Marcus & Millichap Sells REO Property
- Apr 14, 2011
Jackson, Miss.—Marcus & Millichap Real Estate Investment Services has brokered the sale of Parham Pointe, a banked owned apartment community in Jackson, Miss., for $10.1 million. The sale of the 393-unit property equates to $24,700 per unit, or $30 per square foot. The asset was purchased by Arlington Property, a firm that specializes in turnaround projects.
“A year ago, this transaction would not have received financing,” says Bradley Barham, a senior associate at Marcus & Millichap in Jackson. “In the current market, occupancy continues to recover as pent-up demand is released. Solvent banks are participating in bridge funding for un-stabilized assets, even in smaller markets like Jackson.”
Located at 5000 Ridgewood Road, Parham Pointe is comprised of 31 two-story apartment buildings with both townhouse and flat floor plans. Amenities include gated access, three swimming pools, two laundry facilities, two tennis courts, a fitness center and a sand volley ball court. It is also located across the street from Jackson’s most heavily used public park, Parham Bridge Park.
HFF sells loan secured by Miami development site
Miami, Fla.—Holliday Fenoglio Fowler LP has closed the loan sale of a 1.78-acre development site at 350 South Miami Avenue. The firm represented the undisclosed seller of the loan, which sold to an undisclosed buyer. The site totals 77,537 square feet and is approved for a 54-story, 504-unit luxury development.
“There was strong interest in the property from both local developers as well as domestic and foreign high-net worthy investors given its central downtown location along the Miami River,” says HFF’s George Vail, managing director.
This sale represents the fourth major development site sale by HFF in the last four weeks. Combined they represent more than $75 million in transaction volume.
Eastern Consolidated arranges joint venture for conversion of office building
New York– Eastern Consolidated represented the owner and a developer in structuring a joint venture that will enable a 35-story, 377,000-square-foot rentable office/retail property located at 116 John Street in Downtown Manhattan to be converted to a 400+ unit residential apartment building.
The value of the transaction was undisclosed, but the building is believed to be worth over $50,000,000 as is.
Eastern Consolidated’s Stuart Gross, principal and executive managing director along with Azita Aghravi, principal and senior director, worked with the owner, Hacienda International Realty, Inc., and Metroloft Management, which has been active in the office-to-residential conversion process in the Financial District for over 10 years, to structure the transaction.
States Gross, “This is a prime example of financially creative adaptive reuse, where the owner benefits from the upside in the improved property, and the developer gets efficient acquisition financing. Eastern worked through a complex ownership structure, which required creativity in the transfer of the property and terms of the partnership.”
“The chemistry has to be right in order to ‘marry’ two partners financially,” adds Aghravi. “The fact that Metroloft had the expertise in this type of conversion in the neighborhood assured us that Hacienda and Metroloft are a great fit. The two have already developed a strong working relationship based on trust. We believe that this project will be very profitable for both sides.”
The new partnership vacated 280,000 square feet in the building for the first phase of conversion to residential. There will be in excess of 400 units in the property when it is completed in late 2012. The developer is arranging debt and equity financing to refinance the original property indebtedness plus the conversion cost – all of which should exceed $100,000,000.