AMLI Residential Sells 464-Unit Asset to Abacus Capital

AMLI residential completes a Chicagoland disposition; Beech Street closes $7.4 million for a two property portfolio in the Boston-area; and Home Properties executes its strategy to "lighten" its concentration in Washington, D.C. as it sells two properties for $109.1 million.

AMLI at Oakhurst North

Aurora, Ill.—Holliday Fenoglio Fowler has closed the sale and arranged financing for AMLI at Oakhurst North, a 464-unit, Class A asset located in Aurora, Ill. HFF marketed the property for the seller, AMLI Residential Property Trust. Abacus Capital Group purchased the property. The transaction price was not disclosed. HFF also placed financing for Abacus through Freddie Mac’s CME program.

AMLI at Oakhurst is located in Chicago’s western suburbs close to the Westfield Fox Valley Mall. The community consists of two- and three-story buildings with one- and two-bedroom units averaging 1,012 square feet in size. Community amenities include an indoor lap pool, outdoor swimming pool, a 24-hour fitness center, business center, picnic area and a tot lot.

Beech Street closes $7.4M for Boston-area portfolio

Boston—Beech Street Capital has closed $7.4 million in Fannie Mae conventional loans to refinance a portfolio consisting of two Boston-area apartments that total 56 units. Brian Sykes, senior vice president in the firm’s Boston office, originated the transaction.

“This was a fairly straightforward deal,” says Sykes. “Our goal was to meet the borrower’s objective of completing the deal before the end of the year—and working through the holidays we met their deadline.”

The properties consist of a 22-unit garden-style apartment building in Cambridge and a 34-unit garden-style apartment building in Allston. They are in strong submarkets with high occupancy rates and steady rent increases forecast over the coming years. The fixed-rate loans have a 10-year term and 9.5 years of yield maintenance with 30 years of amortization, payable on an actual/360 basis.

Home Properties sells two properties for $109.1M as it executes strategy to ‘lighten’ D.C. concentration

Silver Spring, Md.– Home Properties announced the March 2013 sale of two properties with a combined total of 511 units for $109.1 million.

Falkland Chase, a property containing 450 apartment units, was sold for $98 million, or approximately $218,000 per unit. The property, located in downtown Silver Spring, Md., consists of three parcels at the intersections of 16th Street NW, East-West Highway and Colesville Road. The north parcel of Falkland Chase currently contains 182 garden apartments and has final site plan approval for development of a maximum of 1,250 multifamily residential units in four high-rise buildings and 70,000 square feet of retail space.

Net proceeds to Home Properties, after closing costs and $35.9 million in debt repayments, were $60.3 million. The weighted average historical capitalization rate on the sale is 5.5 percent after applying a 2.7 percent management fee and before capital expenditures. A gain of approximately $36 million will be recorded in the 2013 first quarter.

“The sale of Falkland Chase monetizes the value of entitlements we obtained to increase the density on the north parcel of this property,” says Edward J. Pettinella, Home Properties’ president and CEO. “The sale also is consistent with our strategy to lighten our development exposure and D.C. region geographic concentration.”

Home Properties purchased Falkland Chase in September 2003.

South Bay Manor, a property containing 61 units located in Sayville, N.Y., was sold for $11.1 million, or approximately $182,000 per unit. Net proceeds to Home Properties, after closing costs and $6.5 million in debt assumed by the buyer, were $4.4 million. The weighted average historical capitalization rate on the sale is 6.4 percent after applying a 2.7 percent management fee and before capital expenditures. A gain of approximately $5 million will be recorded in the 2013 first quarter.

Home Properties purchased South Bay Manor in September 2000.

The company said it expects to use proceeds from both sales to reduce secured debt and for property acquisitions, property upgrades and development costs.

The company included both sales in its guidance assumptions for dispositions in the first quarter of 2013 published on Feb. 7, 2013.