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Vela Companies Buys 55 Units BTR in Chelsea, Alabama

Vela Companies Buys 55 Units BTR in Chelsea, Alabama

Vela Companies acquires BTR community in AL. Bascom Group adds $56 million BTR project to portfolio. Ark appoints new CFO. D2 sources BTR land loan. Two new BTR deals.

Matt H & Aid Sopjani
September 10, 2024

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NEWS ROUNDUP

ACQUISITION: Vela Companies buys 55 unit BTR in Chelsea, Alabama. Atlanta-based Vela Companies purchased Oak Tree, their first BTR asset for $16.2 million ($294,545/unit) on June 24, 2024. Vela is led by Benjamin Alev, Tyler Alev, and Colt Conner. Parker Caldwell with Cushman Wakefield represented the seller, an affiliate of DR Horton. RangeWater Real Estate previously managed Oak Tree, but Birmingham-based SPM will manage the property going forward. Vela used a fixed-rate Fannie Mae loan sourced by Donny Rosenberg with Greystone.

ACQUISITION: Bascom Group adds $56 million community to portfolio. The Bascom Group acquired Old River Place, a 249 unit BTR asset for $56.6 million ($227,309/unit) in August 2024. Lee Nguyen, Bascom’s Senior Vice President, remarked that the company intends to renovate the property. JLL’s Annie Rice and Jamie Kline arranged the financing via TPG Real Estate Finance Trust. Mark Bonas of the Mogharebi Group led the team representing the seller. This was Bascom Group’s sixth acquisition of the year.

PEOPLE MOVES: Ark Homes for Rent appoints new CFO. Florida-based Ark Homes for Rent has brought in Wendy Gill as its new CFO. Gill has over 30 years of experience, having served as the interim CFO and Executive Vice President for Columbia Property Trust. The current Ark Homes CFO, Gina Cabral, will remain at the company and will move into a senior financial leadership role.

FINANCING: D2 Capital Advisors secures $2.4 million in funding for BTR purchase. D2 Capital Advisors arranged $2.4 million in acquisition financing for a BTR community being developed by Southern Waters Capital in Ocala, Florida. The 250 unit project will cost approximately $73 million ($292,000/unit). Jack Cortese, David Frankel, and John Lightcap of D2 Capital arranged the financing which was provided by Sure Lending. Ray Mazzie, managing partner of Southern Waters Capital, pointed to D2 Capital’s expertise in land development as crucial during the financing process.

READ: BTR market expected to slow down. After outperforming at the start of the pandemic, BTR rents have lagged, writes Jay Lybik of CoStar Analytics. In 2024, the total number of SFR and BTR units projected to be completed is 34,000. This number is projected to drop by 73% to 9,500 units in 2025. The reasons for the projected decline is partly due to the overall slowdown in multifamily construction as financing for new development has slowed down.