WALNUT CREEK, CA – Walker & Dunlop announced that it arranged construction financing in the amount of $59,572,196 for the development of the Rise Walnut Creek apartments. Located in Walnut Creek, California, the project benefits from its proximity to San Francisco, one of the nation’s most active multifamily markets with consistently above-average employment rates, sustained rent growth, and high occupancy. The project also enjoys a strategic location at the center of Walnut Creek’s downtown commercial and retail district, which serves as a business and entertainment hub for neighboring towns.

Capital Markets Managing Directors Kevin O’Grady and Eric McGlynn led the Walker & Dunlop team, which arranged the financing on behalf of the developer, Florida-based Rescore Property Corp., a private REIT founded by Arthur Falcone, Tony Avila, and Bill Powers, and their local partner, Align Real Estate. Drawing from their broad network of capital providers, O’Grady and McGlynn identified Barings LLC as the developer’s ideal partner for the senior financing. The nonrecourse loan represented 80 percent of the total project cost.

The Rise Walnut Creek is the seventh construction loan that the Walker & Dunlop team has sourced for Rescore’s ‘Rise’ product line, which features contemporary design and innovative amenities. Once complete, the six-tale building will include 10,577 square-feet of retail space, luxury amenities, and a residential lobby with controlled access to the units. Averaging 754 square feet, 20 of the 97 apartment units are designated for small-term rentals. The project will also include two levels of dedicated basement parking. 

Said McGlynn, “Rise Walnut Creek is a creative project that satisfied the city’s desire for more small-term stay units, which are in very limited supply, as well as Rescore’s desire to deliver luxury residential in the high barrier-to-entry, dynamic downtown Walnut Creek market.”

Based in Miami, Florida, O’Grady and McGlynn have been active in structuring nonrecourse construction loans nationwide for apartments, condominiums, hotels and mixed-use properties. The team also focuses on identifying providers of equity, structured debt, and portfolio financing for developers and value-add owners and operators. As a team, they have closed over $16 billion in debt and equity transactions.

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ATLANTA, GA – PointOne Holdings, a real estate investment firm with offices in Hollywood Florida and Atlanta Georgia, announced the sale of Crestmark Apartments located in the Metro Atlanta city of Lithia Springs. The property generated a return multiple of 2.5 times the total equity invested in a period of two and a half years.

“Crestmark Apartments is an brilliant example of a successful execution by PointOne Holdings with the help of Pegasus Residential,” said Ben Colonomos, PointOne Holdings’ Managing Partner. “During the period in which PointOne Holdings owned and operated the property, occupancy increased from 93 to 98 percent, average effective rents increased by 23 percent while its net operating income increased by 38 percent.”

“We are extremely proud to have successfully exited another asset making outsized profits to our investor community while delivering a proven value-add opportunity to the property’s new buyer” said Leo Peicher, PointOne Holdings’ Managing Partner. “In the last year we have successfully executed our strategy to exit all of the pre-2000 vintage multifamily properties in our portfolio generating a total value of $215 million to our investors.”

The property was successfully marketed and sold by Chad DeFoor of ARA-Newman, Knight, Frank. “The PointOne team did an brilliant job at Crestmark of maximizing their returns to investors while still maintaining an achievable value-add tale for the next owner” said Chad DeFoor.

PointOne Holdings has strategically shifted into developing projects in certain Southeastern primary market suburbs and just recently completed its sixth fund, which will develop 1,200 multifamily units for a total combined value of $180 million.

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DAVIS, CA – The University of California, Davis, (UC Davis) breaks ground on a new student housing complex that will add nearly 3,300 beds to the university’s West Village neighborhood. With its first 1,000 beds expected to be delivered by the start of the Fall 2020 academic year, the UC Davis project is currently the largest student housing development in the US.

The Michaels Organization is the developer for the West Village project and recently announced the successful closing of $575 million in financing. The full $575 million in project costs will come from the proceeds of a tax-exempt bond sale, the largest bond sale ever in the US for a student housing project. The Michaels Organization is working with global design, architecture and engineering firm Stantec, which is providing lead architectural, interiors, buildings engineering and landscape architecture services for the project. CBG Building Company is the general contractor.

“Increasing our on-campus housing inventory for our students has been a goal for us for many years,” said Emily Galindo, interim vice chancellor for Student Affairs at UC Davis. “Moving the project into construction is an vital and exciting step forward.”

The new housing has a goal of reaching 100 percent net-zero energy efficiency on an annual basis, which means the project is designed to generate as much energy as it uses within a year. The project, set on 34 acres, will comprise nine four-tale apartment buildings along with indoor and outdoor community space and recreational fields. A 10,000-square-foot community building will house a fitness center, multipurpose room, and student support services. Originally, West Village was plotted for 1,875 beds. But, UC Davis, the Michaels Organization and Stantec worked together to develop a plot that provides reduced space for student vehicles and more living space, allowing for substantially more residential units.

“This revised approach strengthens the pedestrian and bike culture of the overall campus and will promote a strong communal environment for the enrichment of the student residents,” said Sean Studzinski, Stantec principal, National Residence Life.

“We’re inspired to see such an vital project go forward for the UC Davis community,” said Richey Madison, Stantec principal, West Coast Education. “UC Davis is truly thinking about the future of the university, its student population and the community. To be part of a public-private partnership team helping to develop this new phase of on-campus housing is a tremendous privilege, and we are excited to break ground.”

Stantec will also be collaborating with the Michaels Organization on the Orchard Park apartment expansion at UC Davis, which will provide additional housing for graduates and families. Stantec is providing interior design, along with landscape architecture and site plotting.

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