Timberland Acquires Four Properties Totaling 818 Units
- Jan 10, 2014
Minneapolis—Timberland Partners acquired four multifamily properties totaling 818 units in December for an unspecified total. Geographically, the assets are far-flung: two are in Michigan, one in Kansas, and other in Florida.
The Minneapolis-based company, which owns more than 8,300 apartment units and 541,000 square feet of commercial space, plans to buy more assets this year. Timberland Partners vice president of investments Matt Fransen tells MHN that the company won’t rule out pursuing Class A properties in secondary and tertiary markets, but its primary focus in 2014 will be value-add Class B apartment properties of 150 or more units in secondary and tertiary markets in the Midwest and Sunbelt.
“We believe there’s more opportunity in this product type for longer term at this point in the real estate cycle, especially sustained rent growth,” he says. “Also, prices seem to be in balance for Class B properties in these markets and have yet to become overly bid up. There’s still value that can be realized in this space.”
The Timberland acquisitions in Michigan include Green Meadows, a 144-unit, Class B property in Belleville, a town of about 4,000 in Wayne County, southwest of Detroit. Built in 1995, the property features private entries, clubhouse with Internet cafe and Wi-Fi, fitness center, outdoor pool, and children’s playground.
Also in Michigan, the company bought the 200-unit Northview Park in Sterling Heights, which is a Macomb County suburb of Detroit. The 1995-vintage Class B property features balconies and patios, clubhouse with an Internet cafe, outdoor pool and grilling areas.
In Kansas, Timberland acquired the Park at Olathe Station (formerly Indian Meadows), a 144-unit complex in Olathe, which is part of the Kansas City MSA. Built in 1995, the Class B property includes private entries, a clubhouse with lounge, an outdoor pool, and a children’s playground.
In Florida, the company bought Carrington at Four Corners, a 330-unit property in Clermont, Fla. Built in 1998, the property is near DisneyWorld and includes a clubhouse, fitness center, outdoor swimming pool with sundeck, covered pavilion, and children’s playground. According to the company, Carrington at Four Corners will undergo major renovations in the near future, including improved landscaping, new signage, exterior paint, and improvements to the clubhouse.