Home Properties Buys Two Virginia Apartment Communities for $112.2M
- May 31, 2012
Home Properties Inc. (NYSE: HME) on May 23 announced that it paid a total of $112.2 million in recent weeks for the acquisition of two Virginia apartment communities. Hunter’s Crossing in Leesburg was purchased on May 11 for $16.2 million, or approximately $99,000 per apartment unit. Woodway at Trinity Centre in Centreville was purchased on May 17 for $96 million, or approximately $190,000 per unit.
Hunter’s Crossing was renamed The Manor East after its purchase. The property was completed in 1964 and consists of 164 units (75 one-bedroom units and 89 two-bedroom units) in 15 three-story brick garden-style apartment buildings with pitched roofs. With an average unit size of 822 square feet, The Manor East includes individual gas-fired HVAC and central hot water systems and features such amenities as a pool and fitness center.
The Manor East is adjacent to the Manor, a 198-unit apartment community owned by Home Properties since 1999, with only a chain link fence separating the two properties. The fence will be removed.
At closing, The Manor East was 98 percent occupied, with an average monthly rent of $1,050. Home Properties expects to spend $2.8 million over the next three years, in addition to normal capital expenditures, to upgrade the property.
The 504-unit Woodway at Trinity Centre was completed in 1997 and is situated near Interstate 66 and Route 28. It includes 252 one-bedroom units and 252 two-bedroom units in 18 three-story wood-frame buildings with concrete slab and poured foundations and pitched roofs. The property was 97.2 percent occupied at closing, with a monthly average rent of $1,377.
Building exteriors incorporate breezeways with steel stairways and concrete treads. All units have full-size washers and dryers, electric heat pumps, pad-mounted condensing units and electric water heaters. The average unit size is 908 square feet. Amenities include a large community center with a fitness center, business center and pool; two tot lots; and a car wash area. In addition to normal expenditures, Home Properties expects to spend $3.9 million over the next three years to upgrade and renovate the property.
Image courtesy of Yelp.com.