HFF Completes Sale of $900M Portfolio with L.A. Condo Disposition

HFF sells a 271-unit and wraps up a portfolio sale on behalf of ST Residential; NorthMarq Capital arranges $43.5 million for a Security Properties acquisition; and Hamilton Zanze sells an Austin apartment community.


Los Angeles—HFF has wrapped up a big disposition effort on behalf of ST Residential LLC. The services firm recently sold Apex, the final multifamily asset in a 13-property, $900 million portfolio. The 28-story, 271-unit condo is located in downtown Los Angeles. ST Residential is a manager of properties owned by a public-private partnership between the FDIC and a group of leading U.S. private real estate investors, including Starwood Capital, TPG, Perry Capital and WLR LeFrak.

The portfolio was located in eight major metro areas and included 3,128 units with an average year built of 2008 and an average unit size of 1,215 square feet. Properties in the portfolio included: Apex (Los Angeles); San Pedro Bank Lofts (San Pedro, CA); Mosaic II (Houston); 44 Monroe (Phoenix); The Ogden, Juhl, One Las Vegas, Loft 5 and Spanish Palms (Las Vegas); The Element (Tampa); Mezzo (Atlanta); Highgrove (Stamford) and The Lex (Chicago).

NorthMarq arranges $43.5M for Security Properties acquisition


Millington at Merrill Creek

Everett, Wash.—NorthMarq Capital’s Denver regional office has secured $43.5 million in acquisition financing for Security Properties’ purchase of Millington at Merrill Creek, an 18-building, 344-unit multifamily property located at 1401 Merrill Creek Parkway in Everett, Wash. The deal was structured with a seven-year interest-only term via Freddie Mac.

Amenities at the community include a business center, clubhouse, pool, spa/hot tub, basketball court, playground, garaged and carports.

Hamilton Zanze sells Austin apartment community

San Francisco—San Francisco-based Hamilton Zanze and its joint venture partner New York Life Real Estate Investors recently sold The Retreat at Barton Creek, a 600-unit apartment community in Austin. The buyer was Southern California-based Paydar Properties. Charles Cirar with CBRE brokered the deal.

Hamilton Zanze, a real estate investment company that primarily acquires and operates multifamily communities in the Southwest, Pacific Northwest and Mountain states, purchased Retreat at Barton Creek, formerly known as Barton’s Lodge, in July 2007.

During its ownership, Hamilton Zanze completed a refinance in 2012 and fully executed a value-add program, spending over $7 million in capital improvements. The company renovated 100 percent of the units, modernized the pool areas, and completed a $250,000 landscaping improvement plan to add to the property’s appeal and secure significant rent increases. From Hamilton Zanze’s acquisition of the property to its recent sale, effective gross income increased by 62 percent and net operating income by 94 percent.

“We owned Barton Creek for just over seven years. We executed on a capital improvement program that significantly enhanced the property’s appeal and operations. This transaction speaks to the strength of the Austin market and the high quality of the asset,” says Hamilton Zanze’s Chief Investment Officer Kurt Houtkooper of the disposition.

Disposition Summary

• 600-unit Class B multifamily property built in 1984

• Class A location in the Austin apartment market

• Purchased in 2007 and refinanced in 2012

• Seller executed value-add program, spending more than $7 million in capex, including renovating all 600 units

• EGI grew 62 percent and NOI rose 94 percent from acquisition to sale

• HZ has sold 8 properties and bought 10 properties in the last 12 months