Aug 17, 2023

New roles at Security Properties

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Multifamily firm Security Properties recently announced some changes in the executive suite. Bob Krokower leaves his seat as CFO and CEO to become vice chairman of the board of directors. Board chairman Paul Pfleger said in a statement, “Bob has done an outstanding job recruiting and developing the talent within our company as CEO.” Taking that latter position is Dan Byrnes, who added, “I am enormously grateful to Bob for laying a solid foundation for our future.” Both have been with the company for some two decades. Lastly, Jason McKinley has been promoted to chief operating officer. The firm is active nationally, with its most prominent local project now under construction being the 29-story Confidential (pictured), in Belltown.

Corliss starts on another 64 Pierce County units

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In its ongoing partnership with Schuur Brothers Construction, Corliss Management Group announced the start of another phase at Sunrise, south of Puyallup and east of Frederickson, which has the working title of Area 26. That's to add another 64 apartments to the much larger and continuing Sunrise effort, which spans about 1,467 acres. (Planning began there in the 1980s.) Completion for Area 26 is expected next year. Eric Corliss said in a statement, “As we witness the changing landscape of the housing market, we recognize the importance of diversifying the types of homes we offer within our community. We aim to develop and provide housing that supports the various stages of life that people experience.” Pierce County long ago approved the creation of over 4,000 units at Sunrise; some completed portions have since been sold.

Greystar's Accolade lands $74M in refinancing

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Up in the U District, Greystar completed its 21-story Accolade student housing tower last autumn, and its 597 beds have been filling up ever since. And earlier this month, Affinius Capital announced that it secured new loans for that and a similar new development near the University of Oregon. Accolade's $74 million came from GIM Commercial Mortgage Loan Fund LP, which is associated with JPMorgan Asset Management. The same lender supported the 582-bed Oregon project, for a total of $162 million, said Affinius. Its Harris Neuberg said in a statement, “Higher education has historically fared well during times of economic uncertainty, and the purpose-built student housing sector continues to demonstrate remarkable resilience in today's market.” Affinius also disclosed that Greystar's partner in both projects was Tikehau Star Infra. (There was no recorded construction loan for Accolade, which was designed by Weber Thompson and built by Exxel Pacific.) Affinius is, as of March, the new moniker for the merged USAA Real Estate and Square Mile Capital.

Fourth Avenue Capital sets up shop

A trio of experienced developers has launched a new investment and development firm, Fourth Avenue Capital, which instantly has a portfolio resulting from the recent combination. Brian Betts, Davis Vaughn and Chris Rossman come from Wolff and Security Properties, and they said in an early-August press release that they now own or manage 17 properties with over 1,000 units (or beds). They value those assets at over $225 million. Looking ahead, they value future developments or investments at $125 million, working in what they term the middle market. Vaughn said in a statement, “We will continue to take advantage of the pricing inefficiencies in the middle market and build a durable portfolio of high-quality real estate.” The company website lists multifamily properties reaching from Arizona to Oregon to our market. One example is the 20-unit Calabria at Talus in Issaquah (pictured), acquired two years ago for almost $9 million.