Tuesday, July 25, 2017

Avanath Capital Management Enters Colorado Market; Acquires Affordable Housing Community Near Boulder Google Campus

John Williams
BOULDER, CO (July 25, 2017) – Avanath Capital Management, LLC, an institutional fund manager that has invested over $1 billion in affordable and workforce housing properties throughout the U.S., has acquired Depot Square, a 71-unit affordable housing community in Boulder, Colorado for $13.6 million. This is the firm’s first acquisition in Colorado.

Depot Square is a Class-A, LEED Gold Certified affordable property near the new Boulder Google campus, and was built as one component of Boulder Junction, a 160-acre mixed-use, transit-oriented development which includes a 150-room hotel, a restaurant, five-story parking structure, and an underground RTD bus station.

“This property’s phenomenal location and high-quality build made it an attractive addition to our national portfolio,” confirms John Williams, President and Chief Investment Officer of Avanath.

 “As a newly-constructed affordable community within a mixed-use, transit-oriented development, Depot Square presented a compelling investment opportunity to capitalize on the demand for housing near major jobs, transit options, and retail amenities, while also maintaining affordability in one of the most cost-burdened markets in the state.”

According to Williams, market-rate rents for comparable Class-A multifamily product in Boulder average $2,100 per month, nearly double the average rent of $1,200 per month at Depot Square, indicating a critical need for affordable housing in this submarket.

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

Katie Kea / Jean Quader
Brower, Miller & Cole
(949) 955-7940

Olive Hill Group Obtains $41 Million in Financing for Creative Office Campus in Silicon Beach, CA Market

Courtyard at Culver Pointe, Silicon Beach, CA

LOS ANGELES, CA (July 25, 2017) – Los Angeles-based property owner and operator Olive Hill Group has obtained $41 million in fixed-rate refinancing for its Courtyard at Culver Pointe, a Class-A creative office campus in the rapidly growing Culver City submarket of Silicon Beach.

Amit Tyagi
 The financing was arranged by Principal Andy Bratt and Vice President Amit Tyagi of Newmark Realty Capital, Inc.

Headed by real estate lawyers Michael Cho and Tim Lee, Olive Hill Group acquired the office buildings for $65.6 million in May 2016 and recently launched a major redevelopment and rebranding of the property to The Courtyard at Culver Pointe.

The redevelopment will include upgraded seating areas throughout the courtyard, food truck loading zones, a bocce ball court, and a new on-site gym facility, among others.

“Our investment thesis is to add value to our creative office developments to ensure long-term value upside,” says Tim Lee, Vice President of Corporate Development and Legal Affairs. “As long-term holders with a fully-integrated, in-house property development and management platform, we focus on driving revenue through strategic leasing, renovations, hands-on management and a balanced curation of tenants at each of our properties.

Tim Lee
“During our first year of ownership, we successfully attracted high-quality creative and technology tenants at competitive rents, resulting in increased net operating income and significant additional value.”

Since acquisition, Olive Hill Group has added Ipsos Insight, a global market research and consulting firm, and Omnia Media, a subsidiary of the Canadian company Blue Ant Media. Existing tenants include DataScience Inc., Paychex and Shiseido Cosmetics, among others.

“The Courtyard at Culver Pointe’s prime location, strong occupancy, and quality tenant mix made this an attractive property to finance,” explains Newmark’s Amit Tyagi. “The challenge, however, was identifying a lender that understood the asset’s long-term investment potential. Lenders typically look for consistency in historical operating statements and had initial reservations with the recent ramp up in net operating income.”

To combat this challenge, Newmark Realty Capital, together with Olive Hill Group, leveraged their local market expertise to prove that the current rent levels were sustainable and on-par with market values. In addition, Newmark Realty Capital prepared a pro-forma outlook and provided a number of rental comps to justify the projected rents that the property would achieve upon completion of the extensive renovations.

Beth Understahl

By demonstrating the upward trajectory of rent growth at the property, Olive Hill Group was also able to structure an earn-out, allowing up to $10 million in additional funding as certain net operating income thresholds are met.

Andy Bratt
Lee confirms, “By repositioning this property into a creative office campus with on-site amenities that foster creativity and collaboration, we plan to attract additional creative tenants, increase cash flow and net operating income, and ultimately drive long-term value for this asset. 

"This financing will position us to be long-term holders of this property, and reflects our ongoing commitment to the Courtyard at Culver Pointe.”

Olive Hill Group obtained the $41 million loan through a life insurance company represented by Newmark Realty Capital. The ten-year loan was structured with a seven-year, interest-only period, followed by an amortization of 30 years.

Counsel for the borrower were David Larsen and Beth Understahl of Perkins Coie, LLP.

The property is located at 200-300 Corporate Pointe in Culver City, California.

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

Katie Kea / Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

Pulte Homes Offering Luxury 3-Story Townhomes in Oviedo, FL

Tristan Knop
OVIEDO, FL – Pulte Homes is now pre-selling three-story luxury townhomes at Oviedo Park Terrace, located at Oviedo Boulevard and Piazza Point. A grand opening for the 51-unit community is slated for this fall.

The two, three and four-bedroom townhomes are available in four floor plans: The Rivington, The Hayward, The Briarcliff and The Avondale, according to Tristan Knop, marketing manager for Pulte’s North Florida Division.

“We’re excited to offer this unique opportunity to buy a townhome nestled in the heart of Oviedo,” Knop said. “And with its flexible space and open concepts, Oviedo Park Terrace will have homes suitable for families of all sizes.”

Square footage will range from 2,100 to 2,196 with optional bedrooms, dual suites and from between 2½ to 4½ baths. Pre-construction prices start at $288,990.

Less than one mile from State Road 434 and two miles from State Road 417, the intimate neighborhood will feature its own pool and cabana, with easy access to Center Lake Park, located across the street, which includes a playground, splash pad, dog park, lakeside promenade, amphitheater, paddleboard rental, and more.

For more information about the community, call 866-219-7658 or visit www.Pulte.com/OviedoParkTerrace.

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

Tristan Knop, Marketing, PulteGroup / North Florida Division, 407-661-1409 Tristan.Knop@PulteGroup.com

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. 407-644-4142 lvershelco@aol.com