HFF worked on behalf of Harrison Street Real Estate Capital LLC and The Springs Living to secure the five-year floating-rate loan. Loan proceeds were used to acquire, reposition and renovate the portfolio.
The portfolio consists of three properties south of Portland: Carman Oaks, a 174-unit property in Lake Oswego; Cedar Creek, a 58-unit property in Sherwood; and The Wilsonville, a 95-unit property in Wilsonville. The fourth property, Mill Creek Point, which has 92 units, is located 82 miles east of Portland in The Dalles. The portfolio is 86 percent occupied overall and contains a diverse mix of independent living, assisted living and memory care.
The HFF team representing the borrower was led by managing directors Stephen Skok and Timothy Joyce.
Harrison Street Real Estate Capital was founded in 2005 and has approximately $4.0 billion in assets under management. The firm currently owns approximately $3.5 billion in real estate assets including more than 25,000 student housing beds, more than 6,000 senior housing/assisted living units, more than 1.4 million square feet of medical office space, more than 72,000 self-storage units, and more than 4,600 dry and wet boat storage slips.
The Springs Living, based in McMinnville, Ore., began in 1996 with the mission of creating warm and comfortable senior communities that enhance the lives of their residents. The Springs Living currently owns and operates 10 retirement communities located in Oregon and Montana. The Springs portfolio contains more than 1,200 units, which offers a diverse mix of independent, assisted living and memory care to its residences.
ARA announces sale of 560-unit property in value-add transaction
North Lauderdale, Fla.— The Boca Raton, Fla., office of Atlanta-headquartered ARA announces the sale of Parrot’s Landing, a 560-unit luxury garden apartment community located in North Lauderdale in Broward County.
ARA South Florida-based Principals, Avery Klann and Marc deBaptiste, along with Senior Vice President, Hampton Beebe, represented Behringer-Harvard and Grand Peaks in the transaction. Dedicated Capital Investments was selected as the buyer and purchased the property for $56,300,000.
“The property was built in two phases,” noted Marc deBaptiste. “Phase I, with 408 units, was constructed in 1987 and renovated in 2007-2010. Phase II, with 152 units, was constructed in 1997.”
“Although Parrot’s Landing has benefitted from an $8.4 million interior and exterior renovation program, the buyer will likely be implementing value-add interior enhancements to further boost rents,” noted Avery Klann, lead broker on the deal.
“Newer properties in the submarket are achieving rent premiums of $75-$150. New appliances, cabinets, countertops, light fixtures and new molding can provide substantial upside in rental revenue.”
The property is located less than four miles west of the thriving Cypress Creek office market, containing approximately 4.8 million square feet of office space and over 15,000 employees. This market is home to large corporate headquarters and major employers such as Citrix Systems (1,428 employees), Kaplan Higher Education (2,800 employees), Humana, Brown & Brown Insurance, CBS Interactive, Liberty Power Corporation, DataCore Software Corporation and numerous other well-known national companies.