Home Properties Buys Two Virginia Assets for $112.2M

Home Properties buys two properties for $112.2 million; Petra Capital completes a $46.5 million sale in Arizona; and Red Mortgage Capital finances a $41.2 million Fannie Mae loan on behalf of Associated Estates.

Woodway at Trinity Centre

Centreville & Leesburg, Va.—Home Properties has announced a recent acquisition of two communities totaling $112.2 million. The larger of the two assets was Woodway at Trinity Centre, a 504-unit community located in Centreville, Va., which was picked up for $96 million. Home Properties also acquired Hunter’s Crossing (renamed The Manor East), a 164-unit community in Leesburg, Va., for $16.2 million.

“In addition to completing our first acquisition of 2012, we have also begun marketing properties for sale in several of our regions,” says Edward Pettinella, president and chief executive officer at Home Properties. “We believe it is prudent to harvest the value in properties we have owned and managed profitably for many years and redeploy the proceeds to buy properties with greater future potential.”

Completed in 1997, Woodway at Trinity Centre is comprised of 18 three-story wood-frame buildings with open breezeways. Common amenities include a fitness center, business center, pool, playgrounds and a car wash area. Home Properties anticipates a 5.7 percent cap rate after allocating 2.7 percent of rental revenues for management and overhead expenditures. The firm also has a $3.9 million capital improvement plan in place.

The Manor East was built in 1964 and is comprised of fifteen three-story garden-style buildings. Amenities include a pool and fitness center. The REIT expects a 7 percent cap rate after allocating a matching 2.7 percent of rental revenues for management and expenses.

As far as dispositions go, Home Properties plans to sell 10 properties across its portfolio with an estimated value exceeding $300 million.

Petra Capital sells Tempe property for $46.5M

Haven

Tempe, Ariz.—Petra Capital Management has completed its sale of Haven, a 660-unit apartment community located in Tempe, Ariz. The $46.5 million sales price equates to $70,455 per unit. The buyer was AG-ICC Haven Owner LLC. Marcus & Millichap represented Petra Capital in the transaction.

“Tempe offers one of the most diverse business communities in the country, and is the top city in the region for the density of technology companies with more than 20 percent of its employment base classified as high-tech,” says Steve Gebing, an investment specialist at Marcus & Millichap’s Phoenix office.

Haven was developed by Lincoln Property Co. in 1984. The asset was renovated in 2006-2007 with condo-quality finishes in 57 percent of the units. Amenities include an atrium-style residence center, clubhouse with Wi-Fi, media rooms, a lighted tennis court, volleyball court, and four swimming pools.

Red finances $41.2M Fannie Mae loan for Fairfax, Va. property

Dwell Vienna Metro Apartments

Fairfax, Va.—Red Mortgage Capital LLC recently processed and funded $41.2 million of Fannie Mae DUS financing for a 250-unit apartment community in Fairfax, Va. The loan was structured as 10-year fixed rate debt.

Dwell Vienna Metro Apartments was built in 2008 and includes 106 one-bedroom and 144 two-bedroom units plus a two-level subterranean parking garage. Located in western Fairfax County approximately 13 miles west of Washington, D.C., it also is within brief walking distance to the Vienna Metro Station which provides convenient access to the nation’s capital. Further adding to the property’s strong market appeal, it has large floor plans and high end finishes as it originally was built as for-sale condominiums. The property was acquired in 2011 by Associated Estates Realty Corp.

Charles C. Meyer, senior managing director of Red Mortgage Capital, LLC and lead originating banker for the transaction said, “Associated Estates is a dynamic and growing company. Red is very happy to be part of their growth, serving as a trusted capital provider. The Fairfax asset is a quality addition to Red’s loan portfolio.”