WSJ: The housing market is red-hot in the heartland

The Wall Street Journal | August 12, 2019

After years of soaring real estate prices in popular coastal areas, demand has notably slowed in these markets as home prices have far exceeded wage growth. Now, its smaller, midwestern cities that are gaining all the traction, with real estate in these heartland markets seeing lots of action. According to a recent article in The Wall Street Journal, the housing market has illustrated a noticeable shift in activity toward the center of the country.

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This home and property is so unique and amazing that it was featured in Architectural Digest! Situated on 113 acres in the beautiful Uinta Mountains, it is close to Park City and Deer Valley


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REAL ESTATE INVESTMENT

Pixiu Real Estate and Woodbine Development Acquire The Driskill Hotel

Pixiu Real Estate | May 26, 2022

Pixiu Real Estate, Woodbine Development Corporation and a collective of Austin-based investors have acquired the capital city’s first and most iconic hotel, The Driskill, from Hyatt Hotels & Resorts. Woodbine Development Corporation is the Dallas-based real estate investment firm behind many notable hotel properties in Texas and beyond. Pixiu Real Estate is part of Pixiu Investments, an investment firm owned by Eddie Margain, co-founder of several ventures, including local MLS club Austin FC. Among the investor group is Bryan Sheffield, founder of Parsley Energy and fellow investor in Austin FC. As a destination, The Driskill Hotel has been a shining star for Austinites and Texas-bound travelers since it opened its doors in 1886. As new owners and stewards of this historic property, we’re excited to work with Hyatt, Pixiu and the local investor group, who have a common goal of enhancing this hotel and ensuring its legacy for years to come.” Dupree Scovell, managing partner and chief investment officer at Woodbine The Driskill anchors the Sixth Street Entertainment District in downtown Austin. The new ownership group is looking to maintain and elevate the appeal of the 189-room luxury hotel while also helping to stabilize and revitalize the surrounding neighborhood. The group has expressed initial plans to invest a substantial amount of capital, which is intended to help spur momentum for revitalization along Sixth Street. “We are thrilled about this important acquisition because of what it represents for Austin and for Pixiu Real Estate,” said Eddie Margain. “As an Austinite, I know and appreciate the historical significance of this more than 130-year-old property. And, as our community continues to grow, I believe we need to preserve and revitalize landmarks like The Driskill that have contributed to the making of Austin’s distinct character and spirit.” Margain added: “We made calls to good friends who have the same interest of preserving Austin and a desire to work on a legacy project, and an amazing group came together. Partnering with Woodbine Development has been an incredible experience; they are world-class hotel operators, and they know the hotel industry like none other.” Dallas-based Woodbine brings nearly 50 years of hospitality development and asset management experience to the hotel’s ownership group. The company’s portfolio of work includes Austin’s Hotel Magdalena and Hyatt Regency Lost Pines Resort & Spa; San Antonio’s Hotel Emma and Hyatt Regency Hill Country Resort & Spa; Hyatt Regency Dallas and Reunion Tower and Hilton Dallas/Park Cities; and many other properties throughout Texas and the United States. Woodbine specializes in developing select- and full-service destinations in urban, suburban and inspiring out-of-the-way settings as well as office/mixed-use projects – always creating places people want to be. Just a few blocks from the Texas capitol, The Driskill opened its doors in 1886, quickly becoming known as the Grande Dame of Austin. A confluence of opulence and luxury, the hotel has been the destination of choice for an array of guests over the years – for overnights, special events, SXSW sessions, election-night watch parties, political drink-sipping and deal-making, weddings and engagements (future president Lyndon B. Johnson proposed to Lady Bird during their first date, which took place at the hotel) and much more. While no longer owners of the hotel, Hyatt Hotels & Resorts will continue daily management of the property. About Woodbine Development Corporation Woodbine Development Corporation is a full-service real estate company with nearly 50 years of development, investment, acquisition and asset management experience. With offices in Dallas and Phoenix, Woodbine specializes in hotels, resorts and mixed-use developments throughout the United States. The company’s hospitality portfolio features major brands, independent hotels, full-service destinations and select-service stays alike. Since 1973, Woodbine has been involved in more than $7 billion in commercial real estate projects, including the development, ownership, asset management, repositioning or renovation of over 17,000 hotel rooms. About Pixiu Real Estate Pixiu Real Estate was founded in 2010 and is comprised of an expanding portfolio of real estate properties around Austin and Texas. Among the iconic properties of which Pixiu has ownership are the Littlefield and Scarbrough buildings adjacent to The Driskill. The firm also has ownership in several other buildings downtown. Pixiu Real Estate’s parent company, Pixiu Investments, is a prominent investment firm based in Austin, Texas with investments across multiple industries including real estate, technology, hospitality, energy, and professional sports.

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REAL ESTATE INVESTMENT

Toorak Capital Partners Closes $285M Residential Bridge and $363M DSCR Securitizations

Toorak Capital Partners | March 15, 2022

Toorak Capital Partners, Inc., a leading capital provider to the residential real estate lending industry, announced the successful closing of TRK 2022-1, a $285 million securitization of residential bridge loans, following the closing of TRK 2022-INV1, a $363 million securitization of DSCR loans last month. Toorak’s securitizations received investor demand despite a volatile and oversupplied market. To date, the company has issued $2.7+ billion in securitizations across nine deals, including six revolving transactions backed by bridge loans and three rated transactions backed by long-term investor loans on rental properties. We are focused and proud of the social impact Toorak has had. In addition to aiding in the delivery and availability of units to the market, many of which are affordable, Toorak’s funding brings jobs and opportunities to areas that are often neglected by large investors. Our bridge loan borrowers are entrepreneurs who invest the funds we provide to hire and employ local workers, many with untraditional backgrounds and in low-income neighborhoods.” John Beacham, Toorak CEO The initial collateral underlying the TRK 2022-1 securitization consisted of 583 residential bridge loans that financed approximately 1,300 housing units, 78% of which are expected to be affordable upon rehabilitation and/or stabilization in their respective zip codes, where the median household income was close to $55,900. The TRK 2022-INV1 securitization consisted of 1,254 rental mortgages that financed around 2,300 units, with an average underwritten rent of approximately $1,600 per unit, compared to a median household income of $55,700 in their respective zip codes. With capital commitments from entities managed by KKR, a leading global investment firm, Toorak has revolutionized the way business purpose residential real estate lenders access capital. The firm was the first to link small-balance commercial and residential originators with institutional capital and has perfected this approach in the single-family residential bridge and 30-year single family rental lending space. About Toorak Capital Partners Toorak Capital Partners is an integrated correspondent lending platform based in Summit, NJ. Toorak acquires small-balance, business-purpose loans backed by residential, multifamily, and mixed-use properties throughout the U.S. and the U.K. Toorak acquires loans directly from lenders that originate high credit quality loans. Toorak’s principals have a deep understanding of mortgage credit in the residential and commercial space with backgrounds in real estate lending, capital markets, securitization, asset-liability management, asset management and credit. Since inception, Toorak has provided more than $7.5 billion in capital and funded over 20,000 business-purpose loans. Toorak-funded projects have renovated, stabilized or provided rental housing for close to 40,000 families to date – an average of approximately 1,000 families per month in 2021.

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REAL ESTATE INVESTMENT

Armada Venture Partners Acquires Park Hill Industrial Building

Armada Venture Partners | December 30, 2021

Armada Venture Partners, a local boutique commercial real estate investment and development company, announced it has purchased a 46,000 square-foot warehouse in Park Hill. The vacant Denver warehouse, located at 3939 Kearney Street, will be renovated and leased in 2022. We are being intentional in acquiring and redeveloping in-fill opportunities across various asset classes to support growing companies and drive economic growth in our city, Park Hill is one of the gems of Denver. It is known for its architectural diversity, relaxed suburb-in-the-city vibe, and the easy access it affords to major thoroughfares, transit and downtown." Ryan Arnold, principal of Armada. Evan Makovsky, Byron Johnson and Craig Myles of NAI Shames Makovsky facilitated the transaction on behalf of the seller. The purchase price was $6,320,000. About Armada Venture Partners Armada Venture Partners, a creative boutique commercial real estate company founded in Denver in 2021, brings value to properties and investors by integrating acquisitions, capital markets and structured finance, in addition to offering asset management solutions for projects in Colorado and other high growth regions. Armada's principals have acquired, developed and asset managed over $200M in real estate assets since 2014.

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INVESTMENTS

Trilogy Multifamily Income & Growth Holdings Acquires Class A Multifamily Community in Chicago

Trilogy Real Estate Group | February 10, 2022

Trilogy Multifamily Income & Growth Holdings, a Regulation A+ bond offering sponsored by Trilogy Real Estate Group, announced today the acquisition of a 138-unit, Class A multifamily community located in Chicago's famed Logan Square neighborhood. We are very excited to have acquired the first property within the Trilogy Multifamily Income & Growth Holdings offering, Our capital raise and a rapidly expanding selling group are strong indicators that investors are eagerly seeking investments offering attractive current income with upside potential and we believe this property delivers on both fronts." Matt Leiter, CFO of Trilogy. The six-story building was built in 2018 and provides 138 studio, one- and two-bedroom apartment homes and 8,800 square feet of fully occupied ground-floor commercial space. The transit-oriented development is only 300 feet from the nearest Chicago Transit Authority train station. Along with unobstructed city views available from the property's rooftop deck, the apartment community offers many amenities uncommon for an asset its size, such as granite countertops, stainless steel appliances, nickel finish fixtures and in-unit washers and dryers. Some apartment homes also feature large walk-in closets, private terraces and IOTAS smart home technology. Community amenities include an indoor coworking space, modern fitness center, luxury fireplace, grilling stations, a bocce court and a green roof, among others. Located in Chicago's desirable neighborhood of Logan Square, the property sits in the heart of a vibrant community with an abundant collection of dining, entertainment and employment experiences. Some of the notable employers in the surrounding area include Amazon, Eli Lilly, AbbVie and Boston Consulting Group. Residents are also just one mile south of the 606 Trail, a 2.7-mile community trail that brings together arts, history, design, event and green spaces for all residents. The Regulation A+ bond offering intends to primarily acquire existing Class A and Class B multifamily real estate assets located in targeted markets across the U.S. Trilogy Real Estate Group expects to add multiple properties over the coming months. About Trilogy Real Estate Group Trilogy Real Estate Group is a vertically integrated real estate investment and property management firm with a focus on multifamily apartments and commercial real estate. Trilogy was recently rated "A" and was ranked the sixth best U.S. apartment property manager in the "epIQ Index for Top 100 Management Companies" - January 2020. Since 2002, the principals of Trilogy have completed over $4 billion in transaction volume. Trilogy has a proven expertise in timing real estate cycles and sourcing and managing outstanding real estate investments in markets around the United States.

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Spotlight

This home and property is so unique and amazing that it was featured in Architectural Digest! Situated on 113 acres in the beautiful Uinta Mountains, it is close to Park City and Deer Valley

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