Florida Asset Trades for $42M
- Aug 13, 2012
Pembroke Pines, Fla.—ARA has arranged for the sale of Lakes at Pembroke, a 296-unit asset located in Pembroke Pines, Fla. The sales price was $42 million. ARA South Florida-based principals Marc deBaptiste and Avery Klann, along with senior vice president, Hampton Beebe represented LaSalle Investment Management in the sale to Stockbridge Capital.
“The owners of Lakes at Pembroke have superbly maintained the property while demonstrating tremendous value-add potential,” says Klann, lead broker in the transaction. “Since 2001, nearly $3.2 million was invested in interior upgrades, $5.5 million was invested in exterior capital improvements such as resurfaced pools, monument signs, parking lot enhancements, landscaping improvements, and upgrades to amenity areas.”
Lakes of Pembroke is located in an infill location four miles north of the Miramar Park of Commerce, a five million-square-foot office park with 10,000 employers. The apartment asset was 96 percent occupied at the time of sale.
The RADCO Cos. acquires a 402-unit Georgia portfolio
Atlanta—The RADCO Cos. has acquired a three-property, 402-unit apartment portfolio in Georgia. The properties include the 112-unit Ashford Apartments in Griffin, Ga.; Briar Creek Apartments, a 160-unit complex in Conyers, Ga.; and the 130-unit Sierra Place Apartments in Atlanta, Ga. The properties were purchased for $13.7 million.
“As commercial mortgages mature, the value of the underlying collateral is being tested,” says RADCO chief executive officer Norman Radow. “We are on the front lines of this process, and have the talent it takes to make underperforming and undervalued deals work. We had a plan in place to manage the turnaround and thus create immediate value for each of these assets.”
The plan includes close to $1 million in capital improvements that will be implemented over the next 12 months. This value-add play will include safety improvements, unit upgrades and the installation of utility efficiency devices.
Occupancy at all three apartment communities are stable, with Sierra Place and Ashford Place averaging 95 percent and 94 percent tenancy. Briar Creek has 10 to 15 down units, which RADCO plans to restore and market.
Walker & Dunlop provides $9.5M interim loan for stabilizing property
Bethesda, Md.—Walker & Dunlop, LLC announced that it recently provided $9.5 million in interim financing for Island View Apartments, a Class A garden-style residential apartment community located in Richland, Wash.
The loan was provided under the company’s Interim Loan Program which offers floating-rate interim loans to experienced borrowers seeking to acquire or reposition multifamily properties that do not currently qualify for permanent financing. Loans originated through the program are funded using a combination of company capital and credit facilities and are held on the company’s balance sheet.
The loan was structured with a one-year interest-only term and underwritten to a 52 percent loan-to-value with a 1.18 Debt Service Coverage ratio. Walker & Dunlop closed the loan within the property’s lease-up period and expects to provide permanent GSE financing within 12 months of stabilization for the borrower, Richland Sky Apartments LLC. The transaction highlights Walker & Dunlop’s continued focus on developing proprietary, complementary product offerings to provide borrowers with multiple financing options.
Island View Apartments is a 144-unit apartment community built in 2011 situated on over six acres. The multifamily property offers three different floor plans in one- and two-bedroom models. Property amenities include a clubhouse, outdoor swimming pool with spa, and a fitness center. Island View Apartments was 85 percent leased at closing.