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Starwood Capital Buys Three Triangle Apartment Communities for $72M

26 May 2015, 9:49 pm

by Adriana Pop, Associate Editor

Swimming Pool at Mission University Pines in Durham

After closing on its 10th opportunistic real estate fund in March, Starwood Capital Group has acquired three multifamily properties in Raleigh and Durham that offer a total of 942 apartments.

According to the Triangle Business Journal, Middleburg Capital of Fairfax, Va. sold the properties in early May for a combined $72 million, or $76,433 per unit. The company had owned the assets since 2008, when it purchased them for $65 million.

The portfolio comprises the following properties:

  • Mission Capital Crossing, a 356-unit community at 4722 Dansey Drive in northeast Raleigh. The property dates back to 1985 and offers a variety of amenities, including a 24-hour fitness center, basketball court, club house, on-site maintenance and swimming pool;
  • Mission Triangle Point, a 224-unit community at 600 Discovery Way in east Durham, near Brier Creek. This property was built in 1998 and offers a 24-hour fitness center, swimming pool, kids park, laundry facilities, business center, club house and on-site maintenance;
  • Mission University Pines, a 362-unit community at 614 Snow Crest Trail in west Durham (pictured). It was built in 1991 and features two swimming pools, a fitness center, kids park, laundry facilities, business center, club house, coffee bar, BBQ grill area, tennis court and on-site management.

The transaction marks the second major acquisition for Starwood Capital Group in the Triangle since the closing of its $5.6 billion Fund X, the firm’s largest fund to date. At the beginning of April, Starwood acted as a joint venture partner next to Trinity Capital Advisors of Charlotte and Vanderbilt Partners in the $1.1 billion acquisition of Duke Realty Corp.’s portfolio of suburban office properties in Raleigh, Nashville, St. Louis and South Florida.

When it was launched, Starwood Global Opportunity Fund X had already closed or was committed to approximately $6 billion worth of transactions representing an equity commitment of more than $2 billion equally split between U.S. and European investments.

Photo credits: www.missionuniversitypinesapts.com

Q&A with Scott Orrantia, Senior Vice President & CIO at Oakwood Worldwide

14 May 2015, 10:24 pm

by Adriana Pop, Associate Editor

Scott Orrantia, Senior Vice President & CIO at Oakwood Worldwide

In a joint venture partnership with Singapore-based Mapletree Group, corporate housing leader Oakwood Worldwide has recently purchased a 300-unit apartment community in Raleigh. The acquisition marks the duo’s entry into the East Coast market, after having closed similar deals in Dallas and the Silicon Valley.

Q: Could you tell us more about your company’s recent Raleigh acquisition?

We’re very pleased to have added what is now known as Oakwood Raleigh at Brier Creek to our portfolio.  It is a 300-unit contemporary building consisting of one-, two- and three-bedroom apartments with world-class amenities including a heated pool, private theatre and sport courts.  The property is located within a short drive of shops and restaurants and very close to major transport routes, including the I70 and Northern Wake Expressway; additionally it is a 15-minute drive to the Raleigh-Durham International Airport.

Q: Why has Oakwood selected Raleigh for its expansion and what is your outlook for the city’s corporate housing market?

In addition to Oakwood Worldwide having a number of clients already in the area, Raleigh, N.C. is recognized as one of the best places for business and careers in 2014 by Forbes magazine.  It is home to Research Triangle, one of the country’s largest and most successful research parks and a major center in the United States for high-tech and biotech research.  The quickly growing city has increasing career opportunities in education, medicine, technology and government sectors.

Demand for corporate apartments in the area currently exceeds the supply and continued business growth in the area will continue to drive demand for corporate housing.

Q: What’s your forecast for the international corporate housing market, and what kind of long-term results do you expect?

Over the past couple of years, we’ve seen more and more companies expanding outside the borders of their home country.  Globalization is driving a demand for extended stays in established and emerging markets.  Recruiting, retaining and developing talent in a truly competitive environment means corporations need an edge – especially for global assignees.

Q: What are your priorities and what challenges do you foresee?

Our top priority will always be to service our clients and guests and placing our guests wherever they need to be.  We do this through a combination of Oakwood Worldwide-managed properties, our network of global suppliers, franchisees and hotel partners, and therefore have access to the largest global inventory of corporate housing and serviced apartments in more than 25,000 global locations in 85 countries and all 50 United States.

The biggest challenge for us as a corporate housing provider is meeting greater client demand for accommodations in smaller or remote cities, particularly in the APAC region, many of which have limited serviced accommodation options.  This is why we recently launched our hotel desk in that region, allowing us to meet client demand anywhere they need to be.

Q: What are Oakwood Worldwide’s expansion plans?

As we have previously announced, we entered into a partnership with Mapletree Group where we stated that we are planning to open 100 new branded-properties around the world over a five-year period.

In addition to this growth in our branded-building portfolio, we continued to expand our presence in key global markets through our robust global supplier market, allowing us to offer our clients greater choice and more customized solutions.

CBRE Secures $29.3M Financing for Kane Realty’s Multifamily Project at North Hills in Raleigh

14 May 2015, 10:19 pm

By Adriana Pop, Associate Editor

Through its Debt & Structured Finance team, CBRE Capital Markets has arranged $29.3 million in construction and mezzanine financing for The Dartmouth, a 171-unit luxury apartment building rising at 104 Dartmouth Road in Raleigh.

Mark Fisher and Alex Furnary of CBRE’s Midtown Manhattan office arranged and coordinated the loans on behalf of Kane Realty Corp., the project’s developer. SunTrust Bank provided $24.5 million in construction financing, while Federal Capital Partners provided mezzanine debt in the amount of $4.8 million.

“With sub 2.5 percent construction financing, the blended rate of the capital stack was extremely appealing,” Fisher said in a news release.

The first units in the smoke-free community are scheduled for completion in the third quarter 2016. Amenities include a clubroom with billiards, poker lounge and smart TV’s, business center, saltwater pool, fitness center, entertainment kitchen, bike storage, pet grooming and washing station, gated parking, electric vehicle charging stations and a controlled access system. Residents will also enjoy luxury finishes such as 9′ ceilings, open kitchens, granite countertops, stainless steel appliances, hardwood floors, balconies, as well as washers and dryers.

The upcoming mid-rise residential complex is part of the 2 million-square-foot North Hills live-work-play community (pictured) Kane Realty has been developing for the past 15 years.

“Kane has created one of the most desirable work-live-play sections in Raleigh,” Fisher added. “The Dartmouth is surrounded by hundreds of high-end apartment units and within walking distance to several restaurants, hotels, parks, retail and entertainment venues.”

Photo credits: www.kanerealtycorp.com

Oakwood, Mapletree Group Expand in Raleigh with Joint Venture Acquisition

12 May 2015, 3:14 pm

by Adriana Pop, Associate Editor

In a joint venture partnership with Singapore-based Mapletree Group, corporate housing leader Oakwood Worldwide has acquired a 300-unit apartment complex in Raleigh.

Renamed Oakwood Raleigh at Brier Creek, the pet-friendly community offers a mix of one-, two- and three-bedroom apartments. Amenities include a heated resort-style swimming pool, clubhouse with business center, private garages, fitness studio, indoor half basketball court, indoor racquetball court, sand volleyball court and a private theatre with surround sound.

“We’re particularly excited to add this property to our portfolio because we have a number of guests in the building already,” M. Scott Orrantia, senior vice president & CIO for Oakwood Worldwide, said in a news release.  “Demand for corporate apartments in the area currently exceeds the supply, so now that we’re managing the entire building, we’ll be able to better meet the needs of our clients.”

According to John Hinkle, vice president of acquisitions for Oakwood Worldwide, this transaction marks the company’s first East Coast acquisition in its joint venture with Mapletree, complementing the Silicon Valley and Dallas acquisitions.

“The property’s size, amenities and location are ideally suited to the Mapletree investment strategy; 100- to 300-unit, well-maintained properties in strong job growth markets.  We will continue to target similar assets throughout the United States as we diversify geographically as well as near the industries represented by our clients,” Hinkle added.

Oakwood Raleigh at Brier Creek is located in the heart of the Research Triangle, one of the country’s most prominent research and development centers. The property is a short drive to an array of shops and restaurants and very close to major transport routes, including the I70 and Northern Wake Expressway. It is also an easy commute to major employers such as Duke University, IBM, GlaxoSmithKline, Credit Suisse, Cisco and Microsoft.

Photo credits: Oakwood Worldwide

Developers Celebrate Groundbreaking of 164-Key Marriott Hotel at University’s Campus in Raleigh

1 May 2015, 8:44 pm

by Adriana Pop, Associate Editor

Construction on Raleigh’s new StateView Hotel at N.C. State University’s Centennial Campus is under way.

Joined by about 100 guests, Atlanta-based Noble Investment Group has recently broken ground on the project, a 164-key Marriott Autograph Collection hotel and conference center. The five-story lodging facility is expected to open by October 2016.

According to the Triangle Business Journal, Noble Investment’s other partners include co-developer Concord Eastridge, general contractor W.M. Jordan, architectural firm Cooper Carry, BB&T bank for debt financing, Stewart of Raleigh for engineering services and Interstate Hotels and Resorts as the property’s operations manager.

Designed to LEED Silver sustainability standards, the upcoming hotel will rise on the shore of Lake Raleigh, next to the N.C. State University Alumni Center and across from the Lonnie Poole Golf Course.

Amenities will include a signature restaurant and bar with private dining, fully-equipped business and fitness centers, and an outdoor swimming pool. Guests will also have access to more than 22,000 square feet of high-tech meeting and function space, as well as outdoor event terraces.

Marriott’s Autograph Collection comprises independent boutique luxury hotels and resorts, each with their own distinct personality.

Ben Brunt, a principal with Noble Investment, told the newspaper that this brand was the right affiliation for the Centennial Campus property since it allows for more design customization.

Photo credits: Noble Investment Group

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