Northwestern Mutual Sells Ann Arbor Asset

Northwestern Mutual sells an Ann Arbor asset; Equity Residential sells a 432-unit property in Virginia; and Dominion America Realty closes a loan modification and finance restructure.

Lake Village of Ann Arbor

Ann Arbor, Mich.—Holliday Fenoglio Fowler has closed the sale of Lake Village of Ann Arbor, a 360-unit Class A community located in Ann Arbor, Mich. HFF and Pankhurst Properties marketed the asset on behalf of the seller, Northwestern Mutual. The community was purchased by an affiliate of The Habitat Company for $41.5 million.

Lake Village of Ann Arbor is located adjacent to the University of Michigan soccer complex and only a short drive from the main campus in Ann Arbor. The 29.2-acre site has 18 three-story buildings that were built in two phases in 1997 and 2002. Amenities at the fully leased property include a clubhouse, fitness center, tanning bed, heated pool with hot tub, tennis court, and business center.

“Lake Village of Ann Arbor’s proximity to the University of Michigan ensures consistent demand from graduate students, faculty and employees of the university, which is the largest employer in Ann Arbor,” says Marty O’Connell, managing director at HFF.

Equity Residential sells a 432-unit community in Manassas

Tanglewood Apartments

Manassas, Va.—Transwestern has represented seller Equity Residential in the disposition of Tanglewood Apartments, a 432-unit garden-style community located in the Bull Run area of Manassas, Va. The property was purchased for $68.7 million, or $159,086 per unit, by a New York advisory firm representing a pension fund.

The community was built in 1987 and offers residents one- and two-bedroom units that average 856 square feet in size. Community amenities include a clubhouse, fitness center, tennis courts, playground, jogging trails and a resort-style pool with sundeck.

Dominion America Realty closes loan modification and finance restructure

Riverside County, Calif.—Dominion America Realty Advisors, a Los Angeles-based borrower advocacy firm, announces the closing of a loan modification and finance restructuring on a newly acquired assisted living and memory care facility in Riverside County, Calif. DARA’s president, Paul Horvitz, and executive vice president, Keith Olson, negotiated the extension, discount and loan modification of an expired bank construction loan on behalf of the borrower.

The newly constructed but not yet opened assisted living facility was in default on an expired construction loan. DARA, through its borrower advocacy program, was able to reach an amicable conclusion with the bank and junior trust deed lender and extend the original $6 million loan.

The new financing arranged by DARA provided the borrower with an extension of the original loan principal and extended the loan term by an additional 12 years at the existing rate. The result was that the borrower was not forced to file bankruptcy, the most likely scenario prior to DARA’s re-negotiation efforts, thus keeping both the borrower’s credit rating good name intact.

“DARA was able to act efficiently on behalf of the borrower to establish a clear picture of the current situation, and was able to have the existing lender carry back the loan,” commented DARA’s executive vice president, Olson.