Aug 01, 2024

Northmarq finds nearly $18M for SLU units

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In South Lake Union, Tarragon completed its 145-unit Boxcar apartments about a decade ago. Ankrom Moisan was the architect, and Rushforth Construction the builder. Now Northmarq has announced that its Bob Spiro recently arranged an over $17.8 million refinancing package via Fannie Mae. Spiro said in a statement, “Fannie Mae continues to provide best in class apartment financing products that meet our client's needs.” The new fixed-rate loan is structured with a five-year, interest-only term with a 5.36% interest rate. Boxcar, at 975 John St. (on the corner of Terry Avenue North), is surrounded by its taller SLU brethren. It was notable for employing some modular components, including steel framing instead of the usual wood-frame method for such midrise projects.

Emerald Communities

Cook

Emerald Communities has announced that its longtime head of marketing and public relations, Kay Wallen, is retiring after three decades with the nonprofit senior housing organization. Stepping into her role is new hire Sandra Cook. She makes the move from Aegis. CEO Lisa Hardy said in a statement, “After more than three decades of dedication to the organization, it is difficult to see Kay go, but we are confident Sandra will lead the two communities into great new chapters. With expansion projects underway in both Heron's Key and Emerald Heights, Sandra's expertise in opening new communities and sales will be incredibly valuable.”

Avatar places NoCal loan

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Based here in Seattle, Avatar Financial Group makes loans all around the country. And in a recently announced $6.4 million deal, it has aided in the future renovation of a 44-room hotel in the Sonoma region of Northern California, near Bodega Bay. The new bridge loan carries a 2.5-year term. Avatar has worked with the owner of the nearly four-decade-old Bodega Coast Inn & Suites before. Avatar's T.R. Hazelrigg IV said in a statement, “Our borrower is an experienced investor that's recently wrapped up a similar overhaul on a San Diego boutique hotel. We look forward to seeing a repeat of that success with this property.”

Heartland

Choi

Policar

It's hiring season at Heartland. The firm announced a pair of new staff additions last week. First is Dave Policar, who makes the move from BentallGreenOak. He becomes senior asset manager. Second, Celina Choi joins the outfit as associate project manager.

Security Properties strikes deal with Funnel

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What is Funnel Leasing? Based in Tampa, it's a CRM software platform, as in customer relationship management, that specializes in multifamily property management. And, Funnel announced last week, it now counts our own Security Properties Residential as a new client. Funnel will begin providing services to Security Properties apartment communities all across the U.S., serving about 26,075 units in total. Funnel CEO Tyler Christiansen said in a statement, “The SPR team is on a quest to overhaul the status quo and put renter experience at the forefront of their new operating model. We are proud to be the platform to enable that change through the Entrata integration that makes Funnel PMS agnostic.” What is PMS? The acronym for property management system. Security Properties, now building the 29-story Confidential high rise in Belltown (pictured), manages beyond its own portfolio of some 19,000 units.

Jul 25, 2024

Gantry finds $40M for Mercer Island units

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The Mercer, with its 235 units, was developed in 2005 and 2015 by the late James Cassan in the heart of Mercer Island's town center district. The family still owns the mixed-use complex, also home to several downtown businesses. Gantry recently procured a $40 million refinancing package for the five-story complex. Northwestern Mutual Life was the lender. Arranging the 10-year, non-recourse, fixed-rate loan were Gantry's Alicia Sabanero and Mike Wood; the latter said in a statement, “We continue to identify a variety of attractive loan options in the current cycle for multifamily assets from our roster of life company lenders. These insurance companies remain one of the most consistent sources for permanent debt on stabilized, performing properties. Mercer is a superior Class A property at a superlative location offering strong long-term fundamentals with a conservative client operating and maintaining the property to its best and highest potential.” The Mercer is mere steps from the light-rail station, expected to open last year. Cassan's obituary is fascinating. He went from Boeing engineer, who left when the SST program collapsed, to Dollar Rent-A-Car entrepreneur to commercial real estate, running Dollar Development. He died in January, and is survived by his wife, children and grandchildren.

CBRE makes industrial hire

Roddy

CBRE announced its recent hiring of industrial specialist Mark Roddy, who'll join the Tacoma office. He makes the move from Prologis, his perch for the past 13 years. CBRE's John R. Miller said in a statement, “Mark is a tenured, well-respected professional within the industry, and we're excited to have him join the team. His experience working for one of the largest institutional investors in the country will be a great asset to our industrial team and clients.” CBRE adds that 3.9 million square feet of industrial space is now under construction in the Tacoma-Fife area, with 78% of it pre-leased.

ICG fund turns nice profit from recent sales

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Based here in Seattle, Investors Capital Group buys and sells multifamily properties up and down the West Coast and into the Sun Belt states. The firm recently announced three dispositions worth about $122.8 million. The 528 units were in Arizona, Utah and Idaho, and the three sales closed in recent months. Buyers weren't named. ICG purchased the trio from its 2018 Fund, then spending about $71.3 million on the three acquisitions. (Two other properties were previously sold from the same fund.) So after a six-year hold, ICG and its investors realized a roughly 19% internal rate of return (IRR), with a past annual rate of return of around 34% per year. ICG's Mike Christian said in a statement, “The 2018 Fund exceeded our year-10 value projections in less than six years, which made a compelling case to unwind the investment. Additionally, we benefited from strong investor demand as we listed the properties in the first quarter of 2024, when very little product was coming to market.” ICG is also affiliated with Avenue5 Residential, which manages over 140,000 units, about 4,000 of them held by ICG.