Miami, Fla.—Forest City Enterprises Inc. has sold Emerald Palms, a 505-unit apartment community located in the Kendall/South Dade submarket of southwest Miami, to Grand Peaks Properties for approximately $70.5 million. The transaction reflected a cap rate of approximately 5 percent based on the estimated 2012 NOI. Forest City generated net cash proceeds of approximately $45.2 million.
Amenities at the asset include a clubhouse, business center, fitness center, two pools, a spa, playground and lake views.
“We continue to execute on our strategy of focusing on our primary core markets—New York; Washington, D.C.; Boston; Denver; Dallas; Los Angeles; and San Francisco,” says David J. LaRue, Forest City president and chief executive officer. “We will use liquidity from dispositions such as these to continue to reduce debt and improve our balance sheet, invest in our mature portfolio and activate entitled development opportunities in core markets.”
News of the sale was released at the same as news of a $93.1 million office disposition in downtown San Jose. That asset, Fairmont Plaza, was picked up by CBRE Global Investors.
Cassidy Turley secures $85M construction financing for Reston, Va. trophy property
Washington, D.C.—Cassidy Turley announced that it secured an $85 million construction loan for Parc Reston, a to-be-built multifamily project consisting of two 14-story high-rise structures in Reston, Va. The loan was provided by a consortium of lending institutions led by Capitol One Bank. Philip Mudd, Christian Miles, David Webb, Brad Geiger and Jamie Butler secured the financing on behalf of Renaissance Centro Reston LLC. The law firm of Grossberg, Yochelson, Fox and Beyda represented the owner on the loan closing.
The residential project will feature 360 units consisting of spacious one, two and three bedrooms with luxury amenities including expansive windows, gourmet kitchens with granite countertops and full-size washers and dryers. In addition, residents will have access to two swimming pools (indoor and rooftop), a fitness center, Cyber Café, executive business and conference center, media room, virtual golf and on-site concierge.
“The principals of Renaissance Centro, Albert Small Jr. and Doug Erdman, have built all of the multifamily product on the east side of Reston Parkway opposite the Reston Town Center,” Mudd says. “Their sponsorship was an immediate draw for a host of different lenders, including life companies and various banks,” he continues.
“Cassidy Turley’s leasing agents have trumpeted the exceptional performance of Reston Town Center for years,” Christian Miles says. “By bringing lenders to the Town Center marketing center, they could easily see how appealing it would be for residents of Parc Reston to live within walking distance to the RTC,” he adds.
“Since we were able to get a lengthy term on the loan following completion,” Webb syas. “We explored a number of different interest rate hedging strategies for the borrower. As a result, the borrower has significant flexibility and attractive low rates for an extended period,” he explains.
Encore begins $32M development in Dallas
Dallas—Encore Multi-Family has broken ground on Encore 6162, a four-story, 288-unit asset that will rise in Dallas’ Medical District. The first units are scheduled for delivery in February 2014 with a final completion slated for June 2014. Construction financing was provided by Whitney Bank of New Orleans.
“It is a once-in-a-lifetime occurrence to develop apartments within two miles of $2.5 billion in current medical construction projects,” says Brad Miller, president of Encore Multi-Family. “The expansion of Parkland Hospital and UT Southwestern is expected to generate 15,000 new jobs over the next two years. That fact combined with the $500 million Love Field expansion has changed the dynamics of the former industrial neighborhood.”
Encore 6162 is the ninth construction start for Encore Multi-Family, a subsidiary of Encore Enterprises, in the past three years. Amenities at the community will include a multi-level resort-style swimming pool, fitness facility and community areas.