698-Unit Southeast Portfolio Changes Hands
- Jan 31, 2020
A three-property, 698-unit portfolio of apartment communities located in the Southeast U.S. has changed hands.
ApexOne and Balfour Beatty Communities acquired Retreat at Schillinger, a 270-unit community in Mobile, Ala.; and Paces Brook, a 260-unit community in Columbia, S.C. Strategic Holdings acquired the third asset, Georgetown Crossing, a 168-unit community in Savannah, Ga.
Cushman & Wakefield, in partnership with Avison Young, arranged the sale of the three-property portfolio.
“There was a geographical challenge for prospective purchasers to not only tour but also efficiently understand three assets in three very disparate secondary markets in a short time frame,” Cushman & Wakefield’s Jimmy Adams told Multi-Housing News.
“This was overcome by Cushman & Wakefield, whose hand-picked, collaborative brokerage team shared buyer pool information internally while providing market intel and attractive buying opportunities to the right clients at the right time.”
Adams noted the portfolio drew interest from individual and portfolio buyers nationwide. It eventually sold to buying groups based in California and Chicago. The buyers were attracted by the prospects of growth in the secondary and tertiary markets where the properties are located. They intend to initiate value-add programs. The transaction comes a month after Cushman & Wakefield brokered the sale of The Point of West End in Tampa, Fla., on behalf of the seller.
Below replacement cost
Built in 2010 in one of the most highly-sought West Mobile submarkets, Retreat at Schillinger was sold for below replacement cost. Interior and amenity enhancements provide the opportunity to add considerable value to the property. The community features one-, two- and three-bedroom apartments with in-unit washer-dryers, vaulted ceilings and balconies or patios. A business center is among community amenities.
Constructed in 1990, Paces Brook was put up for sale after having benefited from $2.4 million in capital improvements over the previous seven to eight years. The result has been significant financial momentum across the past half year.
The community features one-, two- and three bedroom apartments offering above-average ceiling heights, microwave ovens and balconies or patios. The property features a swimming pool.
Built in 1994, Georgetown Crossing was acquired for $20.9 million. The community offers one- and two-bedroom units with balconies or patios, high-speed Internet and, in select units, fireplaces. Community amenities include a fitness center. Continuation of the current value-add campaign should assure future growth. That campaign has seen the 71 units renovated thus far achieve premiums of as much as $140 each.
In addition to Adams, the Cushman & Wakefield team working exclusively on behalf of the sellers featured Tai Cohen, Taylor Bird and Marc Robinson. Avison Young was represented by Steven Peden and Craig Cadwallader.