Today's Deals: Essex Realty Group Sells Skokie Apartment

Essex Realty Group brokers the sale of a 144-unit asset; Education Realty Trust lands a potential big gig at the University of Kentucky; and SilverLeaf acquires a $17.7 million non-performing condo and retail loan.

Old Orchard Apartments

Skokie, Il.—Essex Realty Group has brokered the sale of Old Orchard Apartments, a 144-unit community located in north suburban Skokie, Il. The $11.6 million sales price equates to $80,208 per unit.

“The sale of the Old Orchard Apartments is a rare transaction in this market,” says Matt Welke, principal and managing director of Essex Realty Group. “Many of the multifamily properties that have traded recently are either large institutional transactions, or smaller private market sales.”

The 1961 built property consists of a trio of 3-story brick walk-ups clustered around landscaped courts. There is a swimming pool and 184 parking spaces. The unit mix consists of 72 one-bedroom units and 72 two-bedroom units.

University of Kentucky Picks EDR to Negotiate Expansion

Lexington, Ky.—Education Realty Trust Inc. has been selected by the University of Kentucky to negotiate the potential revitalization and expansion of more than 9,000 residence hall beds over the next seven to 10 years. The first phase of the project includes EDR assuming management over all of the university’s 6,000-bed housing on July 1, 2012, and the development, construction and ownership of a 600-bed on-campus housing community.

“We are honored the University of Kentucky selected us to potentially partner with them for what we expect will be the largest on-campus housing revitalization in the U.S.,” says Randy Churchey, president and chief executive officer of Education Realty Trust.

Upon completion of Phase I, University of Kentucky can enter into a second agreement with EDR for Phase II, in which planned phases of construction and demolition will up the schools total bed count into the 9,000-bed range.

SilverLeaf acquires $17.7M non-performing condo/retail loan

Salt Lake City, Utah–SilverLeaf Financial announced the acquisition of a $17.7 million non-performing loan, secured by a residential condominium and retail development in downtown Salt Lake City, Utah.

The primary collateral of the loan is the Broadway Park Lofts development. The project is comprised of 86 total residential condos, 34 of which are completed and move-in ready. The remaining 52 condos along with the commercial retail space (9,490 square feet) on the ground level are in gray-shell condition. The condo units range in size from 550 – 1,134 square feet and have 1 or 2 bedrooms. 87 underground parking spaces are available on-site to accommodate the condominium owners. The ground-level office/retail space is split into six units along with 23 additional parking spaces.

The project had experienced numerous delays in the past few years, and is now ready for completion. The development has been approved for FHA financing which will facilitate sales to more end buyers of the units. The loan originated in 2006 for the purpose of refinancing an existing loan made by the developer as well as to provide additional funds for the construction of the development. Included in the collateral are four large commercial units located in a mixed use condo development nearby. The loan is also secured by a second lien on an 11,816-square-foot multi-tenant retail building in Salt Lake City.

The metropolitan real estate market in Salt Lake City is improving, and there is a strong demand for affordable downtown living. Substantial revitalization efforts are underway by the city, which include three blocks of new residences, offices and retail stores opening in the spring of 2012. The city hopes that this facelift will spark sales and increase nearby real estate values, thus improving the overall economic health of the city. The majority of the other newly constructed high-rise condo developments are considered “luxury living.” This will put projects like Broadway Park Lofts in a good position to offer condominium buyers a prime location downtown at a lower price point.

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