The Walden Group Pays $107M for Southern Portfolio

The 18-property, 1,858-unit portfolio of apartment communities is spread throughout six states. Several of the properties were acquired through proceeds from 1031 exchanges.
Cambridge Park, one of the properties acquired in the portfolio

The Walden Group has acquired a portfolio of apartment communities spread across six Southern U.S. states for $106.7 million from Varden Capital Properties.

Totaling 1,858 units, the portfolio encompasses 18 properties—seven in Alabama; five in Pensacola, Fla.; three in Tennessee; one 200-unit community in Pascagoula, Miss.; one 203-unit property in Winston-Salem, N.C.; and one 223-unit community in Houston, Texas.

A Cushman & Wakefield team of Tyler Averitt and Craig Hey represented the seller in the deal.

Arlington Park

“The Walden Group’s platform is set up well to capitalize on the conversion to conventional as they exit compliance in the coming years, allowing them to maximize returns for their investors,” said Averitt, in prepared remarks. “The portfolio timing also allowed the buyer to line up dispositions through Cushman & Wakefield so they acquired many of the assets with tax-free 1031 money, ever compounding the initial investment from their private equity partners.”

In a similar portfolio disposition last summer, Blue Rock Partners acquired six apartment communities spread throughout the South from Varden Capital Properties for $78.3 million. 

Images courtesy of Cushman & Wakefield