Washington—UDR Inc. has acquired 1301 Thomas Circle, a 292-unit luxury community located in Washington, D.C., in a joint venture with Kuwait Finance House. The property, which was purchased for $154 million, is located in the Logan Circle neighborhood near the 14th Street Corridor.
The acquisition is being funding with a five-year, 2.99 percent, $90 million interest-only loan from Fannie Mae, a 70 percent equity contribution by KFH for $44.8 million, and a 30 percent equity contribution by UDR. The joint venture was first formed in 2009, and has since invested $281 million in the Washington, D.C., metropolitan area. Following the acquisition of 1301 Thomas Circle, there is approximately $169 million of remaining investment capacity under the agreement terms.
1301 Thomas Circle is a ten-story building that was built in 2006. Amenities include a rooftop pool and outdoor kitchen, fitness center, private courtyard, business center, concierge service and a 256-space parking garage. The asset is currently 94 percent occupied.
UDR Inc. currently owns, or has an ownership interest in, 21 communities in Washington, D.C., comprising 5,934 units.
Essex Realty facilitates $11.6M sale
Skokie, Ill.—The 144-unit Old Orchard Apartments, located just east of the giant Old Orchard Shopping Center in north suburban Skokie, has been sold for $11.6 million, reports Essex Realty Group, Inc., the exclusive broker in the deal.
“The sale of the Old Orchard Apartments is a rare transaction in this market. Many of the multi-family properties that have traded recently are either larger institutional transactions, or smaller private market sales,” notes exclusive broker Matt Welke, principal and managing director of Chicago-based Essex Realty Group.
“For the past couple of years the apartment market has been lender-driven. Many of the properties sold have been bank-owned and less desirable,” Welke explains. “This year we have started to turn the corner. Well located and better quality assets are beginning to trade again.”
Built in 1961, the Old Orchard Apartments at 10100-10116 Old Orchard Court consists of a trio of 3-story red brick walk-up buildings clustered around landscaped courts, a swimming pool and 184 outdoor parking spaces. Originally a five building complex, two of the buildings containing 72 units were previously converted to condominiums.
“The Old Orchard Apartments are very well located,” Welke says. “There is a large but diversified employment base in the immediate area and the property is located less than a half mile from the Edens Expressway.”
There is very little product available of this size and quality of location, he says.
“The Old Orchard Apartments are nestled in the northern section of Skokie, just a stone’s throw from Wilmette,” Welke says. “The apartments overlook a private 18-hole golf course, the Westmoreland Country Club in Wilmette, to the northeast.”
Skokie’s Memorial Park Cemetery is immediately south of the apartments across Old Orchard Road, the 128-store Old Orchard Shopping Center is a block west at Skokie Boulevard (U.S. 41), and Edens Expressway (Interstate 94) is a half mile to the west.
“Low vacancy levels and a hands-on management approach have helped keep the Old Orchard Apartments operating efficiently,” Welke says. However, the buyer, Mosaic Properties and Development LLC, is planning to upgrade kitchens and bathrooms and renovate the apartments, which formerly were owned by Illinois Apartment Solutions LLC, he says.
Old Orchard Apartments has 72 one-bedroom, one-bath units and 72 two-bedroom, one-bath apartments. Current monthly rents average from $879 for a one-bedroom unit with 875 square feet, to $1,021 for a 2-bedroom apartment with 1,000 square feet.
Each kitchen is equipped with electric range, modern appliances and a breakfast nook. Baths feature tile floors, vanity sinks, showers and additional closet space. The apartments feature hardwood or carpeted floors, new white vinyl framed windows and sliding-glass terrace and balcony doors.
The apartments have central heating and cooling, intercom entry system and cable connections. Laundry facilities are provided in each building. Storage for each unit is included.
A master association maintains the common areas, the swimming pool, landscaping, and handles snow removal in winter, Welke says.
Colliers sells two Phoenix assets for $5.5M
Phoenix—Colliers International in Greater Phoenix has negotiated the sale of two communities in metro Phoenix in two separate transactions with a total value of $5.5 million. Bill Hahn, Jeffrey Sherman and Trevor Koskovich represented the buyers and sellers in both transactions.
Calista Real Estate LLC purchased 25 units in the 26-unit Metro 1 Townhomes for $3.4 million, or $135,000 per unit. The community was built in 2010 and consists of two-story townhomes in four buildings.
California Capital Real Estate Advisors acquired Casa Nueva, a 64-unit community originally built as affordable housing, for $2.1 million. The seller was ATC Realty One LLC.