Home Properties Buys Two Virginia Apartment Properties
- Jun 05, 2012
Leesburg, Va.—Home Properties Inc. has closed on two multifamily acquisitions in Virginia, one in Leesburg and the other in Centreville. The REIT paid $16.2 million and $96 million for the properties, respectively.
The 164-unit Leesburg apartment complex, formerly known as Hunter’s Crossing, was renamed Manor East after Home Properties closed on the deal at an estimated 7 percent cap rate. The purchase included the assumption of a fixed-rate note with an aggregate principal balance of $6.7 million at 5.69 percent. At closing, the property was 98 percent occupied at monthly rents averaging $1,050 a month.
Completed in 1964, the property is adjacent to the Manor, a 198-unit apartment complex owned by Home Properties since 1999. The two properties are separated only by a chain link fence, which will be removed. The Manor East has 75 one-bedroom units and 89 two-bedroom units; common area amenities include a pool and fitness center.
The 504-unit Woodway at Trinity Centre in Centreville is considerable newer, dating from the late 1990s. At the time Home Properties closed on it, the property was 97.2 percent occupied at monthly rents averaging $1,377 a month. The company estimates a 5.7 percent cap rate on the deal.
The complex consists of 18 three-story wood-frame buildings with concrete slab and poured foundations and pitched roofs. There are 252 one-bedroom units and 252 two-bedroom units, with an average unit size of 908 square feet. Common area amenities include a community center with a fitness center, business center and pool, two tot lots and a car wash area.
Separately, Home Properties says that it’s putting 10 properties across its portfolio on the market in hopes of realizing a value in excess of $300 million. One property is on Long Island and others are in the Baltimore, Washington, DC, and Philadelphia regions. The plan, according to the REIT, is to take advantage of cap rates at near-historic lows to achieve good value on sales, the proceeds of which will be reinvested in properties that it anticipates will have greater future profitability.