Weinstein Properties Buys into Charlotte with $41.5M Apartment Acquisition
- Sep 23, 2013
Charlotte, N.C.—Weinstein Properties has completed the $41.5 million purchase of Cielo, a 205-unit Class A property located in the Montford area in Charlotte, N.C. It was one of the highest prices ever achieved in the market. The seller was Cornerstone Real Estate Advisors. ARA repped the sale of the 2010-built asset.
“This was the first mid-rise deal [Weinstein Properties] has done in Charlotte and one of the highest prices ever paid for a multifamily property in the Charlotte market,” says ARA’s Blake Oakland. “The nature of development in Charlotte right now is dominated by infill, transit oriented mid-rise and high-rise product making this deal another in a long line of high-end trades. We expect to see pricing continue to aggressively climb above $200,000 per unit as the luxury rental market is demonstrating substantial growth.”
Cielo was 94 percent occupied at the time of sale. The property is comprised of one-, two- and three-bedroom units. Amenities include a clubhouse, fitness center, garage, swimming pool, business center, sundeck and resident lounge.
Bascom acquires a 336-unit asset in Las Vegas
Las Vegas—The Bascom Group has made its first acquisition in Las Vegas this year with the purchase of Broadstone Montecito. The 336-unit Class A asset was picked up for $36.6 million. ARA handled the listing and sale, while CBRE Capital Markets arranged debt financing provided by CIBC Inc.
“We are excited to be extending our presence into Southern Nevada,” says Scott McClave, principal for Bascom. “Montecito represents a great opportunity to purchase a well-built, high-quality property in the trough of a rebounding market. Market fundamentals will continue to improve dramatically in the Las Vegas market and we look forward to creating a place where our residents can call home.”
The property was built in 2007 by Alliance Residential. It consist of 17 buildings spread across 15 acres in the Northwest Las Vegas submarket, which offers easy access to multiple job centers, including Centennial Hills Hospital. The acquisition represents the ninth multifamily property The Bascom Group has acquired in 2013.
Thorofare Capital funds a $8.2m non-recourse loan
Atlanta—Thorofare Capital, a national, commercial real estate direct lender, announces that it has recently funded a $8.2 million non-recourse, recapitalization loan for a three-property multifamily portfolio containing 420 units. The properties are owned by an Arizona-based distressed real estate investment and management firm.
The three properties include Dwell at the View and Dwell at 555 in Atlanta, as well as Dwell at 1794 in Marietta.
The loan, which closed just one week after application, reflects an attractive loan basis of $19,576 per unit. Proceeds of the loan are being used to pay off existing low-leverage senior loans, repatriate equity to the sponsor for use in a new, separate purchase transaction, and reserve $900,000 towards the completion of the renovations at two of the properties, Dwell at 555 and Dwell at 1794.
The sponsor, an experienced residential investor with a track record of acquiring, stabilizing, and managing 5,000+ multifamily units, plans to complete the renovations, increase occupancy, and improve cash flows. It acquired the properties in 2011 and 2012 through separate transactions and subsequently commenced a complete renovation, re-branding and stabilization plan to maximize its value-add strategy prior to refinance the properties.
The Dwell at the View is a 12-building multifamily community totaling 216 units, located on 13.85 acres in Northwest Atlanta. The property is currently 80 percent occupied and is undergoing the tail-end of an approximately $2,000/unit interior and exterior upgrade plan.
Dwell at 555, a 12-building multifamily community totaling 112 units located on 7.56 acres, and Dwell at 1794, a nine-building multifamily community totaling 92 units located on 6.71 acres, were originally built by one developer and share identical floor plans and design. Subsequent to the initial purchase, the sponsor established a $2.4 million capital improvement plan, which includes curing deferred maintenance, restoring the interiors of the units, and upgrading the building exterior as well as common areas. To date, 80 percent of the exterior renovations have been completed and 70 of the total 204 units at Dwell at 555 and Dwell at 1794 have been rehabilitated with occupancies at 67 percent and 74 percent, respectively.
Commenting on the transaction, Senior Vice President Felix Gutnikov notes, “We are thrilled to be working with an established sponsor group on this value-add portfolio that provides an attractive loan basis and strong cash flow. Providing certainty of execution in a very short time frame as well as flexible pre-payment options and pricing allowed us to win this deal in a competitive lending environment.”