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Dec. 13, 2012

TODAY’S DEALS: Inland Buys Two Student Housing Assets for $94.6M

The Retreat in Raleigh

Florida & North Carolina—Inland American Communities has completed its acquisition of two fully developed student housing properties from Landmark Properties for $94.6M. The two assets total 1,264 beds and feature amenities such as swimming pools with movie screens, basketball courts, tanning beds, game rooms, grilling areas and sand volleyball courts.

“The Retreat properties are great additions to our portfolio as we continue to execute on our strategy to double the size of our student housing segment through the development and acquisition of best-in-class properties,” says Travis Roberts, president of Inland American Communities. “Also, the location of these assets at top universities such as Florida State University and North Carolina State University give us market diversification while maintaining our property management efficiencies in the Southeast region.”

The Retreat in Tallahassee

The Retreat in Tallahassee serves Florida State University and Florida A&M University. The property has 710 beds and a 9,500-square-foot clubhouse. The asset is 99 percent leased for the 2012–2013 academic year.

The Retreat in Raleigh serves North Carolina State University and is located approximately 2.5 miles from its campus. The property has 554 beds and a 9,000-square-foot clubhouse. It is 93 percent leased for the 2012–2013 school year.

Elco Landmark buys four properties from Equity Residential

Jacksonville & Orlando—Elco Landmark Residential has purchased four properties in two separate transactions from Equity Residential for approximately $100 million. Three of those properties were located in Jacksonville and were purchased together as a portfolio. The fourth property was located in Orlando.

“We are pleased to expand our existing portfolio with four high-quality properties that adhere to our disciplined investment strategy,” says Joseph Lubeck, chief executive officer of Elco Landmark Residential. “Each asset is located in a core southeast market that is supported by strong fundamentals including above average employment rates, population growth and limited new housing supply. These market dynamics combined with our proven repositioning strategy will allow us to achieve unrealized cash flow potential and value.”

The following chart details the acquisitions:

Elco Acquisitions

In early August, Apartment Trust of America completed a $536.5 million recapitalization with Elco Landmark that included the contribution of a portfolio of 21 apartment communities, valued at $485 million and containing approximately 6,100 apartment units, in exchange for $187 million of partnership interests in Apartment Trust of America’s operation partnership, $16 million in cash and the assumption of $282 million in debt on the properties. In conjunction with the transaction, Apartment Trust of America changed its name to Landmark Apartment Trust of America.

Alliant completes $5.98M refi loan at 3.48 percent rate

Kentwood, Mich.—Alliant Capital LLC, a national debt financier for the multifamily industry, announced today the closing of a $5.98 million refinance loan on Hidden Lakes II Apartments, a 180-unit garden style multifamily property, located in Kentwood, Mich. This transaction was originated by John Marr, Alliant’s senior vice president for the Midwest and Northeast regions.

The loan was closed on Nov. 30 with a 3.48 percent interest rate and a 5.5-year fixed-rate term.

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