Tuesday, January 14, 2014

$12 Million Buys Five-Story Elevator Building in Flatiron District of Manhattan, NY

7 East 19th Street, Flatiron District, Manhattan, NY

Scott Edelstein
NEW YORK, NY– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 7 East 19th St., a five-story loft-style elevator building in the Flatiron district of Manhattan. The $12 million sales price equates to $960,000 per unit.

            Peter Von Der Ahe, Scott Edelstein and Seth Glasser, all in Marcus & Millichap’s Manhattan office, represented the seller, a New York-based private investor.

Seth Glasser
            Edelstein, Von Der Ahe and Glasser, along with Sean Beuche and Christopher Sjurset, the latter two also in the firm’s Manhattan office, advised the buyer, another New York-based private investor.

            “With floors two through five delivered vacant upon sale, the property gives the new owner many options, including occupying a portion of the building and leasing the remaining space in a live-plus-income scenario or converting the apartments on floors two through five into luxury rentals,” says Edelstein.

Sean Beuche
            “This beautiful cast-iron building was for two decades home to the work of acclaimed cybernetic sculptor and kinetic artist Wen-Ying Tsai,” adds Von Der Ahe.

            The property is located on East 19th Street between Broadway and 5th Avenue blocks from Union Square and the N, Q, R, L, 4, 5 and 6 subway lines. The approximate gross size is 10,144 square feet and there is 1,356 square feet of additional air rights.

For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716

Crown Heights Apartment Building Trades Hands at $11 Million in Brooklyn, NY

15 Crown Street Apartments, Crown Heights/Prospect Heights Area
Booklyn, NY

Peter Von Der Ahe

 BROOKLYN, N.Y. – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of 15 Crown St., a six-story, 58-unit multifamily building in the Crown Heights/Prospect Heights area of Brooklyn, N.Y.

The $11 million sales price equates to a 4 percent cap rate and $189,655 per unit.

            Peter Von Der Ahe, Matthew Fotis and Adam Abuaf in Marcus & Millichap’s Manhattan office represented both the seller and the buyer.

Matthew Fotis
            “The property is a large elevator apartment building in good condition,” says Von Der Ahe. “The average rent is low and the location is just steps from Prospect Park.”
            “This sale marks the trend of new investors finding investment opportunities in emerging Brooklyn submarkets,” adds Fotis.

Adam Abuaf
“New York renters seeking alternatives to the area’s prime neighborhoods has fueled demand for more affordable units, especially those with luxury finishes. 

"The new owner plans to upgrade unit interiors with high-end finishes to satisfy this demand,” Fotis concludes.

            15 Crown St. is between Washington Avenue and Franklin Avenue, four blocks from express subway lines 2, 3, 4 and S in Brooklyn, N.Y.

For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager
(925) 953-1716

The Preiss Company Transacts Record $320 Million in Student Housing in 2013



Donna Preiss
RALEIGH, N.C., Jan. 14, 2014 – The Preiss Company, one of the nation’s largest and fastest growing student housing owners, developers and managers, announced today that it transacted a record $320 million in student housing investment in 2013 and a total of $431 million since the fourth quarter of 2012.  

Investment activity by the company and its partners in 2013 included acquiring seven properties in close proximity to four different campuses, refinancing five existing properties and upgrading six properties.

“Last year was a great year for nimble owners/operators,” said Donna Preiss, company founder and CEO. “We believe 2014 will be a transition year for the industry, which creates new opportunities, especially for entrepreneurial companies.

“We expect to see a change in the mix of participants in the student housing space in 2014,” she commented.

 “Rising interest rates, which are expected to increase as the year progresses, will put upward pressure on cap rates, making acquisitions more difficult to pencil out. 

University of Florida, Gainesville, FL
“Wall Street also currently is bearish on our industry with publicly held company stock prices down significantly. These factors will likely reduce the pool, as well as change the mix, of potential buyers.

“Right now, there is a noticeable amount of high-end product, both existing and under development, being marketed for sale,” she said.  “Also, there is a sizeable supply of mid- to lower-price student housing in need of significant renovation dollars.

“ More product on the market, along with higher interest rates, will put downward pressure on pricing.  With all these changes, finding the right opportunities will be more challenging and, we believe, more rewarding.

“ At this time, we consider the top acquisition opportunities in 2014 to be value-add properties that need renovation investment and strong management and there are a substantial number of properties that fit those criteria.”

University of North Carolina Wilmington
Photo by Craig M. Stinson
Preiss noted that should cap rates tic upward as a result of the expected rise in interest rates, the development picture will likely slow.  “Like any real estate class, some markets are overbuilt and some currently active developers/investors will look at other classes at this phase of the cycle. 

“Also the barriers to entry for student housing, even where land is at a premium, are not always as high as they appear on paper.

"  Finding and developing the right site requires patience, understanding of the market and, of course, location.  With so much change occurring, companies with speed, flexibility and strong operations will be best prepared to respond.”

“An in-depth understanding of what students and parents view as important in their leasing decision- making process is the foundation for optimizing returns,” she said. 

University of Texas at Austin, TX
“We conduct a great deal of parent/student research to help guide our acquisition, development and renovation programs, as well as how we operate our properties,” she said.

 “It’s no surprise that fast Internet service is number one for students.  Other top preferences include a top-notch pool and pool area, multiple media outlets and places to study, both privately and with friends.  Parking is becoming more important every year.”  

Day-to-day Operations More Critical

Preiss remarked that day-to-day operations will be even more critical in 2014.  “The biggest problems facing student housing last year were excellence in operations and poorly maintained properties. 

"  There is increasing demand for quality, third-party management.  As a result, we have become more aggressive in seeking third-party management opportunities.”

In 2013, The Preiss Company acquired a total of seven off-campus properties located near the University of Florida, the University of North Carolina Wilmington, the University of Texas at Austin and the University of North Carolina Charlotte. 

  In addition, the company is heavily involved in the operations of its first student housing facility on the West Coast at San Diego State University and through an affiliate it took over management of a property at Ole Miss at the beginning of 2014. 

University of North Carolina at Charlotte, NC
  The company invested significantly in upgrading its properties near the University of Texas, University of North Carolina at Charlotte, and the University of Florida.  

  “We are finalizing plans to renovate our facility at Clemson University and reviewing all of our other properties to ensure they meet our students’ expectations and our standards.  

"Well-maintained properties help attract students but strong management keeps them coming back,” she said.

“Last year our portfolio reached 96.7% occupancy for the 2013-2014 term and achieved a 3.4 percent increase in rental rate over the prior term.  Those results played a key role in adding eight new management contracts in 2013.”  Currently, 30% percent of the company’s portfolio is third-party managed.

San Diego State University, San Diego, CA
Seeks Acquisitions, Development and Management in 2014

“Good investment opportunities will be out there in 2014.  In most situations, off-campus housing is a better value for parents and more desirable to students than on-campus housing.  

"Finding universities with continued growth or markets where certain niches are under-served is our focus.   

"We will remain aggressive in seeking new acquisitions, developments and third-party management in 2014.  We have a substantial pipeline in all three areas but have not set a specific target. 

"  Flexibility and speed are the key factors in 2014.  We have access to capital and the bench strength to expand as much or more as we did in the past year.  We would like to in-fill in some of our existing markets, as well as continue to expand nationally, now that our operations stretch coast-to-coast.  We are patient investors but can move very rapidly when the right opportunities arise.  

Clemson University, Clemson, SC
"We have a great team in place, a strong strategic plan and a solid group of investment partners.  In a transition year like what we anticipate in 2014, we intend to be flexible and opportunistic in response to what we see as a rapidly shifting market.”

For a complete copy of the company’s news release, please contact:

Patrick Daly
Account Executive
 Daly Gray, Inc.
620 Herndon Parkway
Suite 115
Herndon, VA 20170

(703) 435-6293 (office)

Amy Barger, Vice President of Marketing
The Preiss Company
(919) 532-1114

Beech Street Capital Closes Freddie Mac Loans Totaling $92.5 Million to Refinance Nationwide Apartment Portfolio

BETHESDA, MD. Jan. 14, 2014  – Beech Street Capital announced today that it provided $92.5 million in Freddie Mac CME loans to refinance a portfolio of five apartment complexes totaling 1,254 units in Florida, Alabama, and Wisconsin.

Edward Madell

 The apartments were all developed by the borrower, Continental Properties Company Inc., a national real estate development company headquartered in Menomonee Falls, Wisconsin.

The properties were developed between 1991 and 2006. The transaction was originated by Assistant Vice President, Adam Bieber.

Edward Madell, chief financial officer at Continental, praised Beech Street’s timeliness and execution. 

  “Beech Street Capital delivered exactly what they promised on our portfolio refinance,” he said.  “Fast response and maximum value.  The team at Beech Street was engaged and hands on all the way through the process.” 

 Upon identifying the key objectives of the borrower’s financing goals, Beech Street leveraged its deep agency experience in order to craft a tailor-made financing structure for the portfolio.

“This transaction, our first with Continental, gave us an opportunity to demonstrate that we can handle a large, geographically diverse portfolio and still provide the quick and effective results our clients require,” Bieber says.

 “We are grateful for the synergy between Beech Street, Continental and Freddie Mac and we look forward to continuing to provide our clients with the best service and execution in the industry.”
Four of the fixed-rate loans have a seven-year term, 6.75 years of defeasance, and 30-years amortization payable on an actual/360 basis.  The fifth has the same terms as well as a one-year interest-only period.

For a complete copy of the company’s news release, please contact:

Courtney Lewis at 240-507-1948 or
Jenifer Bernardi at 240-507-1946.

Hartman Simons Law Firm in Atlanta Names Gil Y. Burstiner Managing Partner

Gil Y. Burstiner
ATLANTA, GA (Jan. 14, 2014) – Hartman Simons & Wood (Hartman Simons), an Atlanta-based law firm specializing in commercial real estate, has named Gil Y. Burstiner as its new managing partner.

Burstiner, who assumed the role in early January, replaces A. Summey Orr III, who had held the managing partner position since October 2011. Orr will remain with the firm as a partner.

Burstiner is a 20-year veteran of commercial real estate law who has significant experience representing clients across the country on industrial, office and retail projects. 

A graduate of Emory University and the University of Chicago Law School, he joined Altman, Kritzer & Levick, P.C. — the predecessor firm to Hartman Simons — in 1997.

Summey Orr
“I am both excited and honored by this opportunity,” Burstiner said. “Summey did a tremendous job in this position, and I look forward to continuing the strong leadership this firm has always enjoyed.

“We have outstanding clients, and thanks to their confidence and the improving local and national commercial real estate markets, 2014 should prove to be an exciting and productive year for our clients and for Hartman Simons.”

 For more information check out our website at http://www.hartmansimons.com and our blog http://hartmansimons.typepad.com.

For a complete copy of the company’s news release, please contact:

Stephen Ursery
The Wilbert Group
404-549-7150 (O) 404-405-2354 (C)

Multi Housing Advisors Brokers Sales of 316 Apartment Units in Jackson, MS

Audubon Grove Apartments, Jackson, MS

Jimmy Adams
BIRMINGHAM, AL — Multi Housing Advisors (MHA) has brokered the sales of two Jackson, Miss., apartment communities totaling 316 units. The properties include the 296-unit Audubon Grove and the 20-unit River Bluff. The new owners of both communities plan extensive rehabilitations of the assets.

Brian Savage, a director in MHA’s Birmingham office, and Jimmy Adams, managing director of the Birmingham office, represented the seller in both transactions.

 • Professional Equity Management purchased Audubon Grove. The sales price of the Class C community, which was built in 1974, was not disclosed.

• Belhaven Residential bought River Bluff for an undisclosed price. The Class B community is in the Belhaven Historic District and is near Belhaven University, Millsaps College, the Mississippi State Capitol and the University of Mississippi Medical Center.

Brian Savage
The transactions capped a busy 2013 for Atlanta-based MHA. The Birmingham office brokered more than 25 transactions last year, and overall the firm, which also has an office in Charlotte, N.C., brokered more than 100 apartment sales across the Southeast in 2013.

“With continued improvement in economic conditions, an already robust apartment market should see high transactional volume in 2014.

“Value-add properties have historically been a way for investors to realize above-market returns, and we expect activity for these assets to remain strong in particular,” Savage said. 

“We see plentiful investor interest in all multifamily market segments in the coming year, and MHA is positioned to help our clients in the acquisition and disposition of a full range of property types, from value-add deals to Class-A properties, across the Southeast.”

For a complete copy of the company’s news release, please contact:

Stephen Ursery
The Wilbert Group
404-549-7150 (O) 404-405-2354 (C)