By Jeffrey Steele
National real estate investor and developer Lightstone has acquired a portfolio of three multifamily rental properties in Mobile, Ala., helping the company establish a strong foothold in the Southeast United States. The apartment communities feature 1,327 units and were purchased for a total of $70.5 million.
The portfolio is comprised of The Estates at Lafayette Square featuring 675 units at 900 Downtowner Blvd.; the 450-unit Pine Bend & Hampton Park, 1030 Montlimar Blvd.; and the 200-unit Bel Air, at 505 Bel Air Drive. All three addresses are situated in Mobile’s Midtown area. That enclave is near the crossroads of two main corridors and close to the sprawling, recently-updated Bel Air Mall.
Also in the vicinity are an array of parks, golf courses, retailers and restaurants.
“These properties all had excellent locations within a stable market and solid fundamentals,” company spokesman Chris Bastardi told MHN.
“Additionally, the scale of this institutional-quality portfolio fit our investment criteria well, and our strong management experience allowed us to identify operational efficiencies which will help to increase the values.”
Built in the 1970s, the properties have been very well maintained for more than 20 years by the former owner, Canadian REIT Morguard. Each community features groups of two-story buildings and offers attractive, well-designed leasing centers and up-to-date amenities, which include clubhouses, lounges, fitness centers and business centers.
“There were no significant challenges in the acquisition process,” Bastardi said. “The acquisition process was rather straightforward, and our plan to take these communities to the next level by upgrading their amenities was made possible by careful analysis and discussion with local management companies.”
Added Lightstone chairman and CEO David Lichtenstein, “We’re always looking to grow our portfolio with attractive investment opportunities across the country, and are very pleased to acquire these three properties in Mobile. Some of the best growth opportunities available right now are in secondary markets like Mobile.
“As a national company, we’re keen to establish a footprint in the South with these acquisitions and further grow our position in the region.