TODAY’S DEALS: Redwood Capital Expands in Raleigh
ARA brokers Church Street's sale of a 188-unit asset; NorthMarq refinances a LEED property in Evanston, Ill.; and ARA arranges a sale to a syndicate advised by American Capital Realty Partners.
Raleigh, N.C.—Chicago-based investor Redwood Capital Group has picked up a 188-unit community known as Lexington Farms from Church Street Partners, a Raleigh-based private real estate firm. ARA represented Church Street Partners in the sale, which closed at $22.2 million, or $118,351 per unit.
The asset is located in Northwest Raleigh between Rex Healthcare and Crabtree Valley Mall near I-440. At the time of sale occupancy stood at 96 percent. Church Street had renovated about 70 percent of the unit interiors at the 1988-built property with stainless steel appliances, faux wood flooring, cabinets, faux granite countertops, lighting and doors before the sale. Redwood will continue the renovations to unit interiors and will improve the clubhouse and fitness center. Total spending on future improvements is estimated to be in the $800,000 range.
NorthMarq refinances LEED property in Illinois
Evanston, Ill.—NorthMarq Capital’s Chicago regional office has secured permanent financing of $24 million for Central Station, a newly built LEED certified asset located at 1720 Central Street in Evanston, Ill. The 2003-built asset contains 81 units.
Sue Blumberg structured the transaction with a seven-year term with two-years interest only, and a 30-year amortization schedule. The borrower was an entity related to RMK Management.
“This is the first new property built in Evanston’s North end, close to Metra, shopping/retail and Ryan Field of Northwestern University,” says Blumberg. “The property provides superior amenities and indoor parking.”
ARA arranges sale to syndicate advised by American Capital Realty Partners
Denver—Atlanta-headquartered ARA brokered the sale of Citadel Village, a 122-unit apartment building located at 913 North Chelton Road in Colorado Springs, Colo. ARA Colorado’s Kevin McKenna, vice president, and Saul Levy, associate, represented the seller, Hamilton Zanze & Co., a San Francisco-based real estate investment company, in the transaction.
A syndicate advised by American Capital Realty Partners purchased Citadel Village for $9.57 million, representing a price per unit of $78,484, or $86.95 per square foot. The sale represents American Capital Realty Partners’ second involvement in an apartment purchase in Colorado Springs in the past 24 months.
Kevin McKenna explained, “Citadel Village has always led the Rustic Hills submarket in terms of rents. It has a full amenity package, large units, great visibility, and a park-like setting. A quarter of the units are two-story, three bedroom, 2.5 bath, townhouse-style with washer and dryer hook-ups, which are extremely rare. In terms of location, the property has over 1 million square feet of retail right outside the front door. That is hard to replicate.”
Hamilton Zanze invested $1.2 million in capital improvements including a fully renovated leasing center, brand new roofs and gutters, new siding and paint, significant HVAC replacements and all new electrical panels, to name a few. As a result, the new owner plans to focus their attention on unit upgrades and revenue generating improvements.
Citadel Village is centrally located and offers residents easy access to Academy Boulevard, Colorado Springs’ largest north-south retail thoroughfare and one of the largest sources for entertainment in the area. The property is also located next to the Citadel Mall giving residents immediate access to restaurants and shopping.
During this past year, Colorado Springs has consistently experienced some of the strongest market fundamentals in the history of the Apartment Insights Statistic/Trends Report. Vacancy recently dropped to a record low at 4.79 percent during the 3rd quarter. American Capital Realty Partners will be able to capitalize on the tightened vacancy and anticipates rent growth will continue. Citadel Village was 95 percent occupied at the time of the sale.