COVINGTON, GA – A joint venture partnership between Auerbach Opportunity Fund I, LP and Blue Magma Residential has secured a $35.4 million loan with Greystone under the Fannie Mae Delegated Underwriting and Servicing (DUS) program to refinance its existing acquisition loan with Ladder Capital for a three-property, 604-unit multifamily portfolio in the Southeast, originally bought in December 2017.

The 10-year fixed rate loan represents 75% loan-to-value for the portfolio. Financing was arranged by Eyzenberg & Company’s Jeff Conti and Mila Babenko on behalf of the borrowers.

The portfolio is comprised of three two-tale garden-style rental apartment properties totaling 565,282 SF. The portfolio includes the 188-unit Park at Arlington in Covington, GA.; the 232-unit Park at Brighton in Robinsonville, MI.; and the 184-unit Park at Ashburn in Dothan, AL.

Since its acquisition, Sponsorship has invested over $2 million in capital improvements into the properties. The exterior renovations / common areas have been substantially competed at all three complexes, in addition to over 100 units at the Park at Arlington and the Park at Brighton. The overall strategy is to continue raise rents to market rate by continuing unit renovations, while also improving occupancy, currently at approximately 92% portfolio-wide, with anticipated stabilization in the next eighteen months. 

Of the refinance, Peter Auerbach, CEO of Auerbach Funds, stated, “We are extremely proud of the work we have done to date to make a sense of community at each of these properties and empower our residents to live with dignity and pride, and the value creation achieved thus far is a reflection of that.” 

Reuven Oded, CEO of Blue Magma, added, “In a continuation of our strong relationships with Greystone and Eyzenberg, we are glad to have found a loan product that fits well with our business plot for the portfolio, and we look forward to continuing to realize the full potential of these properties.”

Auerbach Funds and Blue Magma own, in partnership with each other, over 1,600 apartment units in four states.

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RICHMOND, VA – Capital Square 1031, a leading real estate investment and management firm specializing in Delaware statutory trust (DST) offerings, announced the acquisition of a 294-unit multifamily community in Richmond, Virginia, for CS1031 Hickory Creek Apartments, DST, a Reg. D investment offering.

“Hickory Creek Apartments is well located near Capital Square’s headquarters and benefits from its proximity to extensive employment, retail and recreation options,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “Multifamily communities such as Hickory Creek Apartments are a growth investment because Capital Square 1031 is able to raise rents annually and grow the net operating income over the holding period. We are pleased to add this quality property to our growing investment portfolio, the 74th property Capital Square has bought.”

Located at 2344 Hickory Creek Drive, Hickory Creek Apartments is comprised of 19 residential buildings and a clubhouse with a leasing office. Situated on 20.40 acres of land, the community includes one- and two-bedroom floorplans ranging in size from 830 square feet to 1,030 square feet. Community amenities include a swimming pool with sundeck, fitness center, lighted tennis courts, car wash area, sauna, dog park, optional reserved carport parking, Verizon FiOS and 24-hour emergency maintenance.

“Hickory Creek fits well with Capital Square’s multifamily investment strategy of purchasing geographically desirable and well-maintained assets in growth markets that offer value-add upside through interior unit and common area renovations,” said Whitson Huffman, senior vice president of acquisitions. “The property benefits from its proximity to West Broad Village and Small Pump Town Center, featuring over 5.5 million square feet of retail and employment centers, including the Innsbrook Office Park, which has over 8 million square feet of office space that is home to over 400 companies and 20,000 employees.”

Originally constructed in 1984, the community had more than $2 million in capital improvements invested in it by previous ownership since 2016.

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NEW YORK, NY – Greystar Real Estate Partners, a global leader in the investment, development, and management of high-quality rental housing properties, announced the acquisition of the 266-unit 800 Sixth Avenue on behalf of its real estate funds. The asset, located in the sought-after NoMad neighborhood of Manhattan, represents an opportunity for Greystar to buy an optimally located, under-improved value-add asset in one of New York City’s most desirable submarkets.

“The acquisition of 800 Sixth complements Greystar’s strategy of acquiring high-quality assets where we can add value through renovation upside and operational improvements in highly desirable submarkets like NoMad, where demand remains high and supply is tight,” said Kevin Kaberna, Executive Director and leader of Greystar’s U.S. Investment platform. “This property has seen minimal improvements over the years, which presents an opportunity for us to complete significant renovations to compete with luxury new construction in the area while keeping post-renovation rents below our primary competitors.”

Completed in 2003, 800 Sixth is located in Manhattan’s trendy NoMad neighborhood, a supremely well-located submarket that provides simple access to major employment centers including Silicon Alley, which is home to major tech firms including Google, Facebook, Twitter, and IBM,– who together account for approximately 3.6 million square feet of office space and also to Grand Central, Hudson Yards, the World Trade Center, and Penn Station. The neighborhood boasts a walk score of 100, with major shopping districts, dining, nightlife and recreation options all located within walking distance of the property. The asset is also located in close proximity to all of New York’s major subway lines and provides ease of access to New Jersey via the PATH.

Greystar’s capital improvement plot will include comprehensive updates to residences, including replacing dated appliances and cabinets and upgrading finishes including lighting, plumbing and hardware fixtures. Greystar will also overhaul the building’s common areas and amenity spaces – which include a fitness center, a sky deck, and a resident lounge with a chef’s kitchen and billiards room.

As the nation’s largest apartment operator with approximately 500,000 units under management, Greystar currently owns more than 200 units in the neighborhood and manages over 3,100 more in Manhattan. Greystar will continue to leverage its local market expertise and deep industry relationships to identify attractive investments and management opportunities throughout the New York area.

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