TODAY'S DEALS: IPA Sells Sacramento-Area Asset for $48.3M
IPA brokers the sale of a 452-unit asset near Sacramento; EdR wins approval for a student housing revitalization at the University of Kentucky; and Eastern Consolidated procures a buyer in the $33.8 million sale of a property in Manhattan.
Rocklin, Calif.—Institutional Property Advisors, the multifamily brokerage division of Marcus & Millichap, has arranged the sale of Meridian at Stanford Ranch. The 452-unit community commanded a $48.3 million sales price, which equates to $106,969 per unit. FPA Multifamily LLC bought the property from seller Demmon Partners.
“Sophisticated buyers and select institutions are actively seeking opportunities in the Sacramento MSA where investment yields are more favorable than the core markets of the San Francisco Bay Area and Southern California,” says Stan Jones, executive vice president of investments at IPA. “Meridian at Standford Ranch’s investment appeal is driven by an exceptional Rocklin location and add-value opportunity through various capital improvement projects.”
The community is located at 2121 Sunset Blvd., approximately 100 miles north of San Francisco and 90 miles south of the Lake Tahoe area. The property was built in 2000 on 28 acres. It is comprised of 26 two-to-three-story wood-frame buildings. Amenities include a pool and spa, community room, fitness center, and business center.
EdR approved for Univ. of Kentucky housing revitalization
Lexington, Ky.—The University of Kentucky Board of Trustees has approved a 50-year ground lease with EdR, allowing the student housing developer to begin the first phase of the school’s on-campus housing revitalization.
The project will entail the construction of a 601-bed, $25.8 million freshman honors housing community at Haggin Field, which will be owned by EdR. The company expects the living-learning community, which will include classroom space, to be ready for occupancy by fall 2013.
The two parties are also currently finalizing plans for Phase II, which is anticipated to include an expansion from 6,000 to 9,000 total residence hall beds, with EdR managing the school’s entire portfolio of on-campus housing starting in the fall of 2013.
“The University of Kentucky has taken a historic step and now leads the way in innovative campus revitalization,” says Randy Churchey, president and chief executive officer at EdR.
Phase II will involve the systematic demolition of most of the current on-campus dorms, replacing them with aesthetically and technologically modern housing. EdR will finance the project through its On-Campus Equity Plan (The ONE Plan), which will uses the company’s equity and financial standing to fund projects on university land.
Eastern Consolidated procures buyer in $33.8M sale
New York—A pre-war 57,000-square-foot, 64-unit, mixed-use residential building, strategically situated within steps of Manhattan’s two hottest submarkets, West Chelsea and Meatpacking, has traded for $33.8 million to Stonehenge Partners.
Eastern Consolidated Senior Director Azita Aghravi and Vice Chairman Brian Ezratty with Senior Financial Analyst Paul Nigido represented the seller, Fortuna Realty Group, led by Morris Moinian. The Eastern team also procured the buyer who plans to rename the building Stonehenge 18, effect a number of capital improvements to the apartments and reposition its retail component, which currently consists of eight store fronts with 131 feet of frontage along Ninth Avenue.
“This is a very desirable building in a highly sought-after location,” noted Aghravi. “Two factors drove the sale for Stonehenge: 1) the fact that all the retail tenants have cancellation and/or termination clauses; and 2) the long-term upside in the stabilized and rent controlled units, in addition to the ability to substantially raise rents in the free market apartments.”
According to Ezratty, “When you offer a property for sale whose neighbors include the Chelsea Market, Chelsea Piers, Google’s New York headquarters, the Frank Gehry-designed IAC headquarters, and proximity to the High Line, investors are going to take notice. This was a great fit for Stonehenge, known for renovating and re-positioning older buildings in prime locations.”
Built in 1939, at the pinnacle of pre-war construction, the building combines pre-war quality and spaciousness with 21st century amenities. It is configured with 31 studios and 27 one-bedroom units, each retaining its original 1939 layout. Especially appealing to young professionals, all the units enjoy exceptional light and air given its corner avenue location, with large light wells in the center of the building, as well as alleyways situated in rear and on the south side of the lot.