Prudential Provides $114M for AIMCO Development in Boston
- Nov 14, 2013
Boston—There are 310 new rental units coming to Boston’s Bulfinch Triangle thanks to a $114 million construction loan that Prudential Mortgage Capital Co. has provided AIMCO. The funding will be put to work to erect a 12-story apartment community at Canal and New Chardon Streets. Accordingly known as One Canal, the property will feature 22,000 square feet of ground level retail space and a full amenity suite.
“The Bulfinch Triangle/North Station area is one of the top residential locations in Boston because of its location between the West End and the North End. It is within walking distance of the Financial District, Massachusetts General Hospital, Government Center and Beacon Hill,” says Kip Kimble, a principal with Prudential Mortgage Capital Company’s multifamily originations team. “Those factors, combined with the strength and experience of Aimco and the quality of the property, made this an extremely attractive transaction for us.”
The unit mix at One Canal will include 289 market-rate units and 21 affordable units. Amenities include a fitness center, clubroom, billiards room with outdoor space, a rooftop swimming pool and an outdoor courtyard.
Steadfast Income REIT makes six-property portfolio acquisition
Irvine, Calif.—Steadfast Income REIT Inc. announced that it recently completed a six-property portfolio acquisition in Houston representing 1,692 apartment units. The portfolio was acquired in two phases that closed on October 10 and November 7, respectively. The REIT now has acquired 57 apartment communities in 11 Midwestern and Southern states.
“As the fourth largest city in the nation, Houston has not only sustained the effects of the recession but has continued to lead the nation into the recovery and growth period,” says Ella Neyland, president of Steadfast Income REIT. “In fact, Forbes recently predicted that Houston will be known as ‘America’s next great global city’ with projected job growth over nearly 20 percent in the coming decade.”
All properties in the portfolio were developed by the manager and seller, Atlanta-based Davis Development, between 2004 and 2008. Five of the properties are in the Cypress and Champions submarkets of northwest Houston, and one property is in the prestigious Kingwood master-planned development in the northeast part of Houston. Steadfast represented itself in the transaction and the seller was represented by ARA’s David Oelfke.
The properties all have similar amenities including in-unit washer/dryers, walk-in closets, crown molding, vaulted ceilings and a complete appliance package in the kitchens. Residents are also able to enjoy community amenities that include a clubhouse, swimming pool, business center, barbeque areas, fitness center and remote access gates.
-Villas at Huffmeister, Waterford Place at Riata Ranch, Carrington Place and Carrington Park are all in Cypress and offer one-, two- and three-bedroom garden-style apartment homes. All four properties offer a mix of spacious floor plans averaging approximately 1,100 square feet, and the properties are all well leased with occupancies in the mid- to high-90 percent range.
-Carrington at Champion Forest is a 284-unit property located in the Champions submarket consisting of one, two and three-bedroom units with average in-place monthly rents of $1,016.
-Villas of Kingwood is a 330-unit garden-style property located in the prestigious master-planned community of Kingwood. The property offers 18 different floor plans and almost 80 percent include an attached garage. Villas of Kingwood is 93 percent occupied and has in-place monthly rents of $1,140.
All six of the properties present a value-enhancement opportunity and Steadfast plans to complete interior upgrades that will include pendant lighting in the kitchen, vinyl wood plank flooring, Berber carpet and designer accent walls in the dining room and living room. Steadfast plans to complete the interior upgrades when turning the units between residents.
With these latest acquisitions, the REIT has acquired nearly 14,000 apartment units in Alabama, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio, Tennessee and Texas purchased for over $1.3 billion.
Johnson Capital’s Denver office arranges a $7.84M FHA 223(a)(7) refi
Houston—Johnson Capital announced that Scott Graber, managing director in the firm’s Denver office, has arranged a $7.84 million FHA Section 223(a)(7) loan to refinance a 238–unit apartment community located in Houston.
The property, the Vineyard Trace Apartments, is located on 15414 Kuykendahl Road and contains 238 units. It was built in 1979 on 8.45 acres and is comprised of two buildings that are one and two stories with separate laundry facilities and one swimming pool.
The sponsor, HM Equity, has owned and operated the property through a Special Purpose Entity since 2008. They performed a moderate rehab on the property at the time of its acquisition.
The FHA Section 223(a)(7) loan is non-recourse and is fully-amortizing over the 35-year term with an interest rate is in the high 3 percent range. The loan was used to retire the existing FHA-insured debt and to take advantage of the historically low interest rate environment.
HM Equity is a uniquely-positioned real estate operating company with properties and operations in Texas. The firm’s primary focus is on multifamily ownership and management, having acquired and renovated over 2,700 apartments units.
Commenting on this transaction, Graber notes, “The sponsor is a long-time client with a great track record. Even though the project had a limited window to take advantage of the interest rate environment, we were able to produce a commitment to insure the mortgage in about 30 days.”