Lument | January 27, 2022
Lument recently announced the closing of a $26.7 million proprietary bridge loan to acquire and renovate Harbor Village Apartments and Townhomes, a 229-unit multifamily apartment community in Melbourne, Florida. Josh Messier, managing director at Lument, led the transaction.
It was a pleasure to work with these experienced, repeat Lument clients, We were able to structure and fund 100% of the required capital expenditures with loan proceeds to help them achieve their goals, including $3.8 million in capital improvements to upgrade unit interiors and amenities."
The $26.7 million bridge loan features a variable interest rate and a three-year term, with two 12-month extension options. The community's current occupancy is 96%.
The Harbor Village property is made up of two sections: Harbor Village Apartments and Harbor Village Townhomes. Harbor Village Apartments was completed in 1976 and is situated on 6.43 acres of land with 143 apartments in eight buildings. Harbor Village Townhomes contains 86 units in 18 two-story wood frame town-homes and was built on 5.80 acres in 1983. Onsite amenities for each section include a swimming pool and laundry facility.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission.
REAL ESTATE INVESTMENT
5T CRE | February 22, 2022
5 Talents Commercial Real Estate (5TCRE), along with Totem Capital Group, would like to announce the closing of their latest development project, Aria Apartments.
The complex is located on the Northeast side of San Antonio and features 170 apartment units. It is currently 99% occupied and conveniently located near major highways, industrial and large corporate workplaces, and is situated in a vibrant and growing community.
The investment team, led by 5TRCE, has over 24 years of experience in commercial and residential real estate. They identify, acquire, rehabilitate, and improve multifamily real estate properties, bringing quality housing options to residents across South Texas. The Aria Apartments renovation project will add value for residents as the community is remodeled. The development was built in 1982, and the project presented a huge opportunity to improve the community for current and future residents, and it offered an opportunity for investors to receive an equitable return on their investment dollars.
Most of the $750,000 budget will focus on interior upgrades and renovations, along with the repair and repainting of all exterior building surfaces. Plans also include renovating the leasing office and updating the workout facility. Landscaping, tree trimming, and fencing upgrades will also be included.
This project will offer current and future residents beautiful apartment living options in an area that continues to grow, and we are eager to attract new investment partners who share our vision."
Abel Pacheco, Principal and President of 5TCRE
We help investors, who align with our vision of community improvement and philanthropy, increase their net-worth and cashflow, while reducing their taxable income."
Ruben Dominguez, Principal of Totem Capital Group, is the main investment partner with 5TCRE.
To date, the group has invested in real estate projects valued at over $80 million, enhancing nearly 1,000 apartment units. The team offers many different investment opportunities that can be tailored to fit into any investor's portfolio.
REAL ESTATE TECHNOLOGY
KKR | March 17, 2022
KKR & Co. Inc., Mitsubishi Corporation and UBS Group and UBS AG announced the signing of a strategic transaction by a subsidiary of KKR, which is acquiring all of the outstanding shares of Mitsubishi Corp.-UBS Realty Inc. from Mitsubishi and UBS Asset Management in an all-cash transaction valued at JPY230 billion (US$2 billion).
MC-UBSR is one of the largest real estate asset managers in Japan. Founded in 2000 as a joint venture between Mitsubishi and UBS-AM, MC-UBSR is a pioneer in the Japanese real estate investment trust (J-REIT) segment. Today, it is one of the largest real estate asset managers in Japan with JPY1.7 trillion (US$15 billion) in assets under management.2 The business has approximately 170 dedicated professionals managing two Tokyo Stock Exchange-listed REITs: Japan Metropolitan Fund Investment Corporation (JMF) and Industrial & Infrastructure Fund Investment Corporation (IIF).
JMF, with approximately JPY1.3 trillion (US$11 billion) in assets under management as of August 31, 2021, invests in retail, offices, hotels and other assets located in urban areas. IIF, with approximately JPY 0.5 trillion (US$4 billion) in assets under management as of January 31, 2022, focuses on industrial and infrastructure properties in Japan. Both REITs have established environmental, social, governance (ESG) programs and are included in the MSCI Japan ESG Select Leaders Index.
Mitsubishi and UBS-AM showed us unwavering support over the years, enabling MC-UBSR to become Japan’s outright top J-REIT manager. We are excited to welcome KKR, which brings significant resources and relationships to MC-UBSR, and is well-placed to work with our experienced team to extend our long and successful track record of delivering strong results for the unitholders of JMF and IIF and take the business to the next level.”
Katsuji Okamoto, President & CEO and Representative Director of MC-UBSR
“Japan is one of the most important and high-volume real estate markets in the world, and is a market we have been dedicated to investing in with a local team since 2006. MC-UBSR has an excellent track record of serving investors across its REIT offerings and a strong commitment to enhancing its investments through a strategic approach to ESG. We look forward to working with and supporting a team that has served investors so well over the last two decades, and we anticipate that our combined strengths will further enhance MC-UBSR’s ability to deliver for new and existing clients and unitholders,” said Hiro Hirano, CEO of KKR Japan and Co-Head of Asia Pacific Private Equity at KKR.
Takuya Kuga, Group CEO-designate, Urban Development Group of Mitsubishi, said, “We are pleased to have supported MC-UBSR’s development and operations over these past 20 years, and are proud to have grown MC-UBSR into Japan’s leading REIT manager. Mitsubishi continuously strives to optimize and strengthen its business portfolio, and will continue to expand its real estate development and asset management businesses in Japan, led by its wholly owned subsidiaries, Mitsubishi Corporation Urban Development, Inc. and Diamond Realty Management Inc, along with accelerating its initiatives in overseas real estate and large-scale urban development/management business. Welcoming a high-caliber real estate and diversified investment firm like KKR is a major endorsement of MC-UBSR, its team and its business, and we look forward to working with KKR and MC-UBSR.”
Suni Harford, President of UBS Asset Management, said, “In partnership with Mitsubishi, we are proud to have developed MC-UBSR into a leading real estate platform in Japan. We are confident that KKR is well placed to take this business forward and wish the MC-UBSR team every success for the future. The Japanese market remains a cornerstone of our Real Estate & Private Markets business in Asia Pacific, and we remain focused on serving the needs of our clients and capturing growth opportunities in this strategically important region. Through our rapidly growing real estate investment unit, UBS Japan Advisors, we will continue to advise our clients on Japanese property investments.”
UBS’s asset management, wealth management, and investment banking businesses operating in Japan are unaffected by the transaction.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.
Mitsubishi Corporation is a global integrated business enterprise that develops and operates businesses together with its offices and subsidiaries in approximately 90 countries and regions worldwide, as well as a global network of around 1,700 group companies.
Mitsubishi has 10 Business Groups that operate across virtually every industry: Natural Gas, Industrial Materials, Petroleum & Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution and Urban Development. Through these 10 Business Groups, Mitsubishi’s current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations, working in collaboration with our trusted partners around the globe.
With an unwavering commitment to conducting business with integrity and fairness, Mitsubishi remains fully dedicated to growing its businesses while contributing to a prosperous society.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.
UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE). In Japan, the firm offers corporate, institutional, and high net worth private clients a full array of financial products and services through five business entities: UBS Japan Securities Co., Ltd., UBS AG Tokyo Branch, UBS SuMi TRUST Wealth Management Co., Ltd., UBS Asset Management (Japan) Ltd., and UBS Japan Advisors Inc.
REAL ESTATE INVESTMENT
FAIRSTEAD | December 17, 2021
Fairstead, a purpose-driven, vertically integrated real estate company committed to sustainable development and the creation and preservation of high-quality housing, today announced it has acquired the Sable Palms Apartments in Jacksonville, Florida. The acquisition will preserve and extend the affordability of the 200 units and enable investments in improvements to the apartments, buildings, and outdoor space.
Preserving our affordable housing stock is a critical strategy to supporting our neighborhoods and ensuring that families can stay in the communities they love, Fairstead's acquisition of Sable Palms Apartments will extend the affordability of 200 homes and bring improvements to enhance the lives of residents."
-Jordan Capellino, Director, Development at Fairstead
The Sable Palms Apartments features 200 one- to four-bedroom units across 29 residential buildings. The campus includes one community building, where the management office is located, as well as two playgrounds, laundry facilities, and parking. Fairstead will preserve and extend the affordability of these units and provide upgrades to the buildings including improved kitchens, bathrooms, appliances, and common areas.
Fairstead recently announced a new $500 million equity commitment to strategically grow the company's operations, including expanding its multi-family housing portfolio and enhancing the firm's prop tech, sustainability, and community impact programming. Fairstead works with community leaders, advocates, and residents to provide programming and services that improve resident health outcomes, provide financial literacy, offer job training, bolster internet access, and provide opportunities for civic engagement.
This purchase is part of Fairstead's ongoing commitment to creating and preserving affordable housing across the nation. This week, Fairstead announced the largest affordable housing deal of the year in New York City with the acquisition of 48 buildings in the Bronx. Last week, Fairstead announced the acquisition of Gateway, 160 apartments in Lake Jackson, Texas, where it will preserve and expand its affordability. In Virginia, the Alexandria Redevelopment and Housing Authority (ARHA) recently announced that it had selected Fairstead in partnership with Mill Creek Residential and The Communities Group to redevelop the Samuel Madden Homes in Old Town Alexandria, nearby the new Amazon HQ2, where the company will create a sustainable mixed-use community with affordable, workforce, and market-rate housing.
Fairstead is a purpose-driven vertically integrated real estate developer specializing in creating sustainable, high-quality housing. The firm's national footprint includes more than $6 billion in assets and identified pipeline. With offices in New York, Maryland, and South Carolina, Fairstead's team manages 90+ communities across the country and runs its comprehensive real estate platform, which includes acquisitions and development, venture capital investments in prop tech, design and construction, energy and sustainability, property management, marketing, and leasing. The firm also administers one of the industry's most proactive community impact programs to provide on-site support services to residents.