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UNT VALLEY, MD & NASHVILLE, TN — Omega Health- H Transaction represents an enterprise value of $600 million Omega Healthcare Investors acquiresMedEquitiesRealtyTrust
ISSUE HIGHLIGHTS Volume 31, Issue 11 June 14 - 27, 2019
of $0.21 per share payable to the holders of record of Med- Equities common stock as of the closing of the transaction, which will be paid together with the cash consideration from the transaction. Taylor Pickett , Omega’s Chief Executive Officer stated, “We are even more excited by this transaction today than when we announced it a few months ago. We’ve had an opportunity to speak with each of the operators and we look forward to working with them and potentially expand- ing our relationships.” Pickett continued, “We are grateful to John, Bill, Jeff and the entire MedEquities team for their diligence, transparency and professionalism throughout this process, which has en- abled a seamless transition.” see little if any new product delivered to market for the foreseeable future.” Located at 43 Gales Dr., this well-maintained, classic garden-style community fea- tures 232 apartment homes, of which 164 are one-bedroom and 68 are two-bedroom layouts. Centrally situated within one of the state’s most-sought-after locales, New Providence Gar- dens is in close proximity to award-winning schools, iconic shopping districts, premier cultural centers and recreation venues and convenient mass transit services. New Providence Gardens’ historic Borough Center neigh- borhood ranks among the top 15% highest-income neighbor- hoods in the nation. The bor- ough is in the heart of the Short Hills Region, which features some of the finest amenities small, affluent municipalities can offer. Financing for the project was provided by IPA , a division of Marcus &Millichap . The lead brokers were Anita Paryani, Rick Lechtman and Daniel Lisser.
SPOTLIGHTS
care Inves- tor s , Inc . ( O m e g a ) and MedE- quities Re- alty Trust, Inc. (Med- Equ i t i e s ) announc ed the comple-
11-19A HIGH REAL ESTATE GROUP SELLS 240- UNIT APARTMENT COMMUNITY CREATIVE FINANCING
Taylor Pickett
Baylor Scott And White Medical Center
tion of Omega’s acquisition of all of the outstanding shares of MedEquities. The transaction represents an enterprise value of approximately $600 million for MedEquities and further diversifies Omega’s assets and operators. Following the acqui- sition, Omega will continue to be the premier publicly traded real estate investment trust (REIT) focused principally NEW PROVIDENCE, NJ — New Providence Gardens, a 232-unit garden-apartment community located within one of the most affluent corners of New Jersey, has been sold for $58.5 million in a trade arranged by Gebroe-Hammer Associates of Livingston. Executive vice president Niko Nicolaou rep- resented the seller, a private investment group, and the un- named out-of-state institutional buyer, in the transaction.
on skilled nursing facilities (SNFs), by adding a diversi- fied portfolio of investments including 34 properties located in seven states and operated by 11 different operators. Under the terms of the merger agreement, each out- standing share of MedEquities common stock automatically was converted into the right
to receive 0.235 of a share of Omega common stock plus $2.00 in cash, which repre- sents a value of $10.85 per MedEquities share based on the $37.67 closing price for Omega common stock on May 16, 2019. Separately, pursu- ant to the terms of the merger agreement, MedEquities de- clared a special cash dividend
11A
UPCOMING CONFERENCES July 11, 2019 5th Annual NJ Office Development Conference July 25, 2019 3rd Annual Philadelphia Capital Markets Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea@marejournal.com
New Providence Gardens sells for $58.5 million in transaction arranged by Gebroe-Hammer Associates
Directory Creative Financing..........................................11-19A DelMarVa.........................................................5-10A Business Card Directory. .....................................21A Billboard Directory..............................................23A Organization Events. ...........................................24A New Jersey................................................. Section B Northern New Jersey. ......................................7-13B Pennsylvania.............................................. Section C Northern PA.......................................................5-7C
New Providence Gardens
Built in 1951, the apartment- home community is nestled within the historic and pic- turesque municipality of New Providence on the northwest- ern edge of Union County. Set within a high-appreciating tree- lined residential neighborhood, the property is near New Provi- dence Train Station as well as major highways that facilitate movement of the area’s highly concentrated out-commuter residential base. “New Providence Gardens
is well-poised for consider- able value-add repositioning associated with in-demand market-unique layouts, conve- nient proximity to mass transit links and high-end lifestyle services,” said Nicolaou. “This is a transit-rich region where an established Millennial and executive-level out-commuter residential base fill the bor- ough’s population-growth pipe- line. The apartment-rental market is extremely supply constricted and is expected to
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Mid Atlantic R eal E state J ournal Publisher, Conference Producer . .............Linda Christman AVP, Conference Producer ...........................Lea Christman Publisher ........................................................Joe Christman Section Publisher ............................................. Steve Kelley Section Publisher ............................................... Kim Brunet Editor/Graphic Artist ......................................Karen Vachon Office Manager ...............................................Kerrin Devine Contributing Columnists ..... Dan Caldwell, Stout & Caldwell Engineers, LLC Mid Atlantic R eal E state J ournal — Published Semi-Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal, 350 Lincoln St., Suite 1105 Hingham, MA 02043 USPS #22-358 | Vol. 31, Issue 11 Subscription rates: $99 - one year, $148 - two years, $4 - single copy REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion 781-740-2900 | Fax: 781-740-2929 www.marej.com The views expressed by contributing columnists are not necessarily representative of the Mid Atlantic Real Estate Journal
Feasibility Study The Who, What, Where, When and Why W Dan Caldwell hat is a feasibility study? According to our trusted free encyclopedia, Wikipedia, it is a practicality assessment of a proposed project or system. This may seem extremely broad but it is … Feasibility studies are used across indus- tries to evaluate a project's potential for success. They bal- ance project costs and the pro- spective value to be attained. The rationale is to look at both strengths and weaknesses as a way of determining whether the proposed project should move forward, be reworked or dismissed altogether. No matter the industry con- sideration is given to external project risks, known as the Four Ps (Plan, Processes, People, and Power) alongside what are termed POVs, or points of vulnerability. While organizations and developers have little control over the ex- ternal risks, such as weather, government structure, envi-
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ronmental issues and socio- cultural factors, they are able to more readily control and/or eliminate POVs. The unique risks and POVs for every proj- ect should be closely evaluated for possible solutions. A feasibility study in the realm of civil engineering can come down to answering two questions: Will the proposed plan work? Should a company or developer proceed with it? Using a basis of test work and comprehensive analysis, the resulting study presents enough information to deter- mine whether or not the proj- ect should be advanced to the final engineering and produc- tion stages. Key components include the design, production
schedule with process flow sheet, environmental consid- erations, estimated capital and operating costs, and an economic model. It should also include historical background, marketing research, legal re- quirements and details of op- erations and management. All these factors and more become part of a thorough evaluative study outlining a project’s possible outcomes and alterna- tives with multiple solutions based on given criteria such as cost and functionality. While a lot of these compo- nents may seem outside the realm of a civil engineering firm, many full service firms offer such services as an inte- continued on page 4A
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OODSTOWN, NJ — Warner Real Estate & Auction Online auction begins 06/20/19 and ends 06/26/19 Warner Real Estate & Auction Company to sell 25 USDA foreclosed single-family homes W ington County) 7) 3 Cinnamon Dr., Lumber- ton (Burlington County) Lawrence Twp. (Cumberland County)
with starting bids of $1,000.00, beginning at 8:00am (EDT) on 06/20/2019 and ending at 12:30pm (EDT) on 06/26/2019. 1) 5 Crestwood Circle, Egg Harbor Twp. (Atlantic County) 2) 5037 Merion Court, Mays Landing (Hamilton Twp. – At- lantic County) 3) 2510 Cottonwood Court, Mays Landing (Hamilton Twp. – Atlantic County) 4) 101 Cloverdale Ln., Buena Vista Twp. (Atlantic County) 5) 17 Cherokee Dr., Browns Mills (Pemberton Twp. – Burl- ington County) 6) 15 Wenatchi Trail, Browns Mills (Pemberton Twp. – Burl-
gral part of the initial stages of project planning. They rec- ognize that by-passing a fea- sibility study to save time and money may often backfire. In fact, the possible issues and project pitfalls that should have been identified early in the process are not found, ana- lyzed and corrected. Therefore the consequences of not follow- ing these steps can and often will result in project delays and increased costs. Most importantly, a feasibil- ity study must be objective. A company and/or developer should partner with an expe- rienced civil engineering firm with the expertise in custom- izing it to properly assess the project’s unique needs in an unbiased manner that will assist in making the best possible decisions. Project de- velopers are not the only ones who benefit from feasibility studies either; communities, neighborhoods, corporations and individuals can all take value from the detailed infor- mation. It’s a win all the way around. Daniel J. Caldwell is Chief Marketing Officer Member, Stout & Caldwell Engineers, LLC. continued from page 2A Feasibility study . . . According to Rich Warner , president and founder of War- ner Real Estate and Auction Company, "This is a golden opportunity for buyers to pur- chase USDA homes at absolute auction with no reserve prices and bid their price! Best of all, the entire auction process will take place online, so it couldn’t be more convenient for buyers.” Closing will be on or before 30 days from the conclusion of the online auction, at 12:30pm (EDT) on 06/26/2019. Warner Real Estate and Auction Company specializes in land and farm sales, invest- ment properties, commercial and residential properties in New Jersey. Clayton (Glouceter County) 21) 1258 Spruce St., Forked River (Lacey Twp. – Ocean County) 22) 311 Cedar St., Lakehurst (Ocean County) 23) 710 Bowsprit Point, Lano- ka Harbor (Lacey Twp. – Ocean County) 24) 128 E. Millbrooke Ave., Woodstown (Salem County) 25) 50 East Mountain Rd., Sparta (Sussex County)
14) 1342 Bridgeton-Millville Pike, Fairfield Twp. (Cumber- land County) 15) 612 RamahRd., Lawrence Twp. (Cumberland County) 16) 237 Fenimore Dr., Wil- liamstown (Folsom/Collings Lake – Gloucester County) 17) 345 Nassau Ave., Pauls- boro (Gloucester County) 18) 3667 Sunset Ave., Wil- liamstown (Monroe Twp. – Gloucester County) 19) 1125 Dublin Court, Wil- liamstown (Monroe Twp. – Gloucester County) 20) 115 Roosevelt Boulevard,
8) 10 Desmond Run, Sickler- ville (Winslow Twp. – Camden County) 9) 301 Pennsylvania Ave., Cape May Courthouse (Middle Twp./Cape May County) 10) 14 Kentucky Ave., Cape May Court House (Middle Twp. – Cape May County) 11) 87 Indian Trail, Cape May Court House (Middle Twp. – Cape May County) 12) 579 Poplar St., Rosen- hayn (Deerfield Twp. – Cum- berland County) 13) 3081 Lexington Ave.,
Company , a real estate firm in New Jersey, has been selected once again by the U.S. De- partment of Agriculture ( USDA ) t o
Rich Warner
sell 25 foreclosed single-family homes throughout New Jersey. Warner Real Estate & Auc- tion Company will be selling all 25 foreclosed homes through an online auction, without reserve
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Kinsley Construction, Inc. serves as general contractor Sequar celebrates groundbreaking of $93 million hotel at 4th and K Streets, NW in Washington, DC W A S H I NGTON , DC — A 247-room Holiday Inn Ex-
contractor. Sequar announced plans for a hotel on the site, to be called Lima, in 2015. The original plan was for 200 hotel rooms with 30 apartments on the
upper floors. A 2016 change in zoning regulations allowed 100% hotel use. A small com- mercial building and auto body shop on the site will be demolished shortly.
press hotel will break ground this month in Washington, DC’s Mount Vernon Triangle neighborhood. Birchington LLC , owned by Habte Se- quar , closed on a construc- tion loan from Atlanta-based Stonehill Strategic Capital to commence construction on the $93 million project. Projected to open in the fourth quarter of 2020, the 14-story hotel will be located at 317 K St., NW on the north- east corner of 4th and K. BBGM Archi tects o f Washington, DC, which de- signed the new Interconti- nental Washington DC - The Wharf, is the project archi- tect. Urgo Hotels & Resorts of Bethesda, MD will operate WASHINGTON, DC — Aria Development Group has delivered its latest mul- tifamily redevelopment, The Clifton, with 156 contempo- rary apartment homes rang- ing from studios to four-bed- room units, all with nine-foot ceilings and many with pri- vate balconies or terraces. “The Clifton offers a unique opportunity to enjoy the ex- citement of 14th and U Streets while living in an authentic neighborhood and commu- nity,” said Joshua Benaim , founding principal of Aria Development Group. “The building is situated at one of the highest points in the city. You’re perched above all the action on a quiet, tree-lined side street.” “We designed The Clifton for the next generation of apartment living,” Benaim continued. “Aria conducted a study with a group of Harvard Business School students to truly probe how people want to live and shape their life ex- periences in our apartments. We combined their recom- mendations with what we’ve learned developing thought-
SIOR & SIOR Foundation focus on increasing minority particiption in CRE
demic and career development, along with socio-emotional development that embolden each student’s confidence in themselves. “No matter the company, organization, or industry, hav- ing a focus on diversity is a critical element for success,” said SIOR Global president Robert Thornburgh . “SIOR is always eager to help foster bright young minds and a cul- ture of inclusion in commercial real estate.” provide both tranquil spaces for contemplation and lively gathering spots for social in- teraction,” Benaim noted. “I can imagine residents catch- ing some rays and grilling dinner on the roof deck, col- laborating on creative projects on our co-working tables, then hitting the rooftop penthouse bar and lounge, and finally retiring to the chef’s kitchen for an intimate evening with friends.” Environmental Protection Designed to achieve LEED Silver designation, The Clif- ton features a green roof and permeable pavers, electric vehicle charging stations, high-efficiency windows and insulation, a cool roofing sys- tem, water-efficient landscap- ing, energy-efficient ther- mostats, and extensive use of recycled and/or regional construction materials. Low- carbon transportation will be encouraged with free three- year car-sharing and Capital Bikeshare memberships, as well as storage for up to 80 bicycles. Two Metro stations are located within walking distance.
WASHINGTON, DC — The Society of Industrial and Office Realtors (SIOR) and the SIOR Foundation , are thrilled to sponsor the 2019 NEXUS Summer Program. The programwill be held at Cornell University in Ithaca, NY, July 14 – July 25, 2019. NEXUS Summer Programs provide gifted and talented college-bound teens with the tools needed to thrive in a post-graduate environment, through a focus on both aca- been thoughtfully curated by Katerina Mishelle . Aria is partnering with New York-basedHomage Fitness to create a cutting-edge fitness center with an energetic vibe and Peloton bikes. For those who love their four-legged companions, there’s also a fully-equipped pet spa. Each apartment at The Clifton is custom-designed to enhance residents’ every- day routines. Contemporary, streamlined kitchens offer Blomberg stainless steel ap- pliances, quartz countertops, and custom-fit cabinet stor- age. Luxurious bathrooms have porcelain and marble tiles, custom Rovere Grigio vanities, chrome fixtures, and framed mirrors with medicine cabinets. Thoughtful details include open shelving for me- mentos, modern heavy-gauge barn-style bedroom doors for extra privacy, and convenient entry closets. Following Aria’s tradition of sustainability and innova- tion, every unit features a smartphone-controlled Nest thermostat. “The building and environs
317 K St., NW rendering
the property, which will fea- ture penthouse-level meeting
rooms. Kinsley Construc- tion, Inc. is the general
Aria Development Group delivers new156-unit apt. building in Washington, DC’s 14 th Street Corridor
The Clifton
fully-designed apartments in DC, Brooklyn, and Miami to create The Clifton.” One stand-out feature that resulted from the Harvard study is a concierge-staffed delivery and pick-up area that includes cold storage for food and flowers, package lockers, and dry-cleaning storage. A sun-soaked rooftop terrace leads to an oasis above the city
with a chef’s kitchen and pri- vate dining room. Cyclists will enjoy controlled-access bicycle storage, repair station, and a separate convenient bicycle entrance. Enclosed parking for cars is below grade. Cunningham Quill is the project architect and Cecconi Simone of Toronto is the in- terior designer. The common areas and model unit have
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ith Fiscal Year 2019 real estate tax bills set to be i ssued By Zeke Sansone & David Johnson, Joseph C. Sansone Company The continued shift of tax burden to commercial real estate in the State of Maryland W Between FY 2014 and FY 2018, the increase in average value per property as estab-
shortly, it’s time to evalu- ate how the tax burden has shifted in Maryland. Most states i m p a r t a greater tax b u r d e n o n
lished by the S t a t e D e - partment of Assessment and Taxation (SDAT) for commercial properties in- creased 23%, while the av-
David Johnson
Zeke Sansone
commercial taxpayers than residential, and Maryland is no different in this regard. This shift is borne by commercial real estate owners and their tenants. Let’s look at the data:
erage value for non-commercial property (which includes resi- dential homes, apartments and townhomes) increased only 5.5%. Due to these shifts in market
values, commercial property owners will pay a higher pro- portion of total real estate taxes across the state. The annual reports issued by the State De- partments of Assessment and Taxation (SDAT) consistently show higher increases for com- mercial property than for resi- dential. (For example, during the latest Fiscal year the aver- age residential change in value was +8.2% versus +12.5% for commercial properties.) Commercial property owners need to ensure that they do not pay more of this property tax burden/shift than is required by law. Fortunately, there are things that you can do to keep your property competitive while also maximizing your cash flow and return on your investment. However, it’s imperative to have a comprehensive strategy that effectively scrutinizes not just the value set by SDAT, but also incorporates the methodol- ogy and justification used by SDAT to generate the value in the first place. It is recom- mended that a review be con- ducted annually not just in the first year of each triennial reas- sessment. Maryland law allows real estate property tax appeals through a process known as a Petition for Review (PFR) in the second and third year of the reassessment cycle. Both prop- erty owner’s, as well as tenant’s that possess the right to appeal a property’s tax assessment, are eligible to appeal. Filing an appeal and achiev- ing a successful outcome re- quires preparation. When re- viewing a property’s market value you need to understand not only your property but the market itself. This involves understanding, not just compa- rable sales, but effective rental continued on page 8A
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It’s more than a construction project; we’re creating spaces that provide homes for families, and I’m really proud to be a part of that.
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306-bed property sells in Fairfax County, VA IPA brokers sale of 350,000 s/f retirement community
AIRFAX, VA — I n- stitutional Property Advisors (IPA) , a divi- sion of Mar- cus & Mil - lichap, an- nounced the sale of The Virginian, a 350,000 s/f, 306-bed rent- al continuing care retire- ment community in Fairfax County. Marcus &Millichap’s IPA se- niors housing team represented the seller, Thompson Associ- ates , in its sale of the asset to an affiliate of Focus Healthcare Partners LLC. Bryn Merrey , senior VP and division man- F Bryn Merrey rates for similar properties, which reflect landlord conces- sions such as free rent or tenant improvements. It is highly recommended that competent third-party representation be engaged to ensure that all market data, procedures, and other relevant methodologies be utilized to maximize your appeal results. When identifying a third party
The Virginian
ager, is Marcus & Millichap’s broker of record in Virginia. The Virginian’s unit mix in- cludes 96 skilled nursing beds, and the rest are assisted living to assist in the process, one should pay particular atten- tion to ensure that the provider possesses sufficient real estate valuation knowledge, based on training and experience, along with a successful track record of producing favorable results, both within a particular juris- diction and across a variety of property types. While the tax burden con- tinues to shift further to
independent living units. An affiliate of Focus Health- care Partners LLC acquired the Virginian on behalf of Focus Senior Housing Fund I LP. the commercial taxpayer in Maryland, a wise owner will take all the steps necessary to protect themselves through the careful appeal of their property. Zeke Sansone is theCEO of the Joseph C. Sansone Company. David Johnson is the senior director of Real Estate Services of the Joseph C. Sansone Company.
continued from page 6A The continued shift of tax burden to . . .
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HERE COMES JANET.
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Phase 1 features 220 condos & townhomes and sport park The Stronach Group break ground on Laurel Park Station
H
OWARD COUN- TY, MD — Officials from The Stronach
a section of the MARE Journal 350LincolnStreet, Suite1105 Hingham, MA 02043 P: 781-740-2900 Fax: 781-740-2929 www.marej.com S ection P ublisher Steve Kelley skelley@marejournal.com Group were joined by Mary- land Senator Guy Guzzone and Howard County Council Chair Christiana Rigby for the groundbreaking of Phase 1 of Laurel Park Station, a mixed-used transit-oriented development located adjacent to Laurel Park Racetrack. Laurel Park Station will feature a new MARC train station, which will be con- veniently linked to the sur- rounding community. Phase 1 of Laurel Park Station will feature 220 con- dominiums and two-over-two townhomes, a community garden and sport park. As the homebuilder for Phase 1, Ryan Homes expects to de- liver the first units in spring 2020. At full build-out, in addi- tion to a new MARC rail sta- tion, the 63-acre Laurel Park Station will include 1,000 residential units, 127,000 s/f of retail space, 650,000 s/f of commercial/office space and 22 acres of open space that will feature a kayak launch on the Patuxent River and walking and running trails. Timmons Group opens DC office WASHINGTON, DC — Timmons Group , with exist- ing offices in Ashburn, VA and Baltimore, MD announced the opening of their new Metro DC office. The new DC office strengthens the firm’s pres- ence in the DMV and provides existing and future clients with regional coverage. Timmons Group has exten- sive experience in the DMV region. The DC office is led by Tra- cy Lower, PE who has over 24 years of development and engineering experience in the region. DELMARVA
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10A — June 14 - 27, 2019 — DelMarVa — M id A tlantic W Phillip Baxter SENIOR VICE PRESIDENT Commercial Real Estate OUR TEAM IS EXPANDING. Now Hiring Qualified Professional Agents. Contact Phillip to Learn More! Welcome
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www.marej.com C reative F inancing Robinson, McCarley &Colquitt of Cushman &Wakefield SEMultifamily Advisory Group rep. sellers FCP&High Real Estate Group sell 240-unit apartment community in Charlotte, NC for $31.65 million C HARLOTTE , NC — FCP and High Real Estate Group booming expansion,” added White Eagle Property Group Chairman and CEO, Jeff Weiskopf . M id A tlantic Real Estate Journal — June 14 - 27, 2019 — 11A
delivers outstanding customer service daily. We recognize and thank FCP for partnering with us in this outstanding community.” “We are excited to add York Ridge to our growing portfolio, as we continue to actively pur- chase value-add opportunities in major markets,” said Abe Spitz , COO at White Eagle Property Group. “We will be investing significant capital by upgrading the interiors and enhancing the common area amenity spaces to give our residents the best living experience. York Ridge will be rebranded as the Avenues at Steele Creek as we reposition the asset.” “York Ridge is a great op- portunity for White Eagle to capitalize on Charlotte’s
announced the sale of York Ridge, a 240-unit apartment community in Charlotte to New York based White Eagle Property Group for $31.65 million. FCP recapitalized York Ridge in August 2015, becoming partners with High Real Estate Group in York Ridge and a Charleston, SC property in which the partners remain invested. “FCP is pleased with the success of the renovations completed at York Ridge,” said FCP vice president, Alex Cathcart . “We’re delighted that our partnership with High Real Estate Group re- sulted in a vastly improved community and a successful
Jordan McCarley , vice chair of Cushman & Wake- field said, “Southwest Char- lotte is a thriving submarket with outstanding job growth and attractive fundamen- tals.” McCarley continued, “York Ridge is well positioned to benefit from the area’s momentum and continued demand for communities in quality suburban locations.” FCP and High extend their appreciation to Marc Robin- son, Jordan McCarley and Brooks Colquitt of Cush- man & Wakefield Southeast Multifamily Advisory Group for their representation of the sellers in the sale.
York Ridge
investment.” “High is committed to serv- ing our residents with the best quality home possible,” said Brad Mowbray, senior
vice president & managing director - Residential Divi- sion, High Real Estate Group. “We maintain award-winning communities and our team
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14A — June 14 - 27, 2019 — Creative Financing — M id A tlantic
Real Estate Journal
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C reative F inancing
EWYORK, NY — The Community Preser- vation Corporation Straight-to-permfinancing allows senior development tomake repairs &maintain affordability CPC, Project FIND, JOE NYC, HPD announce closing of $6MFannieMae affordable housing loan N tive director, Project FIND.
rehabilitation and preserva- tion of The Hargrave House, a 113-unit, affordable senior housing development located at 111 West 71st St. in Man- hattan. The financing will help pay for renovations and upgrades to the property, and because the project is being structured under HPD’s Vol- untary Inclusionary Housing (VIH) program, the units will be preserved as permanently affordable. The CPCMAH loan provided an expedited closing process and a product that is tailored to the complexities of the preservation of regulated affordable housing.
“Senior citizens are one of our fastest growing popula- tions, and are often living on fixed-incomes that aren’t keep- ing pace with the rising costs of living. This project ensures that the seniors at Hargrave House will continue to have housing that’s affordable, safe, and provides the services they need to age in place grace- fully,” said Brandie Moreno , mortgage officer at The Com- munity Preservation Corpora- tion. “It was great to have a product like the Fannie Mae MAH that gave our borrowers the terms and process tailored to the unique requirements of
subsidized, affordable housing projects. My thanks to HPD, Project FIND, and JOE NYC for their partnership and col- laboration.” “The VIH program will pro- vide the basis to achieve many core organizational goals: per- manent affordability, ample reserves to fund long term capi- tal upgrades, and a future pool of resources to allow for deep rent skewing and new housing acquisitions. The team at CPC and HPD worked creatively and with diligence to structure a loan product and transaction that hit all of the right notes,” said David Gillcrist , execu-
“CPC and HPD have long been strong supporters of JOE NYC. Hargrave House is a unique property which pro- vides much-needed affordable housing to seniors on Manhat- tan’s Upper West Side. We commend Project FIND on completing this transaction and we look forward to working with David and his staff to en- sure the long term affordability and quality of Hargrave,” said Peter Madden , executive di- rector, JOE NYC. The project is being spon- sored by partners Project FIND and JOE NYC. Project FIND is a nonprofit organization that provides low-, moderate-in- come, seniors, including home- less, with services and support. JOE NYC is a joint ownership and asset management initia- tive for non-profit community development corporations that own affordable housing assets in New York City. The partnership has opted into HPD’s VIHprogram, which allows the Hargrave House project to sell development rights in exchange for perma- nently extending the current affordability agreement with HPD that restricts the units to senior citizens at or below 80% of Area Median Income (AMI) ($58,400 annual income for a single person). Project FIND has proposed to use the pro- ceeds from the prospective sale of the density bonus to fund the long-term maintenance and operations of Hargrave House and support the organization’s mission-based work. CPC’s $6 million Fannie Mae MAH loan will finance Hargrave House’s rehabilita- tion work, allowing the project to meet the VIH program’s requirement that the partner- ship leverage private capital to fund the renovation work at the property. The scope of the renovation work will include elevator modernization, en- ergy efficiency upgrades, façade work, and lobby upgrades. As a nonprofit housing fi- nance company, CPC brings decades of experience working with nonprofit and commu- nity-based organizations like Project FIND to help provide stable, private capital as well as unique technical expertise in navigating the often complex financing structures of afford- able housing programs. CPC and Project FIND also recently partnered on the Woodstock Hotel project.
(CPC), Proj- ect FIND, the Jo int O w n e r - ship Entity New York City (JOE NYC) , and the NYC De- partment of
Brandie Moreno
Housing Preservation and Development (HPD) an- nounced the closing of a $6 million Fannie Mae Multi- family Affordable Housing (MAH) loan to finance the
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Real Estate Journal — Creative Financing — June 14 - 27, 2019 — 15A
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ORFOLK, VA — Bell- wether Enterprise Real Estate Capital Melton arranged the loans on behalf of the borrower, Atlantic Housing Foundation, Inc. Bellwether Enterprise arranges $115 million in financing for 12 affordable housing communities N
prise arranged a $14.5 million bridge loan through Tilden Park Capital Management LP. To assist in the acquisition of James River Crossing and Gretna Village Apartments, both in VA, Bellwether Enter- prise sourced the equity needed to consummate the closing, which included existing loans from VHDA and assumed by the sponsor. The other nine proper - ties were financed through a $69.616 million 10-year fixed loan funded through Freddie Mac's Tax-Exempt Loan (TEL) program. The transaction was the first Freddie Mac TEL
loan to use a 501(c)3 bond al- location. All previous Freddie Mac TEL loans were funded through 4%LIHTC bond alloca- tions and had at least 15-year terms. In addition to the Fred- die Mac TEL financing, Stifel served as financial advisor as well as raising $7 million in subordinate tax-exempt bonds to complete the capital stack. Phil Melton , executive vice president and national direc- tor of affordable housing and FHA lending at Bellwether Enterprise in the Dallas office, arranged the loans on behalf of the borrower, Atlantic Housing Foundation.
“This transaction took a com- mitment from multiple real es- tate firms and professionals to get closed,” said Melton. “There were a multitude of complexi- ties to work through, including the FHA shutdown late in 2019. I can’t say enough good things about the overall team in get- ting this deal to closing. It will ensure the affordability of 1,776 units across the Southeast for the long term.” Michael Nguyen , president and CEO of Atlantic Housing Foundation, added, “The excit- ing opportunity to add these assets to our growing portfolio in the Southeast allows us to
continue the Atlantic Housing Foundation mission of trans- forming communities by mak- ing a difference in the lives of our residents. We look forward to serving our new residents by providing our time-tested model of community service, asset management, and our customer-service focus to help transform the lives of our resi- dents and improve the com- munities where we operate.” Nguyen further states, “I’m grateful for the exceptional execution of Bellwether and our dedicated team of professionals, without whom this transaction would not be possible.”
LLC (Bell- wether En- t e rpr i s e ) , t h e c o m - mercial and mu l t i f am - ily mortgage b a n k i n g subsidiary of Enterprise
Phil Melton
Community Investment Inc. (Enterprise) , announced the closing of $115 million in financing to enable Atlantic Housing Foundation, Inc. to purchase 12 affordable hous- ing communities across South Carolina, North Carolina, Vir- ginia, Georgia, and Florida. The deal, comprising three separate transactions, delivers vital financing for 1,776 afford- able homes in communities throughout the Southeast, and underscores Bellwether’s com- mitment to providing housing options for all. “Through these loans, Bell- wether Enterprise’s afford- able housing team is further expanding its geographic reach in the Southeast and building upon a long-standing commit- ment to provide viable housing options to underserved com- munities,” said Ned Huffman , president of Bellwether Enter- prise. “We are dedicated to sup- porting the economic vitality of communities through our flexible and customized loans to ensure every family has a quality and affordable place to call home.” The properties include: • Shemwood Crossing Apart- ments (Greenville, SC) • James River Crossing (Lynch- burg, VA) • Gretna Village Apartments (Gretna, VA) • Afton Gardens Apartments (Roanoke, VA) • Boulder Creek Apartments (Greenville, SC) • Crescent Hill Apartments (Spartanburg, SC) • Spring Grove (Taylors, SC) • Timber Ridge Apartments (Charlotte, NC) • Cedar Moor Apartments (Raleigh, NC) • Brentwood Crossing (High Point, NC) • Brittany Woods & Park Chase Apartments (Valdosta, GA) • Temple Court (Miami, FL) To facilitate the purchase of Shemwood Crossing in South Carolina, Bellwether Enter-
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16A — June 14 - 27, 2019 — Creative Financing — M id A tlantic
Real Estate Journal
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C reative F inancing
LSMERE, DE — Rit- t enhous e Rea l t y Advisors announced Company announces sale of 802 Sansom St. in Philadelphia, PA for $5.77 million RRA sells 140 apartments outside of Wilmington, DE for $10.3 million E The garden-style property sits on over four acres off of Kirkwood Highway, making
it convenient to Prices Cor- ner Shopping Center along with numer- ous national r e t a i l e r s . Major area e m p l o y - ers include
the sale of P a r k l y n n Apartments, located at 5 Ruth Rd. in Elsmere, just a few min- utes from the City of Wilm- ington. The
Ken Wellar
Wilmington VA Medical Cen- ter, Christiana Care Health Center and the University of Delaware – Wilmington Campus. Mark Duszak
apartments feature hardwood flooring, oversized closets, updated kitchens and baths, off-street parking and on-site laundry facilities.
Parklynn Apartments
KenWellar, managing part- ner at RRA, stated: “We have noticed an increase of northern New Jersey and New York City based investors acquir- ing properties in the Delaware market. This was the buyer’s first acquisition in Delaware.” Mark Duszak , director at RRA, added: “Investor de- mand is extreme along the I-95 corridor from Delaware to Northern New Jersey, in large part due to Philadel- phia’s continued growth. This transaction reflects the strong demand for multi-family as- sets with upside through unit renovations.” In a second transaction, Rittenhouse Realty Advisors announced the sale of 802 SansomSt. (122-124 South 8th St.) in Philadelphia, PA. The mixed-use property contains 12 apartments and four street- level commercial/retail spaces. The residential units were recently updated and feature hardwood flooring, designer kitchens with stainless steel appliances and custom cabi- nets, and stackable washers and dryers. Large windows within the units provide plen- ty of sunlight and great views of the surrounding neighbor- hood and Jeweler’s Row. 802 Sansom St. is situated in Washington Square West, with easy access to Interstates 95, 76 and 676 as well as Broad Street and Columbus Boule- vard. With a great variety of nearby popular restaurants, shops and entertainment, the property is also convenient to SEPTA’s Regional Rail and the PATCO SpeedLine to New Jersey. The property attracted con- siderable attention from in- vestors but was ultimately purchased by an international buyer.
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Real Estate Journal — Creative Financing — June 14 - 27, 2019 — 17A
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18A — June 14 - 27, 2019 — Creative Financing — M id A tlantic
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Real Estate Journal — Creative Financing — June 14 - 27, 2019 — 19A
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