HUNTSVILLE, AL – Two Huntsville apartment communities totaling 375 units were bought for $14.5 million by a partnership of an affiliate of Tampa-based Blue Magma Residential LLC and New York-based Auerbach Funds as general partner of Auerbach Opportunity Fund, I LP, in a transaction brokered by Cushman & Wakefield. Blue Magma Residential is a privately-held commercial real estate management company which through its affiliates co-owns or manages over 10,000 apartment units in Alabama, Florida, Georgia and Mississippi. Auerbach Funds is a real estate private equity fund manager with over 1.7 million square feet under management in seven states throughout the continental U.S. 

The properties include the former Hillside Village, a market-rate community of 223 units located at 4515 Bonnell Drive, and the former Twickenham Village, a market-rate community consisting of 152 units located at 5001 Galaxy Way NW. The buy prices of the recently closed transactions were $8.75 million and $5.78 million, respectively, equaling $39,238 per unit and $38,026 per unit. The partnership will also invest approximately $1.8 million in interior and exterior upgrades at Hillside Village which will be re-branded and marketed as The Park at Summerhill. In addition, the partnership will invest approximately $1.3 million at Twickenham Village, which will be marketed as The Park at Bellingham. Financing was arranged by Eyzenberg and Company through a division of Suntrust Bank.

In addition to its latest portfolio buy in Huntsville, Blue Magma Residential also has four other apartment communities in Alabama including two in Birmingham and one each in Dothan and Prattville. Auerbach Funds is the co-owner of the Dothan asset. 

Reuven Oded, Managing Partner of Blue Magma Residential, stated, “Blue Magma Residential is continuing in its deliberate strategy of acquiring Value Add properties in the Southeastern U.S. market where demographic growth, job growth, household expansion and corporate relocations are all solid and trending upward.”

Peter Auerbach, founder and CEO of Auerbach Funds, stated, “We are confident that the value-add initiatives plotted for the communities, as well as the excellence of our partner, Blue Magma will capitalize on the growth within the Huntsville market. What we like most about this transaction is that we are not reliant on said market growth in order to generate our expected returns. That said, we are huge believers in the community at large.”

Elaborating, Oded added, “As evidenced by this transaction, Blue Magma Residential is now expanding into the promising Huntsville market, the Epicenter of the Rocket Propulsion and Missile Industry of the U.S.  In addition, there has also been the announcement of Facebook’s $750 million, 970,000 square foot data center expected to open in 2020, Mazda Toyota’s $1.6 billion auto plant bringing as many as 4,000 jobs, as well as the new FBI Campus on the Redstone Arsenal grounds that is slated to fill over 1,500 jobs. We feel there is a growing opportunity, and frankly a void, in this under-serviced and under-appreciated real estate market for companies like Blue Magma Residential, where customer service and focus on excellence is a core value of our business model.” 

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CHICAGO, IL – Chicago-based Hubbard Street Group and co-developer Centrum Realty and Development announced the first residents started moving into Wicker Park Connection II, a 15-tale, 146-unit apartment development in Chicago’s vibrant Wicker Park neighborhood. Luxury Living Chicago Realty is serving as the exclusive marketing and leasing brokerage for the new transit-oriented development at 1640 W. Division St. – the second phase of the Wicker Park Connection project.

Located one block west of the Division Blue Line station, Wicker Park Connection II offers a mix of studio, one-, two- and three-bedroom units ranging in size from 463 to 1,245 square feet, with rents starting at $1,650. The mixed-use community is adjacent to a smaller 60-unit building, Wicker Park Connection I (formerly Centrum Wicker Park) that was completed in 2016. The two phases feature 13,000 square feet of retail space, including a small-format Target store that’s scheduled to open later this summer. 

“At Wicker Park Connection, we’ve built a community that meets the demand for new-construction luxury apartments in one of the city’s most vibrant neighborhoods, offering a residential experience with downtown-inspired amenities,” said John McLinden, managing partner at Hubbard Street Group. “Wicker Park Connection is designed as an extension and reflection of the neighborhood, delivering retail to a prominent corner, making local jobs and literally connecting neighbors with the addition of a public plaza.”

With about one-third of its 2.5 acres reserved as open space, Wicker Park Connection will feature a landscaped walkway between the two apartment buildings, making a much-needed pedestrian link between Milwaukee Avenue and Division Street. Called The Connection, the first phase of the public plaza is set to open later this month and will feature retail opportunities as well as outdoor seating, public art and water jets. The plaza will be fully completed by a pedestrian pathway to Milwaukee Avenue, which will open upon completion of the neighboring townhome and condominium development.

“The park space on the plaza will become a fantastic gathering spot for Wicker Park. It is truly a unique amenity for any project, let alone one located in the heart of such a fantastic neighborhood,” said Arthur Slaven, managing partner at Centrum Realty & Development.

Shared amenities at Wicker Park Connection II include a rooftop pool deck with sunbeds, pod seating, a fire pit and grilling stations. Indoors, residents have access to a state-of-the-art fitness center, resident’s lounge with co-working stations, party room with chef-grade kitchen, Starbucks coffee nook, yoga and meditation room, and business center with printing station. In addition, the community offers Pressbox dry cleaning, Luxer One package delivery, storage lockers, free Wi-Fi in amenity spaces, complimentary bicycle storage, garage parking and smartphone-controlled building access.

Individual residences feature floor-to-ceiling windows with solar shades; Balterio gray-tone plank flooring; Kohler fixtures; kitchens with Italian soft-close cabinetry, quartz countertops, Porcelanosa tile backsplashes and stainless-steel Whirlpool appliances; and baths with floating vanities and frameless glass shower doors.

“Renters are always telling us they want more luxury options in neighborhoods such as Wicker Park, where they can be near some of Chicago’s most well loved shops, restaurants and nightlife,” said Aaron Galvin, founder and CEO of Luxury Living Chicago Realty. “Wicker Park Connection’s exceptional level of finishes and prime location are generating an incredible response from the market, with the building already over 30 percent pre-leased.”

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AUSTIN, TX  – Campus Advantage, a leader in student housing, providing property management, consulting, acquisitions, and development services, announced the acquisition of six student housing properties as part of a joint venture with a major state pension fund. The portfolio of properties, located at five universities, adds 1,910 beds to Campus Advantage’s managed student housing property holdings.

The portfolio, located at Auburn University (Evolve Auburn), Illinois State University (The Flats), University of Oregon (Uncommon Eugene), University of Tennessee (Evolve Knoxville), and the University of Washington (Identity, LIV) consists of recently constructed properties by CA Student Living and contains a total of 714 units. The properties are located within walking distance of their respective campuses, offer a variety of unit types ranging from studios to five-bedroom/five-bathroom units, and include best-in-class finishes and amenities that rank at the top of their respective markets. 

“These high-quality assets are the perfect addition to our portfolio,” said Josh Greenleaf, Vice President of Investments for Campus Advantage. “We targeted these assets for their strong locations, high quality markets and stable performance, which will complement and diversify our existing portfolio.” 

Since 2007, Campus Advantage has bought more than $1.5B in student housing assets through its partnerships. This acquisition marks the successful investment of a $200 million joint venture with a large state pension fund, the second of its kind between the partners. Campus Advantage previously completed a $150 million joint venture investment with the same partner in 2015, in addition to two other programmatic partnerships with another institutional partner, totaling $175 million from 2007 to 2015. In total, across four joint ventures, Campus Advantage has invested $525 million in equity since 2007. A disciplined investment approach combined with diligent asset management has resulted in performance on the disposition of more than $440M exceeding both NCREIF Property Index (NPI) and PREA | IPD U.S. Property Fund Indexes.

“This acquisition marks the end of a successful investment period on our joint venture, and we look forward to delivering strong returns to our partners,” said Michael Orsak, Executive Vice President of Investment for Campus Advantage. “We also look forward to establishing new relationships and replicating the successful track record we have built over the last 10 years.” 

Campus Advantage will soon start fundraising for a new programmatic joint venture to invest in student housing assets. The venture is expected to be geographically diverse, and pursue multiple strategies, leveraging the company’s fully integrated platform and deep industry knowledge to deliver a strategic exposure to the student housing asset class.

Through programmatic joint ventures and best-in-class management services, Campus Advantage has built its property portfolio of owned and managed properties to more than 34,000 beds, continuing a decade-long record of being ranked within the top ten student housing managers and owners. 

“Because of our proven track record of maintaining and operating each of our properties to the highest standard, we are able to make an environment where our residents thrive, resulting in maximum occupancy, rental rate growth and returning resident ratios,” said Mike Peter, President and CEO of Campus Advantage. “Our decades-long commitment to connecting residence life, marketing, and revenue management benefits all associated with these communities.”

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