Today's Deals: ARA Announces $64.5M Portfolio Sale
ARA announces a $64.5 million portfolio sale; Phoenix Realty Group acquires two assets for $65 million; and The Bozzuto Group partners with Giant Food on a $125 million development.
Jacksonville, Fla.—The Jacksonville and Tampa offices of Atlanta-headquartered ARA brokered the sale of 336-unit Circle at Bartram Park in Jacksonville and 300-unit Circle at Crosstown in Tampa.
The Central and North Florida-based sales team, led by Principal Kevin Judd, Senior Vice President Patrick Dufour and Vice President Matt Wilcox represented an institutional seller in the $64,500,000 portfolio sale which was purchased by Atlanta-based JMG Realty.
Both properties were constructed in 2009 by Crescent Resources and feature best-in-class amenities and several “Green” features including a LEED-Certified “Green” clubhouse and 100 percent smoke-free communities.
“Circle at Crosstown is located in Brandon, currently one of Tampa’s strongest performing submarkets, and offered the buyer an excellent opportunity to acquire an exceptional apartment community with near-term upside as the submarket continues to improve,” comments Patrick Dufour. “Circle at Crosstown recently completed lease-up, providing this ‘Core’ quality asset with additional upside potential to continue to increase effective rents on renewals.”
“Circle at Bartram Park, is located in Jacksonville’s most desirable submarket, Southeast Jacksonville,” notes Wilcox. “The Class ’A’” property features one of the most luxurious amenity packages in the region, which is known for its high growth potential, white collar employment and affluent demographics.”
“Multifamily fundamentals continue to improve throughout Central and North Florida, and we are seeing a growing number of both institutional and private buyers interested in these markets,” says Dufour. “Occupancy has increased nearly 300bps in Tampa over the past 12 months and now boasts 6 consecutive quarters of effective rent growth.”
“Jacksonville is expected to reach 93 percent occupancy market-wide by the end of 2011 with 3.5 percent effective rent growth projected for 2012,” observes Wilcox. “We are receiving more investor interest in Jacksonville as the market recovery story continues to prove out. With extremely limited supply and strong employment and population growth potential, now is a good time to buy in Jacksonville,” Wilcox concludes.
Phoenix Realty Group nabs two Inland Empire assets
Los Angeles—Phoenix Realty Group has brought its 2011 acquisition tally to 10 with the purchase of two communities in California’s Inland Empire. The group just announced the acquisition of Windrush Village Apartments in Colton, Calif., and Galleria at Towngate Apartments in Moreno Valley, Calif., which were bought for $34.5 million and $30.8 million respectively.
“We continue to be bullish on the Inland Empire’s Riverside and San Bernardino counties due to their close proximity to employment centers in high-priced Los Angeles and Orange counties,” says Edward Ratinoff, managing director and head of national acquisitions at Phoenix. “These value-added investments are uniquely positioned to meet a growing demand for quality, well-located rentals near top schools, retail malls and jobs in a region key to the recovery of California.”
The 268-unit Galleria at Towngate was built in 2006. Amenities include a pool with spa, fitness center, clubhouse with business center, and a children’s playground.
The 366-unit Windrush Village consists of 30 buildings situated on 11 acres. The property will undergo a $2.6 million capital improvement plan focused on renovating the clubhouse and gym, as well as updating appliances in two-thirds of the units.
Both sales were brokered by John McCulloch, principal with ARA Pacific in San Francisco. Financing was arranged by Brandon Smith, senior analyst with CBRE Capital Markets in Los Angeles.
Giant Food partners with Bozzuto on D.C. mixed-use project
Landover, Md.—Supermarket owner and operator Giant Food has selected The Bozzuto Group as partner for its development of Cathedral Commons, a 137-unit mixed-use development project on Wisconsin Avenue in Northwest Washington, D.C. The project has a $125 million price tag and will also include eight townhomes, more than 500 parking spaces and 128,000 square feet of retail anchored by a state-of-the-art Giant Food.
“We are thrilled to work with Giant to create Cathedral Commons, a community that will offer the District neighborhoods of Cleveland Park and Cathedral Heights the best shopping, dining and housing yet,” says Tom Bozzuto, chief executive officer at The Bozzuto Group.
The development is located on four acres of land positioned on Wisconsin Avenue between Macomb Street and Idaho Avenue. Southside Investment Partners LLC with partner with Bozzuto on the retail portion of the project. Construction on the project is slated to start in 2012, with the opening of the new Giant Food scheduled for late 2013.
