Hamilton Zanze’s acquisition of Post Ridge Apartments was recently featured in the Nashville Post:
A San Francisco-based apartment-focused real estate investment company has paid a collective approximately $80.2 million for two Bellevue garden style rental residential properties.
Hamilton Zanze Co., which has made its initial foray into the state with the deals, paid $23.5 million for the Post Ridge Apartments at 595 Hicks Road. The seller was Atlanta-based Post Ridge Associates, which acquired the property in 1987 via a quitclaim deed deal for which Metro records show no dollar amount.
Built in 1972, Post Ridge is home to 150 units. The $23.5 million purchase price is the equivalent of about $156,700 per apartment.
Hamilton Zanze was recently featured in the Kansas City Business Journal:
Hamilton Zanze & Co., a San Francisco-based real estate investment firm has acquired its second Kansas City-area apartment complex since March.
The company bought Cornerstone Apartments in Independence in a deal that closed on April 4. Hamilton Zanze did not disclose the price or the seller.
Located at 3950 S. Jackson Drive near Interstates 70 and 470, the 420-unit complex was built in 2004 and includes one- and two-bedroom units. The company did not disclose the occupancy for Cornerstone Apartments. The overall vacancy rate in the Independence submarket was 3.7 percent in the fourth quarter, with an average rent of $739, according to NorthMarq.
Founder and CEO Mark Hamilton told the Kansas City Business Journal that the company has been looking at the market for several years and finally found the right opportunities. Those two acquisitions may be followed by additional deals, he said.
“We certainly have remaining interest in picking up more properties in KC,” Hamilton said.
Hamilton Zanze’s acquisition of The Boulders at Overland Park was recently covered by Multi-Housing News:
Hamilton Zanze has acquired Metcalf Village Apartments the Kansas City suburb of Overland Park, Kan., from a private owner. The 272-unit apartment community, which will be rebranded The Boulders at Overland Park Apartments, changed ownership for $40.4 million, according to data provided by Yardi Matrix.
Property management responsibilities will be assumed by Mission Rock Residential, a Hamilton Zanze affiliate company expanding on its Midwestern presence.
Located at 16201 Travis St., the property is situated close to Highway 69 and within the Blue Valley School District, one of the best-performing school districts in the nation.
“This community represented a great opportunity to buy new, stabilized product below replacement cost thanks to robust local market momentum,” said David Nelson, Hamilton Zanze managing director of acquisitions, in prepared remarks. “Overland Park has been a target market for our acquisitions team, and we are excited to have found a perfect acquisition to fit our criteria.”
Hamilton Zanze was featured in Real Estate Alert’s recent apartment market update:
Sales of apartment properties soared 18% last year, blowing past the previous record as the multi-family sector became commercial real estate’s most-active segment.
A total of $110.2 billion of large rental properties traded, up from $93.5 billion the year before, according to Real Estate Alert’s Deal Database. The tally was well above the previous high-water mark of $96.9 billion set in 2016 — and more than double the $51.8 billion peak of the previous cycle.
Capitalization rates — especially on value-added deals — in many markets have compressed to levels well below historical averages, as bidding contests have driven up prices. But those valuation gains are expected to slow, market experts said, making buyers more reliant on rent growth to meet their return goals.
There are also concerns about interest-rate volatility, after recent swings in the benchmark 10-year Treasury rate. “We’re looking to achieve yield for our investors, and to have that yield eaten by debt service is obviously a concern,” said David Nelson, managing director of acquisitions at Hamilton Zanze of San Francisco.
Similar concerns were present at the beginning of last year, but didn’t prove strong enough to hamper trading. And some of them appear to be easing. The Federal Reserve has signaled a pause in rate increases. Construction is projected to be moder- ate this year and fall subsequently. Meanwhile, the renter pool continues to grow, increasingly populated by millennials and empty nesters.
The upshot: Brokers are reporting strong pipelines, and in- vestment shops plan to keep deploying capital into the sector.
“We did about $525 million on the acquisitions side last year,” Nelson said, “In the first quarter of 2019 we’re going to close on approximately $325 million, so we’re off to a very fast start.”
In some cases, buyers are shifting their strategies to adapt to market trends. Hamilton Zanze historically focused on value- added properties, but has recently turned to core-plus deals. “Value-added cap rates have compressed a lot more than core- plus cap rates,” said Nelson. “It’s been incredibly competitive, and we weren’t able to get the returns that we wanted in the value-add space.”
Read the full story at REAlert.com
The co-founder of a San Francisco-based real estate investment firm that recently sold an apartment complex in Albuquerque said the city has become a strong seller’s market.
Hamilton Zanze sold Ventana Canyon Apartments in northwest Albuquerque for $32,581,658 to Seattle-based Thayer Manca Residential in November.
Hamilton Zanze Co-Founder Mark Hamilton said the firm held onto the property nearly five years longer than it had anticipated due to a dip in the Albuquerque real estate market. He said that was a result of the federal government sequestration in 2013, which lowered occupancy and population rates.
“So we went into bunker mode,” Hamilton said. “We made considerable progress, back to where we could sell it. Our hold on the property was closer to 12 years; a lot of that was because of conditions no one was expecting but still, we saw good results.” The year Hamilton Zanze bought the property, 2006, the national real estate market was going through an “extremely challenging” time, as Hamilton put it, but the Albuquerque market held up surprisingly well.
Hamilton Zanze still owns two apartment complexes in the area, one in Rio Rancho and the other off Tramway Boulevard. The firm sold The Pearl at Spring Creek on Gibson Boulevard in late 2018 for an undisclosed price. Hamilton Zanze has owned eight properties in Albuquerque.
Read the full story at Albuquerque Business First.
Hamilton Zanze’s acquisition of Copper Mill Apartments was recently covered by the
Copper Mill Apartments, a 192-unit complex in western Henrico County, has been sold to a California-based real estate investment firm for $33 million.
San Francisco-based Hamilton Zanze acquired the complex, which is off West Broad Street about a quarter-mile east of Pemberton Road.
“Copper Mill represented an opportunity to buy a well-located, value-add asset at a favorable cap rate,” said David Nelson, managing director of acquisitions for Hamilton Zanze.
Hamilton Zanze plans to renovate 25 percent of the units to include stone counters, backsplashes, lighting fixtures, cabinet pulls, flooring, and replacement kitchen cabinets. An additional 50 percent of the units will receive a lighter renovation with resurfaced counters and the addition of new appliances and cabinet faces. The company also will add a dog park and other enhancements.
Property management responsibilities have been turned over to Mission Rock Residential, a Denver-based affiliated company to Hamilton Zanze.
“We are excited to continue expanding our presence in the Richmond MSA and will continue to look for further opportunities this year,” Nelson said.
Read the full story at Richmond.com.
Hamilton Zanze’s acquisition of Keystone Apartments was recently featured on Bisnow.com:
San Francisco-based Hamilton Zanze has acquired the 208-unit Keystone Apartments in Northglenn for $39.5M.
At 12150 Race St., Keystone Apartments is just 1 mile west of the planned 124th Avenue/Eastlake light-rail station scheduled to open in 2019.
The complex, built in 1986, has received extensive upgrades in recent years. The property offers one- and two-bedroom units with vaulted ceilings, walk-in closets, private balconies and patios and stainless-steel appliances. Community amenities include a clubhouse, fitness center and indoor multisport court, pool and outdoor barbecue areas.
Read the full story at Bisnow.com.
Hamilton Zanze’s Colorado acquisition of Environs Residential Rental Community was recently featured in the Colorado Real Estate Journal:
San Francisco-based Hamilton Zanze purchased a Westminster rental community with a distinctly single-family feel.
Hamilton Zanze paid $82 million for Environs, an approximately 30-acre rental community at 3323 W. 96th Circle. The community comprises 318 rental units – a mix of market-rate, single-family houses, patio homes, townhomes and condominiums.
“Environs presented an opportunity to buy a great asset in a strong submarket,” said David Nelson, managing director of acquisitions for Hamilton Zanze. “With all of the demand for single-family homes today, we believe this property’s unique mix of condominiums, townhomes, patio homes and houses will appeal to a wide renter pool around the region.”
Visit CREJ.com for the full story.
Hamilton Zanze’s acquisition of The Quarters at Towson Town Center was recently featured on GlobeSt.com:
TOWSON, MD–Real estate investment firm Hamilton Zanze and Cantor Fitzgerald have partnered to acquire The Quarters at Towson Town Center residential community here for $100 million. This is HZ’s second acquisition in Maryland, and, along with recent acquisitions in Virginia and Connecticut, is part of San Francisco-based private company’s expansion into the East Coast region.
“The Quarters at Towson Town Center fits our investment criteria perfectly — a large asset above a 5% cap rate in a growing market,” said David Nelson, managing director of acquisitions for Hamilton Zanze, in a prepared statement. “We look forward to continuing to acquire high-quality real estate at good capitalization rates in the Mid-Atlantic and throughout the country in the second half of the year.”
This transaction was Cantor’s second acquisition with Hamilton Zanze this year.
Hamilton Zanze’s Colorado acquisition of Environs Residential Rental Community was recently featured in the Denver Business Journal:
Hamilton Zanze purchased Environs Apartments in Westminster has for $82 million.
Located at 3323 W. 96th Circle, the 33-acre property was 92 percent leased at the time of the sale. The 318-unit complex consists of market-rate single residences, patio homes, townhomes and condos. This purchase brings HZ’s total number of properties in Colorado to 15. Nine of them are in the metro area.
Given the demand for single-family homes today, David Nelson, managing director of acquisitions for HZ said that the company believed Environs unique mix of offerings will appeal to a “wide renter pool around the region.”
The property, built in 1984, was sold by Seagate. Amenities include a clubhouse, fitness center and two pools. Seagate upgraded all but 119-units, which HZ plans to finish.
Hamilton Zanze recently purchased a Broomfield apartment community for $50 million and another Broomfield apartment complex for $67 million.