The Fountains of San Antonio multifamily complex has been acquired by Metonic Real Estate Services, an Omaha-based private investment management company. This is not the first property the investors purchased in Texas, the metro area of the city seeming really attractive to them. In February of this year, they became the owners of Sierra Ridge, a 230-unit apartment community located at 1401 Patricia Drive in North Central San Antonio. 

“We are looking to expand our footprint in Texas,” said Brian Morrissey, managing principal of the firm. “The San Antonio market boasts excellent fundamentals and has yielded exceptional opportunities for our investors.”

The Fountains of San Antonio community was built in 1978. It holds 101 apartment units that encompass 103,190 square feet of buildings and grounds. Located at 8630 Fairhaven St. in Northwest San Antonio, it sits in close proximity to the Medical Center of San Antonio, with easy access to Interstate 10 and Loop 410. The occupancy of the apartment community is currently at 98 percent. The new owner intends to upgrade the exterior and interior of the property to attract new residents for the unoccupied percentage and increase retention among the current tenants.

Another Omaha-based firm, Seldin Co., assumed the management responsibilities at closing. Seldin specializes in property management, brokerage and development services and has been in the market since 1923. Currently, it manages more than 11,000 apartment units in Nebraska, Iowa, Oklahoma, South Dakota and Texas.

Metonic Real Estate Services has been in the market for almost a century, with a focus on discovering and creating value. Its strategy targets multifamily communities, office and retail properties, offering the full array of real estate services.

Photo credits: www.thefountains.seldin.com

The 620-unit Northampton Apartments in Largo, Md., located roughly 15 miles outside of Washington, D.C., has come under new ownership. Acting in a partnership, Morgan Properties and DRA Advisors acquired the multi-family property from Equity Residential for approximately $94.7 million 

It’s the rare multi-family investor that does not want a piece of the metropolitan Washington, D.C., apartment market. “There is a dramatic lack of available product to acquire compared to the significant amount of capital that is focused on buying in the D.C. metro area,” Scott Melnick, a managing director with JLL, told Commercial Property Executive. 

Northampton is a big piece. Occupying 50 acres at 67 Harry S. Truman Dr., the property consists of 47 structures that sprouted up in a two-part process. The first phase of the apartment community opened in 1977 and the second phase debuted10 years later. Today the property is in a prime position to capitalize on the strong demand for rentals in the area–a demand to which there appears to be no end in sight.

“There is a strong influx of young professionals that want to live in D.C. Metro, and the supply of new rental deliveries in the area will actually start decreasing due to condo switches,” Melnick said.

On a more local level, Northampton has even more advantages, given that, as Melnick noted, it sits in a submarket that has minimal new supply on the horizon.

The Hanover Co. has acquired a three-acre parcel in the Centerpoint on Mill, where it plans to build high-end housing in the Downtown Tempe development.

The deal includes $7 million for the land, and another $4.47 million that the Houston-based company will use to build a parking structure to replace the 271 public spaces on the site, according to Cassidy Turley.
Brent Moser, Mike Sutton and Brooks Griffith with Cassidy Turley Arizona’s Land Group represented the seller, DMB.

Hanover plans to break ground later this year on a six-story, 341-unit luxury apartment community; the opening is scheduled for 21 months later. In addition to the apartments, the development will include a nine-level parking structure.

Wallace Garcia Wilson Architects, Inc. of Houston is the project architect and Hanover will serve as general contractor.

In other suburban transaction news, Griffin Capital Essential Asset REIT, Inc. has purchased a 231,400-square-foot, Class A, flex R&D facility located in Chandler for approximately $32.5 million. The REIT’s sponsor, Los Angeles-based Griffin Capital Corp., manages a $1 billion, 13-state portfolio comprising more than 8.5 million square feet.

The Chandler property (at right) is fully leased to Phoenix-based Avnet, Inc., a global distributor of electronic components and customized technology solutions. Avnet has occupied the building since its construction as a build-to-suit property in 2008.

The seller, a group of 21 tenant-in-common investors, was represented by Team Toci of Cushman & Wakefield Inc.

Apartments are coming to one of the oldest neighborhoods in Cleveland. Two recently announced projects are expected to deliver more than 250 apartments to Ohio City, a place where apartments are greatly needed.

A new, transit-oriented development will change the corner of West 25th and Lorain, where the Market Plaza shopping center is currently located. WKYC reported the new mixed-use building will be centered around the Greater Regional Transit Authority (RTA) train station on the corner of Gehring and Lorain. It will bring 200 apartments to the area and will have retail on the first floor. The Market Plaza shopping center will be razed to make way for the new construction.

The city of Cleveland has already approved the plans for the new apartment and retail complex. The RTA has committed funding to help the project along. A groundbreaking date has not yet been set but will be announced in the coming months.

Shortly after the announcement of the 200-unit, transit-oriented development, The Plain Dealer reported that a father-son team also has its sights set on Ohio City. Brian Koch, a local real estate investor, and his father, Charles “Bud” Koch, the former Charter One chairman & chief executive officer, plan to build a four-story, 62-unit apartment building on a longtime maritime-supply site along Detroit Avenue, just east of West 32nd Street.

Called Mariner’s Watch, the project will deliver 33 one-bedroom and 29 two-bedroom apartments, with rents starting at $975 and $1,239, respectively. Plans also call for a rooftop gym, home theater, 62 indoor parking spaces and a small visitor lot.

The total cost of the project was not disclosed, but Brian Koch told The Plain Dealer it will be “in excess of $5 million.” Also, the developers won’t ask for any public funding other than the tax abatement for new residential projects in the city. Work on the project could start in the next few weeks, with construction expected to be finished in mid-2014.

Marcus & Millichap reports that apartment vacancy in Cleveland have dropped to 3.7 percent in the second quarter. Average effective rents ticked up 0.6 percent to $781 per month.

Photo credit: Cleveland City Planning Commission

The Cincinnati City Council approved plans for a 30-story apartment tower at the northwest corner of Fourth and Race streets in the city’s downtown. The project is expected to cost about $80 million.

Flaherty & Collins, an Indianapolis-based company, is the project’s developer. It plans to demolish the dilapidated Pogue’s Garage and the vehicular and pedestrian skywalk bridge that connects it to the adjacent Tower Place Mall, and build a luxury apartment tower with approximately 300 units in its place. The project also calls for the construction of a 15,000-square-foot grocery store on the first floor of the residential tower and a new public parking garage with about 1,000 parking spaces, also part of the tower.

The city voted to lease the site to Flaherty & Collins and also agreed to grant a $12 million forgivable loan to the developer for the construction of the parking garage. Under the terms of the deal, the city will lease the garage to Flaherty & Collins for $1 per year for 75 years. The developer has the option to purchase the parking garage for $1 at the end of the 75-year term. The deal also requires that Flaherty & Collins keep the grocery store open for at least five years. If the developer fails to do so,  it will have to return the $12 million loan.

According to 9 On Your Side, rents in the apartment tower will be between $1,000 and $2,000 a month. Construction could begin later this year and would take about 24 months to complete.

Last Wednesday, the city council approved two deals that will bring $18 million in new development to the city’s Northside and Oakley neighborhoods.

Milhaus Development will buy from the city the former home of the Myron Johnson lumberyard in Northside and will use the 2.4-acre site to build a mixed-use complex with at least 100 apartments and 8,000 square feet of commercial space. The development represents about $10.5 million in private investment.

The Morelia Group will purchase three acres of land at the corner of Ibsen and the future Kennedy Avenue in Oakley on which to build a 15,000-square-foot daycare center and a 40,000-square-foot office building. The two projects represent $7.5 million in private investment and will create at least 150 new jobs.

Both Milhaus and Morelia Group agreed to purchase city-owned property at fair market value. “The neighborhoods of Northside and Oakley are getting two great projects that will put people to work,” said Odis Jones, economic development director. “We hope to continue this momentum into our other focused neighborhoods.”

Photo credits: Flaherty & Collins

By Adriana Pop, Associate Editor

Kamehameha Schools is planning to invest $30 million to redevelop a Kakaako site into a retail and restaurant village. According to the Pacific Business News, the mixed-use project will be presented to the Hawaii Community Development Authority on July 3.

The plan, called Salt in recognition of the neighborhood’s salt ponds of the mid-1800s, calls for approximately 80,000 square feet of specialty retail.

The developer proposes the adaptive reuse of all existing buildings along Auahi Street, between Keawe and Coral streets, as well as the addition of 20,000 square feet of open space, including a plaza, landscaping, paved walkways and seating.

If approved, the new development will be located behind Six Eighty Ala Moana, Kamehameha’s 54 loft-style rental unit development.

The Salt project is part of the developer’s 15-year master plan in Kakaako, which could bring a total of 2,750 residential units, including street-level urban townhomes, work-live units and high-rise condominiums.

Kamehameha Schools spokesman Kekoa Paulson told the newspaper there are currently 26 tenants on the block, many of them local, boutique retailers who have expressed an interest in remaining on-site.

“To the extent they wish to remain and become part of the restaurant/retail village, we want to accommodate them,” Paulson said in an email sent to the Pacific Business News. “For tenants whose use is not suited for Salt, we will work with them to find alternate locations either in Kakaako or elsewhere, on other KS property.”

INK Architecture is the project’s architect, in partnership with Pompei AD. A decision from the HCDA is expected on Aug. 7.

Photo credit: www.pompeiad.com

The Board of Aldermen is expected to pass a board bill to provide $4 million in tax increment financing to redevelop the Chemical Building in downtown St. Louis.

The St. Louis Business Journal reports Alderwoman Phyllis Young, who is sponsoring the bill, said LandWhite Developers LLC intends to spend $33 million to transform the Chemical Building and create 120 apartments and 7,000 square feet of street-level retail space. Lancaster Ventures Ltd., an affiliate of LandWhite Developers, is expected to pay off the TIF in 17 years or by 2030, according to Young.

Currently the building, located at 721 Olive Street, has only one tenant, Kessler Mroz Jewelry Inc., on the ground floor. Built in 1896 the building was designed by Henry Ives Cobb with a later addition in 1902 which was designed by Mauran, Russel & Garden. The 17-story building was acquired by LandWhite Developers in September 2012 for $3.9 million after the building was marketed by Cushman & Wakefield/Gateway Commercial. The company purchased the building from Centrue Bank, which in March 2011 foreclosed on the property. Centrue purchased the property with a sole bid of $3.36 million.

Polsinelli senior partner, William Kuehling, represented LandWhite in the deal. He said, for the same source, the project is also eligible to receive $1.2 million in federal historic tax credits, around $1.2 million in Federal Brownfields Tax credits and $6.2 million in state historic tax credits.

The contractor on the project is Paric Corp., and Roseman & Associates will be the architect.

Photo Courtesy of: Steven Martin via Flickr./em

The Oklahoma City Planning Commission has approved Richard Tanenbaum’s plans to build an apartment complex on the former site of John Marshall High School. The plan now goes to the city council for a final vote.

NewsOK.com reports that Tanenbaum is planning to bring the “Big House” multi-family design of Dallas-based Humphreys & Partners Architects to Oklahoma City. He said the gated development, dubbed Marshall Square, will resemble large single-family homes more closely than conventional apartment buildings.

After visiting two Big House projects in Dallas and another in Tulsa, Tanenbaum decided that the gated Marshall Square would be a perfect fit for the former high school site situated southwest of Britton Road and Western Ave. Earlier this year, Tanenbaum’s Premier Assets acquired the property, which includes three buildings totaling 220,000 square feet, in a $400,000 deal with Oklahoma City Public Schools. The property had been listed in 2011 for $650,000, and although there had been several buyers under contract, each of the previous deals fell through.

Located at 9017 North University Ave., the 20-acre property is surrounded by single-family homes. The commission approved the plan over objections from some residents, who submitted petitions with more than 250 signatures detailing concerns about the project’s impact on density and traffic. The current plan, a revision of Tanenbaum’s original proposal,  would result in 30 percent less traffic, which would amount to less traffic than when the high school was operating.

Constructed in the late 1940s,the school buildings have been unused for several years and have issues such as mold and stripped wiring. At least one fire has been intentionally set. Tanenbaum said the land was a good investment but that he plans to demolish the buildings.

Rendering of Mueller Big House in Austin Texas Courtesy of: Humphreys & Partners Architects

An important financing deal securing the future of two urban senior housing developments in Los Angeles was completed last week when U.S. Bank confirmed that it is providing $55.1 million for the projects. The two affordable housing communities have groundbreaking ceremonies scheduled this month. U.S. Bank is working with the Retirement Housing Foundation to get the two developments done. The banking giant will present the organization with a $30,000 check, in support of its current senior housing endeavors.

The two affordable senior housing developments are Broadwood Terrace in South Los Angeles and Las Alturas in East Los Angeles. The two residential complexes will add a total of 165 new affordable units for eligible seniors; 153 of those units are designed to be HUD 202 Section 8 rental subsidies for eligible seniors older than 62. The 12 remaining units are designated as affordable housing units for seniors ages 55 and older. Both of the properties, scheduled for completion during the second half of 2014, will have LEED certifications.

Broadwood Terrace will have 88 one- and two-bedroom units in a five-story building, at 5001-5025 South Main Street in South Los Angeles. The second project, the Las Alturas housing complex, will be located in the Boyle Heights neighborhood at 3545 East Whittier Boulevard. The five-story, 77-unit building will offer one-bedroom floorplans in the proximity of local transportation and a number of resident amenities.

Retirement Housing Foundation has been collaborating with U.S. Bank on its affordable senior residential projects for the past ten years. During this timeframe, U.S. Bank has reinforced the partnership by providing help with development financing, as well as a total of $160,000 which is part of the financial giant’s initiative to reinforce the working relationship between the parties, and support RHF’s ongoing projects.

Renderings courtesy of rhf.org

Westerville-based Champion announced last week that an affiliate has acquired a 352-unit apartment complex in Hilliard for $10.1 million.

Previously known as Twin Creek Apartments, the complex has been renamed Hilliard Village by its new owners. Located on 17 acres near Wilson Road and I-70, the community features a playground, resort-style swimming pool, fitness center, and laundry facility. Hilliard Village offers one- and two-bedroom garden-style apartments as well as two- and three-bedroom townhomes.

“We are going to reposition Hilliard Village over the next six months,” said Brian Yeager, Champion’s president and CEO. “The community has great potential, and we look forward to pumping in a significant capital investment to bring this asset up to its true potential and value.”

The transaction, which closed May 31, was financed by KeyBank for close to $10.5 million, Columbus Business First reported. The seller was a private Boston-based investor that also sold two other apartment communities in Columbus, the Gaslight Village Apartments and Northland Arms.

With the addition of Hilliard Village, the multi-family investment specialist manages 14 apartment communities and more than 3,600 units throughout central Ohio. Also on May 31, Champion also became the owner of Troy Farms, a 304-unit, fully-leased apartment complex in Delaware. In March, it purchased Caleb’s Creek Apartments, a recently completed 108-unit apartment complex in Westerville.

Cayan Investment and Development has inaugurated the world’s tallest twisted building: Cayan Tower. Previously called the Infinity Tower, the 310-meter (1,017 feet) tall residential tower joins the other record-breaking structures in Dubai Marina, such as the world’s tallest hotel – JW Marriott Marquis and the world’s tallest residential tower – Princess Tower –adding a little “twist” to Dubai’s skyline.

President & Chairman of the Board of Cayan Group Ahmed Al Hatti said the Dh1 billion ($272 million) tower “has been built according to the highest international standards for towers and that won several international awards. The Tower has received ‘Best Architecture’ award in London’s International Property Awards as well as four Arab Real Estate Awards in Dubai.”

The 75-story residential tower was designed by Skidmore Owings and Merrill, otherwise known for projects such as Burj Khalifa in Dubai, Trump Tower in Chicago and Jin Mao in Shanghai. Located at the mouth of Dubai Marina, a city within a city and one of the most exclusive waterfront developments in the world, Cayan Tower spirals in a curve by 90 degrees from the ground and this way offers each apartment a unique view of the sea or marina.

The tower offers studio, one-, two-, three- and four-bedroom apartments, duplexes and penthouses. According to The National, 80 percent of the properties have already been sold and the remaining 20 percent of unsold properties could be up for sale after the summer, depending on market conditions. The prices for apartments range from Dh2 million ($545,000) for a one-bedroom to Dh3.5 million ($953,000) for a two-bedroom apartment. Cayan Tower features numerous amenities including a state-of-the-art gym, outdoor swimming pool and whirlpool, spa, conference room and kids play area.

In an effort to solve the issue of blighted and dangerous properties across the state and reduce crime in neighborhoods, Gov. Rick Snyder last week announced that the U.S. Department of the Treasury granted $100 million under a pilot program that enables states to decide locally on actions that prevent foreclosures and support the housing recovery.

Known as the Hardest Hit Fund, the program focuses on 18 states—including Michigan—that suffered the most from the foreclosure crisis.

“This will be a major expansion of an ongoing effort by the Michigan State Housing Development Authority and other state partners to aggressively address blight,” Gov. Rick Snyder said. “We will be stabilizing neighborhoods with a large-scale demolition of the abandoned properties that foster crime and push down property values. Getting rid of these properties will encourage more people to stay in their homes and be part of the effort to improve their neighborhoods.”

The funds will be used to demolish vacant properties in the cities of Detroit, Pontiac, Flint, Grand Rapids and Saginaw, but it is still unclear how the money will be distributed among the cities—most probably the amounts will be determined based on vacancy rates, property values and number of foreclosures per city.

According to estimates from the 2010 census, Detroit alone has more than 40,000 vacant residential properties, while Flint has almost 5,800 and Grand Rapids has almost 3,000. The city is already on track to demolish 10,000 vacant and abandoned residential properties by the end of Mayor Dave Bing’s first term in 2013 as part of the Neighborhood Stabilization Program, with more than 7,000 structures demolished to date.

For more market data from Detroit, please click here.

Chart courtesy of www.detroitmi.gov

Albuquerque’s Sandia Valley Apartments has changed owners. This is not the first residential community to be acquired by Peak Capital Partners in New Mexico. Two other complexes from Santa Fe having been purchased by the investment company in the past three years: the 176-unit Tuscany at St. Francis and the 160-unit Bluffs at Tierra Contenta. 

“Albuquerque is a significant focus market for us,” said the founder and managing partner of Peak Capital Partners, Jeff Danley. “Our firm is actively looking to acquire multifamily communities across the greater Albuquerque and Santa Fe areas. New Mexico’s unemployment rate is consistently below the national average. We look forward to making a long-term commitment in offering affordable housing options to the residents of New Mexico.”

The 216-unit Sandia Valley was built in 1996 and offers one- to four-bedroom apartments. It is favorably located at 8200 Bridge Blvd SW, near Interstate 40 and close to dining areas, entertainment venues, shopping centers and schools. The extensive renovations of this and other Santa Fe communities that have been acquired typically include new stucco exteriors, updated landscaping, refinished parking lots, new roofing and remodeled clubhouses.

Founded in 2007 by Jeff Burningham, Jamie Dunn and Jeff Danley, Peak Capital Partners has its headquarters in Orem, Utah. Specializing in private equity, opportunistic commercial real estate, multi-family investment and value-add, the company and its affiliates focus on U.S. markets that show strong population and employment growth. It now owns and manages 25 apartment communities, encompassing more than 10,000 units in eight states. The assessed value of the company’s portfolio is currently set at $350 million.

Photo Credits: www.peakcapitalpartners.com

E2M Strategic Fund LP, the fourth private equity fund of Dallas-based E2M Partners, together with Wood Partners has purchased Del Arte Lofts & Flats in the Denver suburb of Aurora.

Located at 151 South Joliet Circle in Aurora, Del Arte Lofts & Flats is a 351-unit Class B multifamily community closely located to public transportation and minutes away from Interstate 225 and Denver International Airport. The partnership has planned to make various improvements to the property which will be overseen by Wood Partners. Riverstone Residential Group will manage Del Arte Lofts & Flats.

“Wood Partners has a strong track record of improving multifamily communities, not only in the Denver area but across the United States,” said Bob Stone, E2M vice president. “They are the ideal partner on this venture because they know the market and have successfully invested there.”

The E2M Strategic Fund targets multifamily, industrial, hospitality, senior living and retail properties in strategic markets with strong population and job growth. The fund was launched in 2011 and seeks to raise $350 million in equity with $89 million in commitments secured. E2M Partners anticipate closing the fund by year-end 2013.

“The Denver acquisition complements our strategy of investing in growing markets with solid market fundamentals,” said Bill Daves, president and CEO of E2M Partners. “A key element of our strategy is to invest with best-in-class operating partners who have proven track records in properly repositioning properties through comprehensive business plans. One of four multifamily investments, the Denver property is well-located and can be repositioned as an exceptional rental value in a market that is experiencing solid rent growth.”

For more market data from Denver, click here.

The University of Texas – San Antonio will be the recipient of one of three new student developments encompassing 1,400 units that have  broken ground under the Fountain Residential Partners name. With additional projects for The University of Houston and The University of Minnesota – Twin Cities, the company will start leasing in the coming months, with occupancy starting in autumn of 2014. 

The San Antonio project, Prado, is located at 14531 Roadrunner Way, across the street from the UT – San Antonio campus. It is planned to accommodate 498 students in one, two, three, four and five-bedroom homes. They will also benefit from a 6,000-square-foot restaurant fronting UTSA Boulevard. The development includes four stories and was designed in the Spanish style.

“We have been following this site, at one of the main entrances to campus, for several years. There simply is not a better location in the marketplace, and we feel fortunate to be able to transform the property into a mixed-use community that the neighborhood, students and the university will be proud of. It will definitely raise the bar for student housing at UTSA and matches the master-plan vision for the future of UTSA Boulevard,” said Executive Vice President Jon Clayton.

Prado will distinguish itself from typical student housing through a few state-of-the-art features: keyless entry, open floor plans, granite countertops, stainless steel appliances, wood-look floors, 50-inch flat-screen TVs with DVRs, furnishing inspired in the European style, high-end light installations and Wi-Fi everywhere. The amenity center is distributed on two levels encompassing 10,000 square feet. It will offer to the students a fitness center and study lounges, and a relaxation area with a tanning bed and a gaming center with digital games and pool tables.

The general contractor for Prado will be Centerpoint Builders and the architectural planning will be offered by Stuart Roosth Architects. Leasing and management services for all three campuses will be provided by Dallas-based Grand Campus Living.

Photo credits www.fountainresidential.com

Reflecting the University of Houston’s efforts to add housing options in order to transform itself from an urban commuter-based campus to a Tier One research institution, a new student housing building will soon rise right across from the campus.

Developer Fountain Residential Partners recently broke ground on the five-story, 347-bed project called The Vue on MacGregor. Located directly across Brays Bayou from the Bayou Oaks on-campus housing community – which serves the Greek housing needs of the university – the new development will be the first privately owned off-campus community for The University of Houston. Featuring a modern design, The Vue on MacGregor will be within walking distance to the center of campus and two new light-rail stations. With 5G Studio as the architect and Centerpoint Builders as the general contractor, leasing for the project is set to start in the coming months for a fall 2014 occupancy.

The University of Houston currently has several significant construction projects underway on the campus, spurred by the recent Tier One Research University status and driven by the school’s significant growth. “Reaching Tier One truly takes UH to a new level. This is an exceptional site and project that will support UH’s efforts on campus, and we look forward to being a part of the community,” said Trevor Tollett, vice president of development at Fountain.

The Vue on MacGregor is one of the three Fountain Residential projects currently underway; the company is also developing the Prado, located across from the University of Texas – San Antonio campus on UTSA Boulevard and planned to house as many as 498 students, and Metro Park East, a student housing complex meant to serve the University of Minnesota in Minneapolis. Dallas-based Grand Campus Living will provide leasing and management services for the three communities.

Other housing developments near the University of Texas that are set for completion this fall include the 800-bed Cougar Place Apartments at 3800 Cullen and the 1,144-bed Cougar Village II, which is to be located at 4873 Wheeler.

Image via Fountain Residential Partners

Trammell Crow Co.  and Principal Real Estate Investors have joined forces to develop Legacy Towers, a speculative two-phase office project in Plano’s Legacy business park.

The joint venture has begun demolition of the former Stacy Furniture headquarters building at the southeast corner of the Dallas North Tollway and Legacy Drive to make way for the new high-profile development.

Phase I calls for a 13-story, 342,066-square-foot, Class AA office tower and a 1,200-car, six-level parking structure connected by a conditioned walkway. Phase II is expected to be a seven-story, approximately 192,500-square-foot Class A office building.

“Legacy is one of the best office markets in the country, and this truly is the best site in Legacy Business Park,” said Denton Walker, a senior managing director for Trammell Crow’s Dallas/Fort Worth business unit, in a release. “We are excited to officially begin this speculative project with our partner Principal Real Estate Investors to deliver a high-quality office project located at the gateway to Legacy Town Center. We are excited to deliver a product with a level of design and construction materials that we believe will be unmatched in Legacy.”

Designed by Dallas-based architectural firm HKS Inc., the project seeks LEED Gold certification and will be available for occupancy in the third quarter of 2014. Wells Fargo is the project lender. CBRE Dallas Senior Vice President Dennis Barnes, First Vice President Celeste Fowden and Associate Hunter Lee of CBRE Dallas are marketing and leasing the state-of-the-art office building, according to company statements.

In other news, Colonial Properties Trust completed the acquisition of the 252-unit Colonial Reserve at Frisco Bridges (formerly Ablon at Frisco Bridges), in a $36.2 million deal.

The newly developed Class A mid-rise apartment community is located in the Frisco submarket and features direct access to more than 17 million square feet of office space within a five-mile radius, including major employers such as Hewlett-Packard (EDS), Dr. Pepper, Frito-Lay Inc., Ericsson, BofA Home Loans and JC Penney.

Amenities include a resort-style pool, state-of-the-art fitness center, structured parking with controlled access and gourmet kitchens with stainless steel appliances and granite countertops.

The property is currently in lease-up, with 30 percent of the units leased at the time of acquisition.

Rendering: Plano Economic Development

Insight Property Group and Buvermo Investments Inc. sold the Grayson Flats apartments in Arlington for $33 million, or roughly $492,500 per unit. The buyer, an affiliate of local development company Silverwood Cos., acquired the property about a month after it was finished.

Arlington-based Insight Property Group broke ground on the Grayson Flats project in March 2012. The complex, at 1200 N. Rolfe St., was constructed on a 1.7-acre piece of land acquired by Insight in June 2010. Before starting construction, the developer demolished an existing 55-year-old apartment complex on the site.

The property is located in the desirable Rosslyn-Ballston Corridor of Arlington County, Virginia. It features 67 luxury residential units averaging 1,100 square feet. The largest units–with two bedrooms, two-and-a-half baths and a den–offer more than 1,450 square feet of living space. Some homes also include their own 400-square-foot rooftop terraces. Community amenities include garage parking under the building; a fitness center; a lounge with a kitchen, bar, cyber café, Wi-Fi and billiards area; bike storage; and an electric car charging station.

According to Insight’s Web site, the total cost of the project was $25.2 million. It was designed by Lessard Design Inc. and Preston Partnership and was completed in April of this year. Clark Builders Group was the general contractor.

“Grayson Flats was built to top-of-the-market specifications. The architecture, common areas and unit interiors are exquisite,” said Insight Principal Michael Blum in a statement for the press. “We built the property to accommodate a luxury rental or a condominium community, and the sales price reflects that.”

Reston-based Silverwood Cos. plans to sell the project as condominium homes. The Washington Business Journal reported that the new owner will rebrand the complex as the Avery.

Click here for more market data on Washington, D.C.

Photo credit: Insight Property Group

In a $73 million deal, an affiliate of Phoenix-based JDM Partners L.L.C. has acquired State Farm Mutual Automobile Insurance Co.’s operations center in Tempe.

Built in 1999, the 372,408-square-foot complex sits on a 21-acre tract at 2700-2925 S. Sunland Drive and 2980 S. Priest Drive, within the master-planned Fountainhead Corporate Park in Tempe. The property consists of four Class A office buildings, one inspection and storage facility, along with two above-grade parking structures.

It has convenient access to the regional freeway network, Sky Harbor International Airport, downtown Tempe, Arizona State University and a wide variety of nearby amenities. Barry Gabel, Mindy Korth and Chris Marchildon of CBRE Group Inc.’s Phoenix office represented the seller. The five-building corporate campus is completely occupied by State Farm Insurance.

In other transaction news, San Diego-based Pathfinder Partners, L.L.C. has expanded its Phoenix footprint with the $16.4 million acquisition of Copper Creek, a 21-building community in Tempe, from Equity Residential.

Developed in 1984, the 144-unit property features one- and two-bedroom apartments and townhomes ranging from 711 to 1263 square feet. Common amenities include two pools, a spa, clubhouse, fitness center, barbecue grills and picnic area.

Pathfinder plans to give the property a $1.6 million makeover. Highlights will include a new clubhouse/gym, landscaping, a dog park and new exterior paint. Some units will get new flooring, cabinetry, countertops, finishes, fixtures, appliances and fresh paint. Additionally, Pathfinder will rename the property and install new signage.

Other recent Pathfinder acquisitions in the Phoenix area include:

- Academy Apartments, a 96-unit, four-building community near the city’s central business district
- Dorsey Place, 84 units in a 90-unit new condominium project in Tempe, in partnership with San Diego-based Stratford Partners
- Dobson Springs Apartments, a 120-unit complex in Mesa, an REO acquisition in partnership with Arizona- and British Columbia-based Bruckal Properties and its affiliate New Summit Partners
-Barolo Place, a high-end townhome project at 10757 North 74th St. in Scottsdale. Pathfinder acquired the remaining 16 units in the 65-unit community. (Pathfinder)

Photo: Fountainhead Corporate Park

This past week was quite an eventful one for CBRE’s Orlando office. Not only has the team grown by adding Jay Dixon—a former senior office leasing professional at Lincoln Property Company in Orlando with over ten years of experience—as an office building sales professional, but it has also managed to close on the sale and acquisition financing for The Element, and land a new tenant for the HD Supply Building.

CBRE arranged the $27 million sale and the $20.25 million financing of The Element, one of Orlando’s premier gated communities. CBRE’s Debt & Equity Financing Group worked on behalf of Optimus Element, LLP, advised by Miami-based, TM Real Estate Group, LLC, to secure acquisition financing through J.P. Morgan of Atlanta, Georgia. Proceeds were used to acquire the property. CBRE’s Capital Markets Group also exclusively represented the seller, Karlin Real Estate of Los Angeles, California.

CBRE Vice Chairman Charles Foschini and Vice President Christopher Apone, both with CBRE’s Debt & Equity Financing Group, along with Christian Lee, vice chairman with CBRE’s Capital Markets Institutional Group, arranged the financing. From CBRE’s Investment Properties Group in Orlando, Shelton Granade, executive vice president, Luke Wickham, vice president, and Justin Basquill, associate, represented the seller.

The Element is a luxury community with frontage on the MetroWest Golf Club, Orlando’s only Robert Trent Jones Senior-designed signature golf course. Extensively rehabbed in 2009/2010, The Element offers beautiful golf course views and Class A features such as private garages, 9-foot and vaulted ceilings, crown molding and full-size washers and dryers.

CBRE was also in charge of negotiating the lease with TravelClick—a provider of products and services for the hospitality industry—that plans to expand its presence in Florida. TravelClick has signed a 36,748-square-foot lease for the entire third floor of the HD Supply Building, a five-story office building at 501 Church Street in Orlando’s Central Business District. CBRE represented both the tenant and the landlord in the negotiations.

TravelClick will consolidate its offices in Winter Springs and south Orlando with the move, planned for July 2013. The new space—larger than both of the company’s two existing offices combined—will accommodate the company’s forecasted expansion that could include up to 450 new employees.

HD Supply Building was built in 2004 and is strategically located at Church Street and Division Avenue, with easy access to Interstate 4 and East/West Expressway. The building is adjacent to the new Amway Center and is within walking distance to popular restaurants and retail.

Image via Apartment Guide

Hines’ newest luxury multifamily project in the Boston area kicked off this week at 36 River Street in Waltham, MA. Located just 10 miles west of downtown Boston, 36 River will create new high-quality housing opportunities for the city while supporting area businesses and community development along the Charles River.

Three months ago the Boston Herald reported that the already permitted residential complex—which was then called Acadia on the Charles Apartments—was sold by real estate firm Saracen Properties to Texas-based Hines for $13.5 million.

Developed by general contractor Callahan, Inc., and designed by CUBE3 Studio of Lawrence, MA, 36 River will replace a former parking lot near the Watertown line, overlooking the Charles River. The M-shaped building will have 200 rental luxury apartments and a package of high-end amenities such as a resort-style swimming pool, a state-of-the-art fitness center and sports lounge, and an internet café. Each unit will be equipped with stone countertops, stainless steel appliances, high-quality cabinets and lighting and an open kitchen/living design with all-wood floors. Many units will have private balconies or patios overlooking the river. The four-story residential building clad in brick along the urban street sides will also include an underground parking garage on two levels that will offer up to 400 parking spaces.

According to a press statement, 36 River is Hines’ first rental residential project in the Boston area. The complex will reach final completion in April 2015, but the developer estimates that the first apartment units will be ready for occupancy as early as November 2014. The 36 River multifamily asset in Waltham will be followed by a second similar project in Cambridge, MA.

Rendering of 36 River courtesy of Hines

Uplands, a new, $238 million residential community located in Baltimore, officially opened its gates to the public on Monday, June 3. Community leaders and elected officials attended the grand opening ceremony at 4501 Edmondson Avenue. Among them, Baltimore Mayor Stephanie Rawlings-Blake, Mark H. Dambly, president of Pennrose Properties, LLC, Tom Bozzuto, chairman and CEO of The Bozzuto Group, Maryland Secretary of Housing and Community Development Raymond A. Skinner, and Baltimore Housing Commissioner Paul Graziano.

The project was developed by Uplands Visionaries, LLC, a public-private real estate development consortium managed by Pennrose Properties, LLC and consisting of Bozzuto Homes, Cryor Development, LLC, Harrison Development, LLC, KMJ Uplands, LLC, Scientia Uplands, LLC, and Southwest Baltimore Community Development Corporation, Inc. Work on the project started in October, 2010. The new development has replaced the old Uplands Apartments, a community of 979 publicly subsidized apartments built by Baltimore developer Ralph Chiaro in 1948 and acquired by the city in 2004 from the federal Department of Housing and Urban Development.

The master-planned community is located on the south side of Edmondson Avenue, between Old Frederick Road and North Athol Avenue, near downtown Baltimore. It was developed on 63 acres and encompasses 761 residences, including townhomes and semi-detached residences, as well apartment homes with one-, two-, and three-bedroom floor plans. Amenities include a community clubhouse, computer lab, fitness center, meeting rooms, walking trails and community parks.

The new Uplands will provide both affordable and market-rate housing to a diverse group of buyers and renters. In a press statement, design architect David Dixon describes the new Uplands as “an urban village that would lift up the area and resemble Roland Park, with trees, grass and winding lanes.” Designed as an environmentally friendly community, the project is expected to qualify for the U.S. Green Building Council’s LEED-Neighborhood Development certification.

Photo credits: Uplands

According to an official company announcement, Milestone Apartments REIT has agreed to pay $46 million for the Century Windermere, a 346-unit Class A multifamily apartment community located in the Alpharetta/Cumming submarket of Atlanta.

The purchase price represents an initial capitalization rate of 6.36 percent and the transaction is expected to be immediately accretive to the REIT’s forecasted AFFO per unit. The acquisition—expected to close by June 30—will broaden the REIT’s portfolio, and increase the proportion of Milestone units in the Atlanta Metropolitan Statistical Area from 4.34 to 6.26 percent. As part of the purchase consideration, the REIT has negotiated an interest-only 10-year fixed-term mortgage of approximately $25.3 million. The balance of the purchase price will be funded by drawing on the REIT’s $50 million revolving credit facility.

“Century Windermere is an attractive asset that complements our established portfolio of high-quality multifamily properties serving mid-market renters in the US Southeast and Southwest. The property has a long-term trend of consistently high occupancy and steady rent growth,” said Robert Landin, CEO of Milestone Apartments REIT.

Built in 2001, Century Windermere is the sole multifamily property in the Windermere Planned Urban Development, an exclusive 1,400 acre master-planned luxury home and golf course community. Benefitting from proximity to several growing employment hubs, the property boasts an occupancy rate of 95.5 percent.

The luxurious one-, two- and three-bedroom units feature designer gourmet kitchens with custom GE appliances, oversized patios and balconies, large walk-in closets, wood-burning fireplaces, decorator light fixtures and vaulted ceilings.

Community amenities include a spa-inspired swimming pool with sundecks and cabana, complimentary poolside Wi-Fi, heated spa, expansive clubhouse with social room, executive business center, a fully equipped fitness center with cardiovascular equipment and individual weight training stations, as well as valet trash service and 24-hour emergency maintenance.

Images courtesy of Century-Apartments.com

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A 10,106-square-foot corner parcel located at 644 East 14th Street in the East Village neighborhood of Manhattan is being marketed by Avison Young’s New York-based investment sales team led by principals Neil Helman and Charles Kingsley. According to a press release from the company, the property is occupied by a one-story building—a former R&S Strauss auto parts store that closed in early 2009.

The site has over 65,000 square feet of development rights for residential, retail and community space use, and its development potential is enhanced by more than 200 feet of frontage on 14^th Street and Avenue C, which means that separate entrances can be created for different uses.

“Well poised for redevelopment, this corner lot is ideally suited for a multitude of uses, including residential (condos or rentals), retail, and community facility use—including dormitories for student housing, making this a great opportunity for schools and other non-profit institutions,” said Neil Helman in an official statement.

The additional 70,000 square feet of unused development to the west of the property from 626 to 642 East 14^th St. can be incorporated onto the site with a zoning lot merger. According to Helman, the site has no restrictions on height limitations. This means that a tower could be erected here, which would take advantage of the great East River views.

EV Grieve, an East Village real estate blog, reports that in 2009 the building was sold for $12.3 million to Arun Bhatia, a private investor who wanted to demolish the existing structure and construct a new 11-story building. His plans were rejected by the city in 2010, and the site remained unchanged ever since.

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Image via Avison Young

Tridel and Hines are set to launch their new condominium development called Aqualina at Bayside Toronto. The project represents the first residential phase of a 13-acre mixed-use development called Bayside Toronto. Set to become the first neighborhood in downtown Toronto to feature 2 million square feet of residential, commercial and cultural spaces all on water frontage, Bayside is valued at more than $1.1 billion.

“Hines’ master-planned approach to the neighborhood – and the lifestyle amenities and opportunities they envision for the site – make this not only an incomparable condominium project for Tridel, but for the city,” said Tridel President Leo DelZotto

The 363-suite condominium project was designed by Arquitectonica architects and will spearhead Hines’ plan to develop Bayside Toronto into the premier neighborhood on Toronto’s downtown waterfront, as part of Waterfront Toronto’s mandate to revitalize the city’s lakefront areas.

“Hines was selected by Waterfront Toronto in 2010 to transform the site into a dynamic yet sustainable mixed-use development, and to make it Toronto’s foremost waterfront neighborhood.  We see today’s announcement as a major step toward making Bayside Toronto a reality,” said Avi Tesciuba, Hines’ managing director in Canada.

Aqualina Bayside will feature 363 condominium suites, ranging in size from one- to three-bedroom residences designed for families. The sizes of the suites will vary from 560 square feet to 2,100 square feet.

Bernardo Fort-Brescia, Arquitectonica’s partner will lead the project to bring unique and innovative exterior design to the 13-story condominium building. Aqualina will be defined by a series of distinctive prismatic glass and steel cubes, featuring facades accented by angled fenestration and balcony designs intended to maximize views of the Toronto cityscape and lake.

Canadian-firm II BY IV Design Associates will design the condominium’s interior public spaces and amenity areas. The landscape design will be led by West 8 & DTAH, the latter also leading the design for the revitalization of Queens Quay.  Aqualina at Bayside will pursue LEED Platinum designation and will be part of the first LEED-ND Gold neighborhood in Toronto.

Tridel was chosen as the exclusive residential partner by master developer Hines, due to its already established reputation as one of the leading environmentally sensitive, green residential developer in Canada. Hines is also a firm supporter of the green developments, having developed more than 102 million square feet of LEED Certified, pre-certified and registered properties in six countries.

The Austin Presidio Apartments community was recently acquired by investors from Bell Partners Inc. on May 30. The transaction cost has not been made public, but the property—which will stay under the management of Bell Partners—will change its name into Bell Lake Creek. 

The residential complex is located at 10015 Lake Creek Pkwy. in one of the city’s best employment areas next to Austin’s high-tech corridor and main retail centers.

Nickolay Bochilo, vice president of investments at Bell Partners, said: “We are pleased to further our strategy by expanding presence in our core markets—such as Austin, Texas—and focusing on high quality locations with strong supply and demand fundamentals.”

With the acquisition of the Austin apartment community, Bell Partners has invested more than $190 million in residential properties.

Bell Lake Creek totals 250 apartments that range from one- to three- bedroom floor plans, with an average unit size of 964 square feet. The 24-hour fitness facility, the swimming pool with sundeck, the clubroom for residents, and the picnic area equipped with grills are just a few of the community’s amenities.

Founded in 1976, Bell Partners Inc. specializes primarily in acquisition and management of high-quality apartment communities located in the Northeast, Mid-Atlantic, Southeast and Southwest United States. The company offers complex real estate services, with expertise in acquisitions and dispositions, financing, property operations, and all related support functions.

Listed by the National Multi Housing Council as the 7^th largest apartment operator in the country, the company has a portfolio of more than 69,000 homes divided in 248 apartment properties valued at approximately $4.4 billion, as well as over 1,700 associates.

Photo credits www.bellapartmentliving.com

The American Institute of Architects Illinois has awarded top prizes at the 2013 Honor Awards to Randolph Tower, the Hairpin Lofts and Hairpin Arts Center—all projects of Hartshorne Plunkard Architecture. The evening’s highest project honor, the Louis Sullivan Award, went to Randolph Tower in Chicago. The adaptive reuse project succeeded in transforming the landmark Steuben Club Building into a mixed-use residential community in the heart of Chicago’s Theater District.

Standing at 463 feet tall, the circa 1929 building is one of the tallest terra cotta-clad towers in Chicago, featuring numerous Gothic Revival architectural elements such as ornate buttresses, gargoyles and arches. Designed to house offices, retail stores and a private German social club, the building was shut down in 2001 by city officials due to hazardous conditions.

The building remained abandoned for over a decade until it was adapted into a mixed-use development with 313 mixed-income apartments, commercial office space and retail storefronts.

Brandy Koch, 2013 AIA Illinois president—who convened the national jury and served as an ex officio member, said: “The jury recognized the daunting challenges of the rehabilitation of Randolph Tower and was impressed by its ambitious scale and complexity.”

The award was accepted by Paul Alessandro, a partner with HPA and the company’s director of interior design, George Valdez. Alessandro told the audience: “This project was 13 years in the making, and getting it completed took one of the most amazing public-private partnerships ever assembled. Both of us will be proud of this project for the rest of our careers.”

The second award won by HPA, the Crombie Taylor Honor Award, was for the Hairpin Lofts and Hairpin Arts Center in Chicago. The award recognizes a project that has enhanced the natural and built environments of a community through preservation and restoration.

The rehabilitation of the former Morris B. Sachs Building converted a commercial office and retail structure into a multi-use development with a 6,000-square-foot community arts center, 7,000-square-foot of retail storefronts and 28 loft apartments—out of which 25 units were dedicated as affordable housing.

The circa 1929 flatiron building, listed on the National Register of Historic Buildings and a Chicago landmark, is well known for its triangular footprint and camel logo of the original occupant—the Hump Hair Pin Manufacturing Company.

The project is LEED Gold certified and features rooftop solar panels that provide heat for domestic hot water; a high-performance building envelope; a green roof; and ground-source heat-pump wells.

Photo Credits: Randolph Tower – Leslie Schwartz; Hairpin Lofts – Patsy McEnroe

Greystone has closed on a $6 million Delegated Underwriting and Servicing loan
from Fannie Mae. The loan will be used for the acquisition of Cedarfield at Churchland Apartments, a 118-unit property in Portsmouth.

The loan was structured with a 15-year term, five years of interest-only payments and 30-year amortization. Andrew Ellis, an originator in the New York City-based financial services and development firm’s multi-family lending group, worked directly with the borrower to close the transaction.

“Having worked with the borrower on three previous loans over the last year, we were pleased to have been brought on again to assist with their financing needs,” said Billy Posey, Greystone’s CEO of Fannie Mae and Freddie Mac lending.

Cedarfield at Churchland Apartments offers 65 garden apartments and 53 townhouse-style units, each featuring central heating and air conditioning, large closets, dishwashers and spacious floor plans. Community amenities include picnic areas, on-site laundry center, on-site management, a playground and a swimming pool.

The property is located directly across the street from Churchland City Park, close to military bases, major shopping districts, business developments, theme parks, museums, zoos and aquariums. Monthly rents range between $750 for one-bedroom units and $1125 for three-bedroom townhouses.

Photo: Cedarfield at Churchland Apartments

In a $61.8 million deal, Kennedy Wilson has acquired the Foothill Place Apartments, a 450-unit complex in East Valley. The Beverly Hills, Calif.-based investment firm is investing $15 million of private equity in the transaction and secured a $49.7 million Freddie Mac loan through Berkeley Point Capital L.L.C.

Foothill Place comprises ten two-story and three-story buildings on an 18-acre site near the University of Utah and Park City. Resident amenities at the class B+, garden-style community include two pools, a volleyball court, dog park, rock-climbing boulder and fitness center. Kennedy Wilson’s plans include an extensive renovation, new washers and dryers, and common-area upgrades.

Berkeley Point provided the ten-year, fixed-rate loan under Freddie Mac’s Capital Markets Execution program. Terms include a 3.58 percent interest rate and two years of interest-only payments.

Foothill Place Apartments is Kennedy Wilson’s second recent purchase in the Salt Lake City market, following its acquisition of Sandpiper Apartments last November. Bob Hart, president of the firm’s multi-family management group, described the acquisitions as “excellent examples of Kennedy Wilson’s value-add repositioning strategy in markets that have stable job growth with high rental demand.”

By Adriana Pop, Associate Editor

The Koppers Building, one of the finest Art Deco office towers in the Pittsburgh region, has been listed for sale.

According to the Pittsburgh Business Times, Gerry Dudley and Ryan Sciullo of the local office of CBRE are marketing the building, which offers more than 350,000 square feet of space.

Located at the corner of Grant Street and Seventh Avenue in the heart of the city’s downtown, the 34-story skyscraper has an occupancy rate of 69.4 percent. The building is anchored by construction materials company Koppers Inc., which has a long-term lease for the space. Other tenants include the Allegheny County Bar Association, Howard Hanna Commercial Real Estate Services, Bank of America, as well as law firm Horovitz, Rudoy & Rateman LLC.

Built in 1929 and designed by Chicago architecture firm Graham, Anderson, Probst and White, the high-rise is currently owned by Koppers Building Holdings Inc. of Radnor, PA. The company purchased the tower in 1997 for $13.2 million.

In other news, developer a.m. Rodriguez Associates is repurposing the former Prospect Middle School in Mount Washington into 67 market rate apartments. The company has partnered with Sota Construction Services to renovate the historic “Art Deco” property.

The Pittsburgh Post-Gazette reports that the developer has recently purchased the building from The Mount Washington Community Development Corporation.

Called The Lofts on Mount Washington, the approximately $14 million project will offer residential units in 16 styles, ranging in size from 800 to 2,000 square feet. Plans also call for a grand auditorium entrance, an 11,000 square foot fitness facility in one of the gyms, a theater that can be rented for productions, a rooftop deck, as well as a large landscaped courtyard. Construction is expected to be complete by May 2014.

Photo credits: Wikimedia Commons