Pittsburg, Calif.—ARA has brokered the sale of Los Prados, a 242-unit community located in Pittsburg, Calif., about 40 miles from San Francisco. The ARA Pacific team, led by San Francisco-based Principals Curtis Gardner and Mark Leary, served as the exclusive advisors on the transaction representing both the seller, Waterton Associates, and the buyer, McDowell Properties, which purchased the property for $32.5 million.
“The asset was acquired using an older investment vehicle now in disposition mode and after a longer than anticipated hold period, we are very happy with the execution and outcome of the investment,” says Jake Gentling of McDowell Properties. “We are excited to expand our presence in the Bay Area and this acquisition is consistent with our strategy to acquire and reposition assets in dynamic locations across the country. We plan to spend additional capital to improve the property’s curb appeal while taking advantage of the positive, long-term apartment trends in the East Bay.”
The community, which was built in 1985, sits near the Pittsburg/Bay Point BART station and Highway 4. Los Prados was 93 percent leased at the time of sale.
According to ARA’s Mark Leary, “The property’s location across from Los Medanos College and within minutes of the Pittsburg/Bay Point BART station was certainly a key selling point for the buyer but the most compelling attribute of Los Prados is the evidence of an immediate renovation upside.”
Gebroe-Hammer completes 12 sales in Northern N.J. and Pennsylvania
Livingston, N.J.—Gebroe-Hammer Associates has arranged 12 sales totaling 463 units in Northern New Jersey and Pennsylvania.
“Multifamily is a hot investment throughout Northern New Jersey and the Philadelphia metro region because apartment rentals possess enduring investment value that stands the test of time and erratic economic cycles,” says Ken Uranowitz, president, Gebroe-Hammer Associates.
Recent New Jersey transactions in Union, Essex, Hudson and Bergen Counties include the:
- Sale of 227 units at 315 W 8th St., in Plainfield, arranged by Greg Pine, executive vice president, and Gehane Triarsi, sales representative
- Exclusive representation of the seller of 175 Pompton Ave. in Verona, by Uranowitz, who also procured the buyer
- 32-unit trade of 1203-1205 Broad St., in Newark orchestrated by Managing Director David Oropeza
- $1.71 million sale of 85 Anderson St., in Hackensack, also arranged by Pine
- Sale of 11 N. Harrison St., a mixed-use property in East Orange, where David Jarvis, executive vice president, represented the seller and identified the buyer of 12 units.
In Delaware County, Pa., which is adjacent to the city-county of Philadelphia, Managing Director Joseph Brecher reports an increase in the median per-unit asking price for multifamily properties as compared to just a few months ago. Asking rents are up and vacancy rates are steadily trending downward.
“Thanks to the Millennial generation, who no longer want to live with their parents, and improved job opportunities, occupancy rates are gaining strength,” says Brecher, who arranged the two separate sales of Drexel Court, a 24-unit community in Boothwyn, and 37 units at Creebank Apartments in Eddystone. “Inventory is now being absorbed by investors very quickly and long-time owners who have been considering a sale are now acting to market their properties.”
Red Mortgage originates $1.8M FHA 223(f) refinance for seniors property
Baltimore, Ohio—RED Mortgage Capital, the mortgage banking arm of RED Capital Group, LLC, announced the origination of an FHA 223(f) loan for National Church Residences for Walnut Creek Village in Baltimore, Ohio. The $1.8 million mortgage provided needed renovations, as well as amenities for the residents to comfortably age in place.
Walnut Creek Village is a 40-unit Project-Based Section 8 rental assistance property, which caters to low-income seniors and handicapped residents. In conjunction with the FHA 223(f) refinance, the owner also closed on a $3.284 million Service Enriched Housing (SEH) Grant, which was awarded by HUD under the Assisted Living Conversion Program (ALCP). The grant funds will be used to renovate the project to enhance services to the residents and provide additional amenities such as modifications to the kitchens and bathrooms, new finishes and new Energy Star® appliances and lighting. The project will also see the creation of therapy rooms, expansion and refurbishment of the existing common dining area, creation of new commercial kitchen and laundry facilities, and construction of exercise and passive activity rooms.
National Church Residences of Columbus, Ohio, is a non-profit subsidiary of National Church Residences, which was founded in 1961. National Church Residences has more than 335 seniors living communities in its current portfolio and is an innovative leader in integrating housing, health care and other supportive services for seniors, families and others in need.
Michelle Norris, president of National Church Residence Development Corp., says “HUD’s support of this project preserves the existing stock of much-needed affordable housing and with the SEH grant, positions it well to offer appropriate amenities, which will better provide for residents to age in place.” Norris continues, “We appreciate RED’s deep experience in working with affordable properties that allow us to continue to serve this important audience.”
“We have worked with National Church Residences on many other projects structuring various financing packages to accommodate the property needs,” says Tracy W. Peters, senior managing firector at RED. “This is just another example of how we were able to work with HUD and National Church Residences to accomplish the renovation goals. RED was pleased to be part of structuring this transaction on a quality property that will be there to serve seniors in a comfortable and well-designed setting.”