Category: News

November 20, 2018 8:00 AM

By Mark Belko / Pittsburgh Post-Gazette

The Downtown apartment building boom shows no signs of abating.

Pittsburgh Planning Commission members will hear proposals Tuesday for another 134 units — 48 on Stanwix Street and 86 in the Cultural District — slated for the Golden Triangle.

Joco Sky LP, will brief the commission on plans to turn two floors of office space above an existing separately-owned parking garage at 625 Stanwix Street into apartments.

The 48 units, a mix of one and two bedroom, will supplement about 85 others that Joco Sky has in an existing tower that is part of the overall structure bordering Fort Duquesne Boulevard.

Will Hopkins of TAI+Lee Architects, the project architect, said he does not have a cost estimate for the conversion.

“We’re just getting into it now. This is just the first stage,” he said.

Joco Sky representatives could not be reached for comment.

In the Cultural District, Philadelphia-based Red Rocks Group plans to convert an eight-story building at 800 Penn Ave. into 42 apartments, while retaining first-floor retail use.

A new elevator, new utilities and new mechanical, electrical, plumbing and fire protection systems will be installed as part of the conversion. Windows, doors and street level storefront glass will be replaced in a way that meets historic standards, according to planning commission documents.

About a block away, at 209 Ninth Street, Red Rocks intends to rehab a 10-story building into 44 apartments, while keeping the first-floor retail space.

Similar building and exterior improvements to those at 800 Penn also will be made.

Both of the Red Rocks proposals will be up for a vote by the commission on Tuesday.

Red Rocks also owns the 40-unit Aria on 7th apartment complex Downtown and another 72-unit apartment building known as 1627 on the Strip in the Strip District.

Overall, over the past eight years, the number of residential units in Greater Downtown — which includes the Golden Triangle, the Strip District, the North and South shores, Uptown, the Bluff and the lower Hill District — has grown by 2,078, according to the Pittsburgh Downtown Partnership.

As of May, another 4,100 units were either under construction or in the pipeline.

Mark Belko: mbelko@post-gazette.com or 412-263-1262.

View on Post Gazette website : https://liber.post-gazette.com/business/development/2018/11/20/Another-134-apartment-units-on-tap-for-Downtown/stories/201811200067.print

Jason Cohen, Head of Operations at Nexus Signature Communities, spoke at the 2018 Texas Multifamily Summit in Austin, TX on September 14th. The conference covered a variety of topics that were all geared toward Texas-wide multifamily activity and opportunities. Speakers with backgrounds from all over Texas attended the event and the turnout was substantial.

The program included educational panels, market data presentations, interactive workshops, and closed-door peer-to-peer round tables.

Check out the official website here: https://realinsightevents.com/multifamily/texas#speakers

Lofts at Terrain (Formerly Terrain Apartments Pittsburgh)

AUSTIN, Texas–(BUSINESS WIRE)

On June 28, 2018 private equity real estate firms SHIR Capital and The ValCap Group teamed up to acquire two off-market apartment communities in the sought-after Anderson Mill neighborhood of Austin, TX. Westwood Apartments was built in 1983 and consists of 152 rental units, while Audubon Square was built in 1986 and consists of 164 units. The joint-venture plans to combine Westwood Apartments and the adjacent Audubon Square Apartments into a single 316 unit garden style community called The Lantern, www.lanternaustin.com. This upscale community, near the highly acclaimed Westwood High School in the Round Rock School District, will include upgrades and additions to the community amenities.

The renovation plans include high-end interior improvements to all the apartment units, including granite countertops, stainless steel appliances, and mosaic backsplash tiling. One of the existing offices will be converted into a clubhouse available for use to the community residents and a mega fitness center to include outdoor spinning, a yoga center and a fully equipped weight and cardio room. There will be extensive exterior renovations to the three pool areas, the addition of an outdoor grilling station and the inclusion of game areas for kids and families. For pet lovers, the construction team will create a dog park as well as a dog washing station that will be open to all residents.

About SHIR Capital: A real estate investment company with over 15 years of experience and a focus in medium to large commercial acquisitions. SHIR Capital collaborates with real estate investors as the asset management division of entities that evaluate, acquire, reposition, manage, and create an exit strategy for each property based on its highest value and best use. SHIR Capital currently has over 2,000 rentals and over $200M under asset management.

About The ValCap Group: Founded in 2012 by Richard Fishman, a former mortgage banker from San Diego, CA. Since its founding, ValCap has completed 12 projects consisting of over 3,200 units which were successfully repositioned and sold. These assets represent in excess of $166 million in total sales over the 6-year time frame. The average IRR for these projects was approximately 22% return for the partnerships involved.

Article can be found at:

SHIR Capital and The ValCap Group Partner on the Acquisition of Two Apartment Communities in Austin, TX

In April 2018, Principals of SHIR Capital announced the sale of Terrain apartments in Pittsburgh, Pennsylvania for $13.7 million, yielding a 41.7% IRR to our investors. Principals of SHIR acquired this 153-unit apartment complex in the December of 2015 for $6.1 million. After purchase, extensive exterior and interior renovation of the entire complex was performed and included:

• New fitness center, leasing office and business center
• New landscaping and Pool area
• Newly installed dog park
• New Paint
• Resurfaced cabinets and countertops
• Upgrades to fixtures, appliances, and bathroom plumbing
• LED Lighting and other safety improvements for residents

In August 2017, Principals of SHIR Capital announced the sale of the Curve at River Road Apartments in San Marcos, Texas for $10.7 million, yielding a 42% IRR to our investors. Principals of SHIR acquired this 116-unit property in the Fall of 2015 for $6.025 million. After purchase, the property experienced a major flood affecting many units.

Principals of SHIR Capital, through their related companies, responded quickly and not only made reparations from this catastrophe, but also implemented their comprehensive exterior and interior renovation plan for the entire complex including:

• Granite Countertops
• Glass mosaic backsplash and tiled tub surrounds
• New landscaping and pool refurbishment
• Installation of Dog Park, BBQ Pits, and Pergolas
• New HVAC systems in select units
• New Paint of the entire community
• Upgrades to fixtures, appliances, and bathroom plumbing
• Solar Screen Installations
• LED Lighting, Gutter replacements, and other safety improvements for residents

In July 2017, Principals of SHIR Capital announced the sale of Nest apartments in North Central San Antonio, Texas for $9.6 million, yielding a 31% IRR to our investors. Principals of SHIR acquired this 147-unit apartment complex in the winter of 2014 for $4 million. After purchase, extensive exterior and interior renovation of the entire complex was performed and included:

• Roof replacement
• New landscaping and irrigation
• New HVAC systems in all units
• New Paint
• Resurfaced cabinets and countertops
• Upgrades to fixtures, appliances, and bathroom plumbing
• LED Lighting and other safety improvements for residents

The Austin chapter of the Urban Land Institute featured an entertaining “Shark Tank” themed competition at its monthly breakfast presentation April 27. Austin-based SHIR Capital won the support of the judges. Though no money actually changed hands as a result of the pitch competition, SHIR Capital representatives sought an investment of nearly $1.9 million to reposition an apartment complex in San Marcos. The 104-unit redevelopment is an actual project that SHIR is looking to complete. They’re in the process of assuming a CMBS — commercial mortgage-backed security loan — from Wells Fargo. Partner Jason Cohen said the company expects to spend $6,000 in upgrades to each unit, which should boost rents substantially in the rapidly growing I-35 corridor south of Austin.

The judging panel included Rob Golding of Live Oak-Gottesman, Shaun Cranston of Brookfield Residential and Rob Shands of RedLeaf Properties LLC. In selecting SHIR Capital as the best team, Cranston cited their track record of success, their understanding of the financials and their knowledge of tenants in the market. As it turned out, the audience — via text messaging — also selected SHIR Capital over Equity Brick, a crowdfunding real estate investment platform, and Maker’s Park, a shared warehouse concept in Austin with similar dynamics as co-working operations such as WeWork. The winning team will receive a booth at ULI’s marketplace exhibition event.

— Jan Buchholz, @ABJBuchholz

Austin Business Journal

Article can be found at:

http://www.bizjournals.com/austin/print-edition/2016/04/29/capital-gains-looking-back-at-abj-developers-make.html

Developers seem to be tripping over themselves to build hotels or apartments in Pittsburgh these days. Now a hotel is getting into the act — by joining the apartment crowd.

The Quality Suites Hotel in Green Tree is being converted into apartments under its new owner, Austin, Texas-based SHIR Capital.

SHIR purchased the nine-acre, 152-suite hotel on Mansfield Avenue from P I Hospitality earlier this month, according to Mit Patel, president of P I Hospitality. He would not disclose the price.

Mr. Patel said SHIR plans to convert the hotel into Terrain Apartments. The 152-unit complex will feature studios and two-bedroom, two-bath apartments with full kitchens, fireplaces, stainless steel appliances and granite countertops. There also will be a fitness center and community room.

With the sale, the Quality Suites no longer is operating as a hotel, and SHIR is now offering short-term apartment rentals, Mr. Patel said.

P I Hospitality decided to sell the property, which it purchased in 2005 for $2.9 million, to take advantage of a strong market and to raise capital to pursue other projects in the region, including Downtown.

Mr. Patel said the hotel, with its suites and amenities like fireplaces and full kitchens, was tailor made for a conversion to apartments.

“It just lends itself to an apartment complex,” he said. “We felt it would be a good repositioning opportunity for someone more versed in that space.”

SHIR, he said, plans to renovate all of the units and add the new stainless steel appliances and granite. Jason Cohen, a SHIR partner, could not be reached for comment.

P I Hospitality renovated the property and rebranded it as a Quality Suites when it took over ownership in 2005. Before that, the complex had been a Residence Inn and a Hawthorne Suites.

Rather than infuse more capital into the hotel at this point, the company decided it made more sense to sell, packaging the property as a repositioning opportunity. The company didn’t feel as if it had the expertise to undertake that kind of conversion itself, Mr. Patel said.

“We’re not apartment guys; we’re hospitality,” he said.

SHIR also owns a condominium complex in Bethel Park and a 47-unit apartment building in Squirrel Hill. It owns two apartment buildings in San Antonio, Texas.

Although P I Hospitality gave up the Quality Suites, it still owns the Crowne Plaza Pittsburgh West Hotel in Green Tree. It also is exploring a possible hotel deal in North Carolina.

The company also is interested in doing a project Downtown, possibly converting an office building into a hotel. It has developed luxury housing in India.

Mark Belko: mbelko@post-gazette.com or 412-263-1262.

Article can be found at:

http://www.post-gazette.com/business/development/2015/12/23/Green-Tree-hotel-to-be-converted-into-apartments/stories/201512230078