Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 07 August 2017

AVR Realty Sells Apartment Portfolio for $510Mln

Carlton Associates Inc. has partnered with investor David Werner to pay $510 million, or $141,863/unit, for a portfolio of 11 apartment properties from AVR Realty. The properties have 3,595 units in South Carolina, Tennessee, Louisiana and Georgia.

Commercial Real Estate Direct Staff Report

Carlton Associates Inc. has partnered with investor David Werner to pay $510 million, or $141,863/unit, for a portfolio of 11 apartment properties from AVR Realty.

The properties have 3,595 units in South Carolina, Tennessee, Louisiana and Georgia. The Carlton/Werner team funded its purchase with a Fannie Mae loan, written under the agency's Delegated Underwriting and Servicing program, by Arbor Realty, which also made a $65 million preferred equity investment in the portfolio.

The portfolio, whose units have between roughly 800 and 1,500 square feet, has remained about 95-percent occupied for the past three years and is said to have generated $32 million of net operating income last year. That would give the price the Carlton/Werner team paid a capitalization rate of 6.27 percent.

No brokers were involved in the deal.

The apartment properties were:

- Haven at Market Street, with 285 units at 8034 MacBean Loop in Aiken, S.C.;

- The Reserve at Mill Creek, with 269 units at 2350 Freedom Blvd. in Florence, S.C.;

- The Heights at Lake Murray, with 231 units at 350 Lake Murray Blvd. in Irmo, S.C.;

- River...





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage