SAN DIMAS, CA – Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Trails at San Dimas, a 288-unit apartment property in San Dimas, California. The asset sold for $78.5 million, or $272,569 per unit.

“Trails at San Dimas is a sizeable asset in a primary market that gives the new ownership an brilliant strategic value-add opportunity,” said Kevin Green, an IPA senior managing director. “San Dimas continues to be a heavily supply-constrained market; there is a lack of available land and aggregating parcels is hard. Only 156 units have been added to the apartment stock in San Dimas in the last 10 years, and the average vacancy is 2.5 percent.”

Green, Greg Harris, IPA executive director, and Joseph Grabiec, IPA senior director, represented the sellers, Stockbridge Capital Group and CNS Focused Investments, and procured the buyer, Korda Group.

“Located near the San Gabriel Valley’s major medical, tech and industrial sectors, the property provides tenants access to a vast array of employment opportunities in Orange County, the Inland Empire and Central Los Angeles,” added Grabiec. “Its location expands the renter pool, promotes above-average rent growth and high occupancy levels.”

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ATLANTA, GA – Effective immediately, Atlanta Housing (AH) has retooled its neighborhood site and vicinity standards, a choice that will make room for more units on its Housing Choice Voucher Program (HCVP). 

Previous inspection standards, which considered 20 neighboring properties – five each to the left, right, front and back – resulted in failed inspections by more than 100 properties since 2015. The updated standards, but, focus on properties in the subject property’s adjacent area, defined as “the lots that touch the subject property, which would most commonly be the lots to the left, right and rear of the subject property.”  

While some Atlanta neighborhoods that are in the early stages of revitalization still suffer from pockets of blight, AH does not wish to exclude from its programs homes that, aside from their neighboring properties, are otherwise acceptable. Additionally, the agency sees the participant benefit in encouraging investment in promising areas that offer robust public transportation and proximity to jobs, education and training.  

“We identified the need for key modifications and made changes accordingly,” says Brandon Riddick-Seals, interim president and CEO of Atlanta Housing. “Our goal is to add more units to the affordable housing market and to make and revitalize communities that offer a better way of life to our residents. Standards are necessary, and our inspections team ensures that all AH residents are housed in quality living environments. But our participants and landlords spoke, and we listened to what they had to say,” Riddick-Seals adds. “These changes make it simpler for property owners to do business with Atlanta Housing while continuing to ensure the health, safety and welfare of our residents.”

A recent evaluation by AH inspectors indicates that 84 percent of homes that failed inspection under the previous standard would pass using the new site and vicinity standard. 

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BROOKLYN, NY – $51,000,000, in two separate loans, was arranged by Brad Domenico, Partner at Progress Capital, for Jorge Madruga of Maddd Equities and Eli Weiss of Joy Construction to complete two borough acquisitions.  The acquisitions include 77,675 sf of paved parking along River Road at the intersection of McClellan Street in the Bronx and the 115,000 sf American Self Storage Building located at 202-208 Tillary Street in Brooklyn.

“Parking lots and self-storage facilities are an often-misunderstood asset class, and as such securing a mortgage when acquiring such properties can be challenging with the difficulty in forecasting future projections and potential uses while navigating zoning and height restrictions for future development. Working with Domenico we were able to not only secure financing quickly, but also increase the leverage of both borrowings with flexible prepayment terms,” mentioned Jorge Madruga of Maddd Equities. 

The River Avenue parcel will be the eventual site of two affordable housing towers which will include 172,000 sf of residential space, ground level retail and sub-grade parking. Ownership will continue to operate the Tillary site as self-storage until they finalize their plans to convert it into a 235,000 sf residential building.  The project will operate under the city’s mandatory inclusionary housing policy with 25% of its units to be permanently affordable.   

Both loans are interest only bridge loans to provide time for ownership to do their development plans.   Domenico negotiated the amount and terms of the loans with Jared Zimmel of Natixis.  Neal Sroka of Douglas Elliman brokered both sides of the sale transaction. 

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