Brexit Uncertainty Still Impacting London's Luxury Property Market

Knight Frank | June 21, 2019

According to international real estate consultant Knight Frank, despite the unknown outcome of Brexit, underlying demand for London's super-prime property remains resilient. Brexit-related uncertainty has curbed trading activity across all UK residential markets over the last 12 months. While London's superprime (£10 million-plus, or $12.7m USD and higher) price bracket is no exception, it would be too simplistic to view this particular market entirely through the prism of UK politics. First, the demand drivers are more numerous and complex. More wealth is being created in the world than ever before and it continues to move across borders.

Spotlight

Buying a primary residence is an emotional and financial milestone in peoples’ lives. Buying real estate investments is different. It’s more like a business proposition, intended to generate rental revenue and profit through market appreciation. In addition, real estate investing provides unique cash flow which allows possible tax-deferred or tax-free benefits from the property, directly benefiting the investor. Increasingly, real estate is a preferred asset for retirement savings year after year. It diversifies your portfolio, provides a revenue stream and may offer time-tested returns on investments.


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REAL ESTATE INVESTMENT

BDP Holdings Acquires 27 and 35 Waterview Drive Near New York City

BDP Holdings | March 02, 2022

BDP Holdings, a New Jersey-based real estate investment company, announced today the acquisition of 27 and 35 Waterview Drive, a best-in-market, Class A office building in Fairfield County, Connecticut, part of the New York City Metropolitan Area. The 310,000 square foot facility is 100% leased to Pitney Bowes Inc. The location at Waterview Drive is 100 percent leased to Pitney Bowes and just a short commute from the company's headquarters. Pitney Bowes is a well-established industry leader with a long track record of success whose revenues have only continued to grow over the last 24 months, We are thrilled to have acquired such a desirable property, located in such an affluent and scenic location as Fairfield County." Dennis Lim, principal, BDP Holdings. Located in the county of Fairfield, Connecticut's largest and wealthiest county, the Pitney Bowes location at Waterview Drive totals approximately 310,000 square feet situated on 22.7 acres of land and provides easy access to several major local roadways, as well as mass transit which offers an easy commute to Boston, New York City and Washington, D.C. The property consists of three stories of office space, with additional space utilized for assembly/warehousing and engineering. The building also includes a full-service cafeteria, fitness center and a scenic outdoor area, perfect for a post-COVID work environment. Built in 1995, the property has undergone many recent capital improvements, including a new roof and major office and lab renovations throughout, making it well-positioned for future productivity. Pitney Bowes is a global technology leader which provides e-commerce, shipping and mailing services across various market segments and supports 90% of all Fortune 500 companies. The Pitney Bowes location at Waterview is considered a mission critical location, serving as an operations center for all business lines and containing the largest concentration of Pitney Bowes employees in the world. It is also in close proximity to the company's headquarters, located in Stamford, Connecticut. In addition to Pitney Bowes, Fairfield County is home to 19 Fortune 1000 companies, including Indeed.com, UBS, WWE, Financial Charter Communications and many others. Just 60 miles from New York City, Fairfield is one of the most affluent counties in the country, with an extremely educated workforce. Nearly half of all workers hold at least a bachelor's degree. Fairfield also features many public and private golf courses, yacht and boat clubs, country clubs and marinas. This is BDP Holdings' fifth investment in the New York City Metropolitan Area. BDP's leadership has invested more than $6.5 billion in value-driven real estate across the U.S. About BDP Holdings Led by a team with nearly 30 years of experience, BDP Holdings is a New Jersey-based real estate investment company specializing in the acquisition, development and repositioning of real estate in the New York Tri-State area and across the U.S. BDP focuses on properties in markets with high barriers to entry and then seeks to add value through the repositioning of current properties or the development of new properties and communities. BDP's executive team has invested in over $6.5 billion of value-driven real estate and acquired over five million commercial square feet in more than 30 states.

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INVESTMENTS

Lument Provides $16.8 Million to Acquire Affordable Housing Tower in Colorado

Lument | February 04, 2022

Lument recently closed a $16.8 million Fannie Mae DUS® loan to acquire Residences at Franklin Park, a 92-unit affordable multifamily community in Denver, Colorado. Timothy Hoppin, director at Lument, led the transaction. Closing this deal was particularly satisfying, as the loan will allow the sponsor to acquire this 92-unit property and preserve much-needed affordable housing in the Denver area, The sponsor was able to secure a new 20-year Housing Assistance Payment (HAP) contract that will help the community maintain safe, comfortable, and affordable housing." Hoppin The sponsor of the loan is Edgemark, a repeat Lument client and well-established presence in Colorado, Texas, and throughout the Midwest. The property will be managed by Selden Property Management, which currently oversees 17,000 units across Iowa, Kansas, Nebraska, Texas, Illinois, Missouri, and Oklahoma. The Residences at Franklin Park was originally constructed in 1972 and renovated in 2011. The property consists of one 10-story building situated on 0.56 acres, and its 92 units include studios, one-bedrooms, and larger one-bedroom units with dens. All apartments include a full appliance package, laminate countertops, vinyl flooring in kitchen areas, and a private patio or balcony. Group amenities include a community room, laundry facility, and surface parking lot. About Lument 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, investment sales, investment banking, and investment management solutions. 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.

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REAL ESTATE INVESTMENT

RADCO Acquires Skyhouse Midtown High-Rise Multifamily Building in Atlanta for $131 Million

RADCO | February 21, 2022

The RADCO Companies (RADCO), one of the nation's leading opportunistic real estate developers, announced the acquisition of Skyhouse Midtown, a 320-unit, 23-story luxury high-rise multifamily building prominently located in the heart of Midtown Atlanta, for $131 million. The deal marks the first high-rise multifamily building RADCO has acquired in its current investment cycle and complements the firm's existing portfolio of multifamily and commercial real estate. The property has been renamed "The M by Radius." Radius is RADCO's highest brand and joins nearby Radius West Midtown to bolster the company's in-town presence. RADCO previously owned the 53-story Four Seasons hotel, office, and residential tower just blocks away from The M by Radius. Built in 2013, the newly branded The M by Radius was one of the first buildings constructed in Atlanta coming out of the Great Recession. The property offers a prime location at the corner of West Peachtree and 12th Street, the new epicenter of the city with offices, retail, and entertainment nearby. The ground floor includes 8,658 square feet of retail space. The M by Radius is the closest high-rise to the I-75/85 connector in Midtown and one of the most visible buildings in the Atlanta skyline, offering exceptional signage or art opportunities on its half-domed roof. The property features frontage on Spring Street, 12th Street, and the bustling West Peachtree Street. The building consists of studio, one-, two-, and three-bedroom apartments and luxury "amenities in the sky" including a rooftop pool and lounge, fitness center, and grills all with 360-degree views overlooking Atlanta's skyline. The unit interiors at The M by Radius have modern, open floorplans with ample room for value-add expansion. RADCO is pleased to announce we have acquired Skyhouse Midtown, our first high-rise, late vintage property acquisition in this cycle, As residents and capital migrated to the suburbs during the pandemic, the cost of buying suburban apartment assets also substantially increased. There's been a recent shift back to the urban core making in-town residential an attractive investment once again. The M by Radius offered everything we were looking for in an urban multifamily asset and as always, we intend to invest in this incredible building and significantly improve the resident experience. RADCO intends to seek out additional urban residential investments throughout the Southeast." Norman Radow, CEO of the RADCO Companies. The M by Radius sits directly across from 1105 West Peachtree, a fully-leased, newly constructed office building that is the planned new regional headquarters for Google, part of its recently announced expansion in the Atlanta market. In addition, the property is across the street from the culinary-themed Epicurean Hotel, Northside Hospital's in-town campus, SCAD, Georgia Tech, and other business and cultural attractions. Skyhouse was first created by the visionary developer Jim Borders and his Novare Group. The deal represents the 100th transaction for RADCO during the current real estate cycle. The Northmarq team led by Jason Nettles and Megan Thompson brokered the transaction. The RADCO Companies RADCO was founded in 1994 with the mission of "Building Better Living." Based in Atlanta, RADCO is a national real estate company that specializes in the acquisition and redevelopment of value-add multifamily and hospitality investments across the Southeast and Central US. Over the past 10 years, the firm has acquired and invested in approximately 30,000 units in 15 markets and completed more than 90 deals totaling $3.1 billion.

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INVESTMENTS

Greystar Announces Pre-Leasing Underway for 525 Olive in Bankers Hill

Greystar | February 07, 2022

Pre-leasing is underway at 525 Olive,­ a nearly 300,000-square-foot luxury apartment community in Bankers Hill being developed by global real estate leader Greystar ­in conjunction with St. Paul's Episcopal Cathedral. Offering panoramic views of San Diego's famed Balboa Park, the more than $100.2 million project is slated for completion in April 2022, with move-ins to begin in April. According to Raul Tamez, director of development for Greystar, the 20-story luxury community is San Diego's answer to New York's Central Park living – providing easy access to the city's urban playground, Balboa Park, which features over 1,200 acres of natural outdoor space. With its elevated Bankers Hill location, 525 Olive is now the highest residential address in San Diego, offering sweeping city, bay and park views. This is an extraordinary opportunity to live in one of San Diego's most walkable and bikeable neighborhoods, offering close proximity to not only Balboa Park, but also dozens of nearby shops and restaurants, and other vibrant areas such as Downtown, Little Italy, Hillcrest and Mission Hills." Tamez. Greystar – a leading residential real estate manager and developer – acquired the .59-acre parcel of land from St. Paul's in 2019 and construction commenced shortly thereafter. As part of the transaction, the church will occupy 10,000 square feet on 525 Olive's first floor and 8,500 square feet on the bottom level as well as use of the underground parking garage. The 204 total residences will include studio, one-, two-, three-bedroom floor plans, plus penthouse suites, with homes spanning 533 to 1,625 square feet. Designed to condominium standards, 525 Olive homes are outfitted with modern wide wood plank style flooring, private patios or balconies and state of the art touches, such as auto shades, WiFi enabled LG thermostats, keyless entry doors and much more. Kitchens are equipped with top-of-the-line Fisher & Paykel appliances, sturdy quartz countertops and stylish herringbone tile backsplash. Twelve penthouse residences span the top two floors and range from 1,280 to 1,625 square feet with upgraded finishes, more expansive floor plans and unobstructed city views. Furthering the homes' sophisticated motif, all interiors were artfully designed to reflect the building's lush setting, with clean lines and a neutral color palette connecting to the surrounding trees, sky and water, and floor-to-ceiling glass windows to maximize city and park panoramas. While 525 Olive is contemporary in style, elements of the building have been carefully designed to complement the neighboring church – a neo-gothic style structure built in 1951 – as well as the nearby park and the surrounding neighborhood. The striking ground floor lobby area – with bold modern accents, organic fine touches and an understated color palette – also encompasses a soon-to-be named retail venue, plus the community's leasing office, mail area, multiple courtyards and the outdoor dog run. Dramatic amenity spaces include the Level 20 SkyClub, a rooftop retreat that spans the entire top floor and includes a clubroom with kitchen and TVs, the Park Lounge social area with a food bar, and the Sun Club with a sparkling rooftop swimming pool and lounge. Rounding out the amenity line up: an expansive indoor/outdoor fitness studio, courtyards with plenty of outdoor seating, a dog run and pet spa with grooming services and work lounge with Zoom conference rooms. Residents also have access to concierge services, 24-hour package reception, reservable bikes as well as a 15,000 square foot community park. About Greystar Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates approximately $230 billion of real estate in 215 markets globally including offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages more than 754,000 units/beds, and has a robust institutional investment management platform with more than $49.9 billion of assets under management, including $22.6 billion of development assets. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business.

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Spotlight

Buying a primary residence is an emotional and financial milestone in peoples’ lives. Buying real estate investments is different. It’s more like a business proposition, intended to generate rental revenue and profit through market appreciation. In addition, real estate investing provides unique cash flow which allows possible tax-deferred or tax-free benefits from the property, directly benefiting the investor. Increasingly, real estate is a preferred asset for retirement savings year after year. It diversifies your portfolio, provides a revenue stream and may offer time-tested returns on investments.

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