Condos Planned in Indy
Indianapolis—Britton Buildings Designs is developing a 16-unit condominium project called Renaissance Flats on a parking lot downtown. The condos will be located just north of the firm’s 60-unit condo development built last year, Renaissance Tower. Units will sell for $159,000 to $200,000 for about 900 square feet of space. Some units offer downtown views, and each unit will include deck space. The development will feature parking below the building. Completion is scheduled for the end of 2007.
Ohio Apartment Towers Change Hands
Euclid, Ohio—K&D Group purchased North Pointe, a 949-unit apartment community in this Cleveland suburb for an undisclosed price. The seller of the two 22-story towers was Associated Estates Realty Corp., a real estate investment trust (REIT) based in Richmond Heights, Ohio.
North Pointe is best known by its former name, Watergate Apartments. The development is 89 percent occupied. K&D Group plans to spend $3 million upgrading the towers, which were built in 1971.
The sale is part of Associated Realty’s strategy to reduce its holdings in the Midwest, said John Shannon, senior vice president of operations for the REIT.
Top Investors Buying Bronx Apartments
New York City—Investor Mark Karasick has purchased two rent-stabilized apartment buildings in the Bronx for $41.3 million. The buildings are Robert Fulton Terrace and Fordham Towers. More real estate investors are snapping up properties in the Bronx, lured by an opportunity for high returns with lower real estate prices than Manhattan.
In March, Taconic Investment Partners purchased Eastchester Heights, a 114-building apartment complex located in northern Bronx, for $133 million. The 1,416 units there are rent-stabilized. Earlier this year, Apollo Real Estate Advisors and nonprofit housing developer Housing and Services, Inc., bought 1,865 units in the area for $100 million. The partnership plans to convert the units into affordable co-ops. Further, SG2 Properties closed on its purchase of 3,611 apartments and 80 stores for $295 million.
Institutional investors backed all the buyers in the recent transactions. “Until about five years ago, institutional investors like hedge funds and real estate investment trusts would never have looked at rent-stabilized buildings in the Bronx,” Eric Anton, executive director of investment services firm Eastern Consolidated, told The Real Deal.
Condos Planned for Upper East Side
New York City—Ascend Group has purchased three vacant tenement buildings for $45.25 million on the city’s Upper East Side. The seller was a partnership between Equity Residential and Lincoln Property Co. The duo paid $15 million for the buildings two years ago.
Ascend is planning a 21-story, 105,000 square-foot condominium tower on the site. The project will have a rooftop pool.
Originally, Lincoln planned to develop the site, paying to relocate more than 30 tenants. Rather than build, it decided to sell the buildings. Eastern Consolidated brokered the deal. The Metropolitan Transit Authority informed Ascend that the planned Second Avenue subway would not interfere with the site.
Wrightwood Capital Provides Financing
Benbrook, Texas—Wrightwood Capital has provided $6.15 million to finance the acquisition of an apartment complex in this Fort Worth suburb for Millennium Realty Investors.
Country Bend Apartments, a 166-unit, 18-building garden-style community, was built in 1980. Amenities include a swimming pool, a tennis court, and laundry facilities.
“The market dynamics of the area’s recovering economy, combined with the need for moderate-income housing, create excellent opportunities for value-added apartment projects,” said David Kadin, senior director of investments for Wrightwood Capital’s Newport Beach, Calif., office.
Wrightwood Capital structured a 36-month loan. Millennium Realty plans to renovate the property and increase rents.
Apartments Near LSU Purchased
Baton Rouge—Dutton Development, Inc., has purchased two apartment complexes near the campus of Louisiana State University. The purchase price was not disclosed, but the properties were listed for a total of $7.3 million. The seller was Justusfour, LLC.
The properties are the 129-unit Fountainhead Apartments and the adjacent 24-unit Cambridge Apartments, both garden-style communities.
Bascom Group Acquires Complex in Atlanta
Sandy Springs, Ga.—The Bascom Group, LLC has acquired the Dunwoody Club apartment complex in this Atlanta submarket for $48 million. The seller was Place Properties.
The 53-acre community, built in the early 1980s, consists of 532 units. Unit sizes range from 900 square feet to 1,725 square feet.
Monthly rents range from $790 to $1,350. The property includes two swimming pools (indoor and outdoor), racquetball courts, tennis courts, a fitness center, a business center, a car care center, and laundry facilities. Bascom plans to renovate the property.
New Condos Preserve Trees in Charlotte
Charlotte, N.C.—Tuscan Development has begun the first phase of construction on a residential development here. Existing trees and vegetation will be part of the project’s design.
The first phase of Tuscan’s $17 million development, Duo at CBC, is 58 duplex condos on 8.5 acres. Originally, the developer envisioned 190 units at the site, but decided on a new design that would save more mature trees on the site. Unit prices will range from about $200,000 to $240,000, and planned condo sizes range from 1,132 square feet to 1,499 square feet. The condos will be ready for occupancy in mid-2008.
Details were not available for the project’s second phase.
Mark Taylor, Inc. Sells Apartments in Phoenix
Chandler, Ariz.—San Palacio, a 352-unit luxury apartment community, has sold in this Phoenix suburb for $58 million. The buyer was San Palacio AZ, LLC, a company formed by San Diego-based The Premiere Residential Communities. The seller was Mark Taylor, Inc., based in Scottsdale, Ariz.
Units include intrusion alarms, marble vanities, and patios or balconies. The community features a 24-hour fitness center, two volleyball courts, and a heated swimming pool. The community was built in 2006 and was 92 percent occupied at the time of sale.
Renovated Koreatown Apartments Bought
Los Angeles—A 45-unit project located in this city’s Koreatown has sold for $4.8 million. The seller was Prana Growth Fund I, L.P. The buyer was not disclosed. Madison Partners arranged the sale.
Kingsley Apartments, a five-story building situated on about 9,100 square feet, originally was built in 1930. Units in the recently remodeled building include hardwood or wood laminate floors. An underground garage has parking for 15 residents.
Fund Acquires Fullerton Apartments
Fullerton, Calif.—Klingbeil Multifamily Fund VI, LLC has acquired The Lake Apartments here for $23.2 million. The seller was Granite Properties.
The fund is a co-investment between General Motors Asset Management Corp. and the Klingbeil Organization. The fund plans more than $2.8 million in renovations to the property, to include upgrading interiors and kitchens and adding washers and dryers.