TODAY’S DEALS: TDI Real Estate Lands $61.6M for a Scottsdale Development

HFF lands $61.1 million for TDI's Scottsdale development; Hayley Real Estate buys four properties for $51.2 million, initiates a $12.4 million capital improvement plan; and Marcus & Millichap arranges a $57 million sale in value-add opportunities.

Jefferson at One Scottsdale

Scottsdale, Ariz.—TDI Real Estate has landed $61.1 million in construction and mezzanine financing from Texas Capital Bank, The Private Bank and Behringer Harvard for a 388-unit development in Scottsdale, Ariz. Holliday Fenoglio Fowler worked to arrange the financing. Texas Capital Bank and The Private Bank are providing the construction loan, while Behringer Harvard is providing the mezzanine piece.

The project, known as Jefferson at One Scottsdale, is located within the One Scottsdale mixed-use development site at the intersection of North Scottsdale Road and East Thompson Peak Parkway. The asset is due for completion in 2014, and will include a clubhouse, lounge, media room, business center, two swimming pools and spas, and both direct and non-direct garages.

“Jefferson at One Scottsdale will be the premier Class A multi-housing project in North Scottsdale given the use of high quality materials, superior architecture, ample parking including garages, and proximity to high quality retail and employment,” says Mark Erland, director at HFF.  “HFF and TDI were able to secure construction debt and mezzanine financing that recognized the quality of the sponsorship, location, project design, and improving Phoenix MSA market fundamentals highlighted by more than 40,000 new jobs over the past 12 months.”

Hayley Real Estate Group acquires four assets for $51.2M

The Hamlins at Cedar Creek Lake

Omaha, Neb.—Haley Real Estate Group, an Omaha, Neb.-based investment firm, has closed the acquisition of four communities in four Southern states for $51.2 million. The properties add 1,000 units to the company’s portfolio. A $12.4 million capital improvement strategy will also be implemented for the new communities.

“Building our portfolio with strategic investments is a high priority in today’s current markets,” says Doug Hastings, senior vice president of property management for DEI Communities, the property management affiliate of Haley. “We are committed to growing our brand while simultaneously providing residents with a comfortable living environment to call home. We believe the planned renovations to each property will not only deliver measurable ROI but will provide a greater sense of community to our residents and the thriving neighborhoods where our properties are located.”

The acquisitions encompassed the following properties:

  • Park Place Apartments is a 233-unit mid-rise community located in Oklahoma City, Okla. The four-story property is adjacent to the State Capitol. It will receive a comprehensive interior and exterior renovation. (Acquired in January.)
  • Oakbrook Apartments is a 312-unit community located in Jackson, Miss. The upgrades will include new cabinets, appliances, plumbing and lighting fixtures.  The property exterior will also undergo a comprehensive landscaping and common area rehab including the renovation of the clubhouse and the demolition of the existing pools to make room for a new resort-style pool, a bark park, a children’s playground and a community park. (Acquired in December.)
  • The Hamlins at Cedar Creek Lake is a 208-unit property located 60 miles southeast of the Dallas/Fort Worth Metroplex. The 2005-built asset features a fitness center, resort-style swimming pool, media room, and a business center. Renovations to the community will include exterior painting. (Acquired in November.)
  • Nantucket Harbor is a 224-unit asset located in Shreveport, La. Over the course of the next year a total exterior renovation will be completed including full siding replacement, stone retaining walls, a clubhouse remodel and an amenity renovation with the addition of a fitness center, a bark park and a playground. (Acquired in August.)

Marcus & Millichap arranges $57M sale of value-add opportunities

Brandon, Fla.–Marcus & Millichap Real Estate Investment Services arranged the sale of two Tampa Bay Area multifamily communities totaling 982 units. The assets, Plantation Key and Providence Park, are located directly across the street from one another in Brandon. Their combined selling price is $57 million.

Jeffrey Meyer, vice president investments, and Michael Donaldson, senior associate, both in Marcus & Millichap’s Tampa office, represented the sellers, two private partnerships, and the buyer, a private Tampa-based real estate investment group.

“These 1990-built properties required an investor with both a strong vision of the Brandon market and a proven ability to reposition a property within it,” says Meyer. “Our buyer has a history of successfully leveraging Tampa’s job growth and other favorable market conditions to achieve significant rent increases through common area and in-unit amenity upgrades.”

“Plantation Key and Providence Park’s superior location, in close proximity to a number of major employment centers and northeast Tampa’s desirable university area, supported the investor’s view that it was an excellent value-add candidate,” Meyer adds.

“Typical buyers might have shied away from this property because of its large size and heavy unit concentration, which typically would have resulted in a management-intensive situation,” Donaldson concludes, “but thanks to his intimate market knowledge, this investor saw the upside potential in the location and the area’s job growth, and is even now planning a major entryway upgrade.”

The two Brandon properties are located at 1918 Plantation Key Circle and 401 Providence Road. They were built on 60.8 acres and total 871,380 square feet. The properties’ 15 distinct floor plans include 534 one-bedroom/one-bath units, 376 two-bedroom/two-bath units, and 72 three-bedroom/two-bath units.

Plantation Key and Providence Park are conveniently located less than half a mile from the intersections of State Road 60, the Crosstown Expressway and Interstate 75. Interstate 75’s office employment centers and the Tampa downtown business district’s own employment opportunities are both close by. Retail opportunities are highlighted by the Westfield Brandon shopping mall, a 1.2 million-square foot regional indoor shopping destination situated walking distance from the property.


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