June 5, 2014 | Issue 237
Southeast Real Estate Business
Top Story

Multifamily Management Giants Combine: Greystar Acquires Riverstone 
 
Bob Faith
CHARLESTON, S.C. -- Greystar Real Estate Partners has acquired Riverstone Residential Group, in effect uniting the two largest multifamily property management companies in the country. The companies' combined portfolio totals more than 385,000 units. 

Earlier this year, Greystar and Riverstone were ranked No. 1 and No. 2, respectively, on the National Multifamily Housing Council's "NMHC 50 Largest U.S. Apartment Managers" list. The companies' combined total assets under management more than doubles that of the No. 3 ranked management company, Lincoln Property Co. 

Greystar purchased Riverstone from London-based CAS Capital Limited, a wholly owned subsidiary of Regis Group PLC. 

"Riverstone is one of the nation's most highly respected multifamily firms, and we are proud to have them join our Greystar family," says Bob Faith, chairman and CEO of Greystar. "Combining forces makes us even stronger, especially in local markets where we are bringing together some of the most talented and experienced multifamily professionals in the industry."

-- John McCurdy

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$49.2M Student Housing High-Rise
Under Construction Near Georgia Tech

Centergy will be a 25-floor, 230-unit, 828-bed building when it is complete in August 2015.

ATLANTA -- South City Partners and Gateway Development are under way on a $49.2 million project near Georgia Tech. Centergy will be a 25-floor, 230-unit, 828-bed building when it is complete in August 2015. The first two floors will be devoted to retail. It is located next to the Centergy One building and Georgia Tech's Technology Square. The total square footage is 325,000, and amenities include a pool, fitness center, a club room with fireplace, and a rooftop terrace with another fireplace and an outdoor kitchen. 

 

Apartments will be available as one-, two-, three- or four-bedroom units, each with bed-bath parity. They will also feature floor-to-ceiling windows, stainless steel appliances and granite counter tops. The general contractor for the Centergy student housing project is JE Dunn Construction.

 


$14.6M Affordable Seniors Apartment Community Opens in Baltimore County
The Greens at English Consul in Halethorpe is affordable for seniors earning up to 60 percent of the area's median income.
(Photo courtesy of Alan Gilbert)

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HALETHORPE, MD. -- Enterprise has opened The Greens at English Consul, a $14.6 million seniors housing community located at 4120 Oak Road in Halethorpe in Baltimore County. The property features 72 one-bedroom and 18 two-bedroom apartments affordable for seniors earning up to 60 percent of the area's median income. In addition to developer Enterprise, the design team includes architect Grimm + Parker and general contractor The Whiting-Turner Contracting Co. The development includes a library with computer terminals, a community room, TV lounge and sports bar, activity room, laundry room, mail room and fitness center. Bank of America provided construction financing for the project. Financing also came via government funds, a grant, bond, construction loan and developer equity.

 


Inland Purchases Lakeside Crossing Shopping Center in Virginia for $19.8M
Lakeside Crossing Shopping Center in Lynchburg, Va., is 98.5 percent leased to 14 tenants, including Fresh Market, Panera Bread, U.S. Cellular, Massage Envy and Zoe's Kitchen.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LYNCHBURG, VA. -- Inland Real Estate Income Trust Inc. has acquired the 66,906-square-foot Lakeside Crossing Shopping Center in Lynchburg for roughly $19.8 million. The newly constructed property is located between Old Forest Road, Whitehall Road and Lakeside Drive. The asset is 98.5 percent leased to 14 tenants, including a 20,900-square-foot Fresh Market grocery store, Panera Bread, U.S. Cellular, Massage Envy and Zoe's Kitchen. Lou Quilici of IREIT Business Manager & Advisor Inc. assisted Mark Cosenza of Inland Real Estate Acquisitions Inc. in the transaction.

Multi Housing Advisors Brokers $13.8M Sale of Suburban Nashville Apartments

 

Green Leaf at Hermitage is a 261-unit apartment community in Hermitage, about 14 miles northeast of Nashville.

 

HERMITAGE, TENN. -- Multi Housing Advisors (MHA) has arranged the $13.8 million sale of Green Leaf at Hermitage, a 261-unit apartment community in Hermitage, about 14 miles northeast of Nashville. The property, built in 1973, includes one- to three-bedroom layouts. The asset's amenity package includes a fitness center, playground, swimming pool, business center, laundry facilities and a picnic area. Brett Kingman of MHA's Atlanta office represented the sellers, affiliates of Danville, Calif.-based Green Leaf Partners, in the transaction. The buyer, an affiliate of Old Tappan, N.J.-based Spyglass Capital Partners, did not use a broker.

 


Capital One Bank Combines Balance Sheet, Agency Lending Groups

NEW YORK CITY -- Capital One Bank has introduced Capital One Multifamily Finance, a commercial real estate organization that combines the company's balance sheet and agency lending groups into a single entity. This is the next stage in Capital One's integration of Beech Street Capital, the agency originator and servicer acquired by Capital One last year.

 

"These teams are already working closely together to offer our clients the best of both organizations," says Rick Lyon, head of commercial real estate banking  for Capital One in New York City. "Bringing them under a single banner enhances our ability to serve clients more efficiently, while signaling to the marketplace that we intend to become an even greater force in the multifamily business."

 

Capital One Multifamily Finance is entering the market as top-five U.S. multifamily originator. The company will offer its expanded client base the capabilities of Capital One's Commercial Banking group in related asset classes and in services, such as treasury management.

 

"As a full-service provider, we have the breadth to deliver the best possible financing solution for each one of our clients," says Scott Swerdlin, senior vice president of Capital One.

 

The multifamily group will offer a national platform with offices across the country. Beech Street operates nine locations across the country, and Capital One offers balance sheet financing in key East Coast markets, as well as Texas and Louisiana.

 


Wells Fargo's Allen Predicts Interest Rates to Creep Up in Near Future
Hugh Allen

Although he's quick to point out that no one knows exactly what will happen to interest rates in the future, Hugh Allen, senior vice president and Mid-Atlantic division manager of Wells Fargo's commercial real estate group, predicts that interest rates will rise in the next three to six months. Allen predicates his forecast on an improving U.S. economy in the near future.

 

Allen will be one of the featured panelists at the InterFace Carolinas information and networking conference on Wednesday, June 11 at the Hilton Charlotte Center City. His panel is entitled "Capital Markets Update: What's the Availability, and Cost, of Debt and Equity Financing". Southeast Real Estate Business recently spoke with Allen about the conference and the lending landscape in the Carolinas.

 

SREB: This week, we saw the 10-year Treasury yield dip from 2.66 percent to 2.5 percent, a six-month low. Was that a surprise to you? How will this compression impact the commercial real estate sector?

 

Allen: It was a surprise, and the continued drop is also. I personally don't think this is a long-term trend. In a lot of folks' view, this is the result of foreign money coming to our yields versus other foreign country bonds with lower yields. If so, global events or external decisions by other governments could easily influence an upswing. I personally think we will see rates rise a bit over the next three to six months, but not to the 3 percent range. The economy will likely be steady in its improvement, and that will moderate rates slightly higher. But if anyone claims to really know what will happen, they are lying.

 

SREB: The general consensus from lenders is that borrowers and investors have incredible access to both debt and equity; some even say the availability is "historic." Is there sufficient demand from borrowers to utilize the amount of capital that banks, life insurance companies, CMBS lenders, etc. have in their coffers?

 

Allen: From a lending perspective, I don't think deal flow is quite at the same level as available capital. That's likely in part why, I think, we are seeing compression pressure in loan spreads. It is also in part why some deal structures are being compromised versus last year.

 

SREB: In North and South Carolina, what are some of the most promising property types now and going forward from a lender's perspective? In other words, what asset classes are lenders and financial intermediaries bullish on?

 

Allen: I think retail and industrial will get great receptivity in 2014 and into 2015.  Multifamily is still attractive, but lenders are becoming more selective on quality of sites, sponsorship and location/markets. Hospitality may have hit its peak as well.

 

SREB: Your panel at InterFace Carolinas will cover several financial topics. What do you hope attendees will take away from the panel?

 

Allen: I hope attendees will gain better insight into what several lenders may be facing relative to "cards they are playing with" and how that may affect their allocation of capital to commercial real estate, impacts to deal structure and how they price it.

 


Seniors Housing Business Magazine
to Produce Annual ASHA 50 List

ATLANTA -- Seniors Housing Business, France Media, Inc.'s award-winning magazine covering the rapidly growing independent and assisted living, skilled nursing and memory care facets of the seniors housing industry, has been selected by the American Seniors Housing Association to produce this year's "ASHA 50" supplement, which ranks the 50 largest owners and managers of seniors housing.

 

The ASHA 50 supplement will be produced with Seniors Housing Business' August/September issue, which will also be distributed at the National Investment Center's (NIC) annual conference, the leading information and networking event in the seniors housing industry.

 

"We are extremely excited to work with Seniors Housing Business on the ASHA 50 rankings and we believe this 21st edition will continue the established tradition of producing authoritative rankings of the largest owners and managers of market-rate seniors housing," said David Schless, president of the American Seniors Housing Association. "The ASHA 50 supplement is a must-have publication for owners, operators, lenders and investors, and other professionals interested in understanding key trends related to seniors housing real estate." 

 

"Seniors Housing Business is very excited to partner with ASHA on what is a 'must-read' for everyone in seniors housing as well as those considering getting into this growing sector of commercial real estate," said Richard Kelley, publisher of Seniors Housing Business. "ASHA's decision to work with Seniors Housing Business is a reflection of how the magazine has become an integral part of the seniors housing industry. The ASHA 50 will not only reach all of our Seniors Housing Business circulation, but will also be mailed with the circulations of France Media's five regional commercial real estate magazines (Northeast Real Estate Business, Southeast Real Estate Business, Heartland Real Estate Business, Texas Real Estate Business and Western Real Estate Business) to give ASHA and this burgeoning asset class the widest possible exposure and reach." 

 

For more information about the ASHA 50 supplement and Seniors Housing Business, contact Editor Matt Valley at (404) 832-8262 or mvalley@francemediainc.com. For advertising information, contact Richard Kelley at (914) 468-0818 or rkelley@francemediainc.com.
 

InterFace Carolinas 2014
When: June 11, 2014
Where: Hilton Charlotte City Center
222 E. 3rd St.
Charlotte, NC 28202
InterFace Carolinas Healthcare Real Estate 2014
When: June 11, 2014
Where: Hilton Charlotte City Center
222 E. 3rd St.
Charlotte, NC 28202
IREM Georgia Luncheon
When: June 11, 2014
Where: Ansley Golf Club - Midtown
196 Montgomery Ferry Drive N.E.
Atlanta, GA 30309
BOMA: 2014 Every Building Conference & Expo
When: June 22-24, 2014
Where: Gaylord Palms Convention Center
6000 W. Osceola Parkway
Kissimmee, FL 34746

Have an event that you would to share with our readers? Send an email with the details to Southeast Real Estate Business editor John Nelson at jnelson@francemediainc.com.
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