35-Unit San Diego, CA Apartment Portfolio Sold for $8,700,000

Three Property, 35-Unit Apartment Portfolio, North Park and University Heights Neighborhoods
San Diego, CA

Peter Scepanovic

SAN DIEGO, CA  – Colliers International San Diego Region announces the sale of a three property, 35-unit apartment portfolio located in San Diego’s North Park and University Heights neighborhoods for $8,700,000.

Peter Scepanovic and Corey McHenry of Colliers International San Diego Region’s Multi-Family Advisory Group represented the buyer, a San Diego-based private investor. The seller was a San Diego-based private family trust.

The three properties total 24,064 square feet and are located at 4366-72 & 4374-80 Mississippi Street, 3744 Bancroft Street, and 4534-40 30th Street, San Diego, CA.

“This was a generational sale of a family-owned apartment portfolio to an investor who plans to reposition the properties in the market. As demand and property values remain strong for urban apartments, we will continue to see this trend,” said Peter Scepanovic, Senior Vice President and leader of the Multi-Family Advisory Group at Colliers International San Diego Region.

Colliers International Group Inc. (NASDAQ: CIGI; TSX: CIG) is an industry leading global real estate services company with more than 16,000 skilled professionals operating in 66 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide.

Corey McHenry

Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. 

Colliers has been ranked among the top 100 outsourcing firms by the International Association of Outsourcing Professionals’ Global Outsourcing for 11 consecutive years, more than any other real estate services firm.

For the latest news from Colliers, visit Colliers.com or follow us on Twitter: @Colliers and LinkedIn. To see the latest news on Colliers International in the San Diego Region, follow @Colliers_SD

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

Kenny Moore  |  Associate

C 760 468 0394 

kenny@hutchenspr.com

 www.HutchensPR.com

IEC Acquires Rare Multifamily Asset in Glendale, CA for $54.2 Million

Towne at Glendale Apartments, 1717 North Verdugo Road, Glendale, CA

Glendale, CA – Institutional fund manager Interstate Equities Corporation (IEC) has acquired a 126-unit multifamily property in Glendale, California for $54.2 million. This is the seventh acquisition to date within the firm’s IEC Institutional Fund III, L.P., a fully discretionary, $200 million commingled fund targeting value-add multifamily investments throughout coastal California.

“It is rare to find an asset of this quality, vintage and size in what we feel is one of the most attractive markets on the west coast,” says Brendan Gibney, an acquisitions professional at IEC.

Adrienne Barr

Towne at Glendale is located at 1717 N. Verdugo Road in Glendale, California.  Adrienne Barr and Shane Shafer at Hendricks Berkadia brokered the transaction. The acquisition loan was arranged by Peter Smyslowski at Holliday Fenoglio Fowler, L.P (HFF) and provided by CIT Bank, N.A.

The apartment community was built in 1965 and renovated in 2007 to condo specifications, featuring high-end finishes, central air conditioning and amenities that are characteristic of institutional-quality assets.  Currently known as Verdugo Village, IEC will rebrand and rename the property Towne at Glendale.

            “The property’s unique configuration of two and three-bedroom units, prime location in a durable submarket made this a strong acquisition that fits squarely into IEC’s investment strategy,” Gibney says.

            Gibney notes that Glendale, one of the tri-city submarkets of Los Angeles County’s San Fernando Valley, is poised for economic growth, boasting strong school districts, top employers, new residential developments and premier retail amenities including the Americana at Brand.

            “As a firm, we have been investing in Glendale for several decades and are selectively looking to expand our presence in this region,” Gibney explains. “This acquisition is well-aligned with our strategy of targeting apartment communities that are located in growing and resilient markets of California.”

Peter Casey, a Director at IEC, adds that the strength of the market and the asset’s long-term growth potential generated strong competition for this acquisition.

Brendan Gibney

“There were many bids for this asset,” says Casey. “As one of the few funds competing for this deal, we were able to differentiate ourselves through our surety of close and access to fully discretionary capital.  

"Based on our proven track record and expertise in the Glendale market, we emerged as the right buyer in this transaction and moved quickly to complete due diligence in 15 days.”

            Casey explains that while IEC’s acquisition pipeline is strong, the company has been a net seller in 2016, selling five units for every one purchased this year.

“While we continue to seek opportunities to expand our multifamily portfolio, we are also being increasingly selective in the investments we pursue,” says Casey, who notes that IEC typically closes on less than two percent of the deals it underwrites.  “As net sellers, we view the increased competition in the current investment market as an advantage that provides us with greater liquidity and a sound exit strategy.  Further, as selective buyers, we are able to better position ourselves to focus on opportunities that fit squarely into the historical acquisition parameters that have created the track record.”

The Towne at Glendale is currently 96 percent occupied, and will undergo a series of capital improvements to enhance and expand its existing amenities.  Planned renovations include a major redevelopment of the main lobby and entrance, the installation of a new fitness center, upgrades to the existing onsite movie theater, as well as the addition of onsite storage for residents.

“Through management improvements and strategic renovations, we plan to increase operational efficiencies and ultimately improve the overall resident experience at the property,” confirms Gibney.

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

Katie Kea or Jenn Quader

Brower, Miller & Cole

(949) 955-7940

KKea@browermillercole.com

www.interstateequities.com.

Meridian Capital Group Arranges $27 Million in Permanent Financing for the Residence Inn Secaucus Meadowlands Hotel and $14.5 Million in Permanent Financing for the Courtyard Orlando South Hotel

Beau Williams

New York, NY – Meridian Capital Group, America’s most active debt broker, arranged $27 million in financing for the Residence Inn Secaucus Meadowlands hotel in Secaucus, NJ and $14.5 million in financing for the Courtyard Orlando South hotel in Orlando, FL, on behalf of Concord Hospitality.

The five-year, LIBOR-based, floating-rate, non-recourse loans, provided by a balance sheet lender, were negotiated by Meridian hospitality finance specialist, Beau Williams, who is based in the company’s New York City headquarters.

The Residence Inn Secaucus Meadowlands, located at 800 Plaza Drive in Secaucus, NJ, is a newly constructed 154-room hotel, conveniently situated off of U.S. Route 3 and the New Jersey Turnpike, with direct access to The Plaza at Harmon Meadow and a 30-minute drive from New York City.

The property is in close proximity to several large demand generators, such as MetLife Stadium and Newark Liberty International Airport. Hotel amenities include spacious studio, one-, and two-bedroom suites with separate living rooms and bedrooms, fully equipped kitchens, free internet access and a state-of-the-art fitness center. The hotel also offers two event spaces, totaling 828 square feet.

The Courtyard Orlando South, located at 4120 West Taft Vineland Road in Orlando, FL, is in close proximity to several of the region’s most sought-after tourist destinations, including Disney’s Magic Kingdom, Epcot Center, Universal Studios, SeaWorld and the Central Florida Zoo.

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

Jonathan Stern

Meridian Capital Group

212/972-3600

jstern@meridiancapital.com

The Dow Hotel Company Selected to Operate The Hilton Hotel—Bellevue for New Owner Wig Properties

Murray L. Dow II

SEATTLE, WA —Officials of The Dow Hotel Company (DHC), a leading national hotel owner/investor and operator, announced that it has been selected to operate the 353-room Hilton Hotel – Bellevue hotel following the property’s recent sale to Wig Properties.

“Having operated and been a joint venture partner in the Hilton Bellevue since 2005, we are intimately familiar with the marketplace and the wants and needs of its guests,” said Murray L. Dow II, DHC founder and president.  “DHC recently oversaw the hotel’s all-inclusive, $10 million renovation to bring the hotel to ‘like-new’ status making it competitive with the marketplace.”

Located across the street from the future East Main light rail station and just 15 minutes from Seattle, the Hilton Hotel—Bellevue is situated in the city’s business district, near such business destinations as Meydenbauer Convention Center, Microsoft Campus and T-Mobile headquarters, as well as leisure destinations like the Shops at the Bravern, Bellevue Arts Museum and numerous Washington wineries.

  The hotel provides 60,000 square feet of state-of-the-art meeting space, the second largest hotel offering in Bellevue, capable of accommodating up to 1,000 people. Guests can enjoy Mediterranean cuisine with a Pacific Northwest flair at Basil's Bistro or craft cocktails and local microbrews on tap at Basil’s Bar, providing entertainment on a large flat screen.  For lighter fare, the hotel also provides The Coffee Bar Café, where guests can sip Starbucks® at their leisure. 

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

Chris Daly

Phone: (703) 435-6293

chris@dalygray.com

www.dowhotelco.com.

www.wigproperties.com.

CBRE Issues U.S. Lodging Forecast at Historic Hotels of America Annual Conference

Mark Woodworth

Washington, DC –- The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to CBRE Hotels’ Americas Research (CBRE).

For the third consecutive year, CBRE Hotels’ Americas Research presented a Historic Hotels of America – CBRE five-year forecast at the Historic Hotels of America annual conference.

CBRE relies on historical hotel performance data from STR, and economic forecasts from CBRE Econometric Advisors, to prepare its lodging forecasts.

Key points presented by Mark Woodworth, Senior Managing Director at CBRE, to more than 200 owners, asset managers, general managers, and sales and marketing leaders at the Historic Hotels of America annual conference at The Royal Hawaiian, A Luxury Collection Resort (1927) in early November, 2016 include:

 Per STR, through the first three quarters of 2016, the aggregate RevPAR for historic hotels that are members of Historic Hotels of America placed between the national averages for all upper-upscale and all luxury hotels in the U.S.

 Over the next five years, RevPAR for historic hotels is expected to grow at a compound average annual rate of 2.7 percent, which is greater than the RevPAR forecasts for the nation’s upper upscale hotels at 2.0 percent and 1.7 percent for luxury hotels. Most of the RevPAR growth is expected to stem from increases in ADR.

 Annual occupancy levels for hotels that are members of Historic Hotels of America remains 8 to 10 percentage points above the national average occupancy level through 2020.

 Based on a set of information pulled from CBRE’s database of hotel operating statements, historic hotels (including those that are not members of Historic Hotels of America) had an average ADR of $256.11, higher by more than 11.6 percent than the $229.59 ADR for contemporary hotels.

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

Heather Taylor

Historic Hotels of America

Manager, Marketing Communications

Tel: +1 202 772 8333 Fax: +1 202 772 8338

htaylor@historichotels.org

NAI Realvest negotiates $1.3 Million Sale of Industrial Property in South Orlando. FL

 

Patty Nolff

 ORLANDO, FL -- NAI Realvest recently negotiated a $1,300,000 sale of the 15,590 square foot industrial building on a 4.8-acre site at 100 Thorpe Rd. in south Orlando. 

Michael Heidrich, principal at NAI Realvest and associate Patty Nolff, negotiated the transaction representing the seller, Akron, Ohio-based Quikey Manufacturing Co., Inc. 

The local buyer is S.A. LTG LLC was represented by Elliot Vazquez of Florida Living Real Estate.

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

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

George Smith Partners Secures $41 Million in Acquisition Financing for 300-Unit Class A Multifamily Property in Colorado Springs, CO

The Vineyards Apartments, Colorado Springs, CO

COLORADO SPRINGS, CO. – Commercial real estate investment banking firm George Smith Partners has successfully arranged $41 million in financing for the acquisition of The Vineyards, a 300-unit Class A apartment community in Colorado Springs, Colorado on behalf of a private real estate investment and development company.

The financing, arranged by George Smith Partners’ Principal Jonathan Lee and provided by Walker and Dunlop, comprised 75-percent of the acquisition cost.  The non-recourse loan closed at 4.31 percent with a 12-year fixed rate at nine years interest only.

“This structure is rare in the current financing climate.  Our client was seeking a long period of interest-only financing, however lenders were initially hesitant to agree to these terms,” Lee says.

Jonathan Lee

 “By demonstrating the strength of the asset, which is well-positioned as one of the few Class A apartment communities in Northern Colorado Springs, as well as the projected growth in NOI based on the buyer’s plan for the property, we were able to secure financing that met the needs of both the client and the lender.

“ Further, we recommended locking the loan rate prior to the election, which saved our client from a spike in cost when the U.S. Treasury jumped 50 to 60 basis points post-election.”

The buyer plans to renovate all units and upgrade the community’s landscaping and on-site amenities, including the clubhouse, fitness center, leasing offices and business center, all of which will support moderate rent growth at the property. 

Bill Morkes and Craig Stack of Colliers International represented both the buyer and the seller in the transaction.

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

Miki Conant / Jenn Quader

Brower, Miller & Cole

(949) 955-7940

mconant@browermillercole.com

www.GSPartners.com.

HFF secures $7.3 million refinancing for Inland Empire retail center in Moreno Valley, CA

Ironwood Plaza, Moreno Valley, CA

LOS ANGELES, CA –– Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $7.3 million refinancing for Ironwood Plaza, a 56,289-square-foot retail property anchored by a 99 Cents Only Store in the Inland Empire community of Moreno Valley, California.

Working on behalf of the borrower, a private investor, HFF placed the 10-year, 4.80-percent, fixed-rate loan with a local bank.  Loan proceeds were used to pay off an existing CMBS loan and cover leasing and closing costs.  This was the borrower’s first loan with the bank. 

Jeff Sause

In addition to the 99 Cents Only Store, Ironwood Plaza is home to a variety of tenants, including Bank of America, Aqua Pura, Angela’s Nail Salon, Lorenzo’s Italian Restaurant and Video Vision. 

Situated on 4.5 acres at 23900 Ironwood Avenue, the two-building retail center is located at the southeast corner of Ironwood Avenue and Heacock Street less than one mile from State Road 61 in the Riverside submarket.

 Ironwood Plaza is in Moreno Valley, which anticipates a 4.65 percent population growth over the next five years in the areas surrounding the property.  Currently, there are more than 131,000 residents earning an annual average household income of $64,674 located within a three-mile radius of the center.

The HFF debt placement team representing the borrower was led by director Jeff Sause.

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

Kristen M. Murphy

Director, Marketing

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

HFF secures $14.14 million refinancing for DoubleTree hotel near Washington, D.C.

DoubleTree by Hilton Hotel Largo/Washington, DC

 CHICAGO, IL  – Holliday Fenoglio Fowler, L.P. (HFF) announced it has secured a $14.14 million refinancing for DoubleTree by Hilton Hotel Largo/Washington D.C., a 184-room, full-service hotel in the Washington, D.C. community of Largo, Maryland.

HFF worked on behalf of the borrower, Frontier Development & Hospitality Group, to secure the seven-year, 4.1-percent, fixed-rate, non-recourse loan through a financial institution. 

Nicole Schmidt

Loan proceeds were used to refinance an existing construction loan used to acquire, renovate and rebrand the hotel from a Radisson into a DoubleTree. The financing also enabled the release of excess land that had been encumbered by the previous loan.

Named the No. 1 hotel on TripAdvisor for the Largo market, the newly-renovated DoubleTree by Hilton Hotel Largo/Washington D.C. is the only Hilton-branded hotel in the Largo, Landover and Hyattsville business corridor. 

The six-story hotel features 2,700 square feet of meeting space; an indoor, heated swimming pool; fitness center; business center; market pantry and two food and beverage options, XC BAR & BISTRO and the SC LOUNGE.

 Situated at 9100 Basil Court in Largo, the hotel is located just off Landover Road, which provides easy access to Interstate 495 (the Capital Beltway).  The hotel is less than two miles from the Largo Town Center Metro station in the heart of Largo and proximate to FedEx Field.

Mark Remington

 The DoubleTree by Hilton Hotel Largo/Washington D.C. is in the northern part of Prince George’s County, which has more than 19.7 million square feet of office space. 

The HFF debt placement team representing the borrower was led by director Jeff Bucaro and real estate analyst Nicole Schmidt with assistance from managing director Mark Remington. 

“This was the second financing assignment that Jeff has closed for us, and, each time, he was able to obtain terms that were superior to the market,” said Frontier CEO Evens Charles.

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

Kristen M. Murphy

Director, Marketing

HFF | One Post Office Square, Suite 3500 | Boston, MA 02109

Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

krmurphy@hfflp.com

 http://frontier-development.com.

Meridian Buys 105,000 SF Office Building in San Mateo County, CA for $29 Million

  

1000 Marina, San Mateo County, CA

SAN RAMON, CA. – Meridian, a full-service office property developer in California, is pleased to announce the purchase of 1000 Marina, a six-story 105,000-square-foot office building in San Mateo County, Calif. 

The seller was TA Associates, a private equity firm based in Boston, Massachusetts. Meridian paid just under $29 million for the 90%-leased building located in the Sierra Point Submarket in the city of Brisbane.

The purchase closed in the final week of 2016 and represented Meridian’s second major office transaction in northern California since September when the firm sold The Atrium, a 77,000-square-foot office building in Pleasanton.

Dan Rosenbaum

According to Dan Rosenbaum, Meridian’s Senior Vice President of Acquisitions in northern California, 

“This acquisition represents our largest general office acquisition to date. The building is located in northern San Mateo County in a very vibrant sub-market. South San Francisco and Brisbane are  the epicenter of the biotech universe and we think that 1000 Marina will continue to benefit from that.”

Rosenbaum added, “Google, through its YouTube subsidiary, has purchased a tremendous amount of multi-tenant office space in San Bruno over the last year. As YouTube grows into those owned buildings, those displaced tenants will need to move somewhere.

“This was one of the drivers in our decision to buy this building. As is the case in most buildings that we buy, we will perform some significant upgrades to the building, including common areas and exterior gathering places. This purchase is consistent with our value-add approach towards general and medical office.

“We perceived that the in-place rents were below market and there were some aesthetic and livability upgrades to perform. While the building is not located within walking distance of public transportation, 1000 Marina has the Sierra Point Commuter Shuttle, which connects office workers to both BART and Cal-Train often and effectively.”

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

Anne Monaghan                                                           

Monaghan Communications                                     

830.997.0963                                                               

Real Estate Capital Institute Notes Mortgage Rates Shifted Upward for Nine Consecutive Weeks

Jeanne Peck

 Chicago, IL - Mortgage rates shifted upward for the

nine consecutive weeks.   The real estate capital markets welcome the new

year, anticipating additional rate hike throughout the year.  Last month's

25 basis point rate hike allowed the Fed dampen an improving economy backed

by steady employment growth.  This rate hike was the only one of the year

and second this decade.  Furthermore, the Fed published economic projections

revealing their desire to hike rates three more times in this new year.

Today's rate hike expectations have the following impact on capital markets:

Mortgage Rates:  Think "4%-handle" on any type of long-term debt, even at

lower leverage.  Current rates are at levels similar to the first quarter of

2014.  From a historical perspective, rates are within their lowest levels

of the past decade.  And spreads continue holding steady (or slightly

declining) depending upon individual lender appetite.  Most lenders have

reasonably robust funding objectives for this year, so pressure for tighter

spreads continues, especially for lower leverage and higher-quality CRE

financing opportunities.

Valuations:  A delicate balancing act of paying more for debt, but

potentially trading up for higher cash flow due to inflation keeps real

estate prices near peak levels.  Demand for credit-tenant, net-lease

properties via 1031 exchanges, as well as a limited supply of quality CRE

assets assures low capitalization rates within the current market cycle.

Alternatively, attractive purchase opportunities will emerge for those

properties requiring repositioning based upon fresh capital reflecting

higher rates than seen over the past few years.

Equity Risk:   Investors hope that Fed policies extend the currently

favorable economic cycle as long as reasonably possible, perhaps a couple

more years.  Recent business cycles (e.g., The Great Recession) created

overheated conditions with punishing results afterwards.  In the current

cycle, slightly higher interest rates dampen asset overvaluations.  Also,

recent financial regulatory pressures discourage lenders from allowing too

much leverage for riskier investments.  More so than ever, investors need

greater amounts of equity capital to backstop risk, leading to more cautious

deal-making.

Ms. Jeanne Peck of the Real Estate Capital Institute(r), predicts "Realty

capital market fluctuations bring attractive investment opportunities to

well-capitalized and patient buyers.  Motivated sellers will accept lower

prices, especially on deals that have been 'retraded' because of rising

rates."

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

Jeanne Peck, Executive Director

director@reci.com

www.reci.com

29th Street Capital Acquires Summer Oak Apartment Homes in Jacksonville, FL

  

 

Summer Oak Apartments, Jacksonville, FL

Jacksonville, FL (Jan. 3, 2016) – 29th Street Capital (29SC), a privately-held real estate investment and advisory firm, has acquired the Summer Oak Apartments Homes in Jacksonville, Florida.

The new owner plans to rebrand the 400-unit riverfront multifamily community as “Pier 5350.” It also plans a $2 million renovation.

“We are very happy to close on our second acquisition in Florida and have high expectations for this property and the overall Florida market,” said Bill McConaghy, 29SC’s Vice President of Acquisitions for Florida.

“Pier 5350, situated on the St. Johns River, is in a great location and offers some of the largest floorplans and townhomes in the submarket. We believe our renovations will further enhance the property and we are excited for the future.”

Bill McConaghy

Pier 5350 is just over the Mathews Bridge from downtown Jacksonville with clear poolside views of EverBank Field, home of the Jacksonville Jaguars. 

Jacksonville has healthy job growth; in the past year, companies such as Amazon, Citibank and E&Y have announced a total of 1,750 new jobs. The Jacksonville metro area has an unemployment rate of only 4.7%, which has consistently improved in recent years.

29SC plans to improve the property by repairing deferred maintenance, installing new exterior lighting and improving the leasing center and amenities. Unit interiors will also be improved with the goal of improving the overall quality of the property.

Desirable features include the 240-foot dock on St. Johns River, three swimming pools, a private park with river views, and a fitness center. The transaction closed December 30, 2016. The price was not released.

29th Street Capital acquired 12 multifamily assets in 2016 and continues to actively pursue additional opportunities throughout the U.S.  The firm will continue to target strategic value-add deals which are below the institutional radar, with the intention of offering its investors above market returns. 

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

Terri Thornton terri@territhornton.com

For investment inquiries, contact:          

Stan Beraznik, Founder and Managing Principal at 29th Street Capital

415.643.6875 | sberaznik@29thstreetcapital.com

KTGY Architecture + Planning Welcomes Manish H. Shah as Executive Director

  

 

Manish H. Shaw

 CHICAGO, IL (Jan. 3, 2017) — The Chicago/Midwest office of KTGY Architecture + Planning, an award-winning international architectural firm, announced it has hired Manish H. Shah as executive director of architecture at the firm’s Chicago/Midwest office.

 Shah will work in the firm’s national healthcare design practice, leading KTGY’s continued expansion throughout the Midwest and addressing challenges facing the industry in 2017.

“Manish has extensive experience in the design of healthcare facilities, which represents one of the most in-demand sectors of commercial real estate,” said Craig Pryde, AIA, LEED AP, principal at KTGY Architecture + Planning’s Chicago/Midwest office. “We’re excited to leverage Manish’s creativity and knowledge as we continue to expand this practice.”

Shah, 46, has more than 20 years of experience managing a wide range of projects from conception through completion. His focus is in the design and planning of acute care areas of hospitals, medical office buildings and specialized clinics, including ambulatory surgery, as well as radiology and imaging suites. 

Craig Pryde

“Healthcare design is one of the most rapidly evolving industries and has an enormous impact on our communities,” said Shah.

 “Drawing on my experience in designing both newly constructed and renovated facilities, including those that have undergone an expansion, I’m excited to join a team that shares my curiosity and commitment to elevating the experience for medical providers and the patients they serve.”

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

Abe Tekippe, atekippe@taylorjohnson.com, (312) 267-4528

www.KTGY.com

Passco Companies Acquires Class A 282-Unit Luxury Multifamily Community in Florida for $50.25 Million

Marisol at Viera Apartments, 2439 Casona Lane, Viera, FL

 MELBOURNE, FL – Passco Companies has acquired Marisol at Viera, a 282-unit Class A luxury multifamily asset in Melbourne, Florida for $50.25 million.

 The apartment community is located within Viera, a high-end 22,000-acre master planned community on the east coast of Florida that features a variety of high quality retail, restaurants, office space and residential options.

Colin Gillis

“Marisol at Viera is the best located and most luxurious multifamily property in the entire Melbourne MSA,” says Colin Gillis, Vice President of Southeast Acquisitions at Passco Companies.

 “This is Passco’s first acquisition on the Space Coast, and we are especially excited as the market is a top performer in the state of Florida, with YTD rent growth leading the state with nearly 10%, according to MPF. 

"This is more than double the national average.  Additionally, occupancy rates across the submarket are well into the high 90’s with only one multifamily project in the development pipeline.”   

The region is often referred to as the “Space Coast” based on its close ties to NASA and the growing high-tech and aerospace industries. 

Situated between Port Canaveral to the northeast and Melbourne to the south, the area has the largest concentration of STEM (Science, Technology, Engineering and Math) jobs in all of Florida.

The Space Coast has seen tremendous job growth over the last few years, as several key employers in the aeronautics, private space programs, and defense sectors have landed numerous multimillion dollar contracts and announced exciting and innovative projects. 

Gary Goodman

Employers including Harris Corporation, Northrop Grumman, Elon Musk’s SpaceX and Lockheed Martin have been rapidly expanding, hiring highly-skilled workers at very impressive wage levels. 

“The influx of well-paying jobs has given a tremendous boost to the already strong rental market and has created a very impressive demographic profile at the property, with average resident incomes exceeding $100,000,” says Gillis.  

“Home values and schools in Viera are also exceptional, which will assist in maintaining long-term value.  Additionally, Viera is the county seat of Brevard County, which provides a very stable local government employment base.”

The property reached 96% occupancy in seven months, often with months exceeding 40 leases, which is one of the most impressive lease ups the firm has ever seen, according to Gillis.

     “This demonstrates remarkable pent up demand in the area for a luxury multifamily product,” he says. “The property leased up with no concessions at an average rental rate of $1,400 / $1.44, which far exceeds the rental rates many of the new Class “A” suburban apartment developments in the greater Orlando area, just 45 minutes west of Melbourne.”         

Jay Ballard

       The core asset is directly adjacent to The Avenues Viera, a Cousins-built 600,000 square feet, Class “A” outdoor lifestyle center featuring a mix of premier national retailers and dining options. 

“The Avenues is the premier retail destination for the entire area,” says Gillis. “Marisol benefits tremendously from the drive-by traffic that is created by the shopping center.”

Marisol at Viera features exceptionally designed interiors and a best-in-class amenity package including two poolside bars and outdoor kitchens, a private club and amenities deck, a clubroom and TV lounge, a 6,500 square-foot dog park with outdoor grooming station, and electric car charging stations, among many other amenities.

“Ultimately, this acquisition represents the high quality assets we seek to acquire and our continued expansion in growing markets across the Southeast,” adds Gillis.

Marisol at Viera is Passco’s third acquisition in Florida this year, bringing the firm’s total multifamily acquisitions for 2016 to over $500 million, a benchmark the firm has reached for the first time since its inception. 

According to the firm’s Senior Vice President of Acquisitions, Gary Goodman, “This is our biggest year yet in terms of acquisitions.  We doubled what we acquired in 2015, and plan to continue this momentum into 2017. We are currently on track to do approximately $1 Billion in acquisitions next year.”

            The property is located at 2439 Casona Lane in Viera, Florida. The seller, Pollack Shores, and the buyer were represented by Ken Delvillar and Jay Ballard at Cushman & Wakefield. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco Companies through Fannie Mae.

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

Lexi Astfalk/ Jenn Quader

Brower, Miller & Cole

(949) 955-7940

LAstfalk@browermillercole.com

www.passco.com.

58-Unit Canard Apartments in Davie, FL Sold for $5 Million in Deal Brokered by Marcus & Millichap

Brandon J. Rex

DAVIE, FL, Dec. 29, 2016 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Canard Apartments, a 58-unit apartment property located in Davie, FL, according to Ryan Nee, regional manager of the firm’s Fort Lauderdale office. The asset sold for $5,000,000.

Canard Apartments consists of 3681/3711/3721/3731/3741/3801 SW 60th Terrace and 3740/3760 SW 61st Avenue in Davie, FL.   The community consists of eight buildings on a total of 1.73 acres of land.  Canard Apartments has an excellent unit mix of four one-bedroom apartments, eight two-bedroom and one-bathroom apartments, 30 two-bedroom and one and one-half bathroom apartments and 16 two-bedroom and two-bathroom apartments.

Evan P. Kristol, Senior Vice President Investments, and Brandon J. Rex, Vice President Investments, both in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a private investor. 

“An out of area partnership owned the asset for a very long time.  They were hesitant in exclusively listing due to the amount of unsolicited interest they were receiving.  We brought a buyer to the table that we had closed within the past and who was a large owner of similar properties throughout Broward County.

“ The asset had deferred maintenance but the rents were far below market and with a unit mix that is predominantly two-bedroom units, the buyer will be able to significantly increase rents after renovating the property,” says Kristol.

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

 Ryan Nee

Vice President / Regional Manager

Fort Lauderdale, FL

(954) 245-3400