Raleigh, N.C.—Colonial Properties Trust has purchased Colonial Grand at Brier Creek Place (formerly Highlands at Brier Creek), a 350-unit property located in Raleigh, N.C. The $45.5 million purchase was funded with proceeds from asset dispositions and borrowings on the company’s unsecured credit facility.
The 2008 built property is located in Raleigh’s Brier Creek master planned community. It was 94 percent occupied at the time of acquisitions. Amenities include an indoor sports court, cabana with grilling area, a pool with spa, a landscaped waterfall, Internet café, a poker and conference room, and a playground.
PRG acquires $36.4M asset
Riverside, Calif.—Phoenix Realty Group has acquired Canyon Creek Apartments, a 288-unit community located in Riverside, Calif. The $36.4 million transaction represents the 12th apartment community in PRG’s Southern California portfolio. The company plans to begin a $3 million renovation program at the 24-acre community. Financing was arranged by Berkadia in Los Angeles.
“We will continue to add value to our portfolio with an increased focus on project management using our development expertise,” says Edward Ratinoff, managing director and head of national acquisitions at PRG. “Owning so many units in close proximity will help us benefit from economies of scale in renovations and on-site management.”
Canyon Creek Apartments is located in close proximity to five hospitals, the University of California Riverside, two community colleges, March Air Force Base and several retail centers. The 70-building community features hundreds of mature trees and an amenity package that includes a fitness center, pool, hot tubs and a community car wash.
Arbor funds first FHA-insured loan with HUD’s new multifamily documents
Lansing, Mich.—In the wake of the U.S. Department of Housing and Urban Development’s implementation of new closing documents for its Federal Housing Administration (FHA) Multifamily mortgage insurance program, Arbor Commercial Mortgage, LLC has announced it has funded the nation’s first FHA-insured loan with HUD’s new multifamily loan documents.
Arbor, a national, direct commercial real estate lender, provided the $18 million FHA-insured 223(f) loan for the refinancing of College Towne West Apartments, a 532-unit, market-rate apartment complex in Lansing, Mich. It was a 34-year fully amortizing loan.
“In the third quarter, HUD made substantial changes to its multifamily loan documents and Arbor was pleased to have been the first FHA Multifamily Accelerated Processing (MAP) lender in the country to close an FHA-insured loan in conjunction with the new documents,” says Joseph Donovan, Arbor’s senior vice president and national FHA director. “We had experienced and capable transaction participants on both the borrower and HUD sides, resulting in a seamless closing and successful outcome.”
College Towne West Apartments benefits from the fundamental strength of the Lansing, multifamily market, as it feeds the housing demands of Michigan State University as well as state capital employees. As a result, the property has a student concentration of approximately 70 to 75 percent.
Originating the loan for Arbor was Michael Jehle, Midwest regional director, in Arbor’s Bloomfield Hills, Mich., office. “In a state in which many sources of funding will not often participate these days, Arbor was able to provide extremely attractive loan terms and proceeds for our repeat borrower in this deal,” Jehle explains. “Arbor was pleased to participate as the FHA Multifamily Accelerated Processing lender in this transaction.”