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July 31, 2019

In the Pipeline: Navigating This Multifamily Sellers’ Market

Hamilton Zanze was recently featured in Housing Wire:

The multifamily market is in on hold as far new starts go with the exception of an odd permitting blip registered over the course of March, in which permit numbers spiked by 19%. That aside, researchers are predicting a slowdown in new construction starts as the market is full-up on Class-A product, and construction costs don’t allow for developers to build Class-B product.

Hamilton Zanze Real Estate Investments Chief Operating Officer and Founder Tony Zanze told HousingWire that the multifamily market has been a sellers’ market for about a year and a half now, and it doesn’t look like it will change anytime soon as the economy settles into slow growth and supply tapers off.

Read the full article at Housing Wire.

July 15, 2019

Top-5 Multifamily Transactions in Nashville

Hamilton Zanze’s acquisitions of 865 Bellevue and Post Ridge Apartments were recently featured in Multi-Housing News as one of the top-5 multifamily transactions in Nashville:

Investors, developers and employers have long touted Nashville, Tenn., as a city on the rise. Boasting considerable population, job and rent growth, there are many opportunities in the metro across all real estate asset types. Multifamily properties continue to perform well, evidenced by rising rents and nearly $500 million in deals closed in the first half of the year.

2. 865 Bellevue and Post Ridge Apartments

Hamilton Zanze entered the metro with a bang in April with the $80.2 million acquisition of two communities from Aimco. The properties total 476 units and are both located in the Bellevue submarket. Cantor Fitzgerald partnered with Hamilton Zanze to purchase the 326-unit 865 Bellevue Apartments, and two private investors joined forces with the buyer on the 150-unit Post Ridge Apartments buy. KeyBank provided acquisition financing for the deal through Fannie Mae. The $36.8 million mortgage encumbering 865 Bellevue carries a 4.04 percent interest rate over a 10-year term, while the smaller, 10-year loan of $18.1 million on Post Ridge bears a fixed, 4.37 percent interest rate.

Read the full article at Multi-Housing News.

June 15, 2019

Hamilton Zanze Sells 184-Unit Enclave at Water’s Edge to TN Buyer

Hamilton Zanze’s sale of The Enclave at Water’s Edge was recently featured in the Connect Texas – Commercial Real Estate News:

Multifamily investor Hamilton Zanze ended its hold on the 184-unit Enclave at Water’s Edge, selling the north Austin apartment complex to LEDIC Realty Co. The Memphis-based buyer acquired the apartment complex, situated near Austin’s massive mixed-use Domain development, for a value-add play.

Enclave at Water’s Edge is situated on 6.6 acres at 12330 Metric Blvd. The property offers studios, and one- and two-bedroom units. Amenities include three resort-style swimming pools, a barbecue and picnic area, laundry facilities, fitness center, a new fire pit and 24-hour fitness center.

Read the full article at Connect Texas – Commercial Real Estate News, and see more coverage at GlobeSt.

May 30, 2019

Bay Area Investor Hamilton Zanze Acquires Nearly 500 Apartments in Nashville in Multi-Property Deal

Hamilton Zanze’s acquisition of Post Ridge Apartments and 865 Bellevue was recently featured in the Cision PR Newswire:

San Francisco-based real estate investment firm Hamilton Zanze (HZ) has acquired two apartment communities, Post Ridge Apartments and 865 Bellevue, in Nashville. The deals mark the company’s first entry into the Tennessee market and ongoing regional expansion in the eastern United States.

Built in the early 1970s, 865 Bellevue comprises 326 rentable units. The preliminary renovation plans for the property include modernizing walls and ceilings, resurfacing countertops, adding new flooring, and updating lighting throughout. Amenities such as the pool area, the fitness center, and the clubhouse will also be enhanced.

Post Ridge Apartments is located at 595 Hicks Road and comprises 150 two- and three-bedroom units averaging 1,489 square feet each. The property is just one mile from the One Bellevue Place development, which will be one of the largest mixed-use districts in Nashville once completed.

Nashville has seen a meteoric rise in recent years, in both population and economic activity. The market is defined by a diverse economy, low costs of living and doing business, a creative culture, and a well-educated population. 

To learn more about 865 Bellevue and Post Ridge Apartments, please visit www.865bellevue.com and www.postridgeapartments.com.

Read the full article at Cision PR Newswire.

May 2, 2019

San Francisco company pays $80M for Nashville apartments

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.

Read the full article at Nashville Post, and see more coverage at Nashville Business Journal, Multi-Housing News, and Multi-Housing News.

April 16, 2019

SF-based real estate group makes second KC acquisition in as many months

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.

Read the full article at bizjournals.com, and see more coverage at Connect Chicago, Multi-Housing News, and RE Business Online.

March 8, 2019

Hamilton Zanze Buys Suburban Kansas City Community

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.”

Read the full story at MultiHousingNews.com and see more acquisition coverage at GlobeSt.com

February 6, 2019

Apartment Sales Up 18%; CBRE Still on Top

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

January 5, 2019

Behind the Deal: Bay Area firm sees value in ABQ market after selling apartment complex

Hamilton Zanze’s disposition of Ventana Canyon Apartments was recently covered by Albuquerque Business First:

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.

November 5, 2018

Copper Mill Apartment Complex in Western Henrico Sells for $33 Million

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.