Saturday, June 8, 2019

RECI Finds Interest Rates Continue Southward but Supply of Mortgage Funds Still Solid

John Oharenko

Chicago, IL -- Chicago, IL-based Real Estate Capital Institute (RECI) finds interest rates continue heading into record-low territory.  

Over the past month, rates dropped about 40 basis points, approaching the lowest levels of the current administration. 

Key concerns focus on slowing global economic growth and the US trade war with China/Mexico.   Fed fund futures suggest a quarter point rate decrease is on the horizon by this fall.

John Oharenko, director of the Real Estate Capital Institute®, notes "Interest rate worries are overshadowed by the overall economic outlook.  That said, real estate markets are mostly healthy."

Mortgage rate spreads remain unchanged for both long-term and short-term pricing.  Higher leverage multifamily debt (80%) can be had in the lower 4%-range with agency debt.  

Life companies offer loans in the higher 3%-range with more modest leverage (65% or less).  Debt funds and conduits compete in the 4.5%-to-5.25% range based on a wider risk and leverage profile.   Banks also hover in the 4%+ rate territory for floating rate debt. 

Regardless of lending format, rates are extremely competitive by historical standards.  Pricing differences between various funding programs and lender types are at very tight margins.  

Some lenders are pulling out of debt markets due to profitability concerns.  However, the supply of mortgage funds is abundant.


John Oharenko 
Executive Director

Blackton Awarded Multi Million Dollar Contract by Homebuilder Taylor Morrison in Osceola County, FL

Michael “Micky” Blackton

ORLANDO, FL -- Blackton, Inc., a leading supplier of materials to the home building industry, was recently awarded a multi-year, multi-million dollar contract to supply flooring for new home construction at three Taylor Morrison communities in Osceola County .

Michael “Micky” Blackton, chairman and CEO of Blackton Inc., said his firm will provide flooring for 478 new homes Taylor Morrison plans to build in three of its newest communities.  

The contract is worth some $4 Million. 

Work will begin on model homes when all permits are received by the third quarter of this year, Blackton said. 

The new Taylor Morrison communities include Hickory Grove with 149 homes on Parkfield Road . in St. Cloud ; Reedy Reserve with 212 homes on Reedy Glen Drive in Kissimmee and Stepping Stone with 117 homes on Blue Lake Circle in Kissimmee.

Blackton, Inc. a family owned business located on Alden Road near downtown Orlando has been supplying the home building industry from Jacksonville to Tampa for over 60 years.


Michael “Micky” Blackton, Chairman, Blackton, Inc.

Beth Payan, Larry Vershel Communications

Pollack Shores Invests $130 million in Tampa’s North Hyde Park

Steven Shores

ATLANTA, GA – Multifamily developer and investment firm Pollack Shores Real Estate Group announced it is returning to one of its favorite neighborhoods in Tampa, Florida with a new 226-unit apartment community at 510 North Rome Avenue.

In 2013, Pollack Shores catalyzed a renaissance of the area north of Kennedy Boulevard with the opening of NoHo Flats, then Havana Square in 2017. 

With its third community scheduled to open in fall 2020, more than 1,500 new residents will live within a block of the intersection of North Rome Avenue and West Gray Street in Tampa’s North Hyde Park.

“We’ve established a new market in Tampa by deploying new urbanist principles that attract future residents and ultimately facilitate growth,” said Anthony Everett, a Tampa native and Director of Central Florida for Pollack Shores.

Anthony Everett
“With 800+ units developed in this three-block area, we have created a center of energy for residents who want to live close to Hyde Park, University of Tampa and the downtown area, which are all less than a mile away. 

The new community’s resort-style feel, thoughtful design and reasonable price point will deliver an exceptional experience for residents as we embark on our next chapter in North Hyde Park.”

Pollack Shores is known for its blueprint of creating an active, pedestrian-friendly environment through improved streetscaping, lighting and ground-level units that provide direct access to the street. 

This model continues to bring new energy and imagination to North Hyde Park. In summer 2020, residents of the three apartment communities and the neighborhood beyond will enjoy the convenience of a corner market opening on the ground floor of the new development.

Rendering NoHo Flats,
510 North Rome Avenue, Tampa, FL
“The Tampa Bay Area continues to display strong market fundamentals and healthy rent growth,” said Steven Shores, President and CEO of Pollack Shores Real Estate Group. 

“Renters have responded to our formula for creating a sense of place that is inviting and active, and we look forward to applying those principles for success again as we deepen our roots in North Hyde Park.”

The new apartment community on North Rome Avenue will offer residents a variety of floorplans for one-, two- and three-bedroom apartment homes ranging from 656 square feet to 1,489 square feet.

Residences will feature stainless-steel appliances, granite countertops, modern cabinetry and doors, upgraded lighting and plank flooring.


Liz Maddux · Assistant Account Executive
1718 Peachtree St., Suite 1048 · Atlanta, GA 30309
M: 478-972-3210
Nick Banaszak
The Wilbert Group
256-457-5384 (C)

Arbor Funds $10.6 Million Acquisition Loan in Forest Park, GA

Ryan Duff
UNIONDALE, NY – Arbor Realty Trust, Inc. (NYSE:ABR), a leading multifamily and commercial mortgage lender, recently funded a $10.6M acquisition loan in Forest Park, GA.

Arbor provided the loan for Wingate Apartments, a 211-unit complex. Financing for this acquisition includes a two-year, floating rate senior loan and a $1.1M preferred equity component.

Ryan Duff of Arbor’s New York City office originated the loan.

“This loan is a good example of how we at Arbor focus on relationship-building and providing our borrowers with the most beneficial loan options,” said Duff.

 “The preferred equity portion of the loan gives Wingate a lower cost, fixed-rate scenario that provides advantages over common equity investments.”

Wingate Apartments, Forest Park, GA
Built in 1965, Wingate Apartments features newly renovated one-, two- and three-bedroom rental units with amenities including high-speed internet access; washer/dryer hook-ups; and convenient access to shopping, dining and entertainment.

Located in a residential section of Forest Park, the two-story apartment complex is also pet-friendly and offers spacious living interiors.


Bina Handa
Tel: 516.506.4229

HFF announces $23 million financing for 196-unit apartment community in Sandy Springs, GA

Elliott Throne
MIAMI, FL –– Holliday Fenoglio Fowler, L.P. (HFF) announces $22.896 million in financing for River Vista, a 196-unit, garden-style apartment community in the North Atlanta community of Sandy Springs, Georgia.

HFF worked on behalf of Stonebridge Investments to secure a seven-year, fixed-rate loan with five years of interest-only payments through Freddie Mac’s Green Advantage program.  The loan will be serviced by HFF, a Freddie Mac Optigo℠ lender for Conventional Loans.

River Vista is located at 9200 Roberts Drive just a few miles north of the I-285/GA-400 interchange, which provides access to the Central Perimeter office market and downtown Atlanta. 

Originally constructed in 1996, the property features a mix of one-, two- and three-bedroom floor plans that were more than 96% occupied at closing. 

Community amenities include a swimming pool with sundeck, outdoor kitchen with grills, outdoor social area with TV, playground, clubhouse lounge with demonstration kitchen and 24-hour fitness center.

The HFF debt placement team representing the borrower included managing director Elliott Throne and director Ware Shipman.


HFF Managing Director
(305) 421-6549

HFF Director
(404) 942-2219

HFF Public Relations Specialist
(713) 852-3403

NAI Realvest Closes Multi-Year Lease at Carter CommerCenter in Winter Garden, FL

Matt Cichocki
WINTER GARDEN, FL – NAI Realvest recently negotiated a multi-year lease agreement with Luv-A-Lawn and Pest Management, Inc. for 5,625 square feet of industrial space at 902 Carter Rd., suite 200 at Carter CommerCenter in Winter Garden.

Matt Cichocki, a principal at NAI Realvest, brokered the transaction on behalf of Carter Commerce Center, LLC, the landlord.   The tenant is a full service pest control company expanding from St. Cloud  

The new Winter Garden operation opening in June boosts occupancy at Carter CommerCenter to 100%.


Matt Cichocki, Principal NAI Realvest

Patrick Mahoney, President / CEO, NAI Realvest, 

Beth Payan Larry Vershel Communications, 407-644-4142
or 407-461-3781

Stos Partners Sells Two Southern California Assets Encompassing 221,448 SF for Total $33.5 Million

Two Chula Vista, CA Industrial Buildings Sold for $24.4 Million
CJ Stos
SAN DIEGO, CA and LOS ANGELES COUNTIES, CA – Stos Partners, a privately held commercial real estate investment and management firm, has announced the sale of two assets, including a two-building, 170,805 square-foot industrial property in Chula Vista and a one-building, 50,643 square-foot office property in San Dimas, California.

Stos Partners acquired the Chula Vista asset in July of 2017 for $13.45 million, implemented $1 million in capital improvements, and sold it on May 31, 2019 for $24.4 million.

The firm acquired the San Dimas asset in March of 2017 for $5 million and sold it on May 14, 2019 for $9.06 million with minimal improvements.

Bryce Aberg

Bryce Aberg, Jeff Cole, Jeff Chiate and Brant Aberg of Cushman & Wakefield and Michael Mossmer of Voit Real Estate Services represented Stos Partners as the seller in the disposition.

“These two dispositions reflect the depth of value creation our firm is capable of achieving,” says CJ Stos, Principal of Stos Partners.

 “By taking each asset full cycle and achieving value increases of 69 percent and 81 percent respectively, within an approximate two-year hold period, we continue to prove that our investment strategy is well-honed and well-timed.”

Jeffrey Cole
Stos notes that his firm continues to be an extremely active buyer and seller in the Southern California market, drawing upon its track record and surety of close to complete both off- and on-market transactions that fit the firm’s value-add criteria.

The firm’s recent sales include:

Stos Sells Chula Vista Asset for $24.4 Million

Stos Partners sold two industrial buildings located at 1670 and 1690 Brandywine in Chula Vista, California to a large institution for a total consideration of $24.4 million.

The property, which was initially acquired by Stos Partners through an off-market transaction in 2017, underwent an extensive capital improvement campaign during Stos’ ownership, including new paint, roofs, landscaping, signage, and parking lots.

Jeff Chiate
“We recognized early on that this asset was located in a path of growth, and thereby had a tremendous amount of unrealized value,” notes Jason Richards, Partner at Stos Partners.

 “Though institutional investors were not buying in this area when we first acquired the asset, we realized that this submarket would soon be palatable to institutions seeking stable, recently improved assets in which to invest.”

During its ownership, Stos Partners leased a vacancy to a strong national tenant and secured a long-term lease renewal with one of the existing tenants, increasing the property’s appeal to institutional buyers.

Jason Richards

The asset is demised into six industrial units ranging in size from 25,000 to 55,000 square feet, and is leased to a mix of national credit, regional credit, and local companies.

Stos Achieves 81 Percent Value Increase With San Dimas Office Sale

Stos Partners has also sold a two-story, 50,634 square-foot office building located at 650 W. Cienega in San Dimas, California, to a trade union that will use the facility as an owner-user.

The property is located on the east side of the 57 freeway in the San Gabriel Valley of Los Angeles County.

Taylor Ing at Newmark Knight Frank represented Stos Partners as the seller in the transaction. Brandon Burns with Cushman & Wakefield represented the buyer.

Brant Aberg
“This was an opportunistic purchase we made in early 2017 that provided tremendous upside potential based on the property’s strong fundamentals,” explains CJ Stos.

“The single-tenant building had been fully occupied by a vocational school; however, the prior owner underwent a bankruptcy and the property was placed in receivership.

"Based on a close broker relationship, our team was able to make the first offer, secure the property, and close quickly, achieving a price that was less than half of the estimated replacement cost.”
Michael Mossmer

During its ownership, Stos Partners implemented minor improvements and repositioned the property, focusing on the asset’s strong freeway location and its exceptionally high 6.52 per 1,000 parking ratio to identify the right buyer.

“We understood that a building with this parking ratio was a rare find, and we recognized the opportunity to achieve a premium price for the asset in this market,” says Stos.

 “Ultimately, we achieved a sale price of $9.06 million – an 81.2 percent value increase from our initial purchase price of $5 million.”
Taylor Ing


Micaela Fehrenbach / Jenn Quader
(949) 438-6262

Melody Holley Joins Crossman & Co. as Senior Leasing Associate in Atlanta, GA

Melody Holley
ATLANTA, GA -- Crossman & Company, one of the Southeast’s premier retail leasing, property management and investment sales firms, continues to strengthen client services by announcing that Melody Holley has joined the firm as a Senior Leasing Associate.

Holley will work out of the Crossman & Company Atlanta office, focusing on Georgia and Tennessee clients and properties. She joins the firm from Colliers International, where she was a vice-president since 2007. She began her career in 1996.

“Crossman & Company has a reputation for being client focused. I am happy to join such a great team and look forward to working with landlords and owners to expand our capabilities and best serve their needs throughout the Southeast,” noted Holley, a Georgia Southern University graduate.

Experienced at managing all aspects of leasing and pre-leasing for grocery-anchored, power center, strip center, free-standing buildings and vacant land parcels, Holley will generate and maintain Crossman & Company’s strong client relationships with landlords and owners.

John Zielinski
In creating and executing strategic leasing plans for clients, Holley will identify prospective national, regional and local tenants and brands.

Serving Florida, Georgia, Alabama, Tennessee, South Carolina, Mississippi, North Carolina, and Virginia, Crossman & Company has offices in Orlando, Tampa, Miami, Boca Raton, Fla. Charlotte, N.C. and Atlanta Ga.

“We are excited to welcome a senior associate with Melody’s experience and knowledge," said Crossman & Company President John Zielinski, CCIM.

 "She is an accomplished veteran who can handle sophisticated and complex real estate transactions. This gives us an advantage in the commercial leasing market that amplifies our commitment to provide dedicated attention to clients.” 

A member of the Atlanta Commercial Board of Realtors and International Council of Shopping Centers, she is also on the Community Service Committee for Atlanta Commercial Board of Realtors.

 Past industry honors include the Atlanta Commercial Board of Realtors Top Ten Producer Broker Award, Million Dollar Club Member and CoStar Power Broker.


John Zielinski
(407) 423-5400.

Mike Bonts

Public Relations | Brand Development | Content Marketing
(904) 424-6641