Equus Acquires 6-Property Portfolio for $220M

Located in four metro areas, the communities were 94 percent leased at closing.

The Pennsylvania property (left) and the North Carolina property (right). Image courtesy of Equus Capital Partners

An affiliate of Equus Capital Partners has acquired a multi-state portfolio of multifamily assets in several major metros. Named “Project Big Timber”, the asset bundle features a half-dozen garden-style apartment communities totaling 1,249 units in the Atlanta, Philadelphia, Raleigh, N.C., and St. Louis metros. The apartment communities are 40 years old on average with an average unit size of 989 square feet.

The total cost of the acquisition was $220 million, with the portfolio acquired on behalf of a programmatic joint venture between the Equus affiliate and a U.S.-headquartered public pension program whose identity could not immediately be learned.

Investment planned

Residences at these apartment communities were 94 percent leased at the time of the acquisition. Equus anticipates investing more than $17 million in investment into the portfolio’s properties, including to update both interiors and exteriors and enhance the communities’ common area amenities. In addition to managing the communities, Madison Apartment Group, Equus’ multifamily operating arm, will oversee the upgrades.

The transaction was directly sourced and negotiated. Steve Comly and Kippy Donovan of Newmark’s Debt Capital Markets team provided Equus with assistance in securing a 10-year fixed rate Fannie Mae loan. Last month, Capital Square topped out 320 W. South Street, a 20-story luxury multifamily tower, in Raleigh.

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