- Bill Herr
JSQ Multifamily 1 Watermark Cumberland, Barker Cypress & Sienna Plantation - SOLD
Cumberland - Fishers, IN (Sold)
Watermark at Cumberland is a 220 unit Class A ground up multifamily development located in Fishers, Indiana, an affluent suburb located just north of Indianapolis. The project was completed in August of 2014 and sold in late spring 2015. Watermark at Cumberland came into the market as the premier Class A property in the northern suburbs of Indianapolis with amenities including a large pool, cabanas, club house and ample parking. As part of the sale agreement the subject is under a master lease through December 2015. Post closing escrowed funds will be held through December 2015. Any savings will be refunded to the ownership once the master lease expires.
After Watermark at Cumberland was stabilized property manager sold the project in Q2 2015. They were able to achieve a sale price and returns above what was originally underwritten.
Leasing has progressed well since closing and the property manager believes there will be savings to distribute at year end when the master lease expires.
Barker Cypress - Houston, Texas (Sold)
Watermark Barker Cypress is a ground up multifamily development located in Houston, Texas. The site is comprised of 13 buildings with 318 units.
Barker Cypress completed construction in summer of 2013 and leased up well. The property manager led the sale of the asset and closing occurred on 9/11/15. Final return to investors came in higher than original projections.
Barker Cypress received a strong level of interest during the sale process.
Sale proceeds exceeded initial underwritten projections despite concerns about the Houston economy.
The Houston economy has added 36,000 new jobs over the past 3 months even as the oil & gas industry has scaled back operations.
Sienna Plantation - Houston, TX (Sold)
Sienna Plantation is a ground up multifamily development located in Houston, TX. Sienna Plantation features 17 buildings comprised of 190 units. After completing construction in July of 2014, Sienna Plantation is stabilized at 96% leased and 96% occupied. Sienna Plantation sold in October 2015.
Sienna Plantation leased up rapidly while offering no concessions. Sienna Plantation has also maintained higher occupancy than nearby comparable properties.
Construction was completed on budget and on schedule.
Southlands - Aurora, CO (Under Contract)
Southlands is a class A multifamily ground up development comprised of 30 buildings with 300 total units. Southlands features the “Big House” design which has been very well received in the Denver market. It is located approximately 10 miles southeast of Denver in Aurora, CO. Southlands is in the lease up stage and is currently 91% leased. The property is currently under contract with an expected closing date in early February 2016.
Tenants are renewing their leases for significantly higher rents with no concessions greatly increasing year two net operating income.
Leasing momentum continues to beat market projections as the “Big House” design continues to draw attention in the Denver market.
Institutional demand for multifamily properties in Denver continues to strengthen as rent increases and population growth exceed projections.
Jordan Creek - West Des Moines, IA
Jordan Creek is a class A multifamily ground up development located in West Des Moines, IA. Jordan Creek features 4 buildings comprised of 176 units. Jordan Creek is in the lease up stage. Currently the asset is 87% occupied and 85% leased. The ownership replaced the leasing team at the subject during the summer of 2015. The new management team has greatly increased leasing activity over the past several months.
The leasing activity at the subject is now in line with comparable properties in the West Des Moines submarket..
Several brokers have approached the asset managers regarding the potential sale of the asset. The property manager plans to market Jordan Creek for sale by the end of Q1 2016.
The number of surface parking spaces have been expanded to meet tenant demand.
JSQ Multifamily 1 Investment Overview