Leechburg, Pa.—New Jersey-based Tryko Partners LLC, a private equity real estate group, has acquired an 86-unit affordable housing community in Leechburg, Pa., known as Sandalwood Apartments. Tryko purchased the property from American Housing Partners Inc., with CBRE Capital Markets providing the financing.
Leechburg is located about 30 miles northeast of Pittsburgh where the inventory for existing for-sale investments remained tight over the past year, according to a 4Q 2013 market report by Marcus & Millichap, the investment services firm that brokered the sale.
“This transaction is our second financing with CBRE through its Freddie Mac platform,” says Chad Buchanan, chief investment officer at Tryko. “Even though Sandalwood Apartments is a smaller multifamily asset, their office gave it a level of attention we would expect from a much larger opportunity, along with the best possible execution. We currently are in the process of closing two more properties with CBRE and look forward to continuing this productive relationship.”
Sandalwood Apartments is composed of 16 buildings with mostly two- and three-bedroom floor plans. Common areas include on-site laundry, a community room with kitchen, storage, a playground, and basketball court.
The community has seen recent improvements such as the addition of new hot water tanks, carpeting, cabinetry, gas furnaces, and refrigerators all within the last three years. Tryko, which specializes in project-based Section 8 Homeowners Assistance Program transactions, intends to supplement those improvements as needed in order to bring the community up to its standards.
“This is a great property in a quiet neighborhood,” says Uri Kahanow, director of acquisitions at Tryko. “From an investment standpoint, it made sense for us to take advantage of the chance to grow our presence in the Pittsburgh region, which remains a prime target market for us. It also fits well in terms of product type as we continue to strategically expand our affordable housing portfolio.”