Security Properties Buys Portland Asset

Security Properties makes a value-add play; HFF lands construction financing and joint venture equity for a Virginia mixed-use development; and Advenir acquires an apartment property in an upscale submarket of Orlando, Fla. for $27.1 million.

Honeyman Hardware Lofts

Portland—Security Properties has purchased the Honeyman Hardware Lofts building, an 89-unit mixed use asset located in Portland’s Pearl District, for $20.3 million. The owner and operator will embark on a $4.6 million renovation program which should add value while maintaining the property’s historic identity. The property was originally built as a hardware store and warehouse between 1903 and 1912. The asset was converted to loft-style apartments in the late 1980s.

“We are excited to begin renovation plans that should maximize the potential of the Honeyman Hardware Lofts block and firmly establish this landmark property’s position as a cornerstone of the Pearl District,” says David Dufenhorst, chief investment officer at Security Properties.

The acquisition marks the end of a joint venture that began in 2006, when Security Properties purchased the Portland property in a joint venture with Boston-based Equity Resource Group. The original intent was to create a new development on the site and to increase the overall unit count by 49 units. Instead, with ERG’s fund life approaching the end of its term, the joint venture partners decided to list the property for sale in 2011. Security Properties decided to snap up the asset after assessing the existing worth and potential value of a renovated property.

The renovation will tackle both interior and exterior improvements, including a new leasing office and amenity space. The upgrade will also bring the unit count to 101 apartments.

HFF lands construction and equity funding for a mixed-use asset

500 Madison

Alexandria, Va.—Holliday Fenoglio Fowler has arranged construction financing and joint venture equity for the development of 500 Madison, a mixed-use asset in Old Town, Alexandria, Va. Due for completion in 2014, the property will include the Kinglsey, a 175-unit Class A apartment community, along with 52,000 square feet of retail space leased to Harris Teeter.

HFF worked on behalf of Alexandria Old Town North (AOTN) to secure joint venture equity through Principal Real Estate Investors and a construction loan from Wells Fargo Bank. AOTM is a venture comprised of The Pinkard Group, Buchanan Partners, Buvermo Properties and Theo Androus.

“We are very pleased to be part of this project,” says Sue Carras, senior managing director of HFF. “A location that offers virtually no planned or existing Class A rental housing, Old Town is one of the strongest infill markets in the United States. Surrounded by the Federal-style townhomes that populate the adjoining blocks, this site is nestled amongst the most prestigious neighborhood in Alexandria, within walking distance of the Potomac River waterfront and the area’s downtown-style shopping and dining.”

Advenir acquires apartment property for $27.1M

Orlando, Fla.—Advenir, a provider of multi-family real estate investment and management services, has acquired Advenir at Polos East (formerly Polos East at Waterford), a 308 unit community located in the upscale Waterford Lakes submarket of Orlando, Fla. for $27.1 million. In the past 12 months, Advenir has acquired more than 2,300 multi-family units.

“We were attracted to Advenir at Polos East because of the significant value to replacement cost, strong market fundamentals and clear value-add potential,” said Todd Linden, chief acquisition officer of Advenir. “Advenir is actively looking to acquire stabilized income producing multi-family assets in markets that have exhibited, and are projecting, healthy economies, positive employment growth, and in-migration.”

Linden went on to say that Advenir will implement a capital improvement program focused on Advenir at Polo East’s exterior, common areas and unit interiors. Exterior improvements include new signage, exterior paint, and parking lot repairs. The clubhouse will be modernized to appeal to the younger resident demographic. This will include new areas to increase resident interaction, as well as upgraded equipment in the fitness center, business center and billiards room. Interior improvements will include new kitchen and bathroom cabinet doors, black appliances, lighting, hardware, wood vinyl flooring in the kitchen and bathrooms, ceiling fans in all bedrooms, two-inch blinds on all windows, and resurfaced countertops. The interior improvements will enable the property to achieve rents tha are $75 plus more per unit.

Built in 1991, Advenir at Polos East offers luxurious interiors including washer/dryers, ceiling fans, exterior storage, patios/balconies, and vaulted ceilings in select units.  Community amenities include clubhouse, fitness center, game room, gated entrance, two swimming pools, spa, dog park, racquetball courts, basketball court, tennis courts, sand volleyball court, car wash area and picnic/barbecue area.

Advenir at Polos East is 94 percent leased. The community features 140 one bedroom/one bathroom units, 136 two bedroom/two bathroom units and 32 three bedroom/two bathroom units. Currently, rents average $750-$1,100 per month.

Advenir represented itself in the transaction. Kevin Judd, Patrick Dufour and Matt Wilcox of ARA represented the seller, a National-based REIT.

“Being surrounded by ample employment opportunities and limited new supply, Advenir at Polos East demonstrates strong potential to increase rents over the long term,” said Judd. “The property is only three miles south of the University of Central Florida, which is the second largest public university by enrollment in the USA with 58,800 students and employs over 10,000 people.”