INDIANAPOLIS, IN – Covenant Capital Group, a value-add investment manager with an exclusive focus on the acquisition and renovation of apartment communities, has bought Columns of Castleton, a multifamily property with 398-units located at 7615 Ivywood Drive in Indianapolis, Indiana.

Covenant bought the property on July 31st, 2017 for $30.25 million, reflecting a per-unit price of $76,005.

“We’re pleased to invest again in the Indianapolis market with the acquisition of the Columns of Castleton,” said Govan D. White, managing partner and co-founder of Covenant Capital Group. “We believe this property has a strategically valuable location that’s well positioned for the City’s continued growth. We’re proud to invest significantly in it to ensure it continues as a vibrant apartment destination in the community for decades to come.”

Located in the employment-rich northeast side of Indianapolis, the property is conveniently situated near one of the city’s most critical interchanges, Interstate-69 and Interstate-465, providing immediate access to a wealth of employment and the densest collection of shopping and amenities in the state.

Covenant plans to invest over $4.7 million to modernize the property to better serve the demands of renters in its neighborhood. In addition to renovating the apartment interiors and amenities, Covenant will implement a green program by installing energy efficient appliances, low-flow kitchen and bathroom fixtures, as well as LED lighting throughout the site.

These investments will serve to increase the building’s sustainable features, lowering energy costs for residents, and to extend the life of the community, which was built in two phases in 1969 and 1974.

Covenant Capital Group, formed in 2001, focuses on transforming and repositioning properties into premier institutional quality assets. Covenant has over $1 billion in real estate assets under management and controls over 9,250 apartment units.

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IRVINE, CA – CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its CoreLogic Home Price Index (HPI) and HPI Forecast for June 2017 which shows home prices are up strongly both year over year and month over month. Home prices nationally increased year over year by 6.7 percent from June 2016 to June 2017, and on a month-over-month basis, home prices increased by 1.1 percent in June 2017 compared with May 2017, according to the CoreLogic HPI.

Looking ahead, the CoreLogic HPI Forecast indicates that home prices will increase by 5.2 percent on a year-over-year basis from June 2017 to June 2018, and on a month-over-month basis home prices are expected to increase by 0.6 percent from June 2017 to July 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Dr. Frank Nothaft, chief economist for CoreLogic. “As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

Of the nation’s 10 largest metropolitan areas measured by population, four were overvalued in June according to CoreLogic Market Conditions Indicators (MCI) data. These four metros include Denver-Aurora-Lakewood, CO, Houston-The Woodlands-Sugar Land, TX, Miami-Miami Beach-Kendall, FL and Washington-Arlington-Alexandria, DC-VA-MD-WV. By comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals such as disposable income, the MCI categorizes home prices in individual markets as undervalued, at value or overvalued. Because most homeowners use their income to pay for home mortgages, there is an established relationship between income levels and home prices. The MCI defines an overvalued market as one in which home prices are at least 10 percent higher than the long-term, sustainable level, while an undervalued market is one in which home prices are at least 10 percent below the sustainable level.

“Home prices are marching ever higher, up nearly 50 percent since the trough in March 2011. With no end to the escalation in sight, affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington,” said Frank Martell, president and CEO of CoreLogic. “While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much larger challenge in the years ahead until the industry resolves the housing supply challenge.”

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BETHESDA, MD – Walker & Dunlop announced that it recently closed a $289 million financing with Fannie Mae on 21 multifamily properties across the state of California. Eleven of the 21 properties have project-based Section 8 Housing Help Payments Contracts and provide much-needed affordable housing to families and seniors in some of the nation’s highest-cost metropolitan areas. 

The other ten properties all qualified for Fannie Mae’s Green Rewards Program, where new investments in water and electrical systems will reduce the properties’ environmental impact.  

“This large transaction highlights Walker & Dunlop’s expertise in both affordable and green financing,” commented Steven Natale, vice president, who led the Walker & Dunlop team. “All the properties in this large portfolio met either Fannie Mae’s affordable housing or Green Rewards criteria, generating significantly more favorable financing terms for the borrower.  Fannie Mae is very focused on growing the supply of both affordable and environmentally sustainable multifamily properties across the country, and Walker & Dunlop is pleased to be one of their largest partners in financing these types of assets.”

The 21-property portfolio is comprised of 2,189 units located across the state of California in major metropolitan areas including San Francisco, San Jose, San Diego, and Los Angeles. The transaction was sourced by Peggy Griffith, a Walker & Dunlop preferred correspondent.

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