JACKSONVILLE, FL – Preferred Apartment Communities announced the acquisition of Lux, a 265-unit Class A multifamily community in Jacksonville, Florida constructed in 2017. Lux is located adjacent to Sorrel, a Class A multifamily community that PAC bought in 2016. 

“This acquisition makes operational efficiencies across the two properties and grows our market presence in the highly desirable Intracoastal West area of Jacksonville to over 550 units,” said John A. Williams, the Company’s Chief Executive Officer.  Mr. Williams added, “The acquisition of Lux demonstrates our commitment to our strategy of adding newly constructed Class A multifamily communities to our portfolio, which we believe will translate into sustainable and growing cash flows.”

Jeff Sherman, Executive Vice President of Multifamily Investments stated, “The acquisition of Lux is a fantastic start to 2018 after a highly successful 2017 in which PAC bought 13 Class A multifamily and student housing communities totaling over 3,200 units and originated five real estate investment loans for the development of Class A multifamily and student housing communities totaling over 1,400 units.” 

PAC bought this community through a wholly-owned subsidiary and financed the acquisition utilizing a non-recourse first mortgage loan from Nationwide Life Insurance Company.  The principal balance on the first mortgage loan is approximately $31.5 million, bears interest at a fixed rate of 3.91% per annum, has a 12-year term and amortizes based on a 30-year schedule.  There are no loan guaranties provided by PAC or our operating partnership.

Mr. Sherman added, “Our multifamily and student housing acquisition pipeline under our real estate loan investment program, which typically gives PAC the option to buy Class A multifamily and student housing communities at pre-negotiated discounts, now aggregates 19 Class A multifamily and student housing communities representing over 5,000 units.”  

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SHELTON, CT – Inland Real Estate Acquisitions announced that it negotiated and closed the buy of Avalon Huntington, a 99-unit townhome-style multifamily property located in Shelton, Connecticut, a suburb approximately 12 miles west of New Haven.

Joe Cosenza, vice chairman of The Inland Real Estate Group and president of Inland Real Estate Acquisitions, LLC, completed the deal, with help from Gina LaMantia, managing counsel for Charles J. Benvenuto, P.C., on behalf of an Inland affiliate.

Constructed in 2008, the property is ideally located at 100 Avalon Drive near Route 8 and offers convenient access to Huntington Road and I-95. The property, which will be renamed Huntington Townhomes, consists of seven three- and four-tale buildings with 99 total units, featuring 86 townhome-style homes and 13 garden apartments, with 194 total parking spaces. There are nine three-bedroom and four two-bedroom garden apartments, 64 two-bedroom townhomes and 22 three-bedroom townhomes.

Each unit includes gourmet kitchens, walk-in closets, energy-efficient windows, individual alarm systems with monitoring available and full size washers and dryers, while select units feature vaulted ceilings, a patio or balcony, gas fireplaces and separate dining rooms. Huntington Townhomes also features a variety of community amenities including a heated outdoor pool, a picnic area, a clubhouse, a state-of-the-art fitness center and is a dog friendly community.

Additionally, Huntington Townhomes is located adjacent to a park with a walking path and provides residents nearby access to the Housatonic River and local beaches. The property is also positioned near a major retail area that includes a Stop ‘n Shop, a ShopRite and Wal-Mart, and is a 15-minute drive to Westfield Trumbull Mall and 20 minutes to Post Mall.

“Ranked as the most successful city in Connecticut, Shelton serves as a residential community for many employees of nearby Sikorsky Aircraft Corporation, Yale University, Sheaffer Pen Corporation and Pitney Bowes,” said Cosenza. “Huntington Townhomes provides the more than 168,000 residents within a five-mile radius with access to top-rated schools and public transportation that offers an simple commute to nearby Stamford and Norwalk. Due to its premier location at the epicenter of major employers, its townhome-style units, direct access garages and high quality community amenities, this property is an brilliant example of the types of multifamily acquisitions we continue to seek out.”

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WASHINGTON, DC – Among foreign investors, interest in New York has slipped and London has assumed first place as the number one global city for their real estate investments. For the first time, Los Angeles has tied New York as the number one city in the US, according to the results of a new survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE). In last year’s survey, London ranked third globally; Los Angeles ranked second among US cities and fourth globally.

AFIRE members are among the largest international institutional real estate investors in the world and have an estimated $2 trillion or more in real estate assets under management globally. The 26th annual survey was conducted in the fourth quarter of 2017 by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business.

“A year later, foreign investors are less concerned about the ramifications of Brexit,” said, Edward M. Casal, AFIRE’s newly elected chairman, and chief executive, global real estate, of London-based Aviva Investors, explaining London’s rebound. “At the same time, the London market has been buoyed by several large sales over the last year. London has a number of attributes as a location for investment, including a stable rule of law, transparency, and use of the English language. In addition, a favorable time zone for international business, deep labor pool, and cultural attributes also help.” Rounding out the list of top five global cities, in order, are: New York, Berlin, Los Angeles and Frankfurt.

Significantly, San Francisco, which has been on investors’ top five global cities list since 2011, fell into 11th place, and Washington, DC continued its slide among global cities, falling from 15th place last year to 25th this year.

New York had been named the top US city for the last seven years, holding a substantial lead over Los Angeles. As recently as 2014 Los Angeles was in fifth place among US cities. It only went into second place in 2016. The remaining top five US cities, in order, are: Seattle, Washington, and San Francisco. Seattle went up from fourth place and Washington rejoined the list after falling off into sixth place last year.

“With the growth of on-line shopping, foreign investors continue to rank industrial / logistics properties as their number one investment opportunity,” said Jim Fetgatter, chief executive of AFIRE. “The cargo coming into the Port of Los Angeles represents 43% of all cargo coming into the United States. Respondents also say on-line shopping is likely to have the largest effect on real estate over the next five years. With these as benchmarks, it’s simple to see why investors would be bullish on Los Angeles.”  

In 2010, industrial real estate was lowest-ranked among leading property types. This year, and every year since 2013 it has ranked first, except for 2014, when it was second-ranked. This year, retail property fell into fifth place; multi-family and office remained in second and third places respectively, and hotels, long in fifth place, went into fourth.

US Real Estate Remains Most Stable and Best Opportunity; Investors Retain Strong but Cautious Interest
With 58% of respondents’ votes, the US remains the country considered the most stable for real estate investment. Germany again took second place with 20% of the votes, and Canada remained in third place with 12%. The UK went into fourth from fifth, while Australia fell from fourth to fifth. Eighty-six percent of respondents say they plot to maintain or increase their investment in US real estate in 2018.

The US also continues to lead the world in terms of offering the best opportunity for capital appreciation, followed by Brazil, remaining in second place. China and Spain both went up from a sixth-place tie last year, taking third and fourth places respectively.  The UK fell from third to fifth place.

At the same time, members are cautious, expressing concerns about where the industry is in the typical real estate cycle. They cited concerns about interest rate risks, high valuations, the impact of emerging technologies on retail and other property sectors, oversupply in some markets and property types, and possible economic and political missteps which could affect real estate by triggering an economic slowdown or disruption in the financial markets.  

Nonetheless, by a substantial margin, the US was ranked as the number one country for plotted real estate investment in 2018 followed by the UK, Germany, Canada, and France. Survey respondents also cited several strengths of the US market including the United States’ strong, stable economy, transparent capital markets, and reputation for innovation. As alternative asset classes they pointed to: senior housing, infrastructure, medical office buildings, and student housing.

Strong Showing for Germany; Emerging Markets Shift
For the first time since the question was first questioned, two German cities are included among the top five global cities: Berlin in third place, falling from second last year, and Frankfurt, making this list for the first time.  

Brazil regained its foothold as the number one emerging market, moving up from third place to replace China, which fell to second place. India went into third place from fourth, Mexico fell from second place to a tie for third with India, and Colombia entered the list of top five emerging markets in fifth place.

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