52-Story Condo Breaks Ground in San Fran

Principal, Urban Pacific begin a phase II condo project; Marcus & Millichap sells a 212-unit asset near Houston; and Walker & Dunlop closes on a $5.6 million loan.

Rincon Hill Phase II

San Francisco—Principal Real Estate Investors and Urban Pacific Investors broke ground this morning on One Rincon Hill Phase II, a 52-story, 299-unit condominium development in San Francisco’s South of Market District. The project, which is designed to achieve LEED certification, is a companion to the existing 64-story Phase I tower, the tallest all-residential building in the city.

“One Rincon Hill was always envisioned as a two-tower development,” says Mike Kriozere, development principal at Urban Pacific Investors. “We are thrilled to be breaking ground on the second half of what is still the tallest residential tower west of the Mississippi. With the continuing density of residents and commercial tenants, we are pleased to have such a well-situated property.”

Occupancy for Phase II is set for summer 2014 with final completion due for the fall of 2014. The 299 units will include a mix of one-, two- and three-bedroom homes, ranging from 613 to 3,214 square feet in size. New amenities in the Phase II development include a 3,600-square-foot fitness center and a 4,000-square-foot sky lounge on the 49th floor. Phase I includes an exercise room, swimming pool, reflecting pool and sundeck.

“The Phase II development of Rincon Hill is an attractive addition to our real estate investment portfolio,” adds Rod Vogel, managing director at Principal Real Estate Investors. “The iconic development will bring much needed housing to the San Francisco residential market, while at the same time, adding another high-quality real estate property to the fantastic city skyline.”

212-unit asset trades hands in suburban Houston

Reserve at Autumn Creek

Friendswood, Texas—Marcus & Millichap Real Estate Investment Services has brokered the sale of Reserve at Autumn Creek, a 212-unit apartment asset located in the suburban Houston neighborhood of Friendswood, Texas. The firm represented the seller, a California-based partnership. The buyer was a partnership based in Florida.

Built in 2001, the Reserve at Autumn Creek features 21 two-story ‘big house’-style buildings. Community amenities include a swimming pool with a gazebo, an outdoor fireplace with a sitting area, a sand volleyball court, clubhouse, business center, and a fitness center.

“Reserve at Autumn Creek is a Class A multifamily community within a first-rate sub division,” says Norman Eastwood, the senior vice president at Marcus & Millichap’s Dallas office who represented the seller in the transaction. “The strength of the asset and Houston’s prospering economy helped us create an extremely robust market for the property.”

Walker & Dunlop closes on $5.6M loan

Smyrna, Tenn.—Walker & Dunlop LLC announced that it recently provided $5.6 million in financing for Ashley Grove Apartments, a garden-style residential apartment community located in Smyrna, Tenn.

The refinance loan was structured with a 10-year term and a 30-year amortization. The loan was underwritten to a 75 percent loan-to-value with a 1.41x debt-service coverage ratio under Fannie Mae’s Early Rate Lock Program.

Ashley Grove Apartments is a 128-unit apartment community built in 1974 that received over $600,000 in capital improvements by the borrower, Dominion Development Group, between 2009 and 2011. The property offers one-, two-, and three-bedroom units featuring standard appliance packages and balconies/patios. Community amenities include a tennis court, swimming pool, basketball court, and an on-site laundry facility. Ashley Grove Apartments was 96 percent leased at closing.

Mark Taylor, chief financial officer, Dominion Development Group, commented, “It was truly a pleasure to work with Walker & Dunlop on the refinance of this loan. Our group has been very impressed with the consistent level of service, creativity and persistence exhibited by all the members of the Walker & Dunlop team. In short, they attentively listened to our needs and worked diligently to execute financing to meet our needs. We certainly look forward to our next transaction with them.”

Carl Bedwell and Chris Howe, 24|40 Real Estate Capital Advisors, originated the loan. Walker & Dunlop Vice President Keith Melton and Vice President David Strange led the Walker & Dunlop team.