Multifamily/Seniors Housing Beat

Crestline to wave goodbye to seniors housing portfolio

Senior Housing Properties Trust, Newton, Mass., has entered into an agreement to purchase a portfolio of 31 seniors housing properties from Bethesda, Md.-based Crestline Capital Corp. for approximately $600 million, a figure that includes the assumption of about $235 million of existing debt. The sale is expected to close in first-quarter 2002.

Bruce D. Wardinski, chairman, president and CEO of Crestline, said the sale of the company's seniors housing portfolio will enable Crestline to focus exclusively on its hotel portfolio and hotel management services. “This transaction is a win for both companies and is consistent with our strategy over the past two years of monetizing our senior living assets,” he said in a statement. “We are now 100% focused on the hotel-lodging business. This is an excellent transaction for Crestline and our shareholders that will unlock a substantial amount of capital.”

Told tells Minnesota: Mixed-use coming soon

Minneapolis-based Told Development Co. has begun construction of Excelsior & Grand, a $120 million mixed-use project in St. Louis Park, Minn. When complete, the project will feature 625 apartments, 35 condominiums, more than 77,000 sq. ft. of retail space and 45,000 sq. ft. of office space. The $63 million first phase of the project, which will consist of 345 apartments and more than 65,000 sq. ft. of retail space, will be substantially complete in fall 2002.

The first phase of Excelsior & Grand will feature four-story buildings with retail space on the first floor and apartments on the top three floors. The project will contain two public parking facilities.

Trammell Crow starts massive Northern Virginia complex

Trammell Crow Residential (TCR), Atlanta, has begun construction of Alexan Virginia Center, a $75 million, 492-unit apartment complex in Vienna, Va. The first phase of the project is slated for completion in fall 2002, and the entire complex is expected to be finished by summer 2003. American International Group Inc. (AIG), New York, made an undisclosed equity investment in the project, and PNC Bank, Pittsburgh, is providing construction financing.

The complex will feature one- and two-bedroom units in loft and townhome floorplans. Amenities will include an 11,000 sq. ft. community center, a cyber café, landscaped courtyards, a fitness facility and barbecue areas.

TRI Capital lends a helping hand to L. A. seniors project

San Francisco-based TRI Capital has closed a $20.4 million construction loan for Park Plaza West Senior Apartments, a 198-unit affordable housing complex for senior citizens in Los Angeles. Forty of the project's apartments will be set aside for low-income seniors. Burbank, Calif.-based Meta Housing Corp. is the developer and owner of the complex. Completion is slated for September 2002.

The 40-year loan, insured by the Federal Housing Administration (FHA), carries a 5.89% interest rate and was structured using low-income housing tax credits and tax-exempt bonds.

In other seniors news, San Diego-based Senior Resource Group LLC has begun construction on SpringRidge Court, a $13 million, 89-unit assisted living complex in Wilsonville, Ore. The complex will be next to SpringRidge at Charbonneau, an existing congregate care facility. Completion is scheduled for fall 2002.

Amenities will include 12-hour dining room service, on-site health care, housekeeping and maintenance, scheduled transportation and electronic security systems.

Lend Lease lassos Rancho Valencia in California

New York-based Lend Lease Real Estate Investments has purchased Rancho Valencia Apartments, a 245-unit complex in Garden Grove, Calif., for $23.2 million. Irvine, Calif.-based Bascom Group was the seller. Baron Jones, Jerry Giglio, William DuBrowa and Arlan Murata of Northbrook, Ill.-based Grubb & Ellis represented both the buyer and the seller in the transaction. The complex, which consists of 39 buildings, was 98% occupied at the time of the sale.

Harbor Group welcomes Memphis units to the fold

Norfolk, Va.-based Harbor Group has purchased Hickory Ridge Apartments, a 378-unit complex in Memphis, Tenn., for $11.7 million. Denver-based AIMCO was the seller. Blake Pera, Sean Cunningham and Steve Rudesill of Los Angeles-based CB Richard Ellis represented AIMCO in the deal, while Harbor Group represented itself.

Hickory Ridge features 96 one-bedroom units, 263 two-bedroom units and 19 three-bedroom units ranging in size from 650 sq. ft. to 1,600 sq. ft. The rents for the one-bedroom, two-bedroom and three-bedroom units average $510, $630 and $830 per month, respectively.

The property was 87% occupied at the time of the sale. The apartment occupancy rate for the Memphis area was 91% in first-quarter 2001, according to CB Richard Ellis.

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