TODAY’S DEALS: Western National Buys Archstone Long Beach for $46M
IPA lands a buyer for Archstone Long Beach; UC Funding closes an $18.4 million bridge loan for a historic conversion in Baltimore; and IPA oversees the sale of a 190-unit distressed condo property in Miami-Dade.
Long Beach, Calif.—Institutional Property Advisors has arranged the sale of Archstone’s 206-unit asset in Long Beach, Calif., to Western National. IPA took on the listing rights in late June 2012. The $46 million price tag equates to $223,300 per unit.
“Archstone Long Beach is a true value-add renovation opportunity with a significant projected upside in rents,” says Greg Harris, executive vice president of investments at IPA. “This non-rent-controlled asset provides the investor with a unique opportunity to increase the property’s value by executing a sound renovation plan.”
The 294,887-square-foot property was built in 1985. The 17 two-story buildings are spread over 9.1 acres and include eight different floor plans. Community amenities include a swimming pool and spa, lighted tennis court, barbecue stations and covered and assigned parking.
UC Funding closes $18.4M bridge loan in Baltimore
Baltimore—UC Funding has closed an $18.4 million bridge loan for the acquisition and conversion of the former Federal Reserve Building located in Baltimore. The loan will be used to convert the 1928-built vacant building into a Class A luxury multifamily community with 105 units. Funding provided 90 percent of the capital stack. UC Funding will oversee the conversion of the project.
“Our borrower came to us, because they heard that we are an aggressive, relationship driven, capital provider that understands all facets of real estate lending,” says Dan Palmier, president and chief executive officer at UC Funding.
IPA oversees 190-unit distressed condo trade in Miami-Dade
Kendall, Fla.—Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap serving the needs of institutional and major private investors, has arranged the sale of Lakeside Villas, a distressed 190-unit condominium community in Kendall, Fla.
Still Hunter III, an IPA senior vice president investments, Evan Kristol, a Marcus & Millichap senior vice president investments, and Alex Zylberglait, a Marcus & Millichap vice president investments, advised the receivership. The buyer is a local private investor.
“With both rents and occupancy well below market level in the extremely strong Kendall submarket, the new owner is in a position to leverage Lakeside Villas’ outstanding upside potential,” says Hunter. “The area’s average occupancy exceeds 95 percent, so although the property was purchased as a distressed asset, we expect it to perform well.”
“In 2008, when these units were converted to condominiums, they sold for an average of more than $225,000,” adds Hunter. “Now, with the economy rebounding, the investor is well-positioned to keep pace with the market as leases turn.”
“The new owner may choose to realize additional upside by executing a limited value-add program to enhance the overall curb appeal of the community and reposition it,” Hunter concludes.
Located at 15410 SW 75 Circle Lane, the 1985-built, 137,840-square foot property includes 50 one-bedroom/one-bath units, 44 two-bedroom/one-bath units and 96 two-bedroom/two-bath units for a total of 190 units, or 85 percent of the community’s 224. The asset offers frontage on SW 154th Avenue between Sunset Drive and Kendall Drive, and its 9.7-acre lakefront site is situated in a desirable residential in-fill area. The A-rated Dante B. Fascell Elementary School is located approximately one-half mile away, and the A-rated Hammocks middle school is less than two miles away. Shopping opportunities and major employment centers are also nearby.
Lakeside Villas is constructed of solid concrete block with painted stucco exteriors and pitched roofs. Its community amenities include a swimming pool and sundeck, a poolside clubhouse with baths, saunas and barbecues, a 3,000-square foot community center with leasing offices and a fitness center. In-unit amenities include private patios or balconies, walk-in closets, central air conditioning and vinyl or ceramic tile flooring in wet areas. Some units include washer-dryer hookups, lake views and extra storage.
