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Feb. 21, 2013

Brookfield Acquires Apartment Communities in the Triangle for $108M

by Adriana Pop, Associate Editor

Brookfield Asset Management Inc. has purchased five multi-family properties in the Triangle region, as part of a $414 million deal to acquire a total of 19 apartment communities in North Carolina, South Carolina and Virginia. Babcock & Brown Residential, the seller of the 4,892-unit portfolio was advised by Robert W. Baird & Co.

According to the Triangle Business Journal, the assets located in the Triangle accounted for a combined $108 million, or $76,900 per unit.

The newspaper reports that the 462-unit Oak Hollow property in Cary sold for $32.6 million, while the 144-unit Bridges at Chapel Hill in Carrboro sold for $11.6 million. The region’s other three communities that were included in the sale are located in Durham: the 346-unit Bridges at Wind River (pictured), which sold for $32.6 million, the 264-unit Woods Edge, which sold for $18.7 million, and the 192-unit Bridges at South Point, which sold for $12.76 million.

Overall, Brookfield’s newly acquired portfolio has an average occupancy rate of 92 percent. The assets are currently financed with individual non-recourse first mortgage loans which have been assumed as part of the deal. The company intends to invest another $30 million in the selective upgrading and repositioning of the communities.

“The acquisition of this attractive portfolio adds to Brookfield’s significant multi-family platform and positions us for continued growth in this property sector,” said David Arthur, managing partner at Brookfield Asset Management.

With its latest additions, Brookfield’s multifamily portfolio has grown to approximately 20,000 units throughout the United States. Fairfield Residential, an affiliate of the multibillion-dollar asset management company, will take over management of the properties from Gingko Residential of Charlotte.

Photo credits: www.bridgesatwindriver-apts.com