$45M Workforce Housing Community Opens in Florida

A 300-unit workforce housing project opens strong in Florida; HFF secures a $47.8 million three-year ARM through bank; and Newmark Grubb Knight Frank closes a $3.4 million bank-owned sale.

Monterra Apartments

Cooper City, Fla.—ZOM Florida and The NRP Group has completed Monterra Apartments, a 300-unit workforce housing community located in Cooper City, south Broward County, Fla. The property, which began pre-leasing in February, was 100 percent leased in April and will be 100 percent occupied in mid-July.

“We believe our timing is excellent, with homeownership steadily declining, the new renter market is on the rise,” says Kyle Clayton, vice president of development at ZOM. “This favorable trend is projected to continue and is creating an incredible opportunity to deliver well-conceived, thoughtfully designed rental communities in select U.S. markets.”

Financing for Monterra Apartments included approximately $26 million in NIBP bonds issued by the Florida Housing Finance Corporation, HOME loan funding, and additional loans provided under the SHIP Loan program funded and administered by Broward County. Project equity and construction financing was provided by Bank of America.

Amenities at the community include a clubhouse facility, a swimming pool, clubroom with computer workstations and a 24-hour fitness center. There is also a playground, covered barbecue area and a dog park.

HFF secures $47.8M three-year ARM through bank

Irving, Texas—HFF announced that it has secured a $47.75 million refinancing for The Shores at Las Colinas, a 908-unit Class A multi-housing community in Irving, Texas.

HFF worked exclusively on behalf of Metropolitan Properties of America to secure the three-year, 1.84 percent adjustable-rate loan through Capital One.

The Shores at Las Colinas is located at 385 East Las Colinas next to the Irving Convention Center and approximately 14 miles northwest of downtown Dallas. The community is comprised of 17 low-rise buildings as well as two mid-rise buildings containing a total of 792,786 square feet. Units include loft, studio, one- and two-bedroom options averaging 874 square feet each. Currently 88 percent leased, the community offers amenities including frontage on Lake Carolyn, European-style courtyards, five swimming pools, parking garages, a fitness center and a club room.

The HFF investment sales team representing the borrower was led by managing director Steve Heldenfels along with senior managing directors Bob Herron and Mona Carlton.

Newmark Grubb Knight Franks closes $3.4M bank-owned sale

Chester, Pa.—Newmark Grubb Knight Frank Capital Group has closed the sale of Park Terrace Apartments in Chester, Pa., on behalf of the seller, Los Angeles-based City National Bank. This was the third deal that NGKF has closed for City National in the past 12 months.

“Even though this asset was highly distressed, our analysis showed investors the potential for a nine percent annual return in the first year with repairs and some basic repositioning,” says John Dunning, a director with NGKF Capital Group.

Dunning added that the proximity to Philadelphia, where vacancy remains low, created the potential renter demand that made the deal work for the undisclosed private investor.

The 216-unit apartment complex at 1127 Ward St. is a Class C asset located just outside of Philadelphia. City National Bank took control of the property, a FDIC Loss Share asset, after buying failed Imperial Capital Bank. The previous loan was at $6.15 million. Lengthy bankruptcy proceedings and eventual foreclosure left the property in disrepair, with mold and water damage to 91 units as well as unrepaired damage from a small fire. It is estimated that property needs $3.75 million in reported repairs.