UDR to Enter Manhattan Market with $260.8M Acquisition

UDR enters a definitely agreement to purchase 10 Hanover Square; Walker & Dunlop closes a $9.6 million refinance loan; and Boston Capital invests in 96-unit affordable development in partnership with a nonprofit.

10 Hanover Square (Coutesy Flickr Creative Commons user Shawn Hoke)

New York—UDR Inc. has entered into a definitive agreement with Witkoff Group to acquire 10 Hanover Square, a 493-home apartment community in New York’s Financial District. The purchase price of $260.8 million will be funded through the assumption of an existing $192 million fixed rate mortgage, the issuance of approximately $64.3 million of operating partnership units and approximately $4.5 million in cash. UDR anticipates that closing will occur following the assumption of the $192 million mortgage and the satisfaction of closing conditions.

“The expansion of our portfolio into Manhattan reflects our desire to own and operate apartment homes in markets that have the best growth prospects based on favorable job formation and low home affordability,” says Tom Toomey, president and chief executive officer of UDR. “With total revenue per home of $3,000 per month and only six years following the completion of a major redevelopment, the acquisition of 10 Hanover Square will further enhance the overall quality of our portfolio.”

The 23-story building is located between Water Street and Pearl Street. It was formerly the headquarters of both Goldman Sachs and Kidder Peabody prior to a 2005 renovation into a residential tower with condominium-style finishes. The building offers studio, one-, two- and three-bedroom apartments that average 708 square feet, and feature open floor plans, granite counter tops, maple cabinets and solid oak flooring. Amenities include a 24-concierge service, two lounges, and a rooftop deck. There is also 41,650 square feet of retail space leased to Xtreme Gym New York (where residents receive a discounted membership), Starbucks, two restaurants and an Apple Bank.

Walker & Dunlop closes $9.6M refinance for Oklahoma apartments

Summit Pointe Apartments

Oklahoma City, Okla.—Walker & Dunlop LLC has provided a $9,575,000 refinance loan secured by Summit Pointe Apartments in Oklahoma City, Okla. The loan is structured with a 10-year term and a 30-year amortization. The Walker & Dunlop team was led by senior vice president Andrew Tapley. Jason Rice of Granbridge Real Estate Capital originated the loan.

Summit Pointe Apartments is a 184-unit class A garden-style apartment community built in 2009. Amenities include a pet park, outdoor pool, private garages, fitness center, playground, laundry room, clubhouse and business center.

Walker & Dunlop LLC is a subsidiary of Walker & Dunlop Inc., a leading provider of commercial real estate financial services with a focus on multifamily lending.

Boston Capital invests in 96-unit affordable development with non-profit

Stuarts Draft, Va.–Boston Capital invested in the construction of Montague Terrace Apartments, a to-be-built, 96-unit multifamily development for families located in Stuarts Draft, Va. The general partner, The Humanities Foundation, Inc., based in South Carolina’s Lowcountry, is a non-profit organization dedicated to increasing the availability of affordable housing through nonprofit housing development, rental and utility assistance, homelessness prevention, advocacy and education.

“This investment represents Boston Capital’s third partnership with our developer partner The Humanities Foundation,” says Jack Manning, president and CEO of Boston Capital. “The location, unit design and amenities offered at Montague Terrace Apartments will attract families to a superior, affordable alternative to housing currently available in the Stuarts Draft area.”

Located on 4.8 acres, Montague Terrace Apartments will feature 56 two-bedroom/two-bath units and 40 three-bedroom/two-bath units in four, three and four-story buildings. Development amenities will include a clubhouse with a community room, a kitchen, a common laundry facility and a leasing office, a playground and a BBQ/picnic area. Unit amenities will include dishwashers, central air conditioning, washer/dryer hook-ups and high-speed internet hook-ups. Units will be available to families earning 60 percent or less of the Area Median Income.