TODAY’S DEALS: Guardian Purchases Rental Property for $30M, and Other Transactions
- Aug 19, 2008
By Anuradha Kher, Online News EditorBeaverton, Ore.–Guardian Management LLC recently purchased the 279-unit Waterhouse Place Apartments (pictured) in Beaverton, Ore., a suburb of Portland, for $30 million. USB Realty Investors LLC will serve as the equity partner. Guardian plans to invest an additional $3 million—approximately $7,000 per unit—for exterior and interior renovations of the complex.“The property fits perfectly into our value-add acquisition strategy,” says Tom Brenneke, president of Guardian.Built in 1989, Guardian will rehabilitate the 14.5-acre community with exterior upgrades, including updated landscaping, a resurfaced spa, new patio doors and parking and clubhouse upgrades. Guardian also plans an extensive interior rehabilitation, including new carpets and floors, new countertops and cabinet faces, updated hardware and fresh paint.ABR, Chartwell JV to Acquire 450-Unit Garden for $6.62MAtlanta–Alex. Brown Realty Inc. (ABR) has entered into a joint venture with Chartwell Holdings LLC (Chartwell) to acquire the Union Station Apartments in the South Fulton submarket of Atlanta. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $6.62 million to the venture. Chartwell will serve as Union Station’s property management team.Union Station includes 450 garden-style apartment units built between 1989 and 1994 spread out over 45 acres. The complex also includes two clubhouses, two pools, three tennis courts, a workout facility, meeting space and more than 900 surface parking spaces. The complex was acquired at a significant discount to replacement cost from a foreign investment fund liquidating its only multifamily asset. “Union Station is a great opportunity to invest in the suburban Atlanta multifamily market,” says Chris Wyett, Chartwell’s co-founder and principal. “We’re seeing solid rental rate growth and single-digit vacancy rates in the South Fulton apartment market and we expect those trends will continue given the area’s limited supply of developable land.”The joint venture plans to invest approximately $2.6 million in upgrades to units and common areas over the next 12 months. “The capital improvements, when combined with Chartwell’s more focused, hands-on management approach, should add significant value to the asset and generate strong annual cash on cash returns for our fund investors,” says John Prugh, ABR’s president and CEO. 12-Unit Rental Property Sold for $1.275MJefferson Township, N.J.–The Kislak Co. Inc. recently completed the $1.275 million sale of 29 Brady Blvd., a 12-unit garden-style apartment complex in Jefferson Township, N.J. “At over $100,000 per unit, this transaction is reflective of the current market trend,” commented Joseph Keenan, who represented the seller, JC Property Management. “Solid properties in great areas continue to have a high re-sale value. Jefferson Township is experiencing consist growth and attracts investors from as far as New York City.”The renovated apartment complex was 100 percent occupied at the time of closing.