TODAY'S DEALS: Insight Buys Post Office, Plans 310-Unit Development

Insight Property Group buys a post office and plans a $75 million development; ARA sells a 600-bed asset serving North Carolina State University; and NorthMarq arranges a $20.2 million refi for a Chicago property at sub-4 percent interest rate.

Silver Spring, Md.—Virginia-based developer Insight Property Group, in a partnership with Nova-Habitat Inc., has purchased the Silver Spring Post Office site from the Post Service. The company will begin construction on a 310-unit, $75 million Class A apartment asset in the 4th quarter of 2012.

“This property is a gateway location in the Silver Spring Central Business District, with great access and visibility,” says Sarah Davidson, partner at Insight. “Our residents will ride on Metro and walk to restaurants, entertainment and major downtown employers.”

This has been the eighth acquisition completed by Insight in the past two years. Last fall the company broke ground on Grayson Flats, an apartment project near Arlington’s Courthouse Metro. The company remains focused on value-add, existing middle-income product.

“The market is not producing new middle income apartments in the DC area,” says Insight partner Richard Hausler. “And there is strong demand from middle income renters who need apartments.”

ARA sells 600-bed asset near NC State

Raleigh, N.C.—Atlanta-headquartered ARA has brokered the sale of University Village at Raleigh, a 210-unit, 600-bed Class A asset located near North Carolina State University.

“University Village at Raleigh was one of the most sought after student housing opportunities we’ve seen in a very long time,” says Chris Epp, co-director of ARA National Student Housing. “The location, NCSU enrolment growth and high barrier-to-entry submarket created a highly competitive bidding environment that ultimately netted 18 offers.”

The 1998-built property was over 96 percent occupied at the time of sale. It was the first North Carolina purchase made by the buyer, Cardinal Group Investments LLC. Upon acquisition, the firm changed the name to The U Raleigh.

Community amenities at the property include a gym, tanning bed, pool, basketball court, volleyball court, game room with billiards, and a business center.

NorthMarq arranges $20.15M refi for Chicago property at sub-4% interest rate

Chicago—Sue Blumberg, senior vice president and managing director of NorthMarq Capital’s Chicago Regional office, arranged first mortgage refinancing of $20.2 million for River West Lofts located at 901 W. Huron in Chicago.

The asset is a 151,480 square foot market rate multifamily property containing 158 units. Financing was based on a 10-year term and a 30-year amortization schedule and was arranged for the borrower, River West Development Ltd., by NorthMarq through its seller-servicer relationship with Freddie Mac.

According to Blumberg, the transaction is the refinance of an existing Freddie Mac loan and the fourth financing of this property. The interest rate is sub-4 percent fixed for 10 years. She said, “The borrower has continuously upgraded the property and has maximized the value of the asset.”

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