JLL arranges $42 million loan for suburban Washington, DC retail center

Rio Washington Center, 9811 Washingtonian Boulevard, Gaithersburg, MD

WASHINGTON, DC– JLL announced  it has arranged $42 million in senior financing for the western portion of Rio, a 700,000-square-foot, lifestyle-oriented retail property in the suburban Washington, D.C. community of Gaithersburg, Maryland.

JLL worked on behalf of the borrower, Peterson Companies, to place the 12-year, fixed-rate senior loan with MetLife Investment Management. 

Loan proceeds will be used to refinance an existing loan and complete a multi-million-dollar capital improvement plan that includes the development of an outparcel building pre-leased to True Food Kitchen, garage repairs, refreshing building facades, expanding the boardwalk, new entertainment and programming spaces and an updated pedestrian bridge.

Chris Hew 

Rio has served as the area’s preeminent, master-planned, shopping, dining and entertainment destination for more than 25 years. 

The subject property is 98% leased to a mix of retailers that includes Target, Dick’s Sporting Goods, Kohl’s Department Store and Barnes & Noble along with restaurant tenants such as Yard House, Uncle Julio’s, Corner Bakery, Lanzhou Hand Pulled Noodles and Kung Fu Tea.

 Located at 9811 Washingtonian Boulevard, the property is located at the confluence Interstates 270 and 370, two of the most important, highly trafficked thoroughfares in Montgomery County. 

The area houses a dense supply of office space and daily workers from the large employers in the immediate submarket. More than 145,318 residents earning an average annual household income of $132,777 live within a three-mile radius of the property.

The JLL Capital Markets team representing the borrower was led by Senior Director Chris Hew and Director Evan Parker.

“Rio is an iconic center and provides a fantastic consumer experience,” Hew said. “We’re proud to be part of the financing effort.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. 

Evan Parker

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. 

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

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

Contact:

 Kimberly Steele
 JLL Digital Content/PR Specialist

Phone: +1 713 852 3420

Email: kimberly.steele@am.jll.com

petersoncos.com
jll.com

Lynd Acquisitions Group Buys Iconic Multifamily Tower in Virginia Beach, VA for $43 Million

Mayflower Apartments, 34^th Street and Atlantic Avenue Virginia Beach, VA

VIRGINIA BEACH, VA and  SAN ANTONIO, TX ----  Lynd Acquisitions Group (LAG), a Texas-based real estate investment vehicle, has acquired an iconic apartment community in Virginia Beach, Virginia for $43 million with plans to spend millions more on value-add improvements.

The 16-story, 266-unit Mayflower Apartments at 34^th Street and Atlantic Avenue is a highly coveted address as it is the only high-rise rental building within a block of the Atlantic Ocean.  

A. David Lynd

 “This is a crown jewel in Virginia Beach; there is nothing else like it,” said A. David Lynd, CEO of LAG and LYND, a privately held apartment management company based in San Antonio.

 “With the Mayflower, we see a tremendous opportunity to execute our current strategy of identifying unique properties that are undervalued and craft tailored plans to unlock the value in both rents and occupancies.”

Henry Stimler

 Lynd and his co-investors plan on spending $3 million-plus on capital improvements to both common areas and individual units. 

They will invest more than $13,000 per unit to renovate interiors from top to bottom with stainless steel appliances, quartz countertops, hardwood floors and upgraded fixtures. 

 LYND Management has been retained to oversee the renovations and manage the building. 

 The property has 3,140 square feet of ground-floor commercial space, a separate parcel with 11,915 square feet of free-standing retail and on-site and off-site parking.

 Upgrades to the common areas include the addition of Amazon package lockers, surfboard lockers and an enhanced fitness center.  Built in 1950, the last renovations to the building were completed in 2010. The Mayflower has studio, one and two-bedroom units, and a penthouse floor with commanding views of the coastline.

Marc Suarez

 “Since the Mayflower is the only rental property of its kind right near the beach, we believe renters will want a well-located and nicer place to call home,” Lynd said.

 LYND has renovated more than 1,600 apartment units in the last two-and-a-half years with a combined budget of $23 million.

 “This is a very strategic asset for LYND as the company has the experience and expertise to bring this asset up to contemporary standards,” said Henry Stimler, managing director of Newmark Knight Frank in New York.  “Its platform to execute on value-add real estate is second to none in the market today.” 

 Stimler arranged a $33 million acquisition loan for LAG from Hunt Real Estate Capital which was represented by Marc Suarez in Hunt’s Miami office.  

Mike Marshall of Newmark represented the seller, Harbor Group International, a Norfolk, Virginia-based real estate investment and management firm with assets valued at $9.7 billion.

Mike Marshall 

 Since 2017, LYND has acquired 4,665 multifamily units throughout Texas, Florida and Illinois valued at nearly $300 million and performed more than $23 million worth of value-add rehabilitation work. 

Recent investments include a 444-unit garden-style apartment community in Jacksonville, 1,031 apartments in the Florida Panhandle and a 384-bed student housing community in Beaumont, Texas. 

 About LYND: 

 Headquartered in San Antonio, Texas, Lynd is a privately-held, national real estate company that specializes in third-party management of multifamily real estate assets. 

Managing approximately 23,000 apartment units in 11 states, Lynd ranks as one of the premiere multifamily management companies in the country.  For more information, please visit www.lynd.com.

  CONTACT:

Todd Templin

Executive Vice President

BoardroomPR

ttemplin@boardroompr.com

O 954-370-8999

C 954-290-0810

Bank of America Plaza | 1776 N Pine Island Rd

Suite 320 | Fort Lauderdale, FL 33322

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Realty Capital Market Loan Rates Remain Steady but Good Deals in Short Supply, RECI Reports

John Oharenko

 Chicago, IL, Dec.1, 2019 – The Real Estate Capital Institute reports  realty capital markets remain steady, as the five- and ten-year treasuries moved about 20 basis points upward during November, settling under five basis points higher than the end of October. 

 The Real Estate Capital Institute’s founder and executive director, John Oharenko, advises, "Realty capital markets selectively layer yield and principal risk profiles, mostly based on funding sources. 

"Life companies, banks and other highlyregulated funding sources stick to conservative transactions, while debt fundsand entrepreneurial players continue seeking greater yields, including newconstruction and other opportunistic ventures.”

With such low rates, few borrowers complain about actual rates.  Instead, the short supply of deals that pencil-out seems to be the “hot topic” as 2020 approaches, creating the following talking points:

 Patient Capital: In recent months, the sharp decline in sales volumes on a nationwide basis is not a result of a shortage of capital.  Investors under no pressure to fund deals patiently sit on the sidelines. 

 Only time will tell if such a wait-and-see strategy yields more attractive deals in the future or missed opportunities.  Ultimately, building liquidity may be a great strategy if the economy and related realty investments succumb to recessionary levels. 

Otherwise, more difficulties on the horizon for trying to deploy capital in an oversupplied marketplace, as prices remain at historically high levels. 

For example, capitalization rates and longer term mortgage pricing is 150 basis points or less differential, leaving minimum room for yield upside – at least 50 basis points tighter than the historical norm.

Rate Structure: The narrow difference between longer term fixed-rate and floating-rate debt firmly redirects property owners to focus on holding strategy timelines and less so on pricing dynamics. 

Prepayment flexibility moves up much higher as a negotiating point on making rate structure decisions, including types of lenders (e.g., banks vs. mortgage conduits). 

For example, securitized debt instruments allow more extensive variation in loan language for permitting issuers to modify some borrower changes in terms and conditions. 

 Loan Proceeds:  Over the past few years, the 65% loan-to-value ratio evolved to be a commonplace benchmark for maximum senior debt proceeds, especially with life companies and other institutional lenders. 

Funding sources continue maintaining underwriting discipline by adhering to minimum debt service coverage ratios of at least 125% and sizing loans to support stress-test rates of five to six percent.

However, debt funds, conduits, and even banks step up to higher loan proceeds of as much as 75%, without adding mezzanine or other higher-priced secondary debt leverage enhancements. 

 For example, full leverage loans of 75% are priced only about 25 to 50 basis points higher for the additional proceeds – a lower cost alternative to raising equity.

The Real Estate Capital Institute® is a volunteer-based research organization that tracks realty rates data for debt and equity yields.  The Institute posts daily and historical benchmark rates, including treasuries, bank prime, and LIBOR.  

CONTACT:

 ^The   Real Estate Capital Institute^®

Chicago, Illinois USA 60622

 John Oharenko

 Executive Director

john.oharenko@reci.com

director@reci.com 

 www.reci.com

Procaccianti Companies Acquires Historic Nantucket Bed & Breakfast, The Regatta Inn

The Regatta Inn, 78 Centre Street, Nantucket, MA

PROVIDENCE, RI -- Procaccianti Companies (Est. 1958), a second generation, privately-held real estate investment and hospitality services organization, announced that it has acquired The Regatta Inn located at 78 Centre Street, Nantucket, Mass. The Regatta Inn boasts finely appointed guestrooms steps away from Nantucket’s quintessential downtown.

“This acquisition presented an extremely rare opportunity to acquire a spectacular property in one of the highest barrier-to-entry markets in the United States," stated James Procaccianti, president and chief executive officer, Procaccianti Companies.

"The Regatta Inn is widely recognized as the one of the top Bed & Breakfasts on Nantucket and has benefited from excellent management and recent capital investments.

James Procaccianti

 “The Regatta Inn has earned an exceptional reputation for delivering extraordinary guest service and high-quality amenities. We are extremely proud to be the next curators of this irreplaceable property.”

The Regatta Inn

This distinctive and historic Federal-style mansion was completely reconstructed, remodeled and refurnished in 2013-2014, giving each guest room an enlarged, spa-like Carrera marble and white-tiled en-suite bath, with subway-tiled showers and frameless glass doors, rainfall shower heads and custom cabinetry and fixtures. 

Each bedroom also features stunning furnishings by Serena & Lily and Restoration Hardware, sumptuous pillow top mattresses and Matouk fine linens, as well as exclusive Frette towels and cozy robes, in-room refrigerators and stunning modern decor.

The Regatta Inn is just a short walk to island ferries, shops, galleries, restaurants, museums, theaters, island shuttle buses and several spectacular beaches. For more information about this celebrated property, please visit www.TheRegattaInn.com.

Lakeside weddings are often planned at The Regatta Inn

CONTACTS:

CHRIS DALY

PRESIDENT

DALY GRAY PUBLIC RELATIONS, INC.

620 Herndon Parkway, Suite 115 | Herndon, VA 20170

Main: 703-435-6293

Mobile: 703-864-5553

 chris@dalygray.com | www.dalygray.com

 Ralph V. Izzi, Jr.

Vice President of Public Affairs 

401-946-4600  

 rizzi@procaccianti.com

procaccianti.com
tpghotelsandresorts.com

New Canopy by Hilton hotel planned for Downtown Boston

CVS Properties Rendering of Planned Canopy by Hilton Boston Downtown Hotel

BOSTON, MA – JLL announced it has arranged $75 million in construction financing for the development of Canopy by Hilton Boston Downtown, a 212-room boutique hotel to be built across from the Rose Kennedy Greenway in Downtown Boston.

 Anthony Cutone

JLL worked on behalf of the developer, a partnership between Olshan Properties, CV Properties and Harbinger Development, to place the construction loan with Citizens Bank.  

Canopy by Hilton offers a local experience with a boutique hotel feel. The six-story Canopy by Hilton Boston Downtown will feature a fitness center, 1600 square feet of meeting space, three street-level restaurant/retail spaces totaling 12,711 square feet, one of which will have access to an outdoor terrace that faces Hanover Street; and a second-floor hotel operated café/bar.

The property will be built on a 1.2-acre site bounded by Hanover Street to the north, Blackstone Street to the west, North Street to the south and the John Fitzgerald Surface Road and Rose Kennedy Greenway to the east. 

The hotel’s central, downtown location provides guests with access to a diverse set of demand drivers, including Faneuil Hall, the Financial District, Back Bay and more. Additionally, Boston’s famed Freedom Trail abuts the site and connects the property to international tourist attractions.

Matthew Enright

The JLL Capital Markets debt placement team representing the developer was led by Managing Director Anthony Cutone and Director Matt Enright.

“JLL is pleased to have arranged the construction loan with Citizens Bank on behalf of this great sponsorship team,” Cutone said. “The Canopy will be a wonderful addition to the Rose Kennedy Greenway and the surrounding neighborhoods, and we are thankful to have been included on the development team for this outstanding new project.”

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

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

Contact: 

Kimberly Steele

 JLL Digital Content/PR Specialist

Phone: +1 713 852-3420

Email:  Kimberly.Steele@am.jll.com

olshanproperties.com 

jll.com

www.citizensbank.com 

Twitter, LinkedIn or Facebook.

 cvprop.com.

harbingerdevelopment.com