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Newmark  announces it has arranged the sale of Centerra Apartments, a 347-unit apartment tower located in San Jose, California. The asset sold for an undisclosed amount.
Newmark Vice Chairman Scott Bales and Senior Analyst David Hosler represented the seller, AFL-CIO Building Investment Trust, advised by PNC Realty Investors. Newmark Vice Chairman Ramsey Daya and Senior Managing Director Chris Moritz arranged the acquisition financing.
Located at 77 N. Almaden Avenue, the high-rise property is comprised of 21 floors totaling 325,169 square feet of residential space and approximately 7,000 square feet of retail. Built as apartments with condo mapping in-place, the asset offers a unique mix of one-, two- and three-bedroom units including townhomes, live works, lofts and junior units.
“Newmark is proud to have represented our client in the sale of this highly unique luxury property,” said Bales. “Centerra is one of the only high-rise apartment towers in Silicon Valley and is located on the best block in Downtown San Jose, directly across the street from San Pedro Square”.
Centerra Apartments features world class amenities including a pool and spa, an integrated parking structure, a media lounge with bar and fireplace, a fitness center, outdoor gathering spaces, a conference center and a game room. The property is situated in San Jose’s transit-oriented downtown core, across the street from the San Pedro Square and one block from the Highway-80 on-ramp.
Investor appetite for U.S. multifamily assets surged during the second quarter of 2022 with $86.3 billion in sales volume, according to Newmark Research. This represented a 42.4% year-over-year increase, as well as the third-largest quarterly sum in history. Volume during the first half of 2022 accelerated 53.1% compared with the first half of 2021. This uptick in activity was in part due to buyers and sellers deliberately transacting ahead of impending FOMC rate hikes and the mid-term elections later in the year.
Newmark announces it has completed the sale of Millennium Gardena, a fully entitled development site slated for 262 multifamily units and located at 12850 Crenshaw Boulevard in the South Bay neighborhood of Hawthorne, California.
Newmark Senior Managing Director Chris Benton, Managing Director Anthony Muhlstein, Co-Head of Capital Markets Kevin Shannon and Executive Managing Director Ken White represented the seller, The Dinerstein Companies. The buyer was a joint venture between Cityview and Stockbridge.
The sustainability-focused multifamily building planned for the site will be called South Bay X, and will feature a combination of studio, one- and two-bedroom units ranging from 510 to 1,197 square feet. It is expected to break ground during the fourth quarter of 2022 with a targeted delivery in early 2025. Sustainable features planned for the building include LEED Silver certification, high-performing lighting, enhanced indoor air quality, and a renewable-energy-powered solar thermal water heating system. Building amenities will include a state-of-the-art fitness center, resort-style pool, spa, lanai, outdoor strength area, barbeques and open-air courtyards.
“South Bay is an undersupplied multifamily market adjacent to some of the largest tech firms in Los Angeles,” said Benton. “With multifamily market fundamentals extremely strong across the region, the buyer’s plan to build sustainable, market-rate housing will be well received.”
Muhlstein added, “Millennium Gardena will serve as a great addition to an underserved apartment market with leading local employers such as Ring and SpaceX.”
Millennium Gardena’s location in the fast-growing South Bay neighborhood offers convenient access to the area’s diverse mix of technology, aerospace and ecommerce employers including Tesla, SpaceX and Ring directly adjacent to the property. The site is less than one mile from Interstate 105, and just three miles from Interstates 405 and 110. The transit-oriented location is two blocks from the LA Metro Green Line and less than five miles from Los Angeles International Airport (LAX).
“Major global tech, aerospace, automotive and ecommerce corporations are relocating to this South Bay community, making it a perfect time for Cityview and Stockbridge to execute on our shared vision for bringing new jobs and building much needed, quality market-rate workforce housing to this undersupplied market,” said Cityview CEO Sean Burton in a prepared statement. “We are both eager to be part of the revitalization efforts taking place in this region and provide increased sustainable living options to our residents.”
U.S. multifamily investment sales volume reached an unprecedented $148.9 billion during the fourth quarter of 2021, according to Newmark Research. Annual sales volume rose to a record high of $335.3 billion, an increase of 128.2% year-over-year. Investment as a percentage of the overall US commercial real estate market rose to 41.5% in 2021, the highest allocation to multifamily on record. Absorption surged to 673,478 units in 2021, far outpacing the new supply of 358,734 units. Strong demand over the trailing 12 months in Los Angeles, New York and Washington, D.C. is an encouraging sign of momentum in large, supply-constrained markets.
Newmark announced it has completed the sale of The Rexford, a 203-unit fully-renovated multifamily community located at 3400 Country Drive in Fremont, California. The closure sets a new record in Fremont as the largest single multifamily transaction in the city’s history with a sale price of $112.5 million. The buyer was a publicly traded real estate investment trust, and the seller was The Ezralow Company, a diversified real estate development and investment firm based in Southern California.
The Newmark team, led by Senior Managing Director Nate Oleson, Executive Managing Director Mark Leary, Director Rob LeDoux, and Director Ian O’Connor, served as the exclusive advisors on the transaction. This core Newmark team has also been retained by the seller to lead the transaction of an affordable portfolio in Sacramento.
The property is situated just off Fremont Boulevard at the intersection of Country Drive and Lexington Street, within walking distance of both Downtown Fremont and the Fremont BART station, and within close proximity of Interstates 880, 680 and the Dumbarton bridge. The Rexford’s excellent urban location provides residents with immediate access to local eateries, retailers, grocers and lifestyle amenities located in the heart of Fremont.
“The Rexford presented buyers with a rare opportunity to invest in a fully-renovated multifamily community in one of the most sought-after suburban locations in the Bay Area,” said Oleson. “As the cost of single-family housing continues to skyrocket in the East Bay, more and more renters are seeking highly-amenitized, luxury apartment communities like The Rexford.”
Originally built in 1973, The Rexford underwent a dramatic transformation starting in 2014, with prior ownership investing approximately $13M into thoughtful exterior and interior improvements. The property consists of 18 residential buildings on an 8.14-acre site and features a unit mix consisting of 15 1x1 units, 25 2x1 units, 75 2x2 flats, 40 2x2.5 townhomes, 48 3x2 units, as well as an on-site Montessori. Common area amenities include a two-story community clubhouse and lounge with workstations and entertainment areas, a revamped fitness center with cardio and weight machines, two swimming pools with surrounding BBQ and picnic areas, a community bike storage room, package lockers and lushly landscaped walking paths throughout the community.
“We are proud of the transformation made at The Rexford under our ownership. We look forward to seeing its continued success at this dynamic location under the new ownership,” said Bryan Ezralow, CEO of The Ezralow Company.
Oleson concluded, “Investors were also attracted to The Rexford’s close proximity to major tech campuses, including Tesla’s headquarters in South Fremont, as well as Facebook’s headquarters in nearby Menlo Park.”
Newmark is pleased to announce the sale of Second and B Street (“815 B Street”), a newly constructed, 41-unit multifamily mixed-use development in downtown San Rafael, California, just north of San Francisco in affluent and severely supply-constrained Marin County. Completed in June 2021, the building was 75% leased and occupied at sale closing.
Newmark Executive Managing Directors Haden Ongaro and Mark Leary, Managing Director Jay Cross and Director Rob Ledoux represented the seller, Monahan-Parker, and procured the buyer, Napa-based Channel Properties.
“Through its initial lease-up, the development has achieved lease rates exceeding $3,500 for one-bedroom apartments and $4,500 for two bedrooms, demonstrating its strong appeal to lifestyle-oriented renters who appreciate walkability to San Rafael’s many cafes, restaurants and downtown amenities, including commuter rail,” said Cross.
Developed by San Rafael-based Monahan-Parker and Monahan-Pacific, the elegant, four-story building features spacious one- and two-bedroom residential units with high-end interior finishes, controlled-access ground floor parking and 2,500 square feet of retail space. All residents have access to shared rooftop amenities including large common area, kitchen, barbeque, and deck with dramatic views of Mount Tamalpais, downtown San Rafael and the San Francisco Bay.
Second and B Street is the first luxury apartment development of scale in downtown San Rafael and helps meet the strong demand for transit-oriented, upscale rental housing and affordable housing (15% of units are rent-restricted).
The urban infill development is in a vibrant, walkable neighborhood featuring dozens of restaurants, cafes, microbreweries, boutique shops, the acclaimed art deco Smith Rafael Film Center, a new five-story AC Marriott hotel (under construction) and is a short walk from San Rafael’s new SMART rail station. The property is just three blocks from the headquarters of BioMarin, the growing $15 billion bio-tech firm.
Newmark announces it has completed the sale of Marina Shores, a 6.17-acre retail shopping center planned for multifamily redevelopment. The property sold for $67.9 million.
Newmark Co-Head of Capital Markets Kevin Shannon, Vice Chairman Bill Bauman, Executive Managing Director Ken White, Senior Managing Director Chris Benton and Managing Director Anthony Muhlstein represented the seller Regency Centers, and the buyer, Onni.
“Marina Shores received tremendous interest with over 15 offers,” said Benton. “The demand was driven by the property’s new specific plan (SEASP) conducive for multifamily development, its highly amenitized micro location and the efficiency of hard costs in regard to the scale of the development paired with the high rent growth in the submarket.”
Located at 6500 East Pacific Coast Highway, the property presents unobstructed views of the marina in the Belmont Shore submarket, bounded by Seal Beach to the south and 2nd and PCH to the north. The property is walking distance to 2nd & PCH, a high-end destination retail center delivered by CenterCal in the fall of 2019, offering national, regional and locally grown retailers and restaurateurs such as Whole Foods Market, Urban Outfitters, Lululemon, The Bungalow Kitchen by Michael Mina, Tocaya Organica, Caffe Luxxe, Peloton and more.
Muhlstein added, “Coastal Real Estate coupled with a progressive political landscape shaped a very competitive process. Developers are excited to work with cities that recognize the immense housing shortage and want to make a positive contribution. The size, demand and waterfront location complemented by walkable first-class amenities make this a unique development opportunity.”
Shannon concluded, ““The quality of the capital and the competition for this trophy multifamily site was intense which resulted in a great execution for our client.”
U.S. multifamily sales volume in 3Q21 totaled $78.7 billion, signifying the largest quarterly sales volume figure on record as investor appetite for multifamily continues to surge, according to Newmark Research. Trailing-twelve-month volume totaled $241.9 billion, also an all-time high. 3Q21 effective rent growth rose 5.9%, the largest quarterly increase on record increased to 3.1% on an annualized basis. Increased demand for apartments is projected to support strong levels of rent growth through the end 2022.
Newmark announced that it has arranged the $135.2 million sale, $359,575 per unit and $91.4 million financing of Lyric Apartments, a luxury, 376-unit multifamily community in the high growth area of Las Vegas, Nevada’s Silverado Ranch submarket. Lyric traded from The Bascom Group—a private equity firm that has completed over $19.1 billion in multifamily value-add transactions since 1996 — to Starlight U.S. Residential Fund, a fund focused on the acquisition, ownership and operation of multifamily properties in the U.S. The property was 99% occupied at the time of the sale.
Newmark Executive Managing Director Curt Allsop and Managing Director Angela Bates along with Executive Managing Director Doug Schuster and Director Vittal Ram represented the seller in the transaction. Newmark Executive Managing Director Matthew Williams and Assistant Vice President James Maynard of the firm’s Debt and Structured Finance team helped secure the acquisition financing from Sumitomo Mitsui Banking Corporation.
“The purchase of Lyric Apartments offered a rare opportunity to acquire and add value to a well-built, luxury multifamily property in one of the most affluent residential areas in the Las Vegas MSA,” said Allsop. “The multifamily sector in Las Vegas has experienced price appreciation of approximately 100% over the past few years, and properties like these will almost always be in demand by value-add investors looking to plant their flag in this market.”
Lyric Apartments is just east of Las Vegas Blvd at 304 East Silverado Ranch and was constructed in 2014 by Nevada West, a company known for quality construction and unique floor plans. The property features a mix of one-, two-, and three-bedroom units with an average unit size of 1,084 square feet. Amenities include two resort-style pools with formal cabanas, a state-of-the-art fitness center, a LP Karaoke Lounge and a splash pad and playground. Newmark also represented the original developer, Nevada West, when the Bascom Group purchased the property in 2016.
“This purchase marks Starlight’s second multifamily acquisition in the Las Vegas MSA. Our team worked in close concert with the Starlight team to help secure the most advantageous financing for the acquisition,” said Williams. “The property will be a great addition to their portfolio, and we look forward to working with them again in the future.”
Lyric Apartments’ location in a high-growth submarket offers proximity to above average demographics and notable retail and entertainment attractions, including The Las Vegas Strip, Allegiant Stadium and McCarran International Airport.
According to Newmark Research, Las Vegas is second in the country for rent growth annually at 30.9% compared to the U.S. average of 13.4%.
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