BPG Takes Boston Capital REIT Private

By Anuradha Kher, Online News EditorPhiladelphia, Pa– BPG Properties, Ltd., a private equity real estate fund manager, announced late yesterday that it has completed the second-largest multifamily transaction in BPG’s history with its acquisition of Boston Capital Real Estate Investment Trust (BCRE), a publicly owned real estate investment trust, for $13.30 per share in an all cash transaction. The 11-property acquisition has a real estate value of approximately $260 million.This multifamily portfolio totals 3,098 units located in Seattle, Portland, Salt Lake City, Dallas and Jacksonville.Seven of the assets in the BCRE portfolio are located in Seattle, Portland and Salt Lake City, each of which has current market occupancies of at least 95 percent.“This acquisition presented Madison with an opportunity to enter desirable markets in the western part of the country and expand our holdings in Texas and Florida,” says Joseph F. Mullen, president of Madison.The communities will be managed by Madison Apartment Group L.P. (Madison), BPG’s multifamily operating arm. The firm will immediately implement an extensive $15.5 million capital expenditure program to upgrade the physical and operational quality of the portfolio.The purchase was made by BPG Investment Partnership VIII & VIIIA, L.P., a fully discretionary private equity fund with total equity commitments of $850 million.