(RECAP: The FHFA has provided more details about the changes it announced last month regarding categories that can be excluded from the GSEs’ multifamily lending cap. Typically, exclusions to the cap have included affordable housing loans, loans to small multifamily properties and loans to manufactured housing rental communities. The latest tweaks excluded several other related items. For example, the GSEs can now exclude a pro rata portion of multifamily loan amounts, based on the percentage of units in a property affordable to renters at 60% of area median income. The agency also increased the income threshold for affordability in higher cost areas to 80% of area median income and for very high cost markets it raised it to 100% of area median income.)
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Resource Real Estate Opportunity REIT Acquires 400-Unit Yorba Linda Apartments for $118 Million
YORBA LINDA, CA – Resource Real Estate Opportunity REIT, a non-traded real estate investment trust sponsored by Resource Real Estate, announced the acquisition of the Yorba Linda Apartments in Yorba Linda, California.
Yorba Linda Apartments is a 400-unit multifamily residential community that consists of 50 two-story buildings and approximately 400,000 net rentable square feet. The property offers amenities including a clubhouse, a business center, a fitness center, two swimming pools, a wading pool, two lighted tennis courts, a playground, covered parking and spacious areas for outdoor activity. Yorba Linda Apartments are expected to benefit from an extensive value-add strategy that includes new capital to improve the exterior of the property and to upgrade the common areas and individual units to a more modern look and feel.
Orange County is located in the heart of Southern California and is often referred to as the “California Riviera” given its desirable climate and 42 miles of Pacific coastline. Orange County is the sixth most populous county in the United States with over 3.1 million residents and is the 12th largest high-tech base in the country. Yorba Linda, situated in northeastern Orange County, was originally a master-planned community designed in 1967 and is now one of Orange County’s most affluent cities. The Yorba Linda submarket has historically been protected from new apartment supply with only 402 new apartment units having been constructed there in the past 20 years.
Kevin Finkel, President and COO of the Opportunity REIT, said “We are very pleased to be able to execute the purchase of Yorba Linda Apartments on behalf of the Opportunity REIT and its investors. The property’s strategic location, insulation from competition, and excellent resident base make it a strong addition to the Opportunity REIT’s portfolio. Yorba Linda is one of the premiere locations in Southern California for apartment operators, but the market clearly is in need of upgraded apartments. We believe we can fill this significant demand with our management expertise and proven value-add strategy.”
Martin Management Sells 136 Multifamily Units and 6.62-Acre Development Site for $10.25 Million
ATLANTA, GA – Transwestern’s Southeast Investment Services Group announced it brokered the disposition of the Westpark Club multifamily project for $10.25 million. The transaction includes 136 existing units in Phase 1 and a 6.62-acre parcel in Phase II. The garden-style community is located at 150 Westpark Drive in Athens, Georgia, and totals 151,112 square feet. Transwestern Managing Directors Mike McGaughy and Jon Kleinberg represented the seller, Martin Management. The property was acquired by Audubon Communities.
“Westpark Club is an exceptional investment for Audubon Communities,” said McGaughy. “Athens’ thriving community supports the Phase II development, which presents Audubon with the opportunity to nearly double the community size while implementing a renovation program on the existing units to increase the asset’s value.”
Built in 1997, Westpark Club Phase I offers a mix of spacious one- and two–bedroom units with an average unit size of 1,111 square feet. Floorplans feature crown molding, chair rails, six-panel doors, full-size washer and dryer connections and private balconies or patios, with vaulted ceilings and fireplaces in select units. Phase I encompasses 10.39 acres with a competitive community amenities package that includes a pool, fitness center, cyber cafe, two lighted tennis courts and a sand volleyball court. The Phase II tract is adjacent to Phase I.
The property’s central location in Athens, home to the University of Georgia (UGA), provides exceptional access to Atlanta Highway/U.S.Route 78 and the Athens Perimeter/State Route 10. In 2011, Forbes ranked Athens first in Georgia and 51st in the nation among “Small Best Places for Business and Careers.” Westpark Club is near major employment centers, including Athens Regional Medical Center and UGA, the region’s single largest employer.
TGM Associates Sells 311-Unit Multifamily Community in Jupiter, Florida to Northland Investment
JUPITER, FL – TGM Associates announced the sale of TGM Floresta to Newton, MA based Northland Investment Corporation. The broker on the transaction was JBM Institutional Multifamily Advisors, Jamie May, Chairman and CEO.
TGM Floresta is located in Jupiter, FL and has 311 apartment flat and townhome units. TGM purchased Floresta in 2007. Terms of the transaction were not disclosed.
TGM Floresta offers unique 1, 2, 3 or 4 bedroom townhome-style apartment residences feature large balconies or patios, gourmet kitchens, spacious closets, recessed lighting, crown molding, ceiling fans, and garden bath tubs. Plus, each apartment has its own full-size washer and dryer. Be sure to leave time for the community’s 24-hour fitness center, resort-style swimming pool, tennis court, sports court, and private lake. The community is minutes from I-95 and the Florida Turnpike and close to public transportation. The school district includes Jupiter Elementary, Jupiter Middle and Jupiter High School (all A-rated schools).
Founded in 1991, TGM Associates is a SEC registered investment advisory firm with a single focus — multifamily properties. TGM, a vertically integrated operating company, specializes in acquisitions, property management, leasing, construction, property maintenance and dispositions. TGM provides investment advisory services regarding the acquisition, management and sale of multifamily properties throughout the United States.
Dear housing industry, "Millennials want homes"
(RECAP: After an hour discussing the ins and outs of millennials with housing’s top economists, there was one point that was continuously reiterated in everyone’s speech. Millennials want to buy. And we are many. Yes, there are roadblocks to millennials jumping into housing right now, but this is often translated to “Oh no! Millennials are not buying and all the work that has going into the economic recovery is going to come to a screeching halt.” Wrong. Millennials, unlike other generations, are willing to wait on the sidelines until a house comes up that they truly love.)
Stream Realty Partners to Develop First-of-its-Kind Active Adult Community in San Antonio
SAN ANTONIO, TX – Stream Realty Partners, a full-service national real estate investment, development and services company, has announced plans to develop a 150-unit, active adult, apartment community in San Antonio. The 55-plus living community is the first of its kind in San Antonio, offering a fully integrated lifestyle that will allow residents the opportunity to explore health and wellness initiatives, social activities and group service projects. Stream expects to commence on the project in early 2016.
Stream’s active adult community will be located in the heart of Stone Oak, just north of the Stone Oak Parkway and Hardy Oak Boulevard intersection. The 7.5-acre property sits atop a canyon on Hardy Oak Boulevard and will consist of one- and two-bedroom condo-style apartments with views of the Hill Country.
“Stream will deliver leasable-luxury and offer the 55-plus community brand new options,” said Luke Bourlon who is part of Stream’s AAL development team. “We are disinheriting the expensive medical- and meal-service packages found in traditional senior housing, and this enables us to deliver luxury at a much more attractive price.”
Stream’s new community will take full advantage of its proximity to both the retail at the Village of Stone Oak in the expanding 281 North Corridor, as well as the Texas Highway Loop 1604 shopping centers, located south of Stone Oak. The property’s amenities will also include health and wellness centers, lush community gardens, an outdoor kitchen area, social lounges and walking trails.
Stream’s active adult living team is part of the company’s multifamily division. The group is led by Jeff Patterson, senior vice president, Stream Realty Partners, and comprised of a team of experienced professionals providing services in multifamily, student housing, senior housing and affordable housing.
Historic Stevens Square Apartment Building to Be Transformed into Supportive Housing Community
MINNEAPOLIS, MN – Beacon Interfaith Housing Collaborative has begun a $3.38 million renovation of an historic Stevens Square apartment building, transforming the 100-year-old property into a new 19-unit affordable-housing community with support services for area homeless and people in need of permanent housing.
Rehabilitation of the building, to be renamed The Lonoke, located at 1926 Third Avenue South in Minneapolis, includes renovating the 19 existing one-bedroom apartments with upgraded mechanical, electrical and plumbing systems, new kitchens and baths, common-area upgrades and improvements, new roofing and other exterior components.
Funding for the project is being provided with the support of many community partners through tax credit financing, state and local housing funds and private contributions from individuals, congregations and foundations.
Minnetonka-based UnitedHealth Group (NYSE: UNH), the largest investor in the project, provided $1.9 million in equity through Low Income Housing Tax Credits (LIHTC) through a partnership with the Minnesota Equity Fund (MEF). The Minnesota Housing Finance Agency (MHFA) approved the use of the tax credits and is providing a $645,445 loan. Additional funding includes a $423,523 loan from the City of Minneapolis, a $225,000 loan and $64,000 grant from Hennepin County, and $75,000 from Plymouth Congregational Church and Westminster Presbyterian Church. Construction financing was secured through the Greater Minnesota Housing Fund.
“The Lonoke renovation is the result of a fruitful collaboration with Westminster and Plymouth churches along with UnitedHealth Group and government funders who believe in the power of home to transform lives and communities,” said Lee Blons, Beacon’s executive director. “We’re grateful that our funders trust Beacon’s capacity to continue to create well-managed, high-quality affordable housing that not only benefits individuals but serves as a stabilizing presence in neighborhoods.”
The $1.9 million investment by UnitedHealth Group in collaboration with MEF is part of more than $250 million the company has provided since 2011 to finance affordable-housing communities with supportive services throughout the United States. The company has invested $50 million through MEF to fund affordable-housing communities throughout Minnesota and the Great Lakes region.
“UnitedHealth Group is honored to be among the many partners investing in this important community development,” said Tom McGlinch, vice president, investment management, UnitedHealth Group. “When completed later this year, The Lonoke will provide the kind of care and support that is critical in helping to lift people out of homelessness and live healthier lives.”
“MEF provides a vehicle for socially motivated corporations like UnitedHealth Group to make economic investments in well-designed, high-quality affordable-housing developments in growing communities throughout Minnesota,” said Warren Hanson, president and CEO of MEF. “Our partnership in this rehabilitation project will help meet the critical need to provide at-risk individuals with quality, permanent housing with supportive services.”
Beacon Interfaith Housing Collaborative is the developer, with Frerichs Construction carrying out building renovations. CommonBond will provide property management services once the construction phase is complete.
When completed in the fall, the property will be officially renamed The Lonoke. It will include 10 apartments that will offer supportive services for people who have experienced long-term homelessness, and nine general-occupancy apartments for tenants earning 30 percent to 50 percent of area median income. Supportive services for residents will be provided by Spectrum Community Mental Health and Simpson Housing.
Beacon purchased the Stevens Square apartment building in 2005 along with its companion building, The Nokoma, which has since been renovated and all units sold as part of an affordable-housing cooperative.
To Address the Nation’s Affordable Housing Crisis, Norton Introduces Amendment to Fully Fund Section 8 Housing Vouchers
(RECAP: Congresswoman Eleanor Holmes Norton (D-DC) will introduce two amendments to the House fiscal year 2016 Transportation, Housing and Urban Development Appropriations (THUD) bill. One Norton amendment would fully fund existing Section 8 Housing Choice Vouchers by replenishing 67,000 Section 8 Housing Choice vouchers that were cut due to sequestration.)
CFPB Allows Grace Period for New Rule Rollout
(RECAP: Today, the Consumer Financial Protection Bureau (CFPB) announced that it will be “sensitive” to the good-faith efforts of lenders implementing the new Truth-In-Lending and Real Estate Settlement Procedures Integration Disclosure (TRID) regulations set to take effect on August 1. CFPB Director Richard Cordray was responding to a letter he received last week from a bipartisan group of over 250 members of Congress, who felt that the industry did not have sufficient time to properly test new procedures that will impact every mortgage application and real estate closing.)
Block Multifamily Group and Balfour Beatty JV Acquires Multifamily Portfolio in Dallas Metroplex
DALLAS, TX – Balfour Beatty Communities recently completed the acquisition of a five apartment community portfolio in the Dallas-Fort Worth metroplex in a joint venture with equity partners Block Multifamily Group and Harbert Management Corporation, on behalf of the Harbert United States Real Estate Fund V. Balfour Beatty Communities will perform all property management services across the portfolio through its Multifamily Division, and Block Multifamily Group will be responsible for all asset management services.
The acquisition portfolio consists of the following apartment communities: Madison at Round Grove (404 units) 201 E. Round Grove, Lewisville, Texas, Madison on the Parkway (376 units) 19002 Dallas Parkway, Dallas, Texas, Wimberly Apartments (372 units) 4141 Horizon North Parkway, Dallas, Texas, Wimbledon Oaks (248 units – 1802 Wimbledon Oaks Lane, Arlington, Texas and Villas of Josey Ranch (198 units) 2050 Keller Springs Road, Carrollton, Texas.
“This significant transaction, coupled with our acquisition of the Townlake of Coppell apartment community earlier this month, greatly strengthens our position in the greater Dallas residential marketplace,” said Chris Williams, president of Balfour Beatty Communities. “With strong historical performance and the opportunity for value-add improvements, these properties fit well with our multifamily strategy and we look forward to welcoming them into our portfolio.”