Commercial Real Estate Headlines for August 13, 2019
Check out the latest in deals and development in commercial real estate for Aug 13, 2019:
- Hunt Real Estate Capital Partners with Freddie Mac to Finance the Acquisition and Rehabilitation of a 1,321-unit Affordable Housing Portfolio in NYC: Hunt Real Estate Capital has provided $192.2 Million USD in financing to facilitate the acquisition and rehabilitation of a multifamily portfolio located in New York City. The loans are 30-month and 36-month Unfunded Forward Commitments for permanent, fixed-rate financing in the form of Tax-Exempt Loans (TELs) to facilitate payoff of the construction financing for the New York City Housing Authority (NYCHA) Pennrose Bundle. The portfolio was bifurcated into two transactions – one LIHTC and the other non-LIHTC. The permanent mortgage loans are in the amounts of $118,500,000 (LIHTC) and $73,700,000 (Non-LIHTC) with 30-year terms amortizing over 40 years. The properties are all located in Brooklyn’s Bushwick neighborhood. The portfolio contains 1,321 units of existing NYCHA public housing that will undergo conversion through the RAD and Section 18 Disposition programs of the Department of Housing and Urban Development (HUD). In total, the Pennrose Bundle consists of 60 scattered-site multifamily properties in close proximity, as well as one community center building. The garden-style, mid-rise, and high-rise buildings range from three to 14 stories tall, and were built from 1980 to 1987. The unit mix includes studio, one-bedroom, two-bedroom, three-bedroom, and four-bedroom layouts.
- Multifamily Shows Strongest Growth Amongst CRE Sectors In Q1 2019: Ten-X Commercial, the nation’s leading transaction platform powering 90% of all online commercial real estate sales, today released its latest Multifamily Market Outlook, which shows strong sector growth and outlines the top five ‘Buy’ and ‘Sell’ markets for multifamily properties throughout the country. The research also uncovered that despite the number of millennials failing to “leave the nest,” the multifamily sector showed the most robust growth amongst all CRE sectors – multifamily, office, industrial, retail and hotel – in the first quarter of 2019. Multifamily sector growth is largely attributed to a strong rental market. The first quarter of 2019 was the first time in five years there was a decline in the number of new rental properties coming to market. This decrease helped the multifamily market vacancy rate hold steady in the upper-4% range, the level it’s been since Q3 2018. Yet these figures are relative as the actual number of vacant apartment units remains at its highest since mid-2012.
- Drawbridge Purchases $100 Million USD Office Property in Orange County: San Francisco-based Drawbridge Realty purchased Pacific Center, a 390,600-square-foot, two-building corporate office campus in Santa Ana, CA for $97.5 million. The seller was a joint venture of Los Angeles-based PCCP, LLC and Costa Mesa-based Brookhollow. Drawbridge’s Chris Elmendorf says, “Pacific Center was recently renovated in 2017 and now has strong anchor tenants in place. Combining the campus with our neighboring investment at 1700 East Saint Andrew Place, Drawbridge now owns over 37 acres of contiguous land and improvements strategically located in an opportunity zone.” Located at 1600-1610 East Saint Andrew Pl., the property is centrally located within the Greater Airport Area office submarket near John Wayne Airport. The project provides well-staggered lease expirations from its four current tenants, which are leaders in their respective industries. The acquisition boosts Drawbridge’s greater Orange County portfolio to more than one million square feet. NKF’s Kevin Shannon, Paul Jones, Brunson Howard, Blake Bokosky, and Brandon White represented the seller.
- Paper Cup Manufacturer to Establish Manufacturing Operation in Lehigh Valley: Continental Cup Company, a start-up manufacturer of high-end graphic paper cups for the theater industry, quick service restaurants, convenience stores and food service distribution companies., will establish its first manufacturing operation in the City of Bethlehem in Northampton County, the Lehigh Valley, Pennsylvania. CCC will lease a 40,000 square-foot building and create 71 jobs. “Continental Cup’s move into the Lehigh Valley continues the extraordinary growth of manufacturing that is happening here,” said the Lehigh Valley Economic Development Council’s President & CEO Don Cunningham in a press release.