CAPRE’s Commercial Real Estate Headlines for December 4, 2019
Check out the latest deals and developments in commercial real estate for December 4, 2019:
- Olympus Property Acquires Carrington Oaks Outside of Austin, TX: Olympus Property announces the successful acquisition of Carrington Oaks. This Class-A garden style community built in 2015 is located in the city of Buda, a suburb of Austin, TX. Carrington Oaks is strategically located fifteen miles south of downtown Austin. The property is in close proximity to two major universities including University of Texas at Austin with 51,000 students and Texas State University in San Marcos with 38,000 students. The city of Buda, which the Texas State Legislature named “The Outdoor Capital of Texas,” hosts an affluent demographic base with a median age of 34 and an average annual household income of over $90,000 USD. The city of Buda is in Hays County which has experienced tremendous growth over the past decade. Hays County has grown approximately 42% from 2010 through 2018 making it the fastest growing county in Texas and the fourth fastest growing county in the country.
- Trinity Place Holdings and TF Cornerstone to Acquire Luxury Brooklyn Apartment Building: A joint venture between TF Cornerstone and Trinity has signed a contract to acquire 250 North 10th Street, a market-leading 234-unit apartment building in Williamsburg, Brooklyn. The purchase, which is subject to customary closing conditions, is expected to close within the next 60 days and to be financed by a fixed-rate loan. Located in North Williamsburg, Brooklyn, the Property is just four blocks from the Bedford Avenue L subway station and a short walk from the Metropolitan Avenue G subway station as well as the J, M, and Z trains at Marcy Avenue. It is located one block from The Berkley, a luxury multifamily property that TPHS purchased in 2016 in a joint venture with Pacolet Milliken. 250 North 10th Street was built by LCOR and CalSTRS in 2014 and has been institutionally owned and managed since stabilization in 2015. The Property is currently 96% leased.
- Prime Asset Sales Rise on Strong U.S. Office Property Demand, Yardi Matrix Reports: Prices for prime U.S. office assets have risen sharply this year. Office property transactions, spurred since summer by lower interest rates, totaled $74 billion through October, according to a new report from Yardi Matrix. Per-square-foot prices for central business district buildings are 24.6% higher than they were last year while sales of buildings with A+ and A ratings went up 12.1%. “This rate of increase in CBD prices hasn’t been seen since the years before the Great Recession,” the report says. “The rapid increase in pricing is a trend we will closely monitor.” Demand for office space remains strong, with employment in office-using sectors increasing by 1.7% over the past 12 months. Average national listing rates were up 2% in October from the same period last year while the vacancy rate increased 40 basis points from the previous month, reaching 13.7%.
- Weller Residential Acquires Certain Assets of Triumph Housing Management, Forms Weller Workforce Housing: Weller Residential, a leading multifamily real estate investment company, announced today it is acquiring certain assets of Triumph Housing Management and creating Weller Workforce Housing. Weller Workforce will focus on the affordable housing segment of the real estate market, and work alongside other entities owned by Weller Residential, namely Weller Management, which services market rate and conventional properties, and Weller Student, which focuses on the student housing market. Weller Workforce will continue to be based in Cumming, Georgia, and managed under the direction of David Gates, who will report to George S. Quay and Joe Emerson, Partners at Weller Residential. Weller Workforce will now manage properties in Georgia, Florida, Oklahoma, Tennessee, Illinois, Connecticut, Missouri, South Carolina, North Carolina, Mississippi and Louisiana, expanding Weller’s footprint outside the Southeast region. Weller Workforce in total will manage 52 properties and approximately 5,500 units. Weller Workforce will employ approximately 200 associates.
- Hunt Real Estate Capital Provides $11.85 Million USD Fannie Mae DUS Loan to Refinance Multifamily Property in Albany, OR: Hunt Real Estate Capital announced today it provided a Fannie Mae DUS conventional multifamily loan in the amount of $11.85 million to refinance a multifamily property located in Albany, OR. Albany Meadows Apartments is a 127-unit, garden-style apartment community that is comprised of 39 one-story apartment buildings. The property was developed in 1974 with 121,352 square feet of rentable space and is situated on a 10.5-acre parcel of land. Occupancy currently stands at 96%. The loan features a 12-year term with four years of interest only followed by a 30-year amortization schedule. Yield maintenance will apply during the first 138 months. The borrower is KRBO Oregon Properties LLC, backed by key principal Paul A. Kerley. Mr. Kerley is a repeat Hunt Real Estate Capital client, with past closings in both conventional and small loan programs.
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