SACRAMENTO, CA – AMCAL Equities announced that it closed financing and started construction on The Crossings—a new 225-unit, student housing community that will provide 750 beds to serve the students of California State University, Sacramento (CSUS). Located at 2920 Ramona Avenue, the new community, slated for completion in August 2018, will feature state-of-the-art amenities and pedestrian-friendly proximity to the CSUS campus, only 0.2 miles from the University’s south entrance.

AMCAL Equities, LLC, developer and owner of the $75 million project, funded the student housing development with $22.5 million in equity investment funding from Irvine-based Anchor Real Estate Capital and a $50 million construction loan from JPMorgan Chase.

The University, which does not require students to live on campus, currently supplies beds for only 1,672 students, or 5.5% of its undergraduate student body. The limited on-campus inventory, increasing off-campus rental rates and a low 2% vacancy rate near the Sacramento campus demonstrate the difficulties students face when seeking housing.

To increase the supply of area student housing, CSUS trustees adopted a 20-year campus master plot in 2015 that aims to increase the number of campus beds to 2,900 (representing just 10% of its 32,000 student body) by 2035. The university is currently constructing a 416-bed residence hall, but total on- and off-campus affiliated housing accounts for only 2,438 students.

High demand and lack of on- and off-campus housing in the area will make The Crossings a top go-to residential choice for CSUS graduate and undergraduate students, according to Percival Vaz, CEO of AMCAL.

Designed by leading student housing architect Humphreys & Partners Architects, LP, The Crossings is being constructed within the 240-acre Sacramento Center for Innovation Specific Plot, an area that is designated to foster the exchange of technical knowledge and expertise between students, faculty and innovative businesses and technology companies. Responding to this city initiative, The Crossings will house an 11,000-square-foot Center for Innovation as a central commons for students, faculty and businesses to exchange knowledge, build connections and stimulate innovation. It will also offer space for retail shops, an eatery and convenience stores.

AMCAL General Contractors, Inc. will oversee construction of the 9.05-acre student housing community that will be built to LEED silver standards and will feature energy-efficient elements such as Energy Star appliances. The community will include three five-tale wood-framed, elevator-equipped student housing buildings totaling 334,250 square feet; a 14,800- square-foot clubhouse with outdoor basketball court and a resort-style swimming pool; and the Center for Innovation.

“Quality student housing is greatly needed in the CSUS campus area,” said Vaz. “We are pleased to provide this amenity-rich, eco-friendly housing for the university and to help students succeed and thrive.”

A $4.7 million Ramona Avenue roadway improvement project currently under construction will give The Crossings’ student residents direct access from their homes to the CSUS campus via a new lighted sidewalk, bike path and other updated roadway features. The Ramona extension will pass underneath the existing US Highway 50 and railroad tracks and is scheduled to be completed by the City of Sacramento and Caltrans before The Crossings’ scheduled debut in August 2018.

Students at The Crossings will live in residential suites with a full-sized kitchen, living area and one to four bedrooms. Each student will have his or her own private bedroom and bathroom individually keyed for privacy and security. All student residences will be fully furnished and feature hi-speed wi-fi for internet connectivity.

Surface parking will be provided for 432 cars and 475 bicycles. All buildings will be protected with an automated fire/life safety system, access controlled-entries and video surveillance system.

The Crossings is scheduled to start leasing by August 1, 2017, and will be property-managed by Asset Campus Housing, a leader in the management of student housing nationwide.

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HOUSTON, TX – Westmount Realty Capital announced the acquisition of London Park, a well-constructed, Class “B” garden-style apartment property located at 14545 Bammel North Houston Road. Built in 1982, the well-maintained community has 257 one and two-bedroom units in 21 two-tale buildings. Westmount is rebranding the 209,143 square foot apartment community as Westmount at London Park.

“Westmount has bought a well-positioned, vintage Class ‘B’ property with significant value-add opportunity through London Park,” Michael Anderson, senior director-acquisitions at Westmount said. “The property is currently 95 percent occupied and provides the opportunity to achieve above-market rent growth by renovating the unit interiors and improving property operations.”

In addition to the improvements that have already been made, Westmount plans to further improve unit interiors to include new lighting and plumbing fixtures, new cabinets, upgraded flooring, faux granite countertops and two inch faux wood blinds. Westmount has had success across its portfolio in boosting rents from these types of upgrades and has bought more than 3,300 multifamily units in the state of Texas over the last five years.

Located on the north side of Houston on Bammel North Houston Road, Westmount at London Park features tremendous drive-by visibility and access to major thoroughfares, including Cypress Creek Parkway (FM 1960), Highway 249, Interstate 45 and the Sam Houston Tollway, affording residents convenient access to the greater Houston metropolitan area.  Westmount at London Park is near three main shopping districts, Champions Villiage, Willowbrook Mall and North Oaks Shopping Center. Additionally, the property is only 3.5 miles from Donald R. Collins Park, a 55-acre park offering lighted sports facilities, nature trails, a skate park and fishing.

“The acquisition of London Park has allowed Westmount to strengthen its presence in Houston,” Clifford A. Booth, president and CEO of Westmount said. “As a major corporate center, Houston is home to 23 Fortune 500 companies and the property’s location allows residents to easily commute to the city’s major employers.”

One of the area’s largest employers, Schlumberger, which supports nearly 10,000 local jobs, is approximately seven miles from Westmount at London Park. The George Bush Intercontinental Airport and ExxonMobil’s Houston Campus are both approximately 13 miles from the property. Interstate 45 enables residents to quickly reach downtown Houston, which is home to large employers including MD Anderson Cancer Center, Chevron and JP Morgan Chase.

Financing was provided by Berkadia.

Westmount Realty Capital is a time-tested, privately held, Dallas-based commercial real estate company that has achieved exceptional performance, with a core team in place, for more than 30 years.  Westmount is seen as an innovator and leading edge company in the industry and is a trusted partner of numerous U.S. and foreign institutional and private capital sources. The company is active nationally, specializing in value add and opportunistic investments, and has navigated successfully through multiple market cycles.

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ORLANDO, FL – In 2016, Florida’s economy outperformed the nation in part because of better job creation, according to several economists who spoke to a standing-room-only crowd of about 500 Realtors at the 2017 Florida Real Estate Trends event last week during Florida Realtors Mid-Winter Business Meetings.

National Association of Realtors Chief Economist Lawrence Yun noted that the pace of U.S. home sales in 2016 at 5.5 million was “the best in a decade.” Since that’s still nowhere near the 7.2 million sales peak in 2006, but, it leaves room for continued growth in 2017. And while interest rates are trending higher, it hasn’t had a dampening effect on home sales.

“A 4.2 percent mortgage rate is still a fantastic rate,” he said. “As long as we’re around the 4 to even 5 percent mortgage rate, home sales are likely to stay on pace. As mortgage rates rise, job creation – which Florida excels at – could be a fantastic neutralizer and excellent for home sales. In fact, Florida is outperforming the country because of better job creation.”

Other speakers who shared their views on 2017 included Dr. Elliot Eisenberg, a nationally known economist and a former senior economist with the National Association of Home Builders (NAHB); Michael Johnston, Florida regional sales manager, Wells Fargo Home Mortgage; Dr. Julie Harrington, director of Florida State University’s Center for Economic Forecasting and Analysis; and Dr. Brad O’Connor, chief economist for Florida Realtors.

“The excellent news, here in Florida, you’re in the right place,” Eisenberg said. “The South is the right division to be in – the economic recovery here has been much more robust. Florida is doing fine economically, unemployment is OK and foreclosures are diminishing.”

He agreed with Yun that while mortgage rates will continue to rise this year – albeit slowly – the markets will be fine as long as jobs are being made.

“Housing is improving, but in fits and starts,” Eisenberg said. “There’s not enough inventory of homes for sale, and builders aren’t building, especially at the entry-level. Larger houses are being built, but it’s not profitable for builders to construct more affordable homes.”

He cited worker shortages, burdensome land-use regulations and costs – land, labor and regulation – as some of the constraints homebuilders face when it comes to building entry-level homes. “We have to try a myriad of solutions, but getting the land costs down and easing land-use regulations will be the single most vital factor in solving this issue,” he said.

According to Eisenberg, forces at work in Florida and across the U.S. that are dampening real estate sales include:

Low inventory – December 2016 data, which is just a few days ancient, shows existing single-family home inventory nationwide at a 3.6 months’ supply; in Florida, it’s at a 3.9-months’ supply. A 6-months’ supply is generally considered a market that’s balanced between buyers and sellers.

New model of renting – Six million single-family units have been taken off the market because institutional investors snapped up so many homes during the Fantastic Recession and made a new method of renting.

Mortgage rate lock – Many people don’t want to sell and lose the really low mortgage rate they’re currently paying.

When it comes to financing, lenders are in a technology race to provide a digital, user-friendly experience that makes the mortgage process simpler for the customer, said Michael Johnston, Florida regional sales manager for Wells Fargo Home Mortgage.

“Today, 42 percent of homebuyers are millennials,” he said, “and with 92 million more millennials coming up, it will be an even larger part of the housing market over the next five years. A recent survey found that 93 percent of those age 18-34 intend to buy a house sometime in their future. Millennials are always online, so making a digital mortgage experience for them is critical.”

Johnston shared research showing millennials value the expertise of Realtor professionals during the home buying process. “While they will go online to do home shopping, they do want to consult a trusted advisor along the way,” he added.

The condominium market is an vital part of the overall real estate market and often offers an affordable option for buyers, according to Johnston. “In Florida, the condo market is healthy and robust,” he said. “Condos make up 28 percent of all home sales in Florida; nationally, it’s 12 percent.”

Looking at all of 2016, Florida Realtors Chief Economist Brad O’Connor said the statewide existing homes market remained stable but was also relatively “flat,” though part of the reason for that was the comparison as “2015 was a pretty darn excellent year, sales-wise.”

He also pointed out that a shortage of housing inventory in markets across the state, particularly around the $200,000 price range and under, is impacting closed sales and putting pressure on median prices. Another factor: Sales of distressed properties continue to fall.

“In 2015, 10 percent of Florida’s housing inventory was distressed at the end of each month,” O’Connor said. “This past year, it’s been 5 percent, and it’s going to keep going down into 2017.”

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