TODAY’S DEALS: Colliers Completes Sale of 82-Unit Calif. Multifamily Property
Colliers completes the sale of an 82-unit California multifamily complex for $11.6 million; AREA Property Partners acquires two Tampa properties for $78 million; and Johnson Capital secures financing with lower rates and longer amortization periods.
Redlands, Calif.—Colliers International has completed the sale of Cypress Villas, an 89,248-square-foot multifamily property, for $11.6 million. Real estate investment firm Sequoia Equities bought the 82-unit garden-style property located at 301 E. Cypress Ave.
Cypress Villas was built in 2004 and is a gated community that features a mix of one-, two- and three-bedroom apartments that were 100 percent occupied at the time of sale. Cypress Villas is built on 4.7 acres in the Inland Empire, an urban and metropolitan area centered around Riverside and San Bernardino, Calif. The complex also includes a community room, fitness center and a resort style swimming pool and spa.
“We ran an aggressive marketing campaign for the seller and received 21 offers in just eight days, 19 of which were above the asking price,” says Kitty Wallace, executive vice president at Colliers, who represented the seller, MJW Receivers. “With so many offers on Cypress Villas, it is clear that there is an investor demand for the Inland Empire.”
AREA Property Partners acquires two Tampa area properties for $78M
Tampa, Fla.—AREA Property Partners has acquired two multifamily rental properties with a total of 766 units. The total purchase for the two properties, Promenade at Carillion in St. Petersburg and Sabal Palm at Boot Ranch in Palm Harbor, acquired from an undisclosed seller, was $78 million.
The Promenade at Carillion has 334 units in two-story garden-style buildings. Amenities include a business center, fitness center and spa, swimming pool, and playground. Sabal Palm at Boot Ranch has 432 one-, two-, three- and four-bedroom apartments. Amenities include patios and balconies, a business center, fitness center, swimming pool, and clubhouse.
“We feel that Promenade and Sabal Palm have strong upside potential,” says Steven Wolf, a partner of AREA Property Partners. “They are both high-quality rental properties in excellent locations.”
Johnson Capital closes Indiana loans with favorable monthly payments
Nappanee, Ind.— Adam Klingher, director of the Johnson Capital’s Midwest Multifamily Lending Group, has secured financing for two apartment buildings in northern Indiana through FHA’s 223 (f) program.
The borrower on both properties is a local investor who has owned the properties for a number of years. Both loans are 35-year fully amortizing loans processed and closed by Johnson Capital Huntoon Hastings LLC, an affiliate of Johnson Capital.
Says Klingher, “The HUD 223 (f) program has been a mainstay of the apartment financing world in the last year. While the processing times for getting these loans is longer than conventional loans, the eventual results are worth the wait. FHA/HUD loan rates are lower than conventional rates and their amortization is longer all resulting in a much lower monthly payment for the borrower. ”
One of the properties is located on the city of Nappanee and the other in Plymouth. These Northern Indiana locations are south of South Bend Indiana and about two hours from Chicago.
The Plymouth property is a two-story garden apartment complex containing 60 units located within eight buildings. The property was constructed in 1973 and contains 24 one bedroom units, 20 two-bedroom units and 6 three- bedroom units.
The Nappanee property was built in 1974 and contains 48 units located in 6 buildings. The property has 24 one-bedroom and 24 Two-bedroom units. Both properties have seen ongoing updating since construction and are in good condition.
