TODAY'S DEALS: ARA Brokers $18.5M Sale in South Carolina
ARA brokers the sale of two assets; Associated Estates buys an L.A. office with plans to build apartments; and NorthMarq Capital arranges a $15.5 million mortgage for a Washington, D.C., property.
Summerville, S.C.—It is a seller’s market and ARA keeps selling. The nation’s largest privately held brokerage firm specializing in multifamily recently sold Tradition at Summerville, a 232-unit asset located in Summerville, S.C. The property was sold by Schrimsher Properties and picked up by Nashville-based Carter-Haston Real Estate Services for $18.5 million, a price that equates to $79,741 per unit. ARA Charlotte principals Blake OKland and Dean smith represented Schrimsher Properties in the sale.
“Tradition at Summerville represents an attractive discount-to-replacement-cost investment opportunity in the high-growth corridor of the Charleston MSA,” says ARA’s Blake Okland. “The property was well received by the market, generating multiple offers for the well-positioned asset.”
The sale of the Tradition at Summerville was announced in conjunction with news of a 325-unit sale in Parker, Co. That asset, the 325-unit Briargate on Main, was sold by Colony Realty Partners and picked up by JRK Property holdings for an undisclosed price. ARA Colorado Principals Doug Andrews, Jeff Hawks, Shane Ozment and Terrance hunt represented the seller.
“There was significant competition for this asset,” says Andrews. “This is a high quality asset and the town of Parker attracted a lot of interest.”
Associated Estates to build 175-unit asset in L.A.’s Miracle Mile
Los Angeles—Associated Estates Realty Corp. has acquired Desmond Tower, a 78,800-square-foot office tower in the Miracle Mile submarket of Los Angeles. The firm plans to build up to 175 apartments and structured parking. The apartments will be known as The Desmond on Wilshire, and construction is expected to begin spring of 2013.
“The Desmond is an exceptional opportunity and a terrific way to develop our first Southern California apartment property in a highly sought after location on Wilshire Blvd.,” says Jason Friedman, vice president of construction and development at Associated Estates. “We are excited about expanding into this market.”
NorthMarq arranges $15.5M mortgage for D.C. property
Washington, D.C.–Melissa Marcolini Quinn, vice president, and Robert Rothaug, investment analyst, of NorthMarq’s Orlando Regional office arranged first mortgage refinancing of $15.5 million for Vista Ridge Apartments, a 398-unit affordable housing community located in Washington, D.C.
Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower through NorthMarq’s seller-servicer relationship with Freddie Mac.
“This was a challenging transaction because of the property’s nature as two separate but nearby assets which we were able to combine into one loan. Also, the property’s Section 8 HAP contract was for a shorter term than the loan with rents that were deemed higher than market by the appraiser. However, we were able to get the borrower excess refinance proceeds which will be used to improve the property and provide a better living experience for its residents,” said Marcolini Quinn.
