BLOOMINGTON, IN – FM Capital announces the recent acquisition of an off-market five property 408-bed Student Housing portfolio adjacent to Indiana University’s main campus and downtown Bloomington.

Indiana University is currently experiencing record-high enrollment with strong growth over the past five years.

This further extends FM Capital’s Student Housing portfolio into the Midwest region and increases their total bed count, in currently owned assets, to over 2,000 beds.

“The high-barrier to entry and less crowded buyer pool for Student Housing continues to fuel our strategy,” says Eli Bobker, FM Capital’s Director of Business Development. “We are excited to expand our portfolio in the Bloomington market with these three residential walk-up properties located near the university’s football stadium and two luxury high-end mid-rise developments downtown.”

FM Capital plans to upgrade the properties and build a fully integrated social community with high-quality student-life experiences. This vision includes improved amenities such as advanced roommate matching, high-speed internet, spacious lounge and study areas, business-class printing options, events, job fairs, and full concierge services accessed through a mobile app.

FM Capital’s sourcing network, unique funding model, and dedicated management approach provides a competitive advantage in the Student Housing market. FM Capital is actively seeking and pursuing additional large-scale Student Housing commercial real estate investment opportunities. FM Capital is targeting newer vintage assets which offer affordable living options and are conveniently located near schools with increasing enrollment.

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SAN FRANCISCO, CA – San Francisco-based private real estate investment firm Hamilton Zanze (HZ) marked a record year in 2016, reaching over $500 million in acquisitions, the firm’s best year yet. The milestone comes as HZ celebrates its 15th year in business and over $2.8 billion in acquisitions since its inception. Hamilton Zanze owns and manages 85 multifamily properties in 10 states including Arizona, Colorado, Georgia, Idaho, New Mexico, Nevada, Oregon, Texas and Washington.

Last year also marked Hamilton Zanze’s expanding footprint outside of the Southwest, with the buy of a three-property investment in the Atlanta area, the firm’s first investment in the state of Georgia. The buy signifies a continued confidence in multifamily investments as well as the firm’s focus on investing in communities where the economy is strong, employment is growing, and apartment demand is steadily increasing.

“We are committed to the long-term growth of our businesses on an incremental approach, which is how we have gotten where we are with HZ,” said Tony Zanze, COO and co-founder. “By expanding into new markets, we are setting the stage for a very long-term horizon in which we continue to seek and make investments in properties we know and believe in, and provide for our investors’ financial security.”

Multifamily investments remain a solid option for investors as U.S. homeownership rates continue to fall. Per the U.S. Census Bureau, the percentage of Americans who own their homes declined to 63.7% in the fourth quarter, well below the record low of 65%. Millennials are deferring home-buying and starting families; instead, more are opting to remain in the family home or rent, citing affordability, student debt and convenience. And, as 75 million Baby Boomers are set to retire, the attractiveness of multifamily rental communities, including 55+ retirement communities, will continue to rise.

“Hamilton Zanze is positioned and structured for long-term growth and prosperity,” stated Mark Hamilton, CEO and co-founder. “We are always looking ahead at new programs and anticipating the future as different sources of capital come and go. We want to make sure our growth is thoughtful with higher quality and larger properties, offering more stable performance going forward.”

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PORT ORCHARD, WA – A newly formed joint venture of New Standard Equities (NSE) and an affiliate of Brixton Capital has bought Arbor Terrace, a 276-unit multifamily community in Port Orchard, WA, from Sea 1800 Sydney Avenue, LP in a transaction valued at $38.15 million.   

Arbor Terrace is the second acquisition in the immediate area in less than two months and third in Kitsap County in the past year for NSE, a Los Angeles, CA-based real estate investment and management company, noted CEO and founder Edward Ring.

“We like the value-creation opportunity at Arbor Terrace,” said Ring.  “When we initially looked at this asset we immediately saw a tremendous potential to improve the property’s cash flow through renovation.  Given that the US Navy is such a huge economic driver in the County, we became even more excited about the prospects for continued long-term growth in this submarket.”

NSE’s $3 million repositioning budget includes a full renovation of the asset’s 1995-vintage unit interiors, and improving the fitness center, leasing facility and general curb appeal of the property.

Arbor Terrace complements NSE’s recent $13.25 million value-add acquisition of the 120-unit Village Honest apartments in Bremerton, WA from a private seller. NSE plans to invest an additional $1.8 million to bring Village Honest, a 1984 vintage asset, up to modern standards.  The two assets, in combination with Sea Glass Village, a 182-unit community the firm bought in March of 2016, brings NSE’s asset base in Kitsap County to 578 units, at a total cost basis of more than $65 million.

Andrew Kirsh, co-founder and head of the real estate practice at Los Angeles-based law firm, Sklar Kirsh LLP, represented the buyer in this transaction, and was instrumental in bringing together NSE and Brixton Capital Group.  “The market volatility following the election made a challenging atmosphere which seriously threatened the deal,” said Kirsh.   “I was pleased to be in a position to bring the two groups together to launch an vital new joint venture, not just for this transaction, but for other value add opportunities that will benefit both firms in the future,” he said. 

The acquisition was leveraged with a $30.15 million loan from Freddie Mac, which was arranged by CBRE’s Capital Markets Group led by Vice Chairman Brian Eisendrath.

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