TODAY’S DEALS: Hamilton Zanze Closes Banner September with $170M in Transactions

San Francisco—September was a solid month for San Francisco-headquartered investor Hamilton Zanze. The company closed a record-breaking eight transactions totaling over $170 million. The deals were comprised of four acquisitions totaling 1,328 units, two dispositions totaling $38.8 million and one refinance and one supplemental loan totaling $15.4 million. In addition, the Hamilton Zanze team raised $74.6 million in private and institutional equity.

Acquisitions included:

• Signature Point Apartments, a 1994-built, 304-unit community in League City, Texas.
• Los Arboles Apartments, a 1985/1987-built community with 432 units in Chandler, Ariz.
• Sierra Crest Condos, a 2003/2007-built community with 62 units in Puyallup, Wash.
• Villages in the Woods, a 1983-built community with 530 units in Cypress, Texas.

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While purchase prices were not disclosed, Hamilton Zanze was happy to disclose details pertaining to its two dispositions. The firm sold the 192-unit community known as Ironwood at Palmer Park in Colorado Springs, Colo., for $22.8 million. A second Colorado Springs property, The Villages at Woodland Hills, traded for $16.0 million. It featured 160-units.

The $8.9 million refinance was for a Cherry Lane Apartments in Bountiful, Utah. The $6.5 million supplemental loan was for The Knolls at Sweetgrass in Colorado Springs.

Hamilton Zanze acquires, repositions and operates apartments across the Western and Southwestern U.S. on behalf of private investors and institutional partners.

Bascom Group/Carlyle Realty close on 584-unit portfolio in Las Vegas

Bayshore Club

Las Vegas—The Bascom Group and a fund managed by Carlyle Realty VII L.P. have acquired a two-property multifamily portfolio totaling 584 units in Las Vegas. The purchase price was $39.9 million, and the venture assumed $27.1 million of existing conduit debt financing provided by Wells Fargo Commercial Securities. Doug Schuster and Curt Allsop of NGKF represented the seller on the transaction. This is the sixth Las Vegas multifamily acquisition in the past year for Bascom.

“We are excited to be acquiring two very well located properties in the Las Vegas metro,” says Scott McClave, principal of transactions for Bascom. “Las Vegas was hit hard during the recession and has some of the largest peak to trough rent discounts in the country.”

Summerhill Villas

Summerhill Villas was built in 1990 and is located at 2150 North Tenaya Way adjacent to Howard Hughes Corp.’s master planned community Summerlin. Bayshore Club was built in 1989 and is located at 4975 South Duneville Street in the Southwest Las Vegas Valley. As a portfolio, Summerhill Villas and Bayshore Club’s unit mix consists of 23 percent one bedrooms, 58 percent two bedrooms and 19 percent three bedrooms.

“We plan to implement upgrades at each property to improve each property’s competitive position,” says Tim Whiting, portfolio manager for Bascom. “The planned upgrades include Las Vegas style pool areas, interior upgrades, and other amenity enhancements.”

Historic downtown Cleveland high rise changes hands

Cleveland—Marcus & Millichap announced the sale of National Terminal Warehouse Apartments, a 250-unit high rise located across the street from the Flats East Bank riverfront development in downtown Cleveland’s Warehouse District neighborhood. The terms of the sale were not disclosed.

Daniel Burkons, Michael Barron and Josh Wintermute, all senior directors of Marcus & Millichap’s National Multi Housing Group in the firm’s Cleveland office, represented the seller, Housing Horizons, a division of Kimberly Clarke Corp. Barron, Burkons and Wintermute also represented the buyer, Morgan Warehouse Apartments LLC, an affiliate of Morgan Management of Rochester, N.Y.

“The opportunity to acquire a first-generation downtown apartment building and bring it up to the level of the highest-end competition was enticing for investors,” says Burkons. “We solicited well-qualified offers from buyers in six states and Canada.”

National Terminal Warehouse Apartments was built in 1909 as a cold storage warehouse and converted from a vacant cold storage warehouse to 250 multifamily units in 1997. It was the first large-scale warehouse conversion in downtown Cleveland and it started a wave of downtown redevelopment that is ongoing.

“During the past 17 years, while other downtown apartments were being revitalized, this building fell behind,” says Barron. “The new owners did a fantastic job turning around the apartment building next door, The Bingham, and they are committed to returning National Terminal to prominence.”

The property is located at 1215 West 10th St. in Cleveland with views of Lake Erie and the Cuyahoga River. The $500 million Flats East Bank development project is across the street. Phase I of Flats East Bank features a 23-story office tower that opened in 2013, a fitness club, a 150-room Aloft hotel and some of Ohio’s most renowned restaurants. Phase II, which broke ground in January 2014, includes apartments, dining venues, retail space, green areas and a waterfront boardwalk. U.S. Route 2, the Cleveland Memorial Shoreway, provides the property with unparalleled freeway visibility to travelers coming into downtown Cleveland from the west.

“Sandwiched between the Warehouse District and the new Flats Development, National Terminal Warehouse Apartments has one of the best locations in all of Ohio,” concludes Wintermute.

The property is composed of two adjoining 10-story buildings and includes 2,700 square feet of commercial space, 200 garage parking spaces and 132 surface parking spaces. The unit mix features 133 one-bedroom suites and 117 two-bedroom open floor plan suites. Amenities include very high ceilings, central air conditioning and dishwashers. Residents have access to on-site laundry facilities, an open-air courtyard with grilling area, a fitness center and a rooftop deck.