamily property in the Albuquerque, New Mexico market. The acquisition of the 280-unit property, combined with renovation costs, creates over a $100 million investment into the Albuquerque multifamily market in the last two years.

With $4,700,000 in renovation budget, the repositioning plan includes a reinvented clubhouse, modernized 24-hour fitness center, upgraded pool area, a new pet park, addition of package lockers, interior unit renovations, property rebranding and additional capital upgrades.

Mirabella is located on a 13+ acre site in the Sandia Heights district of Albuquerque, across the street from the entrance of Sandia National Laboratories and two blocks from Sandia Science & Technology Park. The property’s unique location also makes it the only post 2000-built garden style apartment community in the surrounding market.

“This is our third transaction in Albuquerque in the last 16 months” says Bruce Thayer, TMR Principal. “The historical stability of this market, in concert with its more recent economic growth, furthers our confidence in our acquisitions strategy in New Mexico.”

In 2018, TMR also purchased the 263-unit Circ Apartments (previously Ventana Canyon) & the 200-unit Ottavo Apartments (previously Presidio).

Mirabella Heights is located at 701 Stephen Moody St SE, Albuquerque, NM, 87123.

Draper and Kramer expands Chicago portfolio with acquisition of HUBBARD221

HUBBARD221 Roof Deck and Pool — Amenities at HUBBARD221 include an expansive rooftop terrace with grilling stations, a fire pit, cabanas, a pool and hot tub.

Draper and Kramer, Incorporated, a national real estate services firm, today announced it has expanded its multifamily portfolio with the acquisition of HUBBARD221, a 195-unit luxury apartment tower in Chicago’s River North neighborhood. The property was purchased by Draper and Kramer through a 1031 exchange following the firm’s sale of Prairie Shores, a 1,675-unit, multi-building apartment community in Chicago’s Bronzeville neighborhood. Terms of the HUBBARD221 purchase were not disclosed.

Located at 221 W. Hubbard St., the 23-story property features a mix of studio, one-, two- and three-bedroom units, including a selection of penthouse residences, ranging from 467 to 1,511 square feet. Residents of the community enjoy easy access to retail, nightlife and restaurants, as well as leading employers throughout River North and the nearby central business district.

“As a company with a long and successful track record of owning and operating in Chicago, we remain bullish on the local multifamily market and its ability to deliver attractive risk-adjusted returns in the months and years ahead,” said Blas Puzon, chief investment officer with Chicago-based Draper and Kramer. “In terms of what constitutes a core investment under Draper and Kramer’s current acquisition strategy, HUBBARD221 checked all the boxes. It’s a high-quality asset that will stand the test of time thanks to its ability to deliver the live-work-play lifestyle that so many renters seek.”

Built in 2017, HUBBARD221 offers modern, open floor plans and luxury finishes throughout individual apartments, such as gray-tone plank flooring; gourmet kitchens with contemporary cabinetry, quartz countertops, porcelain backsplashes and stainless steel appliances; and spa-like baths with floating vanities and Kohler fixtures. All units have 9-foot or higher ceilings, floor-to-ceiling windows, custom closets and in-unit washer and dryer. Select apartments also offer a private balcony or terrace, built-in desk and walk-in closets.

Shared amenities at HUBBARD221 include a resident lounge; dedicated co-working space; chef’s kitchen and adjacent party room; state-of-the-art fitness center, yoga studio and meditation lounge; and an expansive rooftop terrace with grilling stations, a fire pit, cabanas, a pool and hot tub. The tower’s lower levels house a dog run, pet spa, bike storage and bike repair station.

Draper and Kramer, one of the largest property management firms in Chicago, will operate HUBBARD221 going forward, adding to its portfolio of more than 8,000 rental units across Chicago, St. Louis, Dallas and San Antonio.

“Our property management division has a proven track record with luxury-level buildings, both here in Chicago and in other markets,” said Puzon. “It should be a smooth transition for residents as our team continues to deliver the high level of service to which they’ve grown accustomed.”

Draper and Kramer was represented internally in the transaction. John Jaeger, Dan Cohen and Justin Puppi of CBRE represented the seller.

$75.5 million Greater Phoenix apartment complex sold by International Property Advisors

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced today the sale of Liv Goodyear, a 326-unit multifamily asset in Goodyear, Arizona. The property sold for $75.5 million, or $231,595 per unit.

“Liv Goodyear is surrounded by the economic and infrastructure developments of Greater Phoenix’s next professional powerhouse, the Southwest Valley,” said Steve Gebing, IPA senior director. “The continuous success of the Phoenix region is driving focus from the tenured employment corridors of the Southeast Valley to the lucrative, long-term business opportunities of the Southwest Valley.” Gebing and IPA senior managing director Cliff David represented the seller and procured the buyer, a Canadian private investor.

Residents of Liv Goodyear have immediate access to Interstate 10, Loop 303—Bob Stump Memorial Highway, Loop 101—the Agua Fria Freeway, and the ongoing Loop 202 South Mountain expansion. Civic Square at Estrella Falls, an approximately 48-acre, $83 million project to build a city hall, library, and Class A office space is less than a mile away. Litchfield Park City Center, a community-oriented, 768,000-square-foot, mixed-use development is 3.2 miles from the property and the Market at Estrella Falls shopping center is close by.

Completed in 2019 on more than 16 acres, apartments at Liv Goodyear have nine-foot ceilings and the average unit size is 879 square feet. Community amenities include a resort-style saltwater pool and spa with abundant seating, outdoor barbecues and gaming areas.