TODAY’S DEALS: Northland Acquires the Largest Apartment Community in Austin
Northland Investment Corp. buys 1,072 units in Austin; Charles Dunn Co. completes a $15.1 million sale in Los Angeles; and RED Capital provides a $16.5 million equity bridge loan that enables later Low Income Housing Tax Credit equity pay-in to reduce costs.
Austin, Texas—Privately held real estate investment company Northland Investment Corp. is the new owner of Monterey Ranch, the largest apartment property in Austin. The asset features 1,072 units in 54 buildings that are situated 10 miles from downtown Austin.
The deal brings the Massachusetts-based owner’s portfolio to more than 21,000 units, 6,610 of which are now in Austin. The Monterey Ranch acquisition also includes the addition of 23 new Austin-based employees to the Northland organization, bringing its total number of employees in the area to 140.
“We are very optimistic about Austin’s long term prospects,” says Steven Rosenthal, president and CEO of Northland. “We are excited to add another southwest Austin asset to our portfolio, which includes two existing properties in the submarket.”
Monterey Ranch was completed in 1999. Its amenity package includes five pools, multiple barbecue areas, two playgrounds, a fitness center, a yoga/pilates studio, kids’ activity room, stadium seating theater and a business center. There are also tennis, sand volleyball and indoor basketball courts, as well as a soccer field.
Charles Dunn completes $15.1M sale in Los Angeles
Los Angeles—Charles Dunn Co. has completed the sale of a two-property multifamily portfolio in Los Angeles that totals 103 units. The assets are located within one block of each other at 119 N. Avenue 51 and 219 N. Avenue 51. California-based BWCH Inc. was the buyer. The assets sold at a cap rate of 4.9 percent.
“Charles Dunn aggressively marketed this value-add portfolio opportunity and garnered several strong offers,” says Hamid Soroudi of Charles Dunn Co., who represented the California LP that sold the properties. “The market is extremely competitive and this type of value-add property is attractive as opportunities like this are few and far between.”
Darrel Levonian and Tanel Harunzade, also of Charles Dunn Co., represented the buyer in the sale. The properties were built in 1990 and 1991, and they feature controlled access with two levels of subterranean parking.
RED Capital provides $16.5M equity bridge loan that enables later LIHTC pay-in
Columbus, Ohio—RED Capital Group LLC announced it finalized a $16.5 million tax credit equity bridge loan for Sugar Estates Apartments in St. Thomas, U.S. Virgin Islands. The equity bridge loan to Michaels Development Company (MDC) provides funds needed for the construction of this 80-unit affordable seniors’ property. The loan will enable the value of the tax credits and equity available for the project to be maximized through substantially delaying the timing of the LIHTC investor pay-in. Prestige Affordable Housing Fund and Boston Financial Investment Management (BFIM) served as co-syndicators on this $31 million project.
MDC is an affiliate of The Michaels Organization, a private-sector affordable housing developer, owner and manager. Under the ownership of 40-year real estate veteran Michael Levitt, The Michaels Organization owns 261 properties in 28 states and the U.S. Virgin Islands with a majority of the portfolio consisting of Section 8, LIHTC and Rural Development properties for family and age-restricted residents.
John J. O’Donnell, president of The Michaels Organization, says, “RED worked diligently with numerous participants to provide an ideal credit solution that enabled us to develop an important project for our company and for the residents of St. Thomas.”
Sebastian Corradino, president of Prestige Affordable Housing Fund adds, “RED worked extremely well with the entire development and financing team to get this challenging transaction closed. RED’s team of professionals understands these complex transactions very well, which allowed them to help us balance the competing needs of all of the players involved to achieve a successful closing.” Corradino adds, “We look forward to working with RED through completion of Sugar, as well as on future projects.”
“It was an absolute pleasure working with MDC, Prestige and BFIM on this transaction. This equity bridge loan is unique given our lack of affiliation with the investor and tight placed-in-service timing, as well as for a development in St. Thomas,” says Matthew P. Napoleon, director at RED. “RED has many resources, including access to a $5 billion balance sheet from our parent company, and decades of experience in financing complex multifamily projects using our various capital sources to deliver the exacting results that our clients demand.”