Today's Deals: Harbour Realty Snags 280 Units in Chicagoland
Harbour Realty Partners purchases 280 units in Chicagoland; Passco Companies buys a 212-unit golf-oriented community; Greystone originates $15.8 million for a property in Florida; and Walker & Dunlop provides a $6.1 million loan under Freddie Mac's CME program.
Gurnee, Il.—Harbour Realty Partners has acquired Pembrook Club Apartments, a 280-unit community located in suburban Chicago, from a division of Northwestern Mutual Life. A new Fannie Mae loan originated by CW Capital financed the transaction, the cost of which remains undisclosed.
“We are very pleased with this latest acquisition, giving us the opportunity to enter the Chicagoland market,” says Patrick Beach, chief executive officer of Harbour Realty Partners. “We believe it presents a great opportunity to add significant value through renovation and upgrades.”
Pembrook was built in 1989 and 23 acres. There are 23 residential buildings with a mix of one- and two-bedroom units averaging 855 square feet in size. A capital improvement plan looks to add a fitness center and renovate the clubhouse and upgrade apartment interiors.
The transaction was made through Harbour Apartment Opportunity Fund I, which acquires Class B properties on behalf of fund partners and investors. The fund has acquired $90 worth of multifamily communities thus far in 2011.
Passco buys 212-unit golf community
Louisville, Ky.—Passco Companies LLC has purchased The Legends at Indian Springs, the only multifamily community situated on a golf course in the Louisville metropolitan area. The acquisition of the 212-unit, Class A property continues Passco’s 2011 acquisition program.
“We are pleased with the acquisition of a rare investment opportunity in the unique golf course community in a dynamic business climate,” says William Winn, president of Passco. “Our plan is to maximize rental increases, occupancy rates and tenant retention, taking advantage of the economic recovery projected to accelerate during the hold period.”
Planned improvements for The Legends at Indian Springs include an upgraded playground and barbecue area, a dog park, and online concierge services. The current offering of community amenities includes a clubhouse with fitness center, a swimming pool, tennis court, and surface and garage parking.
Blake Pera of CBRE Group Inc. represented both Passco and the seller in the transaction. Passco currently has a portfolio of more than $2.4 billion in assets under management.
Greystone originates $15.8M loan
Miramar,Fla.—Greystone Funding Corporation has arranged financing for Villas de Mallorca, a 252-unit apartment community located in Miramar, Fla. The $15.8 million, 35 year, self-liquidating HUD 223(f) loan was secured for Royal Castle Companies.
Common amenities at Villas de Mallorca include a pool, fitness center and parking. Miramar, Fla., is located in Broward County. The city has a population of 122,000 and is home to Spirit Airlines and JL Audio. Fort Lauderdale is located 15 miles to the northeast.
Walker & Dunlop provides $6.1M loan under Freddie Mac’s CME program
Charlotte, N.C.—Walker & Dunlop, LLC announced it recently provided $6,100,000 in financing for Cameron at Hickory Grove, a garden-style residential apartment community located in Charlotte, N.C.
The acquisition loan was structured with a seven-year term with two-years interest only and a 30-year amortization under Freddie Mac’s Capital Markets Execution Program (CME). The loan was underwritten to an 80 percent Loan-to-Value with a 1.25 Debt-Service Coverage ratio.
The sponsor of the transaction, Cortland Partners, comments, “Establishing a presence in Charlotte has been a strategic objective for Cortland. With the help of Stephen Farnsworth and Walker Dunlop, we have accomplished that objective with the purchases of Delta Crossing and Cameron at Hickory Grove and look to increase our investment in the market going forward.”
Cameron at Hickory Grove is a 202-unit apartment community built in 1987 situated on over 11 acres. The multifamily complex offers one- and two-bedroom floor plans featuring fully-equipped kitchens, walk-in closets, and balconies/patios. Property amenities include a clubhouse with full kitchen, fitness center, swimming pool, laundry facility and controlled access. Cameron at Hickory Grove was 94 percent leased at closing.
