Colorado Springs, Colo.—San Francisco-based real estate investor Hamilton Zanze has completed its sale of Spring Canyon Apartments, a 292-unit community in Colorado Springs, Colo. The sales price was $40.5 million, or $138,699 per unit. ARA Colorado brokered the transaction.
Hamilton Zanze acquired the property back in 2004 for a bit over $28 million. During its ownership, the firm brought in management firm Mission Rock Residential and executed a value-add program that included unit renovations and enhancements to the clubhouse and fitness center.
“Spring Canyon was one of Hamilton Zanze’s earliest transactions,” says Kurt Houtkooper, CIO at Hamilton Zanze. “We have held the property for almost ten years, and we have seen the property excel over the hold period. The sale price and returns we were able to achieve speak to the strength of the submarket and quality of asset.”
Hamilton Zanze currently owns and operates 77 properties (15,675 total units) across nine states. The company is looking to sell more assets in its Colorado portfolio this year to take advantage of favorable selling conditions.
HFF secures construction financing for Houston mixed-use development
Houston—The Upper Kirby neighborhood of Houston is set to see a new mixed-use office, retail and multifamily development now that construction financing is in place. HFF arranged the loan and joint venture equity for Midway Companies, the developer of the asset. Amegy Bank provided the financing for the Kirby Grove Office Tower (office) while Cadence Bank provided financing for Avenue Grove (multifamily). Institutional investors advised by J.P. Morgan Asset Management provided joint venture equity for both the office and residential components.
The office tower is due for completion in 3Q 2015. It will feature 224,000-square-feet of office space and 24,000 square feet of retail and restaurant space built to LEED Silver standards. Avenue Grove is expected to deliver 270 units in 4Q 2015.
The HFF team representing Midway Companies was led by director Colby Mueck and executive managing director Scott Galloway.
Walker & Dunlop provides three-year, cash-out bridge loan for assisted living facility
Bethesda, Md.—Walker & Dunlop Inc. announced that it recently provided $14.5 million in bridge financing through the company’s Interim Loan Program to AFC Forsgate Owner LLC for the refinance of Chelsea at Forsgate. The borrower is a joint venture among Artemis Real Estate Partners, Focus Healthcare Partners and Chelsea Senior Living. Chelsea manages the property and 11 other seniors housing properties in New Jersey.
Chelsea at Forsgate is a 120-unit assisted living facility in Monroe Township N..J., originally constructed in 1996 and purchased by the borrower in February 2013. Over the last year, the borrower made substantial changes to operations and implemented an extensive capital improvement project. Since purchasing the property, the borrower spent over $800,000 upgrading the building’s common areas and resident units. Unit improvements included new flooring, bathroom vanities and kitchenettes.
John Pantone and Jim Cope led the team that structured the three-year, interest-only, cash-out transaction. Pantone and Cope incorporated the borrower’s continued physical improvement plan for the property into the financing, which includes upgrading its exterior amenities, modernizing the kitchen and creating a multi-sensory therapy room in the facility’s memory care unit.
