Detroit Apartment Towers Up for Sale
Detroit—Habitat Co., based in Chicago, has placed Lafayette Towers, a 584-unit apartment complex located downtown, on the sales block for $20 million.
The development consists of two 22-story towers on nine acres. It includes a two-story parking garage. The property was built in 1963 and is 95 percent leased.
At the asking price, the asset would generate a 6.82 percent capitalization rate, based on $1.4 million of net operating income.
Hendricks & Partners has been tapped to market the towers.
Ohio Apartments Sold Amid Rising Occupancy Rates
Powell, Ohio—Greensview Apartments, a 96-unit apartment community, has sold here for $5.16 million. The buyer was Columbus, Ohio-based HY&W, LLC.
The property, which was built in 1995, includes 48 one-bedroom and 48 two-bedroom units. Monthly rents range from $640 to $715 at the community, which was 97 percent occupied at the time of the sale.
“I see a continued demand for multifamily properties throughout central Ohio,” said Jerry Hall, a broker at Sperry Van Ness, which represented the seller in the deal.
“The cap rates are still holding strong in the 7 percent range, and interest rates have leveled off, although lenders have increased their spreads over the 10-year Treasury rates,” added Hall. “Due to the subprime fallout, many former homeowners are renting, driving up the occupancy rates in the market.”
NORTHEAST
BlackRock, CalPERS Acquire Complex
Malvern, Pa.—A joint venture between BlackRock Realty and California Public Employees’ Retirement System (CalPERS) has acquired a 264-unit apartment complex in this Philadelphia suburb for $84.5 million.
The seller was Plymouth, Pa.- based Korman Communities, which will retain a small stake in the property.
Woodview Apartments consists of seven three- and four-story buildings. The gated community was 87 percent leased at the time of the sale. The property was built in 1996 and renovated in 2007.
The complex has 174 one-bedroom units and 90 two-bedroom units and includes a swimming pool, a sauna, a fitness center, a business center, and a conference room. Korman Communities purchased the property in 2004 for $32 million.
Transit Village Planned Near D.C.
Rockville, Md.—The JBG Cos. and the Washington Metropolitan Area Transit Authority have broken ground on Twinbrook Station, a $700 million, 2 million-square-foot mixeduse project here.
Located about 20 miles from Washington, D.C., the “transit village” will occupy 26 acres surrounding the Twinbrook Metro. The initial phase of the development will consist of 279 luxury apartment units and 17,000 square feet of retail space. The project is expected to take eight years to build.
Once it is complete, Twinbrook Station will feature a total of 325,000 square feet of office space, 220,000 square feet of ground-level retail, and 1,595 multifamily residences. Fifteen percent of those units will be reserved as workforce housing. About 600 units are being proposed as condominiums.
SOUTH CENTRAL
Oklahoma Properties on Sales Block
Oklahoma City, Okla.—Local developer Legacy Communities is selling a 1,325-unit multifamily portfolio in the Oklahoma City area for an asking price of $143 million.
The offering consists of four apartment communities that were built between 1999 and 2007. The developer is selling the portfolio to fund new construction.
Monthly rents at the properties range from $654 to $1,290. Sperry Van Ness is marketing the developments, which are available for sale in any combination.
The newest community in the portfolio is Legacy at Arts Quarter, a 303-unit property located in downtown Oklahoma City. It has a $45 million price tag and includes 2,333 square feet of retail space. It opened in 2007.
The other properties are the 396-unit Legacy Crossing in Oklahoma City, the 328-unit Legacy Woods in Edmond, Okla., and the 298-unit Legacy Corner, located in Midwest City.
SOUTHEAST
Luxury Units Planned in Tampa
Tampa, Fla.—A joint venture has plans for Sunforest, a new $42 million luxury apartment community near the city’s Westshore area. Atlanta-based Pollack Partners and Tampa, Fla.-based Mainsail Development Group will start construction in the summer of 2008.
The gated community will have 320 one- and two-bedroom apartments. The development also will feature a centrally located pond with a fountain. Other amenities will include a swimming pool and a deck overlooking the pond, a fitness room, and a clubhouse with a theater room and a business center.
The units will include 9-foot ceilings, tiled and carpeted floors, and deluxe appliances.
“There has been very little apartment development in this area in recent years, and we feel this is a great opportunity,” said Marc Pollack, CEO of Pollack Partners.
The duo teamed up 10 years ago in the development of a Tampa hotel, which is located across the street from the planned apartment community.
WEST
Kennedy Wilson Sells Four Assets for $147 Million
Beverly Hills, Calif.—Locally based Kennedy Wilson Management Group has sold four California apartment communities in a 30-day span for approximately $147 million.
The four properties are Creekside Apartments in San Jose, Windscape Village Apartments in Lompoc, County Oaks Apartments in Santa Maria, and Somerset on Garfield, located in Montebello. The deal involves 992 units.
“Having effectively repositioned these assets and increased cash flow, we will reinvest the proceeds of these sales in other multifamily properties that meet our criteria of acquiring under-performing assets in urban markets,” said Bob Hart, president and CEO of Kennedy Wilson Multifamily.
Klingbeil Capital Management purchased the San Jose community for $35.6 million. LeFever Mattson acquired the Lompoc and Santa Maria complexes for a total of $72.6 million. Advanced Real Estate Services bought the Montebello property for $39.3 million.
Luxury Complex Sold for $21.7 Million
Los Angeles—An 80-unit luxury apartment complex located in the Los Feliz neighborhood has sold for $21.7 million. The buyer was New York City-based SC Normandie, Inc.
The Tower at Hollywood Hills is a mix of studio apartments and onebedroom units. It was built in 1990 and renovated with marble countertops, recessed lighting, and hardwood floors in 2007. Monthly rents range from $1,263 to $2,061.
Amenities include a fitness center, a sauna, a pool, a spa, a fire pit, barbecue grills, controlled-access entry, and wireless Internet capability.
