TODAY’S DEALS: Steadfast Acquires Kentucky Property for $52.5M
Lexington, Ky.—Steadfast Income REIT Inc. has purchased Forty57, a 436-unit garden-style community located in Lexington, Ky. The sales price was $52.5 million, which equates to $120,412 per unit. With this most recent transaction, the REIT has now invested over $467 million in 25 apartment communities in nine Midwestern and Southern states.
“This is our sixth property in Kentucky, but our first in Lexington,” says Ella Shaw Neyland, president of Steadfast Income REIT. “We feel that Lexington occupies an important position in the state’s economy and is the financial, retail, healthcare and cultural core of the entire region.”
Forty57 was built in four phases beginning in 2008 and was completed in 2012. The asset is now 88 percent occupied. Amenities include a clubhouse with internet café, a coffee bar, two outdoor pools with a sundeck, a fitness center, 40-seat movie theater, a volleyball court and a putting green.
Crescent Resources announces off-campus project in Charlotte
Charlotte, N.C.—Crescent Resources is all set to begin construction on Circle University City, a 546-bed apartment community that will cater to college students near the UNC Charlotte campus. The asset is part of the new generation of luxury student housing communities, and will include a game room, rooftop terrace overlooking the campus, a study, lounge area, tanning beds, a salt-water pool and outdoor fire pits. The community also includes sustainability features such as solar panels. The $36 million project is set to deliver the first of the 187 units by the start of the fall 2014 semester.
“UNC Charlotte is experiencing soaring enrollment, an elevated profile and surging momentum with the addition of a football team, which makes it an ideal location for our successful brand of student housing,” says Ben Collins, regional director for Crescent Resources. “Circle University City will offer a unique student-living experience that isn’t typically found in campus housing. The community’s targeted amenities will provide a great environment for both study and recreation.”
UNC Charlotte enrolled the largest freshman class in its history for the fall 2012 semester with 631 more students than expected, and university officials noted that campus housing has become an issue. To accommodate the influx of students, the school increased the number assigned to double rooms and delayed the demolition of an aging residence hall.
Macfarlane partners acquires last remaining vacant lot in San Fran neighborhood
San Francisco—MacFarlane Partners, a real estate investment manager that specializes in investments that promote smart growth, urban revitalization and sustainability, announced today the $7.8 million acquisition of 1125 Market St. in San Francisco, the site of the former Embassy Theater, which was razed after it was damaged in the Loma Prieta earthquake.
The 12,401-square-foot project site is the remaining vacant lot in San Francisco’s Mid-Market area, and is directly in front of the Federal Building, across the street from UN Plaza and just east of the former Strand, which the American Conservatory Theater plans to revive as a 300-seat theater with rehearsal spaces and a restaurant.
MacFarlane Partners will begin the design and entitlement process for the property, which is zoned C-3-G, permitting both residential and commercial development. The plan is to develop the site with an undetermined number of multifamily units and parking stalls, as well as 3,500 square feet of retail space. The exact number of units will be determined after meetings with city planning officials. No architect has been selected; however, construction is anticipated to begin in early 2014.
“We think Mid-Market is the place to be,” said Greg Vilkin, managing principal and president of MacFarlane Partners. “And we think the city has done a commendable job of re-imagining Mid-Market. If you were to look at that area in 2015, it’s going to be a vibrant part of the city and we want to be part of it.”
MacFarlane Partners is currently topping out a 113-unit apartment development up the street at 1844 Market St., purchased in May 2011. Both of MacFarlane Partners’ investments on Market St. within the past 18 months are on behalf of MacFarlane Urban Real Estate Fund III (“Urban Fund III”), a closed-end, commingled fund managed by the firm. Urban Fund III is pursuing an investment strategy that MacFarlane Partners pioneered in the 1990s on behalf of institutional investors: acquiring, developing, redeveloping and repositioning properties in urban and high-density suburban submarkets of select metropolitan areas nationwide that promote smart growth, urban revitalization and sustainability.
“This investment reflects our confidence in the strong market for apartment properties in the San Francisco Bay Area, which continues to experience a significant increase in rents for the past year,” added Vilkin. “While the transit-oriented development has yet to be designed, it will incorporate the best elements of smart growth and new urbanism, which are hallmarks of our developments.”
1125 Market Street is located at the heart of the transformation of the surrounding Central Market area (between 5th and 10th streets) in downtown San Francisco. The neighborhood has long been a center for entertainment, arts and retail and is seeing a renaissance spurred by City initiatives sparking everything from new housing to office space to hospitality and retail; strong job growth; and, an influx of young tech workers moving to the area. Large employers Twitter, Dolby, Square, Yammer, One King’s Lane, ZenDesk and Zoosk are flocking to the area, partly in thanks to the payroll tax exemption passed in 2011, and the demand for local affordable and market rate housing, particularly within walking distance, will remain strong. The site is an attractive location for residents due to its proximity to major employers and SoMa, Hayes Valley and downtown San Francisco—all easily within walking distance. A variety of public transportation options are also immediately accessible, including the light rail, and a Muni and BART stop directly outside of the project. Additionally, both the 101 and 280 freeways are within a five-minute drive.
TRI Commercial agents Anton Qui and Cary Cohen and Jay Cross represented the buyer and David Wienties and Clayton Jew of Kidder Matthews represented the seller, who was undisclosed.