Redwood Capital Pays $91M for Suburban Chicago Property

Redwood Capital | December 16, 2019

Redwood Capital Pays $91M for Suburban Chicago Property
Redwood Capital Group has acquired Deer Park Crossing, a 236-unit luxury community in the Chicago suburb of Deer Park, Ill. Yardi Matrix data shows REVA Development Partners sold the Class A property for $90.5 million and the buyer used a $54.3 million loan from MetLife. The sale marks the second transaction between REVA and Redwood within the last 18 months. The first one closed in October 2018 and involved a 231-unit luxury community in Orland Park, Ill. Completed in 2018, the community consists of seven two-story townhomes and three four-story apartment buildings spread across more than 11 acres. The unit mix features one- to three-bedroom floorplans averaging 1,252 square feet. Amenities include a clubhouse, media lounge, fitness center, swimming pool, dog park and bocce ball court. The LEED Gold-certified property was 91.5 percent occupied as of October, per Yardi Matrix data.

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Alex. Brown Realty & Continental Realty Group Acquires San Antonio Multifamily Project

businesswire | December 09, 2020

Alex. Earthy colored Realty, Inc. (ABR) and their joint endeavor accomplice, Continental Realty Group, through its auxiliary Continental Realty Assets, Ltd. (CRA), are satisfied to declare the obtaining of Club at Stone Oak Apartments, a 250-unit loft network in San Antonio, Texas. ABR Chesapeake Fund VI, a worth add land reserve supported by ABR, put $7.3 million in the joint endeavor. Inherent 2005, the network incorporates a blend of one-, two-and three-room units with 9' roofs and private porches and overhangs. Comforts incorporate a clubhouse with billiards table, best in class wellness focus, resort-style pool, business focus, outside kitchen, and renting focus. The gated network additionally offers sufficient leaving with withdrew carports, garages, and a vehicle care focus. The joint endeavor designs an essential remodel program for the unit insides and focused on upgrades to the regular territories and pleasantries. “Even given the economic challenges and uncertainties of today, we are believers in the San Antonio market due to its diversified and expanding employment base coupled with the relative affordability and quality of life it has to offer,” said Robert Ireland, CRA’s Managing Director of Investments. “The Club at Stone Oak is a quality asset located within one of San Antonio’s premier submarkets and fits within our investment strategy of providing a quality product at an affordable price to our residents,” added Ireland. “We were pleased when Continental first brought us this off-market opportunity and are excited to be partnering with them,” stated Tom Burton, ABR’s Senior Managing Director and CIO. “Their extensive experience within the multifamily sector should bode well for the asset and provide a positive result for our investors.” Club at Stone Oak represents the first transaction between ABR and CRA.

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Global Real Estate Firm Harwood International Unveils Design Of Its Tallest Office Tower

prnewswire | October 16, 2020

Global real estate firm Harwood International has unveiled the design behind its tallest office development. Towering at 27 stories, Harwood No. 14 will be centrally located in the 19-city block Harwood District. The Class AA tower's design is heavily influenced by nature, featuring a two-story lobby with monumental stairs blending indoor/outdoor features, landscaped plateaux, a finned curtainwall system that is the first in Dallas, open air pocket gardens, and a spectacular 17,000 SF rooftop and sky garden complementing Harwood No. 10's sky gardens just across the street.

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Granite Realty Partners to Complete Deconversion of Condominium Units

prnewswire | October 29, 2020

Granite Realty Partners, LLC, a Chicago-based real estate company, announced today that it has completed the fundraising for an investment vehicle to continue its purchases of "broken condominium units." The company has already been involved with seven condominium projects, in Illinois and Florida, totaling over 1,500 units. In four of those projects to date, Granite Realty Partners acquired enough units to complete a "condominium deconversion," thereby changing ownership from individually owned condominium units to a singly-owned apartment complex. Rob Palley, Principal and Co-Founder of Granite Realty Partners, said "We continue to search for and identify high-quality projects that for numerous reasons were not successful as condominium projects but which are viable as well-located and desirable apartment living." "Investment in "broken condominiums" allows an investor to participate in a multi-family platform at a cost basis well-below that of a widely-marketed apartment project," according to Palley. Granite Realty Partners currently has a pipeline of 4 projects totaling over 1,200 units and is actively seeking more investment opportunities. In 2017, Granite principals were involved in the purchase of individual condominium units at the Village at Town Center, in Davenport, Florida and completed a deconversion. The property had been converted to condominiums in 2006 and failed to sell out during the 2008 Recession. Upon gaining control, 48 of the units were fully renovated, achieving rent increases averaging over $250 per month, generating a return of over 20% on renovation costs. At that time, the property was sold and allowed the buyer the opportunity to achieve a substantial return by renovating the remaining 192 units. In 2018, Granite principals were part of the purchase of 89% of the units at Darlington Court, a 235-unit condominium property in Crystal Lake, Illinois. The investment group was able to buy the units at a favorable cost per unit by assuming low-leverage, high rate, CMBS debt. Within 6 months, all of the remaining units were purchased and select units were renovated and the common areas significantly improved. The property was sold 14 months after it was acquired and generated a significant return on investment. Also in 2018, Granite principals were part of the purchase of 58% of the units at Pine Hill Condominiums, a 264-unit condominium property in Wheeling, Illinois. The property was a failed condominium conversion of a two-building, 6-story project originally built in the 1970s. Within one year all of the remaining units were purchased and an upgrade of the common areas is close to complete and unit renovations are on-going, with an average rent increase of over $200 per month for renovated units. Palley stated that "we look for projects that are well-located and have proven lease up history but that due to market timing or conditions were not able to succeed as condominiums but are attractive and viable apartment projects when the condominium ownership structure is removed."

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Spotlight

Keller Williams® Realty, Inc. is an Austin, Texas-based, real estate franchise company with over 78,000 real estate agents, operating in more than 695 market centers (offices) across the United States and Canada. Keller Williams Realty is currently the third-largest residential real estate company in the United States.