Aion Partners – Select Sponsor – Newsletter

NEW YORK, NY – AION Partners is pleased to announce the firm was selected as a Freddie Mac Multifamily “Select Sponsor” in 2018. Select Sponsorship is a coveted, special designation that is awarded only to Freddie Mac’s top tier sponsors and enables AION to benefit from dedicated relationship management, streamlined underwriting, and prior approval of document modifications that are intended to reduce the amount of negotiations on future dealings. AION is eager to grow its partnership with Freddie Mac especially as it continues to expand the portfolio.

AION Mid-Atlantic I Portfolio Refinance Update

NEW YORK, NY – AION Partners is pleased to announce that it successfully refinanced 10 existing Freddie Mac (formally, the “Federal Home Loan Mortgage Corporation”) mortgages secured by 2,176 apartment units throughout Delaware, New Jersey, and Pennsylvania (“Mid-Atlantic I Portfolio”) on March 28, 2018. The Portfolio obtained $150.1 million in aggregate loan proceeds, far exceeding AION’s initial expectations. The new 10-year senior mortgage financing replaces $100.5 million of existing senior debt as well as $43.3 million of preferred equity. Meridian Capital Group arranged the financing through Capital One Multifamily Finance and Freddie Mac.

AION originally acquired the Mid-Atlantic I Portfolio in December 2015 for $165.4 million and from American International Group, Inc. (NYSE: AIG) and Morgan Properties. The Portfolio was initially comprised of 12 garden-style apartment buildings containing 2,811 units located in Delaware, New Jersey, and Pennsylvania though AION sold a 9-unit property in Maplewood, NJ in March 2016, reducing the Portfolio’s unit count to 2,802. One apartment community located in Harrisburg, PA was not included in this refinance as AION is under contract to sell the asset. The subsequent transaction is scheduled to close in the second quarter.

AION Management Officially Launches!

AION Partners is very excited to announce the official launch of AION Management, a full service property management company based in Philadelphia, PA. AION Management has created a “Best in Class” property management company that provides exceptional customer service and value to our residents. Led by Robin Flagler, AION Management will oversee the day-to-day operations of AION Partners’ multifamily portfolio across the Mid-Atlantic region. We are thrilled by the opportunity to become vertically integrated and believe it will lead to positive results for our residents, staff, and investors!

AION Successfully Exits Delmonico Plaza

AION Sells Serrano Apartments in West Palm Beach, FL

We are pleased to announce the successful disposition of Serrano Apartments. The 192-unit property was sold to a notable Florida-based real estate institution on June 1, 2016. During the hold period, impactful property enhancements as well as the start to a proven value-add interior unit renovation strategy enabled a strong valuation at sale.

AION originally acquired the asset in 2010 alongside Park Plaza Apartments and the two properties were recapitalized in 2015. The sale represents a successful result for our equity investors.

AION Acquires 13 Multifamily Properties from AIG Global Real Estate

Below is an excerpt from the Commercial RealEstate Direct Weekly:

 

“AIG Global Real Estate has sold the 1,224-unit Oakwood Village apartment complex in northern New Jersey for $183.37 million, or $149,540/unit. The property, along Route 206 in Flanders, N.J.,was sold free and clear of debt to an undisclosed buyer. It is 95 percent leased, with monthly rents from $990/unit to $2,100/unit. It includes a swimming pool, tennis court, playgrounds, dog parks and attached parking garage. AIG last year had placed a portfolio of 13 apartment properties on the sales block through HFF and sold 12 of them, with 2,811 unit in New Jersey, Pennsylvania and Delaware, to AION Partners LLC for $165.4 million, or about $58,840/unit. Oakwood is the final part of that portfolio. The $348.8 million total sales price makes the portfolio one of the largest apartment sales in the Mid-Atlantic region during the past year.”

Sold! AION Trades The Montana in Phoenix, AZ

AION Partners has completed the successful disposition of The Montana, a 134-unit Class A apartment community in Phoenix, AZ. The complex was constructed in 1999 and acquired by AION in late 2012. During the 3-year hold period, the firm embarked on an extensive unit renovation plan which added significant value to the property.

The sale represents a healthy return of equity to investors. Brad Goff and Chris Canter from ARA Phoenix represented AION in the transaction.

AION Sells Tesoro Apartments in Phoenix, AZ

AION Partners is happy to announce the sale of the Tesoro Apartments, a 150 unit multifamily complex in Phoenix, AZ.  AION acquired the asset in 2010 as part of a distressed pool of mortgages owned by Northstar Financial.  Through years of asset management and reinvestment in the property, AION was able to execute a successful transaction beneficial to our equity investors.  This is AION’s fifth multifamily property sale of seven distressed multifamily properties acquired in 2009-2010.

10K SF Lease signed at 86 Chambers Street

AION Partners is pleased to announce that by means of our exclusive agent, William Cohen, EVP of Newmark Grubb Knight Frank, Rapid Ratings International recently leased 10,000 square feet of office space at 86 Chambers Street, New York.  Rapid Ratings International enables clients to effectively assess the financial health of their global public and private counterparties by using a proprietary quantitative system to produce a Financial Health Rating (FHR) for each company.

AION Refinances two Florida Apartment Assets

NGKF Capital Markets arranged $33.45 million in financing for two AION Partners multifamily properties: Serrano, a 192-unit garden-style apartment community located in West Palm Beach, Fla., and Park Plaza, a 234-unit apartment complex located in Miami Gardens, Fla.

The loans allowed for the repayment of the existing debt, as well as provide funds to allow the borrower to continue to make improvements to the properties and realize future value. The loans are floating rate with interest only periods.

Serrano offers a mix of one-, two- and three-bedroom floor plans while over 85% are large two-bedroom units, which is unique to the competitive set and the overall submarket. All units offer full size washer/dryers, balconies/private patios, walk-in closets, and are situated in a park-like setting featuring extremely low density (approximately 8 units/acre). Also available to residents is covered parking, a resort-style pool, a recently upgraded fitness facility, and an onsite leasing office with business center.

Park Plaza offers a mix of efficient one-, two- and three-bedroom floor plans. Each unit is furnished with unique architectural designs and offers fully equipped kitchens, ceramic tile entries and walk-in closets. Property amenities include a fitness facility, onsite laundry facility, onsite leasing office and clubroom with a full kitchen. The property is situated in a densely populated area in the northern part of Miami-Dade County and is strategically located within ½ mile of the Golden Glades Interchange, a nexus of five highways and major roads (U.S. Route 441, Florida’s Turnpike, the Palmetto Expressway, SR 9 and I-95). The location provides tenants with virtually unmatched vehicular access to any part of Southeast Florida.

“AION acquired Serrano and Park Plaza in 2010 and, since taking control of the assets, it has strategically reinvested capital to not only renovate and improve the units, but also upgrade many of the common area amenities, thus enhancing the overall tenant living experience,” said Maury Zanoff, a vice chairman with NGKF Capital Markets. “As a result, AION has increased and maintained occupancy levels at 95%+ during its period of ownership.

“AION’s experience and success in the market combined with its institutional quality management and maintenance of both properties were compelling factors for lenders, which ultimately led to offers with the most flexible terms and rate in this competitively bid process.”

The Washington, D.C.-based team of Mr. Zanoff, Joe Donato, Matt Williams and Jamie Leachman arranged the financing.