Triton transforms The Pavilion into condos
North Bethesda – Triton Pavilion, LLC, has acquired The Pavilion Apartments from Home Properties for $117.3 million. The 432-unit property will be converted into condominiums and renamed Monterey.
The buyer plans to spend $34 million for high-end improvements to the units and the addition of 4,500 square feet of commercial retail space.
Condo prices will range from $321,900 to $831,000 for the one- to three-bedroom units.
Lofts planned for former warehouse
St. Louis, Mo. – Clayco is rehabbing the Ely Walker Dry Goods building here into lofts for $35 million. Opening in summer 2007, it will be known as Ely Walker Lofts.
Originally built in 1907, the 372,300-square-foot warehouse will be transformed into 173 loft condominiums with a five-story atrium, as well as 50,000 square feet of retail and a new restaurant at street level. The project is Clayco’s third for Orchard Development Group.
Unit prices will range from $130,000 to $300,000. The building will also include a fitness center, a rooftop deck and a community room. The architect is Forum Studio, Inc.
Integrated starts construction on The Enclave
Fort Worth, Texas – Integrated Real Estate Group and Integrated Construction and Development broke ground on The Enclave on Golden Triangle, a 273-unit apartment complex here. Red Capital Advisors, Inc., the merchant banking arm of Red Capital Group, provided a $1.7 million mezzanine loan with 20-year amortization.
Completion is expected in the third quarter of 2006. Amenities include a clubhouse, fitness and business centers, nine-hole putting green, billiards, basketball court and outdoor entertainment pavilion.
Certified Property sells Windemere & Villa Oaks
Hickory, N.C. – Certified Property Associates sold its 230-unit Windemere & Villa Oaks Apartments to an undisclosed buyer for $6.5 million. The transaction was negotiated through Sperry Van Ness.
The community was built at different times from 1977 to 1989 and was 68% occupied at press time. Its one- and two-bedroom units rent from $368 to $510. The property has two swimming pools and a tennis court, and is close to downtown and Lenoir Rhyne College.
Silver-McCann buys two in Raleigh
Raleigh, N.C. – Silver-McCann Apartment Group, L.P., bought two apartment communities here, Laurel Springs and Laurel Oaks Apartments. The 122- and 164-unit garden-style apartments will be managed by RAM Partners, LLC.
The acquisitions were funded in part by a 10-year Fannie Mae fixed-rate loan at 5.325% originated by Deutsche Bank Berkshire Mortgage, Inc.
Silver-McCann is a joint venture formed in April 2005 between McCann Realty Partners, LLC, an apartment investment company; and Silver Capital, LLC, a real estate development and investment firm. The principals expect to invest more than $100 million in the Mid-Atlantic and the Southeast over the initial two years of the partnership.
“Raleigh seems to be experiencing an economic rebound that we feel is worth investing in ourselves,” said Silver Capital CEO Larry Silver.
DSF breaks ground on condos
Alexandria, Va. – DSF Group borrowed a $51.8 million construction loan from KeyBank Real Estate Capital for Halstead Tower here.
The property is a 16-story, 173-unit high-rise condominium building set to be completed in late 2006. All of the units have already been sold. Amenities at the development include a recreation room on the 15th floor with panoramic views of the Capitol skyline, virtual golf, a wine bar, a wall of televisions and a swimming pool.
Koreatown apartments sell for $40 million
Los Angeles – StarPoint Properties, LLC, has purchased two multifamily buildings in Koreatown totaling 302 units for $40 million. The seller was Kor Group, and the broker was Sperry Van Ness.
“As part of our acquisition rehab program, we will revitalize the properties by renovating all units in order to increase rents by 15%,” said Paul Daneshrad, CEO and president. “Our goal is to sell the properties in 12 to 24 months, thus delivering exceptional returns to our investors.”
StarPoint plans to spend more than $2 million to upgrade the properties, which are known as La Paz and Meadow Creek.
UDRT buys Bay Terrace, Lake Pines
San Mateo, Calif. – United Dominion Realty Trust, Inc. (UDRT), acquired three communities, including two here, for $96.8 million in the fourth quarter of 2005.
The properties have the following number of units, sale prices and cap rates: Bay Terrace in San Mateo, 127 units, $23.3 million, 5.3%; Lake Pines in San Mateo, 288 units, $45 million, 5.2%; and The Kennedy in Seattle, 125 units, $28.5 million, 5%.
UDRT also sold the 350-unit La Privada in Phoenix for $79.6 million at a gain of $55.2 million. In addition, the company sold the 504-unit Villa Toscana in Houston for $39.2 million, which it developed through a joint venture and in which it had a 20% interest.
Weidner acquires The Overlook at Magnolia
Seattle – The Overlook at Magnolia, the largest property in the Magnolia submarket, was bought by Weidner Investment Services with a $29.4 million loan provided by Red Mortgage Capital, Inc.
The Fannie Mae loan carries a 10-year term and 30-year amortization. Red Capital Advisors, Inc., also provided a 10-year, $8.8 million co-terminus mezzanine loan. The financing structure, intended to maximize acquisition leverage in a low cap-rate environment, provided combined property acquisition debt of 80% of the purchase price, according to Red.
Built in 1975, The Overlook has 335 one- to three-bedroom units and a four-bedroom penthouse. Amenities include a fitness center, community room, and jacuzzi and sauna.