Broadtree Acquires $138M Portfolio
- Jul 31, 2018
Broadtree Residential Inc., a REIT managed by Broadstone Real Estate, has acquired a three-property multifamily portfolio for $137.5 million. The communities were purchased from affiliates of Chesapeake Realty Partners, as part of Broadtree’s UPREIT transaction. All three are managed by WPM Real Estate Management. The portfolio includes 1901 S. Charles and 2 East Wells in Baltimore, as well as The Overlook in Camp Hill, Pa.
The UPREIT transaction pertains to property owners contributing real estate to the fund’s operating partnership on a tax-deferred basis in exchange for equity, in the form of Operating Partnership Units. As a result of the deal, the sellers contribute more than $25 million of equity into the operating partnership of Broadtree Residential and have interest in the portfolio offering. After closing, Broadtree now has an property base of nearly $350 million, featuring eight communities totaling 2,181 units.
“This transformational transaction is the first of what we hope will be many UPREIT deals for Broadtree,” said Chris Czarnecki, CEO of Broadtree, in a prepared statement. “Broadtree operates in a competitive multifamily marketplace, and one of the ways to create shareholder value is via the sourcing and execution of complex UPREIT transactions. This portfolio acquisition also provides BTR shareholders important geographic diversification, and enhances our portfolio with additional stabilized assets that we plan to hold for the long-term.”
1901 S. Charles comprises 193 units and was developed by CRP in 2012. Apartments are available in studio, one- and two-bedroom floorplans ranging from 475 to 1,169 square feet. The community is the first wood-frame residential building in Baltimore to receive a LEED Gold certification. Interior features include nine-foot ceilings, gourmet kitchens, stainless steel appliances, balconies, vinyl plank flooring, washer/dryers and granite countertops. Community amenities include a courtyard, a yoga studio, a resident club, a fitness center and 280 parking spaces in a wrapped parking deck. As of June 2018, the property was at a 92.2 percent occupancy, according to Yardi Matrix.
The LEED Gold certified 2 East Wells features 152 studio, one- and two-bedroom units across five stories. Apartments range in size from 539 to 1,325 square feet and feature loft-style layouts, nine-foot ceilings, granite countertops, movable kitchen islands, chrome finishes, oversized soaking tubs, stainless steel appliances, washers/dryers and balcony/patios. According to Yardi Matrix, the asset is currently 92.2 percent occupied, as of June 2018. Residents of the 2015-built property have access to amenities such as 218 parking spaces in the wrapped parking deck, climate controlled storage, a garden courtyard, two rooftop decks, a fitness center, a clubhouse, gourmet grills and hammocks and access to the 5,710-square-foot retail space on the first floor, leased to the Baltimore Soup Co. and Minnow.
The Overlook, located at 150 Erford Road, comprises 288 units and is currently 96.9 percent occupied as of June 2018, according to Yardi Matrix. Constructed in 2014, the community features six, four-story buildings with one- and two-bedroom units, ranging from 736 to 1,015 square feet. LEED Silver certified, the apartments feature 8- to 12-foot ceilings, balconies, oversized kitchens, stainless steel appliances, washer/dryers, granite countertops and large closets. Common area amenities include a 5,000-square-foot clubhouse with fire pits and a business center, a fitness center, a yoga studio, a resort-style salt water swimming pool and 610 parking spaces.
In May, Broadtree acquired the $58.3 million Stone Ridge at Vinings, a 440-unit community in Atlanta, from Ventron Management.
Images courtesy of Broadtree