Posts tagged Multifamily
NAI Knoxville completed in excess of $70 million of commercial real estate transactions for 2011 said its president, Maribel W. Koella, SIOR, CCIM. She reported that NAI Knoxville had closed over 95 commercial transactions to reach this total for 2011.
NAI Knoxville sold $15,251,415 of warehouses and industrial properties, $2,865,000 of office properties, $16,794,700 of retail properties, $14,212,000 of multifamily properties and $4,350,750 of vacant land.
NAI Knoxville leased $3,657,110 of warehouses and industrial properties, $9,295,840 of office properties and $3,649,248 of retail properties.
Notable transactions include Belle Island in Pigeon Forge, Second Harvest Food Bank, Washington Ridge Apartments, Jackson Street Warehouse, Scott Recycling, Bull Outdoor Products, City of Athens Industrial Land, Miller Recycling, Neill Sandler Ford Dealership and Midlab.
NAI Knoxville’s current inventory is in excess of $73 million and includes over 2.5 million square feet.
The 29-year old company has ten full-time brokers, six holding the CCIM designation, two holding the SIOR designation, one holding the MRED designation and one holding the RPA and CPM designations.
NAI Knoxville is a member of NAI Global which has members in over 350 offices and 55 countries and has an annual commercial transaction volume of $45 billion making it the world’s largest managed real estate network.
The NAI Knoxville Multifamily Team of Steve Goldman, John Dempster and Roger Denny represented the seller in the listing and sale of the Evergreen Apartments, a thirty-unit, all-brick complex in Fountain City. The transaction closed on November 30, 2011, just 62 days from listing to closing. Several challenges were overcome in the process, including getting a new roof paid by the insurance company for the benefit of both buyer and seller. This took a true team effort by the buyer, seller and the agents involved. This brings to 357 the total number of units sold this year by the NAI Knoxville Multifamily Team.
Contributed by: Steve Goldman, CCIM & John Dempster, Brokers, NAI Knoxville
We thought you might be interested that on June 16, we closed on the sale of the Ashlandwood Apartments. This is a 79-unit complex very close to West Town Mall in west Knoxville. The buyer was the owner of the adjacent Briarcliff At West Hills Apartments. The sale included a short sale with a local bank and we acted as “facilitator agents” in the transaction.
This was a really tough deal to get done. And frankly, we are proud of getting through it successfully in 115 days from start to close. Here is a short case study on the transaction.
We learned Feb. 22 that the apartments were in foreclosure with an auction in three weeks. A commission agreement was worked out, which included permission to contact the lender regarding a possible short sale. We delivered a written offer on Feb. 25. It was a complicated deal due to the short sale negotiation, dealing with other secured property etc., but it ultimately led to a fully executed contract at $1,850,000 on 4/1/2011, including the necessary agreements with the lender. More >
Washington Ridge, a 248-unit apartment complex on Washington Pike, has sold to C. J. Lombardo Company of New Jersey. The buyer was represented in the transaction by Steve Goldman, CCIM and John Dempster, apartment specialists with NAI Knoxville. The undisclosed seller was represented by Larry Ochab of Pinnacle Realty Management Company of Maitland, FL. The new owners will rename the property Spring Meadow.
Goldman says the twenty-year-old apartments are close to the Knoxville Center Mall and are consideredvery nice class B apartments. The units are spacious and many even have fireplaces. The complex is on a well-landscaped, 19 acre property. Lombardo also owns and manages over 3,000 apartment units and in 2008 acquired the 186-unit Deane Hill Apartments adjacent to Knoxville’s West Town Mall.
This is the second significant multifamily property sold by the NAI Knoxville team recently, having represented the seller of the 100-unit McKenzie Acres Apartments in Oak Ridge which sold in November.
NAI Knoxville is pleased to announce that we have completed the sale of the Hotel St. Oliver (Kern Building) on Market Square which also houses Market Square Kitchen & Shono In City. The property was co-listed by Steve Goldman, CCIM of NAI Knoxville and Tim Duff of Coldwell Banker Commercial, and the project was financed through an SBA 504 loan through Skip Murry at ORNL Federal Credit Union. Some additional information about the sale is available on Josh Flory’s [blog].
The Legends at Oak Grove, located off Washington Pike, is offering a number of amenities but one may be unique to the Knoxville market. The new, gated property, now in lease-up, has one-, two- and three-bedroom units with the usual high-end interior finishes and features along with clubhouse and fitness center but the swimming pool is attracting the most attention. Instead of a conventional, chlorinated poll, the pool at the Legends is filled with saltwater. Proponents claim that the saltwater system maintains chlorine at stable levels so there is not a chlorine smell or taste and hair and suits won’t discolor. The concentration of salt is about 10% of the level of sea water and does not have a noticeable taste.
An article by Jeffrey Lee in the April issue of UNITS points out that operating costs are substantially lower for saltwater pools also with savings both on chemicals and maintenance labor.
CoStar data shows that three of the five worst multifamily markets for distressed sales at a percentage of total sales were in the south. Atlanta led the way with 72% and two Florida markets, Jacksonville (#2) and Tampa-St. Petersburg (#5) were at 62% and 49% respectively. Stockton-Modesto, CA (#3) and Las Vegas (#4) rounded out the bottom five.
CoStar reports that the first half of 2010 is looking increasingly attractive yet competitive for mulitfamily investors. [read article]
The Property Report in the June 16 Wall Street Journal., written by Dawn Wotapka, passes along some encouraging news on the multifamily leasing front. Large landlords report declines in rent rates have ceased in most markets and rates are actually increasing slightly. Two factors contributed to the reversal of direction. First, the economy is adding jobs and the mood of pessimism is lifting, leading to increased confidence to sign leases and, second, the expiration of the first-time home-buyer tax credit has slowed the exit of renters to home-ownership. Major players such as AvalonBay Communities, Equity Residential and UDR all show improved earnings estimates.
After notching gains totaling 19.4% in the 4th quarter 2009, and 1st quarter 2010, REITS faded by 3% during the 2nd quarter but still did better than equities as the DJIA slipped by 8% over the same period.
One bright spot, however, was apartment REITs which were up 7%, driven by homeowners who have lost homes to foreclosure turning to rentals and lack of financing for new product over the last two years limiting competition.
Source: The Property Report, by Nick Timiraos and A. D. Pruitt, Wall Street Journal., June 30, 2010.