Ellicott City, Md.—Home Properties has purchased Howard Crossing, a 1,350-unit asset located in Ellicott City, Md. The sales price of $186 million equates to $138,000 per unit. A portion of the acquisition was funded using the proceeds from the issuance of $50 million on unsecured senior guaranteed notes.
“This newly acquired property is located less than one mile from Charleston Manor, an 858-unit property we acquired in September 2010 that has exceeded our underwriting expectations,” says Edward Pettinella, president and chief executive officer at Home Properties. “Based on our familiarity with this submarket, we expect Howard Crossing will achieve similar success.”
Howard Crossing was 92.6 percent occupied at the time of sale with monthly rents averaging $1,111. The property is located approximately 20 miles northwest of Fort Meade. Common amenities include two pools, a business center, fitness center, basketball courts and tennis courts.
Home Properties plans to spend $12 million during the first three years to upgrade individual units and exteriors. The capital improvement plan will correct deferred maintenance, improve landscaping, HVAC and electric service, replace roofs, asphalt and concrete; and upgrade kitchens. New management expects a 5.9 percent first year cap rate after allocating 2.7 percent of rental revenues for management and overhead expenses.
42-Unit Oakland Property Trades for $4.9M
Oakland, Calif.—Marcus & Millichap has brokered the sale of 350 Newton Avenue, a 42-unit property located in Oakland, Calif. The asset had a $4.9 million price tag and was sold by one private investor to another. David Wolfe, vice president of investments at Marcus & Millichap’s Oakland office, represented both the buyer and seller in the transaction.
Originally built in 1960, the majority of the units have received significant upgrades, including new cabinets, countertops, appliances, ceiling fans, carpet and Pergo flooring. The complex sits on a more than one-half acre lot which encompasses an entire block, totaling 30,012 gross square feet of space. Amenities include a courtyard with a pool.
Red provides $21.2M financing in the first 221(d)(4) FHA loan to benefit from N.C.’s Brownfields Agreement
Charlotte– Red Mortgage Capital LLC recently financed a $21,186,400 221(d)(4) FHA insured mortgage loan for a 164-unit property in Charlotte. This is the first 221(d)(4) secured by a property subject to a North Carolina Brownfields Agreement. As a result of the Brownfields Agreement, the property will benefit from a five-year partial real estate tax abatement.
330 West Tremont Apartments, a four-story apartment building on top of two levels of parking, will be built on a 2.2-acre lot at the corner of South Tryon and West Tremont. The project is scheduled for completion in 2013.
Boykin Management Co., which develops and operates hotels, resorts and conference centers has a majority interest in the project and has plans for a second phase of apartments and commercial or retail outparcel buildings at the site. Boykin is working on the project with multifamily developer The Boulevard Co., led by Chris Branch.
Lee F. McNeer, director of Red Mortgage Capital LLC, and co-originator of the loan said, “There were a number of moving pieces in this transaction, given not only the complexities of the Brownfields Agreement but also the overall structuring of the loan. It was pleasure to work with the Boykin’s, Chris Branch, Kenny Abner and the rest of the development team and we look forward to future opportunities to work together.”
Chris Branch of The Boulevard Co. commented, “Lee McNeer, Pete TenEyck and the underwriting team at Red worked with us to successfully resolve a number of issues along the way. Through the persistence and tenacity of the RED team and the patience of the Greensboro HUD office we are ultimately able to deliver a great urban in-fill development to the South End of Charlotte within walking distance of the LYNX Blue Line.”