DEAL OF THE DAY: Forest City Closes $167M Construction Financing Loan for Brooklyn Property, and Other Transactions

By Barbra Murray, Contributing Editor, Commercial Property News and Anuradha Kher, Online News Editor, Multi-Housing News New York–Forest City Ratner Cos. has closed on a $167 million construction financing deal for 80 DeKalb, a 365-unit apartment project in Downtown Brooklyn. The New York State Housing Finance Agency approved the project for $109.5 million in tax-exempt bonds and an additional $27.5 million in taxable bonds. Construction on the 335,000-sq.-ft. building commenced last month. For Forest City Ratner, the project marks Brooklyn-based company’s first residential development endeavor in Brooklyn. Wachovia Bank N.A. and Helaba supplied credit enhancement to the $137 million bonds for 80 DeKalb, while the National Electrical Benefit Fund provided a $10 million mezzanine loan and $20 million of credit enhancement. The 34-story tower, located off Flatbush Ave. near Fort Greene Park at the border of the BAM Cultural District, will offer 292 market-rate units and 73 affordable housing residences, which will earn the property the title of the first 80/20 project to be funded with New York State HFA-issued bonds. Furthermore, 80 DeKalb will stand out among most other 80/20 projects, as it will maintain its affordable housing segment for 99 years. By incorporating affordable housing units into 80 DeKalb, Forest City Ratner will contribute to New York City Mayor Michael Bloomberg’s New Housing Marketplace Pan calling for the development and preservation of 165,000 affordable housing residences over a 10-year period. Designed by Costas Kondylis, 80 DeKalb will adhere to guidelines necessary to achieve Leadership in Environmental and Energy Design (LEED)  Certification. Work is on target to reach completion in summer 2009. Marcus & Millichap Arranges Sale of Three-Property Student Housing Portfolio for $11.18MTuscon, Ariz.–Marcus & Millichap Real Estate Investment Services has arranged the sale of a three-property student housing portfolio totaling 56 units in Tucson, Ariz., for $11,185,000. The assets are SahuaroPoint Villas at the Park (pictured), GlennStar Apartments and Stone Wood Apartments. The portfolio consists of the following properties:SahuaroPoint Villas at the Park, a 20-unit property on 1.47 acres at 2326-2366 North 6th Ave. The property includes five-bedroom/two-bath units, each measuring approximately 1,748 sq. ft. The community was sold for $5.5 million.GlennStar Apartments, a 12-unit asset on .83-acres at 133-193 East Glenn St. The property includes three- and four-bedroom units, ranging in size from 1,015 to 1,138 sq. ft.  and sold for $1.7 million.StoneWood Apartments, a 24-unit asset on 1.65 acres at 2621 North Estrella Ave. The property featuring four-bedroom/three-bath apartment units sold for $3.98 million.Silver-McCann Apartment Group II, LP Enters Houston Market With Acquisition of Villas at West Road ApartmentsHouston–Silver-McCann Apartment Group II LP acquired Villas at West Road Apartments, a 240-unit, garden-style community in Houston, in part by the assumption of an existing Freddie Mac loan with a rate of 5.82 percent. With this acquisition, Silver Capital, a division of Silver Cos., and McCann Realty Partners, has added the fifth and final asset to their latest apartment investment fund, Silver-McCann Apartment Group II, LP. Their second fund closes with total acquisitions of $154 million made over the past 18 months.”We like Houston, and we are very bullish on the Sam Houston Tollway/West Road location of the Villas at West Road, which is walking distance from neighborhood shopping,” says John McCann of McCann Realty Partners. “There are also a number of things that we find appealing in the community. For Houston, it has very low density at 12 units to the acre, all of the apartment homes are two-story and have private first floor entrances and 70 percent of the apartments have attached garages.”