TODAY’S DEALS: Crow Holdings Purchases 280-Unit Luxury Mixed-Use Community
Embrey Partners sells a San Antonio mixed-use community to Crow Holdings; Phoenix Realty partnership acquires a 372-unit property in N.J.; and DBBM provides a $19.9 million refinance for a community in Washington, D.C.
San Antonio—Crow Holdings has purchased Quarry Village, a San Antonio development that includes The Artessa, a 280-unit luxury community, and 70,785 square feet of retail space. The property’s developer, Embrey Partners Ltd., sold the property for an undisclosed price. Holliday Fenoglio Fowler represented Embrey in the transaction. Crow Holdings will continue to use Embrey Management Services to manage the property.
Artessa was 98.5 percent occupied at the time of sale. Floor plans range from 682-square-foot one-bedroom apartments to 3,000-square-foot penthouses. Community amenities include a 6,700-square-foot clubhouse and leasing center, demonstration kitchen, climate-controlled wine-tasting room with cellar, bocce ball courtyard, two pools and two parking garages.
The retail portion is undergoing current tenant finish work and is expected to be 90 percent leased by year-end. Anchors include boutique retail shops, upscale and casual restaurants, and service oriented businesses.
“We spent four years from concept to ground breaking as we looked for the highest and best use for this amazing piece of property—the very last tract in the redevelopment of the old Alamo Cement quarry,” says Jeff Booth, senior vice president of development at Embrey Partners. “We took great care in applying architectural techniques to take the large buildings and bring them down to a more comfortable human scale. This, in combination with timeless, classic, old world design, custom quality materials and scrupulous attention to detail have created a unique sense of place that is largely responsible for the project’s success.”
Phoenix, Gaia and Harel partnership buys N.J. community for $44M
Jackson, N.J.—Phoenix Realty Group has teamed up with Gaia Real Estate Holdings and Israeli-based Harel Insurance Investments and Financial Services to acquire Regency Club Apartments, a 372-unit apartment community located in Jackson, N.J. The $44 million purchase price represents $118,279 per unit.
“This is a perfect time to invest in multifamily in the tri-state area,” says Udi Kore, vice president at Phoenix. “New Jersey has strong apartment fundamentals with virtually no new construction in more than three years and a demand that continues to outpace supply. In addition, historically low interest rates and a rental market on the upswing makes value-added multifamily deals a very attractive investment for institutional capital from around the globe.”
Regency Club Apartments is comprised of 31 buildings serving middle-income renters commuting to the major employment centers in Trenton and central New Jersey. The community has a swimming pool, playground and tennis court. There is a plan for a $2 million improvement program that will modernize unit interiors, upgrade the fitness center and clubhouse, and improve walkways, signage and landscaping.
Refi loan from DBBM yields $700,00 annually in extra cash flow
Washington, D.C.–Deutsche Bank Berkshire Mortgage (DBBM) recently provided a $19.9 million loan under the US Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) 223(a)(7) program for the streamline refinance of the Chastleton Cooperative, a landmark multifamily property located along 16th Street in the Dupont Circle area of Washington, D.C. It is a fixed-rate, 35-year loan.
In 2006, the 300-unit property was financed under HUD’s FHA 223(f) program at an interest rate of 7.68 percent. Now under HUD’s FHA 223(a)(7) program, the interest rate was reduced to 3.88 percent. This reduction decreases the cost of borrowing by approximately $700,000 annually. As a result of this refinance, the borrower will be able to invest additional funds in the property, as well as provide capital for other investment needs.
“DBBM was pleased to provide the borrower with an execution that resulted in a considerable increase in cash flow over the life of the loan,” says Steve Wendel, co-head of DBBM. “The market appetite for FHA refinance programs continues to grow, and we are dedicated to providing the experience and leadership needed to enhance loan transactions for our borrowers.”
