BRE Properties Acquires 282-Unit Community in Oakland
- Jun 03, 2011
Oakland, Calif.—BRE Properties Inc. has acquired The Landing at Jack London Square, a 282-unit property in Oakland, Calif. The Class A, waterfront community was purchased for $64.9 million. The property is located three blocks from the center of Jack London Square, a shopping, dining and entertainment center that is also home to the relocated cabin that Jack London lived in on the Klondike River.
“This is an attractive opportunity to invest in a waterfront, market-rate community in one of California’s strongest rental markets,” says Stephen Dominiak, executive vice president and chief investment officer of BRE. “The community was purchased at a discount to replacement cost and further supports BRE’s strategy of concentrating capital and expansion in the Bay Area.”
The Landing at Jack London Square was acquired with proceeds from BRE’s recently completed equity offering that closed on May 11, 2011. The property is currently 95 percent occupied and is expected to generate a first year net income to acquisition cost yield of approximately 5 percent.
The property consists of four buildings, each with three levels of apartments over a single level, at-grade parking structure. Unit size averages 914 square feet. It is a transit oriented community within walking distance to the Alameda/Oakland Ferry, the Lake Merritt BART Station, the 12th Street/City Center BART station and the new Jack London Square Amtrak rail station.
MAA grabs 300-unit property in Richmond
Richmond, Va.—MAA has acquired The Hamptons at Hunton Park, a 300-unit upscale community in Richmond, Va. The property was developed in 2003 and has units that average 1,032 square feet. The acquisition was funded by common stock issuances through MAA’s at-the-market program and borrowings under credit facilities. The transaction represents MAA’s first purchase in the market.
“We are very pleased to mark our entrance into the Richmond, Virginia MSA with the purchase of The Hamptons at Hunton Park,” says Al Campbell, executive vice president and chief financial officer at MAA. “Richmond is well known as one of the east coast’s most vibrant and consistent economies and is home to eleven Fortune 1000 Companies. We expect the combination of limited new supply in the area, a growing local economy and our operating strength to produce an attractive return for our shareholders.”
Amenities at the community include a theater room, 24 hour fitness center and swimming pool. The property is close to the Innsbrook Corporate Center, a large-scale mixed-use office park.
HFF secures Freddie Mac financing for acquisition of 362-unit apartments
Lewisville, Texas — HFF secured acquisition financing for Hidden Creek Apartments, a 362-unit, Class A multi-housing community in Lewisville, Texas.
Working on behalf of Praedium Group and Mike Ochstein, president of Price Realty Corp., HFF placed the five-year, fixed-rate securitized loan with Freddie Mac (Federal Home Loan Mortgage Corporation). Loan proceeds were used to acquire the property. The loan will be serviced through HFF’s Freddie Mac Program Plus Seller/Servicer program.
Hidden Creek is located at 1200 College Parkway close to Xerox Corporation, Vista Ridge Mall, Lake Lewisville and Vista Ridge Business Park in Lewisville, a northern suburb of Dallas/Fort Worth. Completed in 2000, the property has 14 three-story buildings with units averaging 939 square feet each. Community amenities include a resort-style pool, outdoor heated spa, sports courts, sand volleyball court, fitness center and business resource center. Hidden Creek is currently 97 percent occupied.
The HFF team representing Praedium Group and Price Realty Corp. was led by Senior Managing Director John Brownlee and Managing Director Brian Carlton.
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $7 billion in total investments to date in more than 275 transactions comprised of 45 million square feet of commercial space and 55,000 multifamily units.
Price Realty Corp. was founded in 1991 and currently owns and manages more than 5,200 units in the Dallas/Fort Worth area.