JP Morgan Sells 250-Unit Texas Asset

Cortland Partners buys an asset from JP Morgan in Texas; Grandbridge arranges $21 million for a student housing community in Minnesota; and Jones Lang LaSalle brokers an Inland Empire sale by Essex Property Trust to Western National.

Harbor View

Kingwood, Texas—JP Morgan has successfully sold Harbor View, a 250-unit Class A community located in the northeastern Houston suburb of Kingwood, according to ARA, which represented the New York-based financial institution in the sale. Cortland Partners was the  buyer. The 2010-built asset is located within the 14,000-acre master-planned development know as King’s Harbor.

“Harbor View initially struggled to reach a strong income position due to the slow rent growth experienced in the market in 2010 when the community was delivered,” says ARA Principal Matt Rotan. “Cortland Partners made a strategic buy on a four-story, high-end wrap product in Kingwood at below replacement cost at a time when market fundamentals are currently improving due to limited new supply and continued strong population and employment growth.”

The community was 91 percent occupied at the time of sale.

Grandbridge arranges $21M for Minnesota student asset

UMR Student Housing

Rochester, Minn.—Grandbridge Real Estate Capital has closed a $21 million first mortgage loan secured by a 98-unit/208-bed student housing property located near the University of Minnesota Rochester in downtown Rochester, Minn. Funding was provided by Barclay’s Capital and featured a 10-year term, 30-year amortization and closed with a fixed interest rate in the mid 4 percent range.

The asset was built in 2011 and features Class A amenities including hardwood floors, granite countertops, in-unit washer and dryers, a student life area, studies areas and professor office space.

Jones Lang LaSalle brokers Inland Empire sale by Essex to Western National

Corona, Calif.—Jones Lang LaSalle’s Capital Markets experts today announced the firm has closed the sale of Parcwood Apartment Homes, a gated rental property located in the Inland Empire at 1700 Via Pacifica in Corona, Calif., on behalf of Essex Property Trust. Western National Group purchased the 312-unit, garden-style rental property.

Managing Director Joe Leon and Vice President Javier Rivera led the Jones Lang LaSalle team on this transaction.

“This offering provided investors a unique opportunity to acquire a value-add property within a pristine, low-density community in sought-after Inland Empire,” said Leon. “As the property was built in 1988, the new owner has the opportunity to complete an interior renovation and obtain a rent premium of approximately $200.”

Added Rivera, “There had been no new apartment buildings over 100 units completed in Corona since 1993. This, combined with a current average occupancy rate in Corona of 94.9 percent, made this offering very attractive to investors.”

Parcwood Apartment Homes features 26 two-story garden-style apartment buildings in a gated community. Amenities include manicured landscaping walkways; a fitness center; large, tranquil pool deck with Wi-Fi; two spas; newly furnished movie theater; newly furnished gym; two tennis courts; children’s playground; business center; three barbecue areas; and a clubhouse with bar and catering kitchen. Its proximity to the 91 and 15 freeways provides quick access to Orange and Los Angeles counties as well as the Inland Empire and San Diego.