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Watercrest Senior Living Group Celebrates Groundbreaking of Senior Living Community

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VERO BEACH, FL – Watercrest Senior Living Group and development partner, Starling Senior Living celebrated the official groundbreaking of Watercrest of San Jose Assisted Living and Memory Care Community in Jacksonville, Florida. The 79,000 square foot, 90 unit senior living community, designed by PQH Group, will offer luxury residences, premium amenities, and tranquil settings along the picturesque banks of Goodby’s Creek.

Watercrest principals, Marc Vorkapich, CEO and Joan Williams, CFO, with Ryland Lucie and Bill Long, principals of Starling Senior Living, collaborated on the project development, creating a resort-like community with an engaging lifestyle and services tailored to today’s senior. Watercrest of San Jose is a signature Watercrest product, offering 66 assisted living and 24 memory care apartments with upscale accommodations, spa amenities, outstanding dining, concierge services, grand balconies and Florida style outdoor living spaces.

“Expanding the Watercrest brand into the Jacksonville community, with its explosive growth and demand, provides abundant opportunities to develop community relationships and instill our common unity initiatives for serving seniors,” says Marc Vorkapich, Principal and CEO of Watercrest Senior Living Group. “We are dedicated to providing support to seniors and their families, while providing resort-style living and exceptional care in a desirable destination.”

Watercrest of San Jose will feature a comfortable and classy design, including spacious accommodations, and refinements such as signature dining, a wine bistro, salon and spa, as well as views of the serene and picturesque island preserve of Goodby’s Creek. The community is perfectly situated in an idyllic setting, offering a small town atmosphere with close proximity to Jacksonville’s luxury shops and restaurants, cultural attractions and sporting events.

Watercrest is committed to enriching the lives of seniors by providing wellness programs, nutritious and savory dining, and personalized care. Additionally, Watercrest provides a comprehensive memory care program specifically designed to engage the senses, expand the mind and enhance the emotions of residents. All Watercrest memory care associates are Certified Dementia Specialists and programming focuses on innovative lifestyle approaches.

Church Street Partners Sells 178-Unit Multifamily Property in Atlanta for $15.25 Million

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ATLANTA, GA – Transwestern’s Southeast Investment Services Group announced it brokered the disposition of Legacy Century Center for $15.25 million, or $85,674 per unit. The 178-unit, garden-style community is located at 100 Windmont Drive in Brookhaven, Georgia, and totals 149,960 square feet. Transwestern Managing Directors Mike McGaughy and Jon Kleinberg represented the seller, Church Street Partners. The property was acquired by Atlantic Pacific Cos.  

“The sale of Legacy Century Center was completed at an opportune time,” said McGaughy. “The property’s recent annexation into Brookhaven and the completion of the Clairmont Road improvement project position it for strong rent growth with the continuation of interior upgrades planned by Atlantic Pacific.”

Built in 1990, the institutional-quality, Class A property offers a mix of contemporarily designed one- and two-bedroom units with open kitchens and walk-in closets, along with wood-burning fireplaces and full-size washers and dryers in select floorplans. Upgraded units feature stainless steel kitchen appliances, brushed nickel hardware and faux hardwood flooring. Situated on 6.79 acres, Legacy Century Center offers a competitive community amenities package that includes a pool with grilling area, clubhouse, fitness center, business center and cyber cafe.

The property’s infill location in the city of Brookhaven provides exceptional access to Interstates 85 and 285, as well as proximity to major thoroughfare Peachtree Road, which directly connects to North Druid Hills Road and Ashford Dunwoody. Legacy Century Center is situated minutes from Town Brookhaven, Lenox Square, Phipps Plaza and Oglethorpe University.

The transaction represents the third time McGaughy and Kleinberg have successfully brokered the sale of this property, formerly known as Windmont.

Mortgage Rates Slide Back Slightly According to Bankrate.com Weekly National Survey

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NEW YORK, NY – Mortgage rates pulled back slightly, with the benchmark 30-year fixed mortgage rate settling at 4.00 percent, according to Bankrate.com’s weekly national survey. The 30-year fixed mortgage has an average of 0.23 discount and origination points.

The average 15-year fixed mortgage inched lower to 3.22 percent, while the larger jumbo 30-year fixed mortgage fell back to 4.07 percent. Adjustable rate mortgages were mostly lower, with the 5-year ARM stepping back to 3.17 percent and the 7-year ARM retreating to 3.39 percent.

Mortgage rates broke a 4-week streak of increases, with rates settling after a nearly quarter-percentage point rise since late April. Ironically, a more upbeat tone to recent economic data helped the cause. The better tone to economic data makes it more likely the Federal Reserve will indeed raise short-term interest rates at some point in 2014. Any increase from the Fed would help keep inflation at bay, which is music to the ears of the investors that buy long-term government and mortgage-backed bonds. Mortgage rates are closely related to yields on long-term government debt. So looking ahead to an eventual increase in short-term interest rates, it is no guarantee we’ll see the same movement on longer-term fixed mortgage rates.

Eighteen months ago the average 30-year fixed mortgage rate was 4.44 percent. At that time, a $200,000 loan would have carried a monthly payment of $1,006.25. With the average rate now at 4.00 percent, the monthly payment for the same size loan would be $954.83, a difference of $51 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 4.00% — down from 4.03% last week (avg. points: 0.23)
15-year fixed: 3.22% — down from 3.23% last week (avg. points: 0.15)
5/1 ARM: 3.17% — down from 3.19% last week (avg. points: 0.20)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.

For a full analysis of this week’s move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate’s weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. More than half of the respondents, 58 percent, expect mortgage rates to retreat in the coming week while just 17 percent forecast an increase. The remaining 25 percent predict that mortgage rates will remain more or less unchanged over the coming week.

The 2015 Virginia Housing Market Predictions

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(RECAP: Housing market predictions currently appear quite positive for the Commonwealth of Virginia. The state market currently holds a median home value of $231,000 and is experiencing an uptick of 1.7 percent over the past year according to Zillow. We predict another 1.1 percent increase within this year. On average, most properties for sale spend 118 days on the market in Virginia.)

Balfour Beatty Commences Second Phase of Student Housing Development at University of Iowa

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IOWA CITY, IA – Balfour Beatty Campus Solutions, a leading developer and operator of infrastructure projects for the college and university market, announced today it has reached financial close on a $34.5M student housing development project for the University of Iowa. In this second phase of Public-Private Partnership, the Balfour Beatty team will deliver 252 new units at the University’s main campus in Iowa City. The new development, which will primarily target the University’s more than 9,500 graduate students, is scheduled to break ground in June for delivery in August of 2016.

The new housing will consist of one and two-bedroom layouts configured in three, four-story buildings totaling 250,578 square feet. The residents will enjoy the use of a separate one-story community center totaling 5,400 square feet, provided as part of the Phase 1 development, which houses the property management offices and common spaces for resident use, including a fitness center, laundry facility, multipurpose space and access to the campus shuttle service. The new housing will replace 180 units of the Hawkeye Court complex built in the 1960’s.

The project is being designed by Solomon Cordwell Buenz and Associates and will be built by Balfour Beatty Construction. Balfour Beatty Communities will operate and maintain the completed property and continue the successful governance committee with Iowa which ensures alignment of operational policies. Iowa will assist in marketing the expanded project and the provision of security services.

Balfour Beatty has secured a 41-year ground lease with the University to develop the project and has arranged financing through a loan issued by Wells Fargo Bank as well as Balfour Beatty equity.

“The first phase of housing delivered by the Balfour Beatty team in 2014 has been extremely well-received by the graduate student population,” said Bob Shepko, president of Balfour Beatty Campus Solutions. “We are very pleased to continue this successful relationship with the University of Iowa and move forward with this second phase of housing development that will continue to greatly enhance their on-campus living experience.”

Olympus Property Acquires 624-Unit Renaissance Village at Shadow Lake in Houston, Texas

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HOUSTON, TX – Olympus Property announced the acquisition of Renaissance Village at Shadow Lake, a 624-unit luxury “Class A” apartment community located in a high growth submarket of Houston, Texas. 

Renaissance Village offers residents a premier location in the fastest job-generating region of the Houston metropolitan area and is in close proximity to Phillips 66’s new headquarters.  Situated in the prime Westchase District and a ten-minute drive to the Energy Corridor, this submarket collectively features more employment opportunities than Downtown Houston.  The submarket currently employs nearly 200,000 individuals with 26,000 more jobs projected in 2015. 

Renaissance Village provides its residents with a unique combination of urban proximity and spacious resort style living.  Built in two phases in 1998 and 1999, the asset spans an impressive 28 acres.  Each phase is comprised of high-end amenities including a picturesque lake, an expansive clubhouse, a stunning swimming pool with sundeck, a state-of-the-art fitness center, and an outdoor stone fireplace.   

“This will be the third addition to our portfolio in the Westchase submarket where we also own Mandalay at Shadow Lake directly across the street.  We believe in the growth story of Houston and our home state of Texas,” stated Olympus co-founder, Chandler Wonderly.

Olympus is planning a $2.5 million renovation project to transform the property and provide residents with an improved living experience.  The renovation plan will include upgrades to the interiors of the units, major improvements to the clubhouse, new fitness center equipment, and enhancements to the pool areas.  In addition, Olympus will be changing the name to “The Ranch at Shadow Lake” to better represent the Texas charm the property will offer its residents.  

The spacious floor plans include 372 one bedroom one bath units, 180 two bedroom two bath units, and 72 three bedroom two bath units.  Units feature nine-foot ceilings, two-tone paint, garden tubs, full size washer and dryer connections, and expansive patios.  In addition, residents are given the option of black or stainless steel appliances, wood-style flooring, and detached garages.

Co-founder Anthony Wonderly said, “We continue to expand in our home state of Texas as its phenomenal growth continues to make the market attractive.  We are proud to be acquiring such a beautiful asset given our familiarity with the market.”

Renaissance Village is the fourth property to be added to Olympus Property’s fourth fund, WW Olympus Property IV, LLC.  The investment structure provides investors the 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. 

Home Prices Continue to Rise Across the Country According to S&P/Case-Shiller Home Price Indices

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NEW YORK, NY – S&P Dow Jones Indices released the latest results for the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices. Data released for March 2015 show that home prices continued their rise across the country over the last 12 months.

Year-over-Year
Both the 10-City and 20-City Composites saw year-over-year increases in March. The 10-City Composite gained 4.7% year-over-year, while the 20-City Composite gained 5.0% year-over-year. The S&P/Case-Shiller U.S. National Home Price Index, covering all nine U.S. census divisions, recorded a 4.1% annual gain in March 2015 versus a 4.2% increase in February 2015.

San Francisco and Denver reported the highest year-over-year gains, with price increases of 10.3% and 10.0%, respectively, over the last 12 months. San Francisco’s 10.3% annual gain is its first double digit year-over-year increase since July 2014. Dallas reported a 9.3% year-over-year gain to round out the top three cities. Ten cities reported higher price increases in the year ended March 2015 over the year ended February 2015. Tampa led the way with a reported increase of 1.4%. Ten cities saw their prices decrease annually, led by Cleveland, down 1.2% in the year ending March 2015.

Month-over-Month
The National index increased again in March with a 0.8% increase for the month. Both the 10- and 20-City Composites increased significantly, reporting 0.8% and 0.9% month-over-month increases, respectively. Of the 19 cities reporting increases, San Francisco led all cities with an increase of 3.0%. Seattle followed next with a reported increase of 2.3%. Cleveland reported an increase of 0.4%, its first positive month-over-month increase since August 2014. New York was the only city to report a negative month-over-month change with a -0.1% decrease for March 2015. 

Analysis
“Home prices have enjoyed year-over-year gains for 35 consecutive months,” says David M. Blitzer, Managing Director & Chairman of the Index Committee for S&P Dow Jones Indices. “The pattern of consistent gains is national and seen across all 20 cities covered by the S&P/Case-Shiller Home Price Indices. The longest run of gains is in Detroit at 45 months, the shortest is New York with 27 months. However, the pace has moderated in the last year; from August 2013 to February 2014, the national index gained more than 10% year-over-year, compared to 4.1% in this release.

“Given the long stretch of strong reports, it is no surprise that people are asking if we’re in a new home price bubble. The only way you can be sure of a bubble is looking back after it’s over. The average 12 month rise in inflation adjusted home prices since 1975 is about 1.0% per year compared to the current 4.1% pace, arguing for a bubble. However, the annual rate of increase halved in the last year, as shown in the first chart. Home prices are currently rising more quickly than either per capita personal income (3.1%) or wages (2.2%), narrowing the pool of future home-buyers. All of this suggests that some future moderation in home prices gains is likely.  Moreover, consumer debt levels seem to be manageable.  I would describe this as a rebound in home prices, not bubble and not a reason to be fearful.”

More than 27 years of history for these data series is available, and can be accessed in full by going to www.homeprice.spdji.com. Additional content on the housing market can also be found on S&P Dow Jones Indices’ housing blog: www.housingviews.com.

HUD and Virginia Landlord Settle Allegations of Discrimination Against Tenants With Disabilities

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(RECAP: HUD announced today an agreement with Roanoke, Virginia-based Retirement Unlimited, Inc. resolving allegations of discrimination against residents with disabilities in two of the company’s rental properties. The settlement requires Retirement Unlimited to pay $169,500 in damages. The case came to HUD’s attention when two residents and Housing Opportunities Made Equal (HOME), a non-profit fair housing organization based in Richmond, Virginia, filed complaints.)

Yellen: If nothing changes, expect higher interest rates this year

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(RECAP: As predicted by many economists, the Federal Reserve is indeed considering raising the Federal Funds Rate later this year, Fed Chair Janet Yellen said Friday. The Fed is seeing widespread economic improvement and expects that improvement to continue. And if the economy improves as expected, she believes it will be “appropriate” for the Fed to raise the Federal Funds Rate this year, which in turn, would affect mortgage interest rates. Yellen said if and when the Fed raises rates, she expects the “pace of normalization” to be gradual.)

Apartment Rent Growth Continues on Hot Streak for Third Straight Month According to Recent Survey

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DALLAS, TX – Rent growth in the national apartment market is on a streak not seen for almost four years, according to Axiometrics, the leader in apartment and student housing research and analysis.

Annual effective rent growth for the U.S. apartment market in April 2015 remained steady at 5.0%, the third straight month it has been at or above 5% and the highest April rate since at least 2009, when Axiometrics began reporting the metric monthly.

The February-April 2015 period is the first three-month stretch of 5.0% or higher rent growth since June-August 2011. The annual rate hasn’t varied more than 11 basis points (bps) from 5.0%, up or down, since December 2014.

“Though the rate of rent growth has been steady the past several months, the fact that rents are rising at a 5% annual clip points to an extremely robust apartment market,” said Stephanie McCleskey, Axiometrics Vice President of Research. “The absorption of the large amount of new supply, fueled by increasing job gains, has been a boon for landlords and property owners — not to mention apartment investors.”

Taken to two decimal places, the March 2015 figure of 5.04% was 1 basis point higher than the February 2015 rate of 5.03% and 159 bps above the 3.45% of April 2014. Annual effective rent growth in this latest hot streak did not reach 3% until March 2014, 4% until August 2014, and 5% until December 2014.

National year-to-date (YTD) effective rent growth was 2.7% in April 2015, 6 bps higher than April 2014 — a year that ended as the strongest of the recovery for this metric. It is the highest April YTD effective rent growth rate since the end of the recession.

“If the market sustains this trend of 5% rent growth, 2015 would exceed the surprisingly strong year of 2014 as the highest-performing year of the recovery,” McCleskey said. “However, we still believe that rent growth rates will moderate as the year progresses.”

Occupancy Regains 95% Milestone

The national occupancy rate was 95.2% in April, up 22 bps from March’s 94.9%. Occupancy last reached 95.2% in August 2014, the first time it had attained this level since Axiometrics began reporting occupancy rates monthly in April 2008.

“Axiometrics considers properties and markets full at 95% occupancy,” McCleskey said. “So, in essence, the national apartment market is full and in need of even more new supply, even though a record number of new units have been identified for delivery this year. Of course, individual markets differ, and there are some metro areas in which new supply is exceeding demand, but overall, the outlook is strong for the apartment industry.”

California Dominates Top of Chart

Eight California markets were among the top 17 markets with the highest annual effective rent growth in April within Axiometrics’ top 50 markets, based on total units. Oakland again topped the chart with annual effective rent growth of 14.8%. The East Bay market also had the highest occupancy, 96.7%.

Denver regained second place, with 11.5% annual effective rent growth, as San Jose dropped to third. Portland, OR broke the Bay Area’s long-lasting streak of holding three of the top four places by reaching No. 4 in April. San Francisco dropped to No. 5.

“Rent growth in the Bay Area is starting to moderate, but landlords probably don’t mind too much since they’re still able to raise rents at a rate of 9%-15% per year, depending on the market,” McCleskey said. “However, it may portend a long-term trend toward moderation. We’ll know more in the next month or two.”

Orlando achieved the biggest rise among the top 17 in April, moving from 15th place to 10th, with effective rent growth of 6.7%. Across Florida, West Palm Beach (6.4% annual effective rent growth) sustained the steepest decline, dropping from eighth place in March to 14th.

Meanwhile, the Riverside, CA market entered the chart at No. 11 in April, as Fort Worth dropped off the list from its No. 10 perch in March.

Among the “Selected Other Markets” in Axiometrics’ top 120 markets based on units, the drop in oil prices over the past year affected the Odessa, TX apartment market. The West Texas area ranked No. 2 among the top 120 in March, but was No. 21 in April, as annual effective rent growth plummeted 684 bps from 13.4% in March to 6.6% in April.