$42 million highrise set for completion in Miami Beach Richmond, Va.-based John B. Levy & Co. has placed a $42 million long-term, fixed-rate loan with an institutional investor for the completion of The Floridian, a 33-story luxury highrise in Miami Beach near Biscayne Bay. The Floridian has 334 units with 73 one-bedroom, 197 two-bedroom, 48 three-bedroom and 14 penthouse apartments averaging 1,200 sq. ft. per unit. It is the first new rental for Miami Beach in more than 20 years and is located just 450 feet from Biscayne Bay. The L-shaped tower's main entrance has five elevators opening on each level of a six-story parking garage with inside access. The deal was structured at 10-year term with 25-year amortization.
Luxury rental tower slated for Atlanta skyline Midtown Atlanta will receive a new $45 million highrise targeted for completion by October 1998. Juniper Parke, a 16-story, 396-unit luxury apartment tower, will offer units ranging from 745 to 2,383 sq. ft. Average monthly rent will be around $1,300. Atlanta-based Hardin Construction Group is the general contractor, with the development and design team consisting of Ai Group/Architects, P.C. and developer C.J. Humphreys, both based in Atlanta.
Freddie Mac securitizes loans worth $360 million McLean, Va.-based Freddie Mac has securitized $360 million in multifamily mortgage loans originated by Nationwide Life Insurance Co. The 48-loan pool improves the liquidity of Nationwide's balance sheet and adds to the overall financial flexibility of the company. During the first five months of 1997, Freddie Mac had funded 106 multifamily loans for $500 million.
$166.2 million in deals heats up student housing market The student housing market is hot with two deals that included more than 10,600 beds for students at 12 universities across the country. First, New York-based Reckson Opportunity Partners, L.P. (ROPartners) bought 76% of American Campus Lifestyles Cos. (ACLC), an Austin, Texas-based developer of campus student housing that presently has 3,580 managed beds. In conjunction with the ACLC purchase, ROPartners acquired a major interest in Dobie Center, a 27-story, 947-bed student residential complex located at the University of Texas.
Secondly, Wayne, Pa.-based College Park Communities acquired the multihousing portfolio of Northwestern Mutual Life Insurance Co. for $91.5 million and plans more than $11 million in upgrades over the next 60 days. The portfolio consists of 10 student complexes containing 1,723 units with 6,100 beds at eight universities nationwide.
Sentinel Real Estate purchases 2,471 units in buying spree New York-based Sentinel Real Estate Corp. purchased 3,364 units for more than $204.6 million in deals that combined 10 properties. The transactions bring Sentinel's asset portfolio value to more than $3 billion. The properties are located in Texas, Florida,Virginia, Nevada, Arizona and Colorado.
New cap rate/pricing data provided by PIX This month, we're featuring the first of what promises to be quarterly updates on the state of multifamily market cap rates and prices nationwide. This data is provided to us by a company called Property Information Exchange (PIX), based in New York. PIX is an innovative information service that links qualified institutional investors with an ever-expanding pool of investment grade properties totaling over $3 billion. This data is an empirical measure of what more than 700 of the largest real estate investors and advisory firms are chasing.
Based on the latest quarterly numbers through July 30, 1997, multifamily market cap rates had dropped to 11.17% nationwide, which compares to 11.30% in July 1996, and 11.31% in January 1997.
In pricing terms, PIX data indicates that the average price per sq. ft. has decreased to $57.67 from $59.50 last July, but is up from $57.38 in January 1997.
Associate Editor Randy Henry covers the multifamily news beat for NREI. He welcomes comments and news items via e-mail to [email protected]