TODAY’S DEALS: Mack-Cali Enters D.C. with $262.5M Buy
Mack-Cali enters the Metro D.C. multifamily market in a big way; Walker & Dunlop closes $90 million for a Pennsylvania asset; and Keller Williams Commercial arranged the $3.31 million sale of a San Diego multifamily property.
Alrington, Va.—Mack-Cali Realty Corp. has entered the Metro D.C. multifamily market in a big way with the joint venture acquisition of Crystal House, an 828-unit community located in Arlington. The self-managed REIT acquired the property with a fund advised by UBS Global Asset Management for $262.5 million in a transaction that includes land to accommodate the development of approximately 295 additional units, 252 of which are currently approved. The venture obtained a $165 million mortgage loan from Walker & Dunlop under Fannie Mae’s DUS program for the purchase.
Mack-Cali’s Roseland subsidiary will manage the property and oversee the renovation of the unrented units. The amenity package includes a rooftop fitness center and sky deck, an Olympic-sized swimming pool, concierge service as well as on-site retail.
“The Mack-Cali/Roseland team is thrilled to be entering the Metro D.C. market, one that offers enormous potential,” says Mitchell Hersh, president and CEO of Mack-Calin. “When we’ve completed the renovation project, we are confident that we’ll be able to command rents at the highest end of the market.”
Walker & Dunlop closes $90M for Pennsylvania asset
Bucks County, Pa.—Walker & Dunlop has provided $90 million to Korman Communities for Country Lights Apartments, a garden-style community located in Bucks County, Pa. The loan was structured under Freddie Mac’s CME program with a 10-year term with 2-years interest only, followed by a 30-year amortization period. The firm was able to close the transaction within 35 days of receiving the signed application.
“We couldn’t be happier with the speed and execution of this transaction,” says Bradley Korman, co-CEO of Korman Communities. “Steven Heller and his team at Walker & Dunlop delivered everything they promised from Freddie Mac, on time and at the most competitive pricing. This deal doesn’t get done in 35 days, over the holidays, without the tremendous effort of everyone involved. We were very impressed and very appreciative.”
Country Lights Apartments features a recently renovated clubhouse, business center, Olympic-sized swimming pool, fitness center, large community terrace and two lighted tennis courts.
Keller Williams represents seller in $165K/unit sale of San Diego apartment property
San Diego—Keller Williams Commercial arranged the $3.31 million sale of a 20-unit multifamily property located at 3940 Oregon Street in San Diego.
The seller, Leon Alchalel, a Residential Agent at the office, was represented by Matthew Udewitz of the Keller Williams Commercial division of the Keller Williams San Diego Metro Office. The buyer, Carol Crossman, an accountant and ex-officio director of the San Diego County Apartment Association, was represented by Robert Valera of Voit Commercial.
The property, built in 1971, sold on Dec. 11, 2012. The purchase was financed by Chase Commercial Banking and was handled by Ann Block and Kristy Blair. The sales price represented a value of $165,250 per unit. The property featured an excellent unit mix including eight very large two-bedroom two-bathroom units and 12 one-bedroom and one-bathroom units. The eight two-bedroom units featured a separate vanity area in the master suite and an extremely large living room and master bedroom compared to other buildings in the marketplace. The units also featured a full-sized dining room and kitchen. The remaining 12 units at the property were large one-bedroom and one-bathroom units. The units showed very well, as the seller had put over $50,000 into recent capital improvements of the property.
Although this is not the highest price per unit achieved in the North Park marketplace, it is the highest value per unit received in the marketplace for a building larger than 10 units in size and built prior to 1980, says Keller Williams. Similar properties larger than 10 units and built prior to 1980 previously traded between $115,000 and $145,000 per unit. The result is a $500,000 (25,000 per unit) or more premium over similar sales.