Seven transactions close in the last 7 months, illustrating the growing investment and lender interest in the manufactured housing sector

SAN DIEGO, October 22, 2020 – JLL Capital Markets announced today that it has arranged more than $118 million in financing in separate transactions for seven manufactured home communities totaling 1,038 home sites in Southern California.  

JLL worked on behalf of various operators to secure fixed-rate financing through various lenders, including Fannie Mae, Freddie Mac, life insurance companies and a regional credit union. 

Additional property and loan details are below:

• Pacific Sunset and Western Skies, Anaheim – $24.4 million total, long-term, non-recourse life insurance company loans

• Tumbling Waters, Covina - $9.96 million, 30-year, fully amortizing Fannie Mae loan

• Confidential Inland Empire all-age community - $57.2 million, 2.35% fixed-rate, 10-year, full term interest-only Fannie Mae loan

• Beachwood Park, Dana Point - $13.5 million, 10-year fixed-rate at 2.4%, Fannie Mae, five years interest-only

• Stardust MHC, Ventura - $7.24 million, 2.74% fixed-rate, 10-year, non-recourse Freddie Mac loan

• El Capitan MHC, El Cajon - $6.38 million, seven-year regional credit union financing, three years interest-only

The JLL Capital Markets team representing the various borrowers on all seven transactions was led by Managing Director Zach Koucos.

“We continue to see lender and borrower appetite for the manufactured housing space increase as the sector has seen strong occupancy growth and rent growth stability,” Koucos said. “Our recently released Manufactured Housing Trends Report addresses this trend and examines the industry’s resiliency through the pandemic with notably positive trends when compared to other asset classes within commercial real estate.”

JLL delivers multi-housing investors a full range of solutions through one diverse, integrated platform. The division employs approximately 400 professionals who provide comprehensive investment sales and disposition services with access to thousands of domestic and foreign investors. JLL is also one of the nation’s largest affordable and conventional multi-housing and seniors housing lenders with comprehensive loan underwriting, asset management and loan servicing capabilities. 

JLL Capital Markets arranges loan for multi-housing and retail property

NEW YORK, October 21, 2020 — JLL Capital Markets announced today that it has secured $27.5 million in financing for 812-814 Amsterdam Ave., a newly constructed 44-unit, 15-story, mixed-use property on the Upper West Side of Manhattan. 

JLL represented the borrower, Invictus Real Estate Partners LLC and MJM Associate Contracting LLC, to secure the loan with MetLife. Proceeds were used to retire the original construction loan and mezzanine financing.

Completed in March 2020, 812-814 Amsterdam Ave. is a 60,182-square-foot property with 30,333 square feet of residential space and 12,302 square feet of retail space. The property has a total of 44 rental residential units, including studio, one- and two-bedroom units ranging from 414 to 1,167 square feet. The apartments feature state-of-the-art finishes, 10’-high ceilings and superior light and views of the Upper West Side. Several of the upper-floor units have private balconies. 

The commercial space is fully leased to the Learning Experience Academy, which occupies 11,125 square feet on the first, second and third floors and to Sunshine Smiles Pediatric Dentistry, which occupies a 1,177-square-foot ground-floor retail space. 

812-814 Amsterdam Ave. is within walking distance of some of the city’s best shopping and dining options, including the Columbus Avenue retail corridor. The property offers excellent transportation access to Manhattan and the outer boroughs, including the 1, 2, 3, 4, A, B and C subway lines, as well as a variety of bus lines. 

“The exceptional construction quality and 100% commercial pre-leasing allowed the lender to take comfort during an otherwise volatile market environment,” said Eric Scheffler, Managing Partner of Invictus Real Estate Partners. “This allows the borrower to benefit from historically low rates.” 

The JLL Capital Markets team representing the borrower was led by Managing Director Scott Aiese, Senior Director Peter Rotchford, Vice President Alex Staikos, and Analyst Andrew Cohen. 

“This world-class multi-housing asset illustrates New York City’s vibrant future, situated in the heart of Manhattan’s Upper West Side,” said Aiese. 

JLL represented the borrower to capitalize development of Chicago multi-housing property  

CHICAGO, October 21, 2020 – JLL Capital Markets announced today that it has capitalized the development of a 278-unit, fully-amenitized apartment tower at 1400 Randolph St. in the heart of Chicago’s vibrant West Loop neighborhood and booming Fulton Market district.

JLL represented the developer, Marquette Companies, to secure a pension fund equity partner and construction loan for the project. The senior financing was provided by Bank OZK. Seasoned industry leaders, Marquette partnered with Power Construction, a Chicago-based company that has operated for over 90 years, to build the development with an expected completion date of Spring 2022.

1400 Randolph Street is a 278-unit, 25-story, high-rise development boasting luxury apartment living, with clean lines, modern design, coworking spaces, a state-of-the-art fitness center, club room with a demonstration kitchen and pool to be located on the 18th floor. The remarkable views capture the renowned 12.77-acre Union Park and to the east, the iconic Chicago skyline. 

Chicago’s West Loop neighborhood is home to the area’s most premiere and world-class shopping and night life. For the food lovers, Randolph Street is also known as “Chicago’s Restaurant Row” and touts Michelin-star restaurants and the city’s most vibrant dining scene. The development is also transit-friendly, just steps away from the L train Ashland Station, allowing direct access to The Loop or any corner of the city. 

“I am grateful to JLL for tenaciously pursuing solutions on our behalf as well as the team at Bank OZK who stood with us to help make this project a reality,” said Darren Sloniger, President and CIO of Marquette Companies. 

The JLL Capital Markets team representing the borrower was led by Managing Director Matthew Schoenfeldt.

“It has been extraordinarily rewarding to represent Marquette in capitalizing this marquee project,” said Schoenfeldt. “Marquette, their institutional partner and Bank OZK have been steadfast in their commitment to 1400 Randolph, which is a testament to the fundamentally compelling concept.”

JLL Capital Markets arranged the loan, which will be used for apartment upgrades 

LOS ANGELES, October 20, 2020 – JLL Capital Markets announced today that it has arranged a loan for Center Village Apartments, a 60-unit affordable Low-Income Housing Tax Credit community in Northeast Portland, Oregon.

JLL worked on behalf of Innovative Housing, Inc. (IHI) to secure the 17-year, 35-year amortization loan through Freddie Mac. The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender. JLL also coordinated a 24-month forward interest rate. This loan, along with other capital sources, repaid an original Wells Fargo Bank construction loan.  

Center Village is a mid-rise, multi-housing community with rents restricted to 30% to 60% of area median income. The loan was used for improvements to the multi-housing property, including a new roof, exterior siding, window replacement and interior unit and common area upgrades.

“IHI is excited for the opportunity to redevelop this property so it will continue to operate long into the future,” said Carolyn O’Doherty, Housing Developer at IHI. “The 60 family-sized units currently house more than 175 people who are now able to enjoy refreshed apartments and better amenities thanks to the investment by JLL and other partners.”

JLL’s Capital Markets team representing the borrower was led by Director Anson Snyder.

“JLL and Freddie Mac are committed to providing long-term permanent loans for affordable housing,” Synder said. “Working with the IHI development team is a privilege. Portland families will have an affordable housing option for years to come.”

JLL has extensive experience helping clients obtain financing and sources reliable, cost-competitive mortgage products for acquisitions, refinancing or rehabilitation of affordable housing properties. With access to key lenders and capital, JLL connects clients directly with Freddie Mac, among others, to get the best possible financing structure. In 2019, JLL was recognized as the #1 targeted Freddie Mac lender for affordable housing deals.

JLL Capital Markets announced today that it has arranged $5.46 million in financing for The Place at Capper Landing, a garden-style multi-housing community located at 10535 Lem Turner Rd. in Jacksonville, Florida. 

JLL worked on behalf of Beachwold Residential to secure the supplemental loan through Freddie Mac. The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender.  

With proceeds from this loan, Beachwold Residential can continue enhancing the property with extensive interior unit upgrades such as new fixtures, appliances and finishes. 

Since Beachwold Residential acquired the property in 2015, it has spent $5.42 million on renovations, including interior and common area updates. The property was built in 1999, is about 98% occupied, and consists of 360 units, offering one-, two-, three- and four-bedroom apartments. The community is pet-friendly and has a health club, 24-hour laundry facility, playground, business center, picnic area with grills, pool with a sundeck and resident entertainment center. 

The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Elliott Throne and Mona Carlton and Director Jesse Wright. 

“Beachwold has had an outstanding run with Freddie Mac this year and they have done their investors a great service by adding accretive supplemental loan proceeds to an asset that already benefits from an excellent Freddie Mac senior loan,” said Wright.  

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

JLL Capital Markets announced today it arranged $88.89 million in construction financing to build the Fremont Apartments, a Class A multi-housing community located on the Willamette River at 1550 N.E. Naito Parkway in Portland, Oregon. 

JLL worked on behalf of a partnership between Lincoln Property Company and Bridge Investment Group to secure the loan through ACORE Capital, a leading commercial real estate finance company. The asset will be held for 10+ years as it represents an Opportunity Zone investment. 

The 227,599-square-foot high-rise, apartments will consist of 236 units, averaging 932 square feet. Sitting on 1.84 acres, the property is perfectly positioned on the waterfront of the North Pearl District. The Fremont Apartments will be the tallest building in proximity to the river in Portland and is the only new permitted residential waterfront project on the west side. The 17-story upscale tower will include a mix of studios, one-bedroom and two-bedroom floor plans. The project will offer premium interior finishes and community amenities including a resident lounge, subterranean parking garage and rooftop terrace with unobstructed views of downtown Portland and the Willamette River. The property also includes a riverfront restaurant space overlooking the Willamette River.

Formerly a corridor of warehouses, the Pearl District is one of the most sought-after neighborhoods in Portland and is known for its vibrant entertainment scene, renowned restaurants, iconic art galleries and local shops and boutiques.  

The JLL Capital Markets team representing the borrower was led by Managing Directors Jordan Angel, Doug Bond and Casey Davidson and Analysts Brock Knapp and Taylor Gimian.   

“This development will represent the best units in the burgeoning Pearl District with extraordinary views of the Willamette River,” said Angel.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.