Home Properties Acquires Two Communities for $65.1M

Home Properties acquires two properties for a $65.1 million total; Essex Realty arranges a bulk sale of 31 condo-converted units for $2.15 million in Chicago; and Marcus & Millichap brokers the sale of a 444-unit community in Largo, Fla.

The Commons at Haynes Farm

Shrewsbury, Mass.—Home Properties Inc. has purchased two apartment communities, one in Shrewsbury, Mass., and another in West Chester, Pa. The combined purchase price was $65.1 million.

The Commons at Haynes Farm is a 302-unit property in Shrewsbury, Mass., that was purchased for $40.5 million in cash. The community is currently 97 percent occupied with monthly rents that average $1,219. There are 82 one-bedroom units, 167 two-bedroom units, 50 three-bedroom units and three four-bedroom units. Amenities include 58 carports, a swimming pool and a community center with exercise room. Management is predicting a 5.9 percent first-year capitalization rate on the acquisition. Home Properties plans to invest $2.5 million into the property during the first three years of ownership.

Waterview Apartments is a 203-unit apartment community located in West Chester, Pa., that was purchased for $24.6 million in cash. The community was built in 1968 and is 95.6 percent occupied with monthly rents averaging $1,000. The floor plan breaks down into 67 one-bedroom units and 122 two-bedroom units. Community amenities include patios or balconies for 181 units, an Olympic-size pool, volleyball and basketball courts, a fitness center, and a storage locker for each unit. Management anticipates a 5.7 first-year capitalization rate. Home Properties will invest $2.3 million into the property during the first three years of ownership.

“These two acquisitions, in our suburban Philadelphia and Boston regions, will be immediately accretive to earnings,” says Edward Pettinella, president and chief executive officer of Home Properties. “Their significant redevelopment potential will contribute to future revenue growth, enhancing shareholder value.”

Essex Realty brokers bulk sale of remaining 31 condo-converted units for $2.151M

Chicago–Essex Realty Group Inc. brokered the sale of Columbia Gardens, a condominium conversion project in the Rogers Park neighborhood of Chicago.

1615-25 W. Columbia is a 38-unit vintage courtyard building that has been fully renovated. Several of the condominiums had previously sold. Essex sold the remaining 31 units in bulk. The sale consisted of 14 one-bedroom, six two-bedroom and 11 three-bedroom units.

Jim Darrow and Jordan Gottlieb of Essex were the brokers on the transaction. The price was approximately $2.15 million. Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

Marcus & Millichap sells a 444-unit community in Florida

Chaparral Apartments

Largo, Fla.—Marcus & Millichap Real Estate Investment Services has brokered the sale of Chaparral Apartments, a 444-unit community located in Largo, Fla., for $14.3 million.

Norman Eastwood, senior vice president investments in Dallas, and Tal Frydman, vice president investments in Fort Lauderdale, represented the seller, a Houston-based partnership, and the buyer, a Massachusetts-based partnership.

“The strength of the rental market in Largo provides the buyer with an excellent opportunity to reverse the fortunes of this underperforming asset,” says Frydman. “The average apartment occupancy rate in Largo is 92 percent, and at closing Chaparral Apartments was approximately 50 percent vacant and had approximately 15 down units.”

Chaparral Apartments was built in 1971 and has one-, two- and three-bedroom floor plans ranging from 765 to 1,375 square feet. Community amenities include three swimming pools, tennis courts, an exercise room and a clubhouse.