TODAY’S DEALS: Vitus Group Buys NorCal Affordable Asset
An affordable asset will get an update thanks to Vitus Group; Resource Real Estate Opportunity REIT acquires a 192-unit community in Winter Park, Fla.; and NorthMarq Capital arranges a $32.963 million Freddie Mac mortgage with interest only.
Richmond, Calif.—Vitus Group has acquired a 158-unit affordable housing community in Richmond, Calif., and announced plans for an $8 million renovation program. The property was purchased from John Stewart Company for an undisclosed amount.
“We appreciate being given the opportunity to acquire this property,” says Sara Fay, director at Vitus Group. “The fact that it has been so well maintained over the years allowed for us to maximize our investment in construction improvements that will directly benefit the resident families. We at Vitus Group look forward to providing modernized affordable housing units to the community next year.”
The renovation program will provide for both interior and exterior improvements, including significant upgrades to the community spaces. An expanded community room will include computer stations, a media room and meeting space. New landscaping and garden gathering areas will also be added. Renovations are expected to be complete in the spring of 2014.
Resource Real Estate buys 192 units in Florida
Winter Park, Fla.—Resource Real Estate Opportunity REIT has acquired Nob Hill Apartments, a 192-unit community located in Winter Park, Fla. The seller was a financial institution that had earlier foreclosed on the property, which is located about five miles outside Orlando. The transaction closed on June 27 with a $10.1 million sales price, excluding closing costs.
The new owner plans to invest additional capital into the property with the aim of improving both individual units and common areas. Community amenities include a swimming pool, fitness center, club room, business center, theater, sauna, and tennis and shuffleboard courts.
NorthMarq arranges $32.963M Freddie Mac mortgage with I/O
Waukegan, Ill.–Sue Blumberg, senior vice president and managing director of NorthMarq’s Chicago regional office, arranged first mortgage refinancing of $32.963 million for Landings at Amhurst Lake, a 340-unit, market-rate multifamily community located at 1375 S. White Oak Drive in Waukegan, Ill.
Financing was based on a 10-year term with three-years interest only, thereafter a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, Northern Crossing JV LLC, through its seller-servicer relationship with Freddie Mac.
“The borrower was able to secure long-term debt at 3.63 percent interest, with an Early Rate Lock execution prior to the recent jump in rates. Timing is everything,” Blumberg says. “This long-time loyal Freddie Mac borrower received the best pricing in the market for this Class A property. They have achieved best-in-class rent growth in a very timely market.”