Austin, Texas—What brings a San Francisco-based investor like Hamilton Zanze to Austin? A fast-growing tech sector and a young, well-educated workforce, for starters. The firm just completed its fourth investment in the city’s tech hub with the acquisition of Bradford Pointe Apartments, located fewer than five miles from Apple and IBM. Google and Samsung also have offices within 10-miles of the asset.
The 264-unit, Class B property was built in 1984 and enjoys a location in North Central Austin, just 2.1 miles east of the upscale shopping destination The Domain. The new owner has plans to invest $1.9 million in capital improvements, and will bring Mission Rock Residential on board as property manager.
Home Properties starts a repositioning play
Matawan, N.J.—Venerable multifamily REIT Home Properties has purchased Longbrook Apartments (now Sutton Pointe), a 241-unit asset in Matawan, N.J. The asset was snapped up for $31 million in an all-cash transaction. The 51-year-old community consists of 19 garden-style, two-story buildings. Common area amenities include three central laundry areas as well as a pool and fitness center.
At closing, Sutton Pointe was 87.1 percent occupied at monthly rents averaging $1,243. The property is located along Sutton Drive within walking distance of the Aberdeen-Matawan Train Station and less than one mile from Exit 120 of the Garden State Parkway, making it about a 45-minute drive from Manhattan.
During the first four years of ownership, Home Properties expects to invest $8.6 million to correct deferred maintenance, improve curb appeal, build a community/leasing center, reposition the overall community and upgrade individual apartments as residents move out.
Eastern Union Funding closes 100 percent construction loan for Manhattan mixed-use
Eastern Union’s Jeff Seidenfeld brokered the loan, which covers 100 percent of construction costs and 90 percent of the client’s out of pocket costs—a loan with a storyline in its own right for what will be a game-changing piece of real estate in West Harlem.
Provided by Madison Realty Capital, the loan features two years interest-only with an interest rate of 11.5 percent.
The construction site is the current location of St. Luke Baptist Church. Upon completion, the building will stand eleven stories and house 22 condos with the cellar, ground floor and a portion of the second occupied by the same church. Demolition of the existing structure at 99 Morningside is scheduled imminently, and construction will commence immediately after.