TODAY’S DEALS: TIAA-CREF, TIAA Henderson Close Apartment Fund with $420M Value-Add Target

TIAA-CREF and TIAA Henderson close a value-add CASA fund after raising $260 million in equity; Pure Multi-Family REIT lands acquisition financing for communities in Arizona and Texas; and ARA arranges the sale of an Austin property to an affiliate of Heitman.

New York—TIAA-CREF and TIAA Henderson Real Estate have closed CASA Partners VI LP, a multifamily housing fund that is targeting a $420 million value-add portfolio. This is the sixth in a series of multifamily housing funds. It has come to its final close after raising $260 million in equity from investors.

The fund is focused primarily on U.S. workforce housing. The portfolio team for the CASA funds has a track record exceeding 20 years, and managers $2.2 billion in apartment assets with more than 18,850 units across 26 states as of June 30, 2014.

“This is apartment investing with a difference,” says Jay Martha, managing director of North American Real Estate for TIAA-CREF Asset Management. “The CASA strategy takes an integrated approach, combining multiple value-enhancing investment strategies with income-enhancing, low-cost specialty bond financing to meet its goals.”

Since its initial close, the CASA VI portfolio has acquired two properties, each financed through municipal bonds that are exempt from federal, and in some instances, state income tax in exchange for providing affordable workforce housing to communities. The two properties acquired for the CASA VI portfolio to date are:

  • Boca Vista Apartments –Altamonte Springs, Fla.
  • Paseo Park Apartments – Glendale, Ariz.

Pure Multi-Family REIT acquires properties in Arizona and Texas

San Brisas

San Brisas

Chandler, Ariz. & Plano, Texas—Thanks in part to acquisition financing arranged by HFF, Canadian-based Pure Multi-Family REIT is the new owner of two garden-style communities—San Brisas in Chandler, Ariz., and The Preserve at Arbor Hills in Plano, Texas. HFF secured the seven-year loan through Northwestern Mutual.

San Brisas is 96 percent leased and is located about 19 miles southeast of downtown Phoenix. Built in 1996, amenities include a heated outdoor pool, hot tub, fitness center, barbecue grills and a sand volleyball court.

The Preserve at Arbor Hills is located 21 miles north of downtown Dallas. It was built in 1998 and is 97 percent leased. Amenities include a pool with waterfall, a heated spa, fitness center, barbecue area, a business center and coffee bar.

ARA arranges sale of Austin property to Heitman affiliate

Northland at Stonehollow PoolAustin, Texas—ARA announced the sale of Northland at Stonehollow, a 606-unit community located in the North Central area of Austin, Texas.

ARA Austin-based Principal, Patton Jones represented the seller, Northland Investment Corp., in the transaction. The buyer, a real estate investment management firm, is an affiliate of Heitman LLC.

“Northland at Stonehollow was sought after by institutional and private investors seeking a ’90s vintage value-add opportunity,” says Jones. “Investors were drawn to the property’s excellent location in the North Central area of town near the Domain and Arboretum.”

Also known as “Austin’s second downtown,” this area includes the Shops at Arbor Walk, Gateway, The Arboretum and The Domain, which all boast dynamic shopping, dining and entertainment destinations, in addition to an employment base of 160,806 jobs within a fie-mile radius. The Domain is Austin’s newest lifestyle center and mixed-use development including 1.3 million square feet of retail with upscale retailers such as Neiman Marcus, Tiffany’s, H&M, Apple Store, iPic Theater and a recently opened Whole Foods Market, along with a myriad of high-end dining establishments.

The Arboretum, approximately four miles west of Northland at Stonehollow, includes the Renaissance Hotel and Convention Center, two nine-story office towers and more than 40 retail and dining options including Pottery Barn, Ann Taylor, Barnes & Noble, Eddie V’s Steakhouse, Z’Tejas and PF Chang’s, among others. Major employers in the area include IBM, Oracle, Google, Apple and National Instruments, just to name a few. Residents of Northland at Stonehollow also enjoy convenient access to major thoroughfares such as MoPac Expressway, Hwy 183, SH-45 and IH-35.

Constructed in 1996, Northland at Stonehollow is a core asset and garden-style apartment community comprised of luxurious one-, two- and three-bedroom units. The class A community features several above market amenities which include an elegant leasing center and clubhouse, a state-of-the-art fitness center with saunas, a business center with a conference room, a private media center and theater room, as well as two resort-class pools with sun decks.

The occupancy at the time of sale was 95 percent.

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