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WeldenField and SPM Team Up With Tavistock to Develop New Luxury Apartment Community

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ORLANDO, FL – Weldenfield Development and SPM, LLC announce the groundbreaking of Landon House, a collection of 280 luxury, urban-style apartments located in the heart of Lake Nona Town Center and the bustling Lake Nona Medical City in Orlando, FL. This five-story development will include a resort-style pool with infinity edge; outdoor pavilion with a fire pit and TV; putting green; fitness center featuring virtual reality cardio bikes; clubhouse with cyber café; game room with billiards, shuffleboard table and retro arcade games; business center; multi-purpose theater; Zen garden; Bocce ball; outdoor ping pong tables; grilling areas; pet spa; controlled access to the building and parking deck; and bicycle storage. Studio, one, two and three bedroom interiors will feature open living areas boasting 10’ ceilings; a gourmet-style kitchen with granite islands and countertops; and energy-efficient appliance package; bedroom suites with large walk-in closets; and a washer and dryer.

Landon House is a joint venture between Tavistock Development and Weldenfield Development, with management services by SPM, LLC.  This will be the second Lake Nona community to be constructed and managed in partnership with WeldenField and SPM, LLC.  Walker & Co. has been selected as the Landon House general contractor. Leasing will begin in the fourth quarter of this year and the community is projected to open in early 2016.

“Lake Nona is being built on the fundamentals of thoughtful design, sound planning, innovative collaboration and a commitment toward a thriving community rich in programming and activities, all built on a gigabit network allowing the best in technology. Landon House will be a wonderful addition to our community, and will provide an urban, live-work-play environment not yet seen in Orlando,” said Jim Zboril, president of Tavistock Development Company and Lake Nona Property Holdings.

Landon House is one of four active apartment communities currently planned or under construction at Lake Nona.  WeldenField, SPM, LLC and Lake Nona teamed up in 2012 on the 289-unit Lake Nona Water Mark Apartments, which opened in 2013.  Two more apartment communities are under design and planned to begin construction in the eastern and western sections of Lake Nona over the next two years.

“The variety of our housing and apartment communities are an important component in our offerings,” said Zboril. “We look forward to announcing the precise locations of our next communities in the coming months,” he added.

Commercial development is rapidly expanding throughout Lake Nona with more than $200 million in active onsite construction of new retail and office projects. The first phase of the Lake Nona Town Center is projected to open in the fall, which includes 5 restaurants, an 80,000 square foot office building and a 204-room Marriott Residence Inn and Courtyard by Marriott combination hotel complex.  The 92,000 square-foot Florida Blue and GuideWell Innovation Center in Lake Nona Medical City is also under construction and will be completed this fall.  The 75,000 square-foot Lake Nona Gateway building, a medical office building, was completed in late 2014 and is anchored by Florida Hospital and UCF Health.

With a real estate portfolio highlighted by Lake Nona, Tavistock Development Company is setting a new standard for the way in which business and residential communities are being built, focusing on high quality, high technology and innovative development.

Recently acknowledged by FORTUNE Magazine as a model for the next great American city, Lake Nona is one of the fastest growing communities in America attracting more than $2.8 billion in construction across 7.1 million square feet with the development of two new hospitals, three college campuses, a nationally recognized medical research institute, the USTA’s New Home of American Tennis and thousands of new homes. Adjacent to the Orlando International Airport, Lake Nona will feature more than five million square feet of commercial space, 2,200 hotel rooms, 30,000 residents and more than 100 shops and restaurants. Focused on sustainable design and healthy living, Lake Nona is recognized by Cisco as the only designated “Iconic Smart + Connected Community” in the U.S. – one of only nine such communities in the world.

Kennedy Wilson Completes Purchase of a Majority Interest in the 5,485 Unit Multifamily Portfolio

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BEVERLY HILLS, CA – Global real estate investment and services firm Kennedy Wilson announced that the company completed the acquisition of a majority interest in Vintage Housing Holdings (“VHH”). VHH owns certain interests in 30 multifamily properties totaling 5,485 units in the Western U.S.

For its 61% equity ownership in VHH, Kennedy Wilson invested approximately $78 million, valuing the underlying portfolio at approximately $486 million (including the assumption of property debt, third party equity interests and unrestricted cash). The property developer and current manager of VHH will own the remaining 39% of the equity interests and maintain its role as manager.

“Kennedy Wilson was able to acquire this large portfolio off-market through a direct relationship with the seller,” said Matt Windisch, executive vice president of Kennedy Wilson. “We have high hopes for growing this portfolio over time leveraging both our 20 years of multifamily experience and the expertise of the existing manager.”

The properties, which were built on average in 2006, are located primarily in Washington (3,796 units), California (756 units) and Nevada (544 units). As of April 30, 2015, the portfolio has produced year-to-date net operating income of approximately $12 million.

“The VHH acquisition is an excellent complement to our existing market-rate multifamily portfolio and allows Kennedy Wilson to further expand its footprint in key West Coast markets,” said Kurt Zech, President of Kennedy Wilson Multifamily. “The portfolio benefits from its ability to serve a much needed market segment with the majority of the units rented to independent seniors.”

The Company’s multifamily portfolio now exceeds 25,000 units, including over 9,000 units in the State of Washington.

CoreLogic Reports National Homes Prices Rose by 6.8 Percent Year Over Year in April 2015

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IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled services provider, today released its April 2015 CoreLogic Home Price Index, which shows that home prices nationwide, including distressed sales, increased by 6.8 percent in April 2015 compared with April 2014. This change represents 38 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased by 2.7 percent in April 2015 compared with March 2015.

Including distressed sales, 30 states plus the District of Columbia were at or within 10 percent of their peak prices in April. Eight states and the District of Columbia reached new price peaks not experienced since January 1976 when the CoreLogic HPI started. These states include Alaska, Colorado, Nebraska, New York, Oklahoma, Tennessee, Texas and Wyoming.

Excluding distressed sales, home prices increased by 6.8 percent in April 2015 compared with April 2014 and increased by 2.3 percent month over month compared with March 2015. Excluding distressed sales, only South Dakota (-0.3 percent) and Louisiana (-0.2 percent) showed year-over-year depreciation in April. Distressed sales include short sales and real estate-owned (REO) transactions.

The CoreLogic HPI Forecast indicates that home prices, including distressed sales, are projected to increase by 1.1 percent month over month from April 2015 to May 2015 and by 5.3 percent** on a year-over-year basis from April 2015 to April 2016. Excluding distressed sales, home prices are projected to increase by 0.9 percent month over month from April 2015 to May 2015 and by 4.9 percent** year over year from April 2015 to April 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“For the first four months of 2015, home sales were up 9 percent compared to the same period a year ago,” said Frank Nothaft, chief economist for CoreLogic. “One byproduct of the increased sales activity is rising house prices, and, as a result, month-over-month home prices are up almost 3 percent for April 2015 and up more than 6 percent from a year ago.”

“Old fashion supply and demand, fueled by historically low mortgage rates and improving consumer finances and confidence, continue to push home prices up,” said Anand Nallathambi, president and CEO of CoreLogic. “We expect continued price appreciation throughout 2015 and into next year. Over the longer term, household formation, up by more than one million over the past year alone, will drive down vacancy rates and create tighter housing markets in many metropolitan areas. This should provide the necessary underpinning for rising prices for the foreseeable future.”

Highlights as of April 2015:

Including distressed sales, the five states with the highest home price appreciation were: South Carolina (+11.4 percent), Colorado (+9.7 percent), Washington (+9.1 percent), Florida (+9 percent) and Texas (+8.3 percent).

Excluding distressed sales, the five states with the highest home price appreciation were: South Carolina (+10 percent), Florida (+9.5 percent), Colorado (+9.3 percent), Washington (+8.7 percent) and Texas (+8.2 percent).

Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to April 2015) was -9 percent. Excluding distressed transactions, the peak-to-current change for the same period was -5.1 percent.

Including distressed sales, four states experienced year-over-year home price depreciation: Massachusetts (-1.7 percent), Louisiana (-1.5 percent), Connecticut (-1.1 percent) and Maryland (-0.7 percent).

The five states with the largest peak-to-current declines, including distressed transactions, were: Nevada (-33.9 percent), Florida (-29.3 percent), Rhode Island (-28.2 percent), Arizona (-26.2 percent) and Connecticut (-24.8 percent).

Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 92 showed year-over-year increases. The eight CBSAs that showed year-over-year declines were: Baltimore-Columbia-Towson, MD; Camden, NJ; Hartford-West Hartford-East Hartford, CT; New Orleans-Metairie, LA; Worcester, MA-CT; Albany-Schenectady-Troy, NY; New Haven-Milford, CT and Wilmington, DE-MD-NJ.

East West Partners and Northridge Capital Break Ground on 247-Unit Multifamily Community

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CHAPEL HILL, NC – Local real estate development company, East West Partners, and Washington, DC-based real estate private equity firm Northridge Capital, LLC have closed debt financing and broken ground on the Liberty Warehouse project in the Central Park neighborhood of downtown Durham, North Carolina.  Upon completion in the summer of 2016, Liberty Warehouse will include 247 Class A multi-family apartments and 24,000 square feet of retail space on Foster Street across from the Durham Farmer’s Market.    

Equity for the project is being provided by Northridge Capital, LLC.  Northridge Capital is a private, independent commercial real estate asset management firm located in Washington, DC and focused on providing investment and advisory services to offshore high-net-worth family groups and institutions.  David Jackson, President of Northridge Capital, said “We are thrilled to be investing in a unique redevelopment opportunity in a dynamic market like downtown Durham with a prominent local developer.  This innovative project presents exactly the type of opportunity our investors are seeking.” 

Debt financing for the project is being provided by Fifth Third Bank.  “As our bank continues to grow in the Carolinas, Fifth Third is pleased to be investing in the continued growth and revitalization of downtown Durham,” said Mike Renier, Vice President of Commercial Real Estate at Fifth Third.  “We look forward to our relationship with Northridge Capital and East West Partners and hope to make more loans for quality projects in the Triangle.”  Clark Jenkins, Vice President with Capital Advisors, Inc. arranged both the debt and equity financing.

The old Liberty Warehouse was demolished in the fall, with the historic brick facades along Rigsbee Avenue and Central Park being saved and incorporated into the new building.  Many of the interior elements of the building were also preserved and will be re-purposed in the new building. 

Clancy & Theys Construction Company, based in Raleigh, is the general contractor constructing the building.  Scott Cutler, Vice President of Clancy & Theys said, “Liberty Warehouse will be Durham’s next iconic building and an anchor of the Central Park neighborhood.  We are very happy to be part of the great team that East West Partners assembled for the project.”

Site work began in February and the project is expected to be completed in August 2016.  “We are excited to be working on a project with the history of Liberty Warehouse,” said Bryson Powell, Development Director of East West Partners.  Having the opportunity to incorporate historic elements of an old building into a modern project with all the amenities demanded by today’s discerning apartment dwellers presents challenges and opportunities that our company is uniquely qualified to address.”

Kennedy Wilson Completes Japanese Multifamily Portfolio Sale for Approximately $472 Million

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BEVERLY HILLS, CA – Global real estate investment and services firm Kennedy Wilson announced that the company and its equity partners completed the sale of their equity interests in 49 multifamily buildings located throughout Japan, with the closing of one building in the transaction scheduled to occur in the second or third quarter of 2015.

The transaction values the 50 building, 2,410 unit portfolio at 58.5 billion JPY (approximately $472 million), including the assumption of mortgage debt and net assets. The net proceeds to Kennedy Wilson total approximately $100 million, which equates to an approximate $64 million cash profit over the life of the investment. Kennedy Wilson expects to invest alongside the purchaser to retain 5% of the equity interests in the portfolio. In addition, Kennedy Wilson will continue to manage the portfolio for a minimum term of 3 years.

“Our management team in Japan has grown the net operating income of the portfolio, coinciding with a strengthening Japanese real estate market,” said Matt Windisch, Executive Vice President of Kennedy Wilson. “The proceeds from this sale will be used to invest in both new opportunities and value-add initiatives within our existing portfolio in the US and Europe. Over the last two decades, Kennedy Wilson has had a successful track record in Japan and we are very pleased that our team will remain in place to continue to evaluate future opportunities.”

Kennedy Wilson originally entered the Japanese real estate market in 1995 as Kennedy Wilson Japan. Kennedy Wilson Japan completed its initial public offering in 2002 and is now listed on the Tokyo Stock Exchange as Kenedix. Kennedy Wilson sold its interests in Kenedix in 2003 and began assembling this Portfolio in 2006.

Balfour Beatty Communities Acquires 398-Unit Apartment Community in Northwest Dallas

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COPPELL, TX – Balfour Beatty Communities, a leading provider of property management, development and related real estate services for the multifamily, military, and student housing markets, announced it has acquired Townlake of Coppell, a 398-unit garden style apartment community situated on 17.5 acres in Coppell, Texas.

Balfour Beatty Communities completed the purchase through a joint venture with JLL Income Property Trust, a non-listed, daily valued perpetual life real estate investment trust (REIT). Balfour Beatty Communities will self-perform all property management services through its Multifamily Division.

Strategically located in northwest suburban Dallas, Townlake of Coppell consists of one, two and three bedroom units that range from 675 to 1100 square feet. The units boast open floor plans, gourmet kitchens, washer/dryer connections, fireplaces, sunrooms, and balconies/patios. Community amenities include two resort-style pools, a 24-hour fitness center, clubhouse, expansive playground and basketball court.

“With our established presence in the Dallas/Fort Worth area that includes a regional operations office, Townlake of Coppell is a perfect complement to our growing multifamily portfolio,” said Chris Williams, president of Balfour Beatty Communities. “The property boasts a strong occupancy history, desirable location in the award-winning Coppell Independent School District and proximity to the DFW airport and downtown Dallas – factors that will continue to position Townlake as a strong performer.”

Olympus Property Acquires 312-Unit Tacara at Westover Hills in San Antonio, Texas

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SAN ANTONIO, TX – Olympus Property announced the acquisition of Tacara at Westover Hills, a 312-unit “Class A” living community in the heart of one of the fastest-growing submarkets in San Antonio. This acquisition is occurring only days after the acquisition of Renaissance Village at Shadow Lake in Houston, Texas.

Built in 2014, Tacara at Westover Hills is situated on almost 14 acres and offers residents top of the market construction, upscale interior finishes, and an ideal location in the Westover Hills submarket. The amenities include a resort-style pool with sun deck, a state-of-the-art fitness center, a 24-hour professional business center, modern architectural design with masonry exteriors, an outdoor kitchen, an outdoor fireplace with TVs, covered parking, and detached garages.

Tacara at Westover Hills is situated in a highly visible location off State Highway 151 near Loop 410. This premier location in Westover Hills offers residents an award-winning, master-planned development, covering more than 1,300 acres and home to more than 40,000 employees. Employers such as JPMorgan Chase, Microsoft, QVC, Maxim, Northwest Vista College, Sea World, Petco, and the Texas Cryptology Center are only minutes away. In addition, the property offers convenient access to big box retailers such Target, Gander Mountain, Walmart, and Lowes. These employment opportunities coupled with access to retail centers and the highly regarded Northside Independent School District make this location one of the more desirable places to live in San Antonio.

“We are thrilled to purchase our first asset in San Antonio and grateful to be entering the market with such a beautiful property,” stated Olympus co-founder, Chandler Wonderly.

The units at Tacara at Westover Hills are equipped with spacious floor plans including 192 one bedroom one bath units, 108 two bedroom two bath units, and 12 three bedroom two bath units. Units are equipped with lavish features including granite countertops, stainless steel appliances, garden-style soaking tubs, keyless entry, and oversized patios. Vaulted ceilings, carports, and detached garages are also available upon request. Overall, Tacara at Westover Hills features an impressive package of upscale interior amenities in one of the most desirable locations of San Antonio.

Tacara is the fifth property to be added to Olympus Property’s fourth fund, WW Olympus Property IV, LLC. The investment structure will provide investors an opportunity to diversify among six to seven “Class A” multi-family assets in strong markets throughout the United States. The opportunity is available immediately for new investors and offers an attractive return with an experienced owner/operator.

Decron Commemorates Opening of Playa del Oro’s 260-Unit Second Phase in Silicon Beach

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LOS ANGELES, CA – The Silicon Beach area is quickly becoming known as the Silicon Valley of the south, and Decron’s newest premier, luxury apartment community, Playa del Oro, is in the thick of it.

Decron will commemorate the opening of the second phase of Playa del Oro with a Summer “Kick-off” open-house party on May 30th, offering sneak previews and tours. The 260-unit phase, which will officially open later in June, will enhance the existing 405 apartment homes.

Playa del Oro’s open-house party (10 a.m. to 6 p.m.) will feature food trucks, live entertainment and tours of new apartments. In addition, AMP Radio will broadcast live on site and join Decron Properties in giving away a pair of Apple Watches that will highlight a slew of raffle prizes.

“Playa del Oro represents luxury living in a neighborhood that is on the cutting edge of technology,” said David Nagel, chief executive officer of Decron Properties. “With a host of technology giants opening and expanding offices in Silicon Beach, Playa del Oro’s first phase enjoyed a tremendous amount of success; we can’t wait to unveil this second phase.”

Decron will start moving residents into Playa del Oro, which has been dubbed the “Gateway to Silicon Beach” because of its proximity to the region, in June.  “Silicon Beach” is home to regional offices for Facebook, YouTube and Microsoft, with Google and Yahoo on the way.

As part of the second phase, Decron added a number of new lifestyle-enhancing amenities to Playa del Oro, including a sky lounge, Fitness on Demand, Video Game Lounge, and Resident Café. The lush courtyard features outdoor living areas, social BBQ and eating areas, flowing fountains, all aligned with meticulous landscaping.

Playa del Oro’s second phase, located at 7270 W. Manchester Ave., is part of a recent growth boom in one of the few undeveloped portions of Los Angeles. Residents will enjoy easy access to restaurants, coffee shops and retail stores at The Shops at Playa del Oro. Included among the 10 retail outlets are LA Fitness, Coffee Bean, Beach Pizza, San Sai Grill, Yogolicious and Bowlmor.

The controlled-access community includes gated garage parking, guest parking, an electric car-charging station, free WiFi in common areas and a dog park. Wide-ranging views of the ocean, mountains and the city surround the area.  In addition, Loyola Marymount University is located within a mile of the property, OTIS College of Art and Design is located adjacent to the community, and Los Angeles International Airport (LAX) is a mere three miles to the south.

“This is a fantastic location for our residents to live the lifestyles they want to live,” Nagel said. “We believe this addition will create significant value for our portfolio, for our partners and for the neighborhood.”

Ranging from studio to three-bedroom apartments and Loft homes, Playa del Oro’s resort-style living spaces feature plank flooring in the living room and foyer, quartz countertops, wood cabinetry, and stainless steel appliances. Each apartment home is equipped with a private balcony or oversized patio.

Bascom Group Acquires 183-Unit Senior Apartment Community in Las Vegas, Nevada

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LAS VEGAS, NV – The Bascom Group, LLC acquired the 183-unit Boulder Palms Senior Apartments located at 4350 Boulder Highway, Las Vegas, Nevada for $10,350,000. Debt financing was provided by One West Bank and arranged by Brian Eisendrath and Brandon Smith of CBRE Capital Markets. Doug Schuster and Vittal Ram of Newmark Grubb Knight Frank represented the seller on the transaction.

Boulder Palms is a two-story senior apartment building housing 183 units. Completed in 1997, the property covers over four acres and showcases convenient on-site amenities such as a pool with spa, fitness center, community game room, laundry facilities and central courtyard. All the units at Boulder Palms have efficient floor plans, high-speed Internet access, carpeted and wood-like vinyl flooring, ample cabinet and counter space.

Scott McClave, Senior Principal for Bascom, comments, “We are on the front end of over seventy-six million Baby Boomers moving into retirement. Las Vegas is a natural destination for them with the low cost of living and a large spectrum of choices for entertainment, leisure, and health care. The purchase of Boulder Palms Senior Apartments puts us in a strong position to serve this growth market.” Lee Nguyen, Senior Vice President for Bascom states, “Boulder Palms marks our eighth acquisition in the Las Vegas Valley in the past twenty months. We are excited to continue our expansion here as the market continues to recover.”

Boulder Palms is also located in proximity to numerous entertainment, dining and medical resources, including Boulder Station, Sunrise Hospital and Medical Center, Desert Springs Hospital, and Union Village, a $1.2 billion integrated healthcare village development located just south of the property along Boulder Highway.

The Preiss Company Expands Texas Footprint with Acquisition at Texas State University

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SAN MARCOS, TX – Officials of The Preiss Company, the nation’s third largest, privately held student housing owner-operator, today announced that it expanded its footprint in Texas with the acquisition of the 486-bed Outpost San Marcos student housing complex serving Texas State University. The educational institution, with more than 36,000 students, is the largest in the Texas State University System.

The property is the second purchased this year by joint ventures comprised of Preiss, Baltimore-based Criterion Holdings, LLC as the general partner, and a separate private investment group. The Preiss Company will implement a plan to upgrade the property, as well as operate the facilities.

“This is our first property at Texas State, although we have been in Texas for eight years, and this acquisition will bring us to nearly 4,000 beds in the state,” said Donna Preiss, founder and CEO of The Preiss Company. “We are pleased to have purchased this stabilized asset serving a university that has exhibited growing enrollment. Texas State grew 3.4% last year and the Outpost continues to perform higher than expected in terms of pre-lease velocity and rental rate growth.”

The Outpost San Marcos is located at 1647 Post Road within walking distance to the football stadium and approximately seven minutes from the Texas State campus via quarter-hourly public transportation provided by the University. Situated on 11.2 acres, the complex consists of six, three-story buildings and a stand-alone clubhouse.

After speaking with students and parents, Preiss is planning to upgrade the facility. Efforts will concentrate on significantly enhancing the clubhouse, including adding a large study/computer room. Plans also call for the installation of new fitness equipment with Fitness on Demand, new furnishings, new pool furniture and a major upgrade to Internet connectivity and speed.

“Less than 15 percent of students live in University-owned housing, creating high demand for quality housing,” Preiss said. “The Outpost is well-located with great transportation serving a large and growing university population.

“We continue to target quality assets where we see upside by adding value through strategic investment, strong marketing and focused, hands-on management,” she added. “We acquired this property less than two months ago and already are ranked second out of 25 purpose-built assets serving Texas State. The property is ahead on budgeted prelease velocity and rentals. This is a great addition to our expanding portfolio.”