Blue Rock Partners has completed the acquisition of a 1,522-unit Southern U.S. multifamily portfolio from Varden Capital Partners. Arranged by Cushman & Wakefield’s Atlanta office, the $78.3 million deal included six multifamily properties in Georgia, Mississippi and Alabama.
“There were a lot of behind-the-scenes legal details that required us to educate the buyer,” Tyler Averitt, executive managing director and partner on the Southeast multifamily team, told MHN. “We also had to educate the buyer on the markets themselves. The buyer is from Florida, with the money coming from the Northeast. The buyer had never visited some of these markets, but views the Southeast as a market that’s obviously growing, and is one of the fastest-growing markets in the country. We called the seller, told them we had a buyer with 10,000 units and they were interested.”
The properties that make up the portfolio are: the 184-unit Madison Square in Dothan, Ala.; the 324-unit Preserve at Bent Creek in Atlanta; the 384-unit Lakeview Trails in College Park, Ga.; the 210-unit Epic Brookside in College Park, Ga.; the 188-unit Orchard Cove in Covington, Ga.; and the 232-unit Gardens of Canal Park in Robinsonville, Miss.
The Cushman & Wakefield team in charge of representing the seller consisted of Tyler Averitt, Jimmy Adams and Craig Hey. “It wasn’t a one-phone-call deal,” Averitt said. “It took a lot of portfolio analysis on the front end, and having the buyer come repeatedly to each market and asset. They slept there and ate there. They’d never been there. There were a couple of 100-unit deals in [the portfolio] that they couldn’t get their arms around, but we ended up selling them on almost the entire portfolio [as originally constituted].”
“By repositioning these assets after a bulk purchase and proving out a value-add program, Varden Capital Partners was able to make healthy profits for their investors. By only renovating a small sample of units, they left a great value-add path ahead for Blue Rock, which is the exact opportunity they are seeking in the Southeast,” Averitt added.
Image courtesy of Cushman & Wakefield