UDR Goes Big in D.C.
- Jun 22, 2015
Washington, D.C.—When UDR Inc. wants to buy, they tend to buy big. The venerable multifamily REIT announced this morning that it has entered an agreement that will expand its Washington, D.C., portfolio by more than 3,246 units. The six properties will come from Lone Star and Home Properties Inc. in exchange for $908 million worth of OP units in a newly-formed UDR operating partnership, cash and the assumption of debt. Closing is projected for mid-August, and is subject between the closing of the merger between Lone Star and Home Properties.
UDR was looking for exposure to the recovering D.C. market with recently built and redeveloped assets, as well as properties with redevelopment potential. Given the chance to browse Home Properties’ entire portfolio, UDR came up with the properties detailed below.
The communities are currently averaging 90 percent occupancy. Average monthly rents are at $1,873.
ARA Newmark helps sale of property in urban village
Austin, Texas—ARA, a Newmark Co., announced the sale of the Elements at Mueller, a 301-unit, Class A multihousing asset located just north of downtown Austin, Texas.
Patton Jones, executive managing director of ARA Newmark’s Austin office, represented the seller, CityStreet Residential Partners, based in Houston. The property was purchased for an undisclosed amount by Sun Holdings Group, a 25-year-old Houston-based real estate investment and asset management company specializing in multifamily, hospitality and commercial retail. The occupancy at the time of the sale was 95 percent.
Sun Holdings President Jacob Blatt stated, “We are excited about our latest acquisition, which adds to our strategy of buying Class A multifamily assets in growing markets. Elements at Mueller is our fourth multifamily community acquisition in the Austin – San Antonio Corridor, which further expands our portfolio in Texas while we explore other markets throughout the U.S.”
According to Jones, “Elements at Mueller was sought after by institutional and private investors seeking a core investment opportunity. They were drawn to its outstanding Central Austin location, excellent area demographics and the luxury Class A product finishes.”
Elements at Mueller is located within the Mueller Redevelopment, a 711-acre mixed-use urban village consisting of 4.0 million square feet of office and retail space; more than 5,700 homes;, and 140 acres of parks, trails and open space. It offers convenient access to major thoroughfares including IH-35, Airport Blvd, Hwy 183 and Hwy 290, and is home to Dell Children’s Medical Center of Central Texas, The Thinkery Children’s Museum, a new 83,000-square-foot H-E-B grocery store and a shopping center comprising more than 400,000 square feet. There are also plans to add a 1.2-million-square-foot mixed-use lifestyle district called Aldrich Street, which is located on 42 acres in the heart of the Mueller that will feature other retail destinations including the Alamo Drafthouse opening in 2016.
The Mueller Redevelopment is located less than five miles from Austin’s central business district, which currently has an employment base of over 150,000 jobs. Nearby employers include the University of Texas, St. David’s Healthcare, Seton Healthcare, Austin Studios and Rackspace, to name a few.
Constructed in 2014, Elements at Mueller is a mid-rise “wrap” style complex, with luxurious high-end finishes, which include granite countertops, stylish wood grain floors, stainless steel appliances, glass-tiled backsplashes and walk-in closets with custom shelving. The community boasts a resort-style swimming pool, a state-of-the-art 24-hour fitness center and a spectacular clubhouse with video gaming rooms, conference rooms, a TV lounge, a business center and a concierge service.