Tacoma Refinanced as Pacific Northwest Struggles with Affordable Housing Stock1 Sep 2015, 3:50 am
By Alex Girda, Associate Editor
As cities in the Pacific Northwest are striving to boost their affordable housing stock, Walker & Dunlop Inc. is increasing its activity in the sector. The company provided client Hamilton Zanze & Co. with a loan worth $27.9 million for the sponsor’s Lakeside Landing in Tacoma. The financing was structured as a 10-year fixed-rate loan with six years of interest only, followed by a 30-year amortization schedule and a 1.25x debt service coverage ratio.
Lakeside Landing is located at 1414 S. Mildred St. in Tacoma that consists of 450 one- and two-bedroom apartments. The property is situated in an area that features lakes and Mt. Rainier, in a submarket that is becoming increasingly popular for residential properties. The community’s 49 buildings are located on 33 acres. Residents at Lakeside Landing have access to an amenity package that includes a playground, fitness center, pool, barbecue area, clubhouse, basketball court and tennis court.
According to a press statement, the financing was structured with six years of interest-only payments in order to ensure the possibility of improvements and achieving rent appreciation. Walker & Dunlop Senior Vice President Craig Russell noted that given the company’s longtime relationship with Freddie Mac, “they were able to extend their pricing beyond the normal duration, enabling the client to obtain a customized financing structure suited for their needs.”
KBS Names New Vice President of Asset Management for Two West Coast Markets27 Aug 2015, 1:15 pm
By Alex Girda, Associate Editor
KBS Realty Advisors announced that it promoted one of its own to a position of management. As of this month, the real estate investment company named Clint Copulos as the vice president of asset management for the Portland, Oregon and Sacramento, California markets.
Copulos will henceforth handle the management of numerous KBS properties located in the two metros. The new VP is also in charge of acquisition and disposition activities in the two markets, as he oversees a portfolio of around one million square feet of office space. Formerly responsible for the performance of assets in downtown San Diego for a Dutch real estate investment trust, Mr. Copulos has been with KBS since 2013.
According to the CEO of KBS, Charles Schreiber, “Clint brings a strong background of relevant experience to our asset management team and we’re confident that he will help lead the way with solid knowledge of the real estate market in these regions.” A University of California, Irvine alumnus, Mr. Copulos’ experience with the company, where he has been involved with acquisitions worth $650 million during the last year, has determined his rise as a part of KBS.
Seattle Project Shades of Affordable Housing to Come21 Aug 2015, 7:44 pm
By Alex Girda, Associate Editor
In the aftermath of the Housing Affordability and Livability Agenda, a new Seattle multifamily development project serves as a live representation of the act’s recommendations. Local developer Stream Real Estate acquired a small parcel in the Chinatown-International District and is now looking to build an affordable community on the site.
As per the measures included in the agenda, the developer is acquiring the site at fair-market value, with the proceeds being used in the development of other affordable units in Seattle. The company is planning to develop a new community that will remain affordable for the next 50 years. According to The Puget Sound Business Journal, the units will be aimed at residents making less than $46,100 per year. Were the building existing at this moment, rent would be capped at $1,235 per month, PSBJ writes.
The initiatives in the Housing Affordability and Livability Agenda haven’t even been written into law, but are already being put to good use in the current deal. Once elaborated upon by the Housing Affordability and Livability Committee, according to Mayor Ed Murray’s request, the recommendations are being used in the drafting of legislation, which will then be put up for the local council’s consideration.
Seattle is struggling with growing prices, and Mayor Murray is striving to put in place legislation that would ensure the construction or preservation of around 50,000 residential units during the next decade, two-fifths of which would be affordable housing.
Multifamily Asset Changes Hands in Portland Metro21 Aug 2015, 1:57 pm
By Ioana Neamt, Associate Editor
A 147-unit apartment community in Greater Portland recently changed owners.
The broker marketed the property on behalf of California-based JB Matteson through an investment sales team led by Managing Director Ira Virden and Associate Director Kerry Hughes. Jackson Square acquired the asset free and clear of existing debt. HFF previously secured a fixed-rate CMBS loan for the property on behalf of JB Matteson in 2011.
Located at 7531 NE 18th St. roughly 14 miles of downtown Portland, The Addison was completed in 2009 and features one-, two- and three-bedroom units which are currently 99 percent occupied. The community is situated in the Portland-Vancouver metropolitan area, the 24th largest in the U.S.
Amenities include a 24-hour fitness center, barbecue and picnic area, detached garages, and carports. The property also provides access to public transportation and the I-205.
Image courtesy of Yardi Matrix
Fundrise’s Platform: From World Trade Centers to Boutique Apartments17 Aug 2015, 4:45 pm
By Liviu Oltean, Associate Editor
After offering individual investors the opportunity to own a piece of the massive 3 World Trade Center, real estate crowdfunding and investment platform Fundrise announced that it has partnered with Pryde+Johnson to provide $2.8 million in funding for The Søren, a Class A boutique apartment complex in Seattle.
The apartment community is located within the popular Ballard neighborhood and was almost halfway leased a month after opening for move-ins. The asset has a market value of $44 million, based on a cap rate of 4.75 percent and a projected NOI of slightly above $2 million.
The sponsor, Pryde+Johnson, used the investment to cash out part of its $10 million equity contribution to the project and will use the proceeds to fund a new multifamily venture. Crowdfunding investors are expected to receive a gross annual return of 12 percent, paid quarterly over a 36-month term.
“This is our fourth project in Seattle, and we’re continuing to see growing demand from our investors for high-quality multifamily opportunities in the market,” Ben Miller, co-founder & CEO of Fundrise, said in a prepared statement. “With their strong track record of success in building innovative projects in the city, Pryde+Johnson was a natural fit for the Fundrise platform.”
Image courtesy of Fundrise