Pollack Shores Acquires Two Atlanta Area Assets for $49.1M
- Nov 10, 2011
Atlanta—Pollack Shores Real Estate Group has acquired two Class A apartment communities in the Atlanta metro area for an aggregate price of $49.1 million.
“This was a great opportunity to acquire newly-constructed assets at a significant discount to replacement costs,” says Steve Shores, president of Pollack Shores Real Estate Group. “The communities are a perfect fit for our current investment strategy.”
Both properties were previously owned by Oxford Properties. Oxford Springs is a 269-unit community located in DeKalb County. Oxford Oak is a 288-unit community located in Lawrenceville, Ga., near Gwinnett Medical Center.
Pollack Shores has acquired over 1,500 units, valued a $128 million since the beginning of 2011.
“We’re continuing to look for multifamily investment opportunities through the Southeast,” says Graham Carpenter, vice president of acquisitions at Pollack Shores. “Our current focus is Class A and B value-add properties, financially or operationally distressed assets, and fractured condominiums.”
Johnson Capital arranges $33M for three L.A. properties
Los Angeles—Johnson Capital’s Century City office has originated three loans totaling just under $33 million for three luxury multifamily communities located in Beverly Hills and Brentwood, Calif. The communities were all built in 2006 and 2007 to condominium-quality specifications.
The non-recourse notes, which have an LTV of 75 percent, were used to refinance the properties by the owners, a Los Angeles-based multifamily developer. Freddie Mac provided the loans through Prudential Johnson Apartment Capital Express, a Freddie Mac Seller Servicer. The financings carry a fixed rate for the seven-year term.
“The challenge on all three deals was finding a lender that understood the high rents being collected and the economies of scale the borrower had from managing hundreds of luxury units in a small radius,” says Sherwin Aryeh, who originated the loans for Johnson Capital. “Freddie Mac distinguished itself by taking the time to learn the borrower’s operations and underwriting the deals from the borrower’s perspective as much as possible.”
Marcus & Millichap brokers sale of $17M asset in Washington, D.C.
Washington, D.C.—Marcus & Millichap Real Estate Investment Services has sold La Reine Apartments, a 95-unit, mid-rise community located in the Chevy Chase neighborhood of Washington, D.C. The $17.1 million sales price represents $180,263 per unit.
Ari Firoozabadi, vice president investments at Marcus & Millichap’s Washington, D.C., office, represented the seller, B Kline Family LLC, and the buyer, Kossow Management Corp., in the transaction.
“Chevy Chase is one of the lowest-velocity submarkets from a transaction perspective in the D.C. region,” Firoozabadi says. “La Reine Apartments has not changed hands since it was built in 1929. The property’s core location provides the new owner with an excellent opportunity to add value through the rehabilitation of units.”