DEAL OF THE DAY: Redwood Acquires Properties Worth $68M

By Anuradha Kher, Online News EditorCrest Hill, Ill., Lake Jackson, Texas–Redwood Capital Partners, a Chicago-based multifamily investment and management firm, has acquired two properties totaling nearly 1000 units located in Crest Hill and Lake Jackson, Texas.Redwood purchased the 730-unit Woodlands of Crest Hill located at 1615 Arbor Lane from Chicago-based Laramar Group for $49.1 million and the 228-unit Edgewater Apartments located at 514 That Way St. in Lake Jackson, from Chicago-based Alliance Holdings LLC, for $19 million.Redwood invests in multifamily properties with approximately 80 percent of the portfolio being value-add properties and the other 20 percent being tenant-in-common properties. The company plans to acquire $300 million in properties this year.The Woodlands of Crest Hill, constructed in 1972, has been acquired as part of Redwood’s value-add portfolio. The property totals 465,041-sq.-ft. and is comprised of studio, one-, and two-bedroom units, with rents ranging from $600 to $950.The complex has an occupancy rate of 94 percent. Redwood plans on spending between $4,000 and $4,500 per unit on renovating the unit interiors with new kitchen cabinets, countertops and appliances and new vanities and tile in the bathrooms, in addition to six-panel doors and lighting packages.“The property offers a central location in rapidly growing Will County, and we have an opportunity to enhance its value by implementing a strategic exterior and interior capital improvement plan,” says David Carlson, managing partner at Redwood.Edgewater, constructed in 2005, was acquired as part of Redwood’s tenant-in-common portfolio. The property, which is comprised of one- and two-bedroom units, has an occupancy rate in the high 90 percent range and an average rental rate of $965. “Demand remains strong for apartments in markets across the U.S., due to the downturn in the single-family housing market and a migration of homeowners back to renting,” says Mark Isaacson, partner at Redwood. “Interest rates are low, capital is still available and there are good deals out there. We’re well-positioned for what we think will be a strong investment period in 2008 and 2009.”