Distressed Miami Property to See New Life with $20M Redevelopment

A $20 million affordable redevelopment breaks ground in Miami; Bridge Partners buys a 352-unit asset; and Mesa West Capital provides $21 million in acquisition financing.

Hampton Village

Miami—A distressed 1950s apartment building in Miami-Dade County will be getting a new lease on life following its demolition and construction of a new four-story affordable housing community on the site.

The $20 million redevelopment of Hampton Village Apartments by real estate development project manager Landmark Companies, nonprofit affordable housing developer Carrfour Supportive Housing and real estate management company Special Asset Support Services Inc. began last week. The project was made possible by federal stimulus monies allocated at the local level through HUD’s Neighborhood Stabilization Program.

Located at 4301 NW 29th Avenue, the redevelopment of Hampton Village will bring 100 affordable units onto the market that will provide permanent homes for residents at or below 60 percent of the area’s median income. Completion is set for late 2013.

“Hampton Village is a text book example of how the federal government’s NSP program is breathing new life into communities,” says Stephanie Berman, president of Carrfour Supportive Housing. “We are tearing down the walls of this building to usher in a new beginning for these Miami families. Once redevelopment of the property is complete, Carrfour will provide on-site services at Hampton Village aimed at putting unemployed residents back to work. We are not only rebuilding apartments, we are rebuilding lives.”

Bridge Partners buys a Class-B asset in Kansas

Overland Park, Kan.—Rockwood Real Estate Advisors, a real estate investment banking firm, has brokered the sale of Essex Place Apartments, a 352-unit, Class-B garden-style community located in Overland Park, Kan. California-based Bridge Partners picked up the asset for an undisclosed amount.

The asset was built in phases between 1972 and 1983. Since 2010, the property has seen nearly $2.6 million in renovations. Essex Place was 95 percent occupied at the time of sale.

“There was a tremendous amount of interest in the offering,” says Jordan Cortez, managing director at Rockwood. “Investors were enticed by the strong in-place yield, coupled with the opportunity to significantly increase rents through an interior value-add program.”

Mesa West provides $21M in acquisition financing

Phoenix—Mesa West Capital has provided a joint venture of Bascom Arizona Ventures LLC, an affiliate of The Bascom Group LLC, and Morgan Stanley Real Estate Investing with $21 million  in first mortgage financing for the acquisition of The Estates, a 330-unit Class-A multifamily community located in Phoenix.

Built in 2001, the gated community features one-, two- and three-bedroom apartment homes.  The 11.7 acre property includes two resort-style swimming pools with sundecks, an Internet cafe, clubhouse with a game room, movie theater and a fully equipped fitness center.

The Estates is a high-quality Class-A multifamily asset with stable in-place cash flow in a market that ranks among the top five in the nation in job growth, says Mesa West Principal Steve Fried who originated the financing. We’ve seen a direct correlation between an improving job market and demand for quality rental housing in Phoenix. Apartment vacancy rates have improved steadily since the beginning of 2010, when the local economy first started showing signs of a recovery. Demand for quality rental housing should continue as the labor market continues to improve. The strong fundamentals in the multifamily asset class and Bascom’s extensive local market knowledge and repositioning experience, made this an attractive lending opportunity for Mesa West.