NEW HAVEN, CT – Marcus & Millichap announced its Institutional Property Advisors (IPA) division has closed the sale of a six-property, 741-unit multifamily portfolio located in the Central Connecticut Farmington Valley, and Hartford and Tolland counties. The $90 million sales price equates to $121,457 per unit.

“The portfolio is an assemblage of well-maintained workforce housing assets located in strong Connecticut submarkets,” said Victor Nolletti, an executive director of IPA’s Northeast and Florida team. “The assets are all well positioned for enhanced revenue through a combination of kitchen, bath, common area and amenity upgrades.”

“It is not often that multifamily investors receive a chance to buy this many residential housing units and establish a substantial presence with operational efficiencies in Central Connecticut,” said Steve Witten, an executive director of IPA’s Northeast and Florida team.

Nolletti, Witten and Still Hunter III, also an executive director of IPA’s Northeast and Florida team, along with Eric Pentore, an IPA associate, represented the seller, a series of Delaware limited liability companies controlled by a large real estate investment trust. Nolletti and Pentore procured the buyer, a Connecticut-based owner-operator, Navarino Acquisitions LLC.

The properties are Summit and Birch Hill Apartments: 13 buildings, 186 units, Farmington; Fox Hill Apartments: 23 buildings, 168 units, Enfield; Briar Knoll Apartments: 15 buildings, 150 units, Vernon; High Meadow Apartments: six buildings, 100 units, Ellington; Bradford Commons: eight buildings, 64 units, Newington; and Woodbridge Apartments: six buildings, 73 units, Newington.

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NEW YORK, NY – Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its August 2016 US CMBS Delinquency Report and Infographic.

The Trepp CMBS Delinquency Rate reversed the recent trend and decreased for the first time since February. The delinquency rate for US commercial real estate loans in CMBS is now 4.68%, a drop of eight basis points from July. The rate 77 basis points lower than the year-ago level and 49 basis points lower since the beginning of the year

In August, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $1 billion. Over $650 million in loans were cured last month, a welcome increase from the $200 million cured in July. $1.25 billion in CMBS loans became newly delinquent in August.

“The pause in the upward momentum of the delinquency rate is a positive sign for investors,” said Manus Clancy, Senior Managing Director at Trepp. “With about 18 months to go until the loans representing the wall of maturities are fully digested, we remain cautiously optimistic that losses on these 2006 and 2007 notes will come in at the low end of expectations.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, decreased along with the overall delinquency rate. The rate of seriously delinquent loans inched up nine basis points for the month to 4.58%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.91%.

Delinquency readings for three of the five major property types underwent a significant improvement in August. The office delinquency rate fell 20 basis points to 6.03%, the largest decrease for any property sector last month. The multifamily reading dropped 13 basis points to 2.38%, which is still the best performing rate amongst major property types. The retail sector incurred the largest rate increase of the month, jumping up five basis points to 5.81%.

For additional details, such as delinquency status and historical comparisons, download the August 2016 US CMBS Delinquency Report and Infographic.

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IRVINE CA – The Sares-Regis Multifamily Value-Add Fund II held a final close, having raised over $300 million in total equity commitments. Utilizing leverage, the Fund will seek to buy approximately $850 million of assets in its target markets.

“We are very pleased to have exceeded our target raise of $250 million, bringing together a number of repeat investors from our first fund with several new top tier institutional investors,” said Ken Gladstein, the Fund’s President. Investors in the Fund include insurance companies, public pension funds, wealth managers and other institutional investors from the United States, Europe and Asia. “The focused strategy of the fund allows for immediate deployment of investor capital to take advantage of numerous value-add acquisition opportunities in our pipeline,” he added.

Sares-Regis formed the Fund to capitalize on attractive multifamily fundamentals in the Western United States, as well as the potential to make value via the renovation and repositioning of well-located Class-B properties by leveraging SR’s vertical operating capabilities. The Fund targets assets in Northern and Southern California and the metropolitan areas of Seattle, Portland, Denver and Phoenix.

To date, the Fund has bought three assets that, in aggregate, represent approximately 20% of the Fund’s total commitments. The Fund’s first two investments are in the Los Angeles metropolitan area and the third is in San Diego. A fourth investment in Denver is expected to close in the next few weeks. “The fund has a focused, well-defined, value-add strategy to buy, manage, reposition, aggressively operate and sell high-quality multifamily assets in major western U.S. markets,” said Bill Montgomery, the Fund’s Chief Investment Officer. “SR’s skill as an investor, manager, developer and contractor, provides experience and depth in every stage of the value-add process as well as economies of scale that will benefit investor returns,” he added.

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