Waterton Residential Continues Buying Spree with Austin Purchase

Waterton Residential acquires a 288-unit community in Austin; MEPT and Bentall Kennedy announce a Manhattan development; and NorthMarq Capital arranges a $21 million, three-year bridge loan with interest-only.

Fox Hill

Austin, Texas—Waterton Residential has expanded its nationwide portfolio with the acquisition of Fox Hill, a 288-unit, Class A community located in Austin, Texas. The asset is comprised of 13 three-story buildings with a mix of one-, two- and three-bedroom units. Waterton purchased the property for an undisclosed price, though Holliday Fenoglio Fowler arranged a $23.8 million, five-year, fixed-rate acquisition loan through M&T/Fannie Mae.

“Fox Hill is a desirable asset in Austin, an appealing target market for Waterton’s newest investment vehicle, Venture XI,” says Matt Masinter, senior vice president of acquisitions at Waterton. “We are excited to add this high quality asset, in arguably the strongest submarket in the metro area to our current portfolio. Waterton will continue to pursue opportunistic acquisitions in Austin, Dallas and Houston as we endeavor to grow the Venture XI portfolio nationwide.”

Community amenities at the 2009 built community include a fitness center, clubhouse with Wi-Fi, playground, dog park, swimming pool, business center, on-site laundry, access gates, covered parking, and detached garages. The property is currently 97.3 percent leased.

Waterton Residential Property Venture XI is a $500 million discretionary multifamily investment fund. The vehicle was recently used to acquire Verano, a 384-unit community in Kissimmee, Fla.

MEPT and Bentall Kennedy announce Fifth Avenue development

New York—Multi-Employer Property Trust and its real estate advisor, Bentall Kennedy, have announced plans to develop a 35-story, 165-unit apartment community in Manhattan. MEPT has committed over $100 million in equity to the project, which is located at 309 Fifth Avenue between E. 31st and E. 32nd Streets. Bentall Kennedy will work with an experienced project team, including Urban Development Partners as developer, Lend Lease as general contractor and SLCE Architects as project architect.

The new building will total 122,000 square feet and includes 10,400 square feet of retail space on the street and basement levels. Community amenities will include a 24-hour doorman, a fitness center, bike room and a rooftop terrace.

“MEPT has built three apartment buildings in New York and we are pleased that market conditions now support new construction,” says David Antonelli, executive vice president at Bentall Kennedy. “As with our previous investments, 309 Fifth Avenue provides MEPT with an attractive opportunity to create value for its investors. Currently, there is a limited pipeline of new projects and over the past year there has been positive net absorption of the existing apartment inventory.”

309 Fifth Avenue is designed to achieve USGBC LEED Certification. The project is expected to generate 1,000 jobs and over $265 million in economic activity for New York City.

NorthMarq arranges$21M, 3-year bridge loan with interest-only

Fort Worth, Texas–Joel Coykendall, senior vice president and managing director of NorthMarq Capital’s Jacksonville Regional office, arranged a bridge loan refinance of $21 million for City Parc at Keller, a 312-unit multifamily complex located at 4421 Ray White Road in Fort Worth, Texas.

Financing was based on a three-year term interest-only for 24 months, then amortized over 30 years and was arranged for the borrower through NorthMarq’s relationship with G. E. Capital Real Estate. Coykendall states, “Our client was extremely pleased with the entire process and we were able to close the loan within 45 days from the day the G.E. loan application was signed.”