TODAY’S DEALS: ARA Brokers 309-Unit Sale in Austin
ARA brokers the sale of an Austin asset; KBS Legacy Partners Apartment REIT completes its first purchase of 2013; and NorthMarq Capital obtains $21.7 million in acquisition financing from a life insurance company.
Austin, Texas—ARA has sold Avanti Hills, a 309-unit asset in Austin formerly known as Alexan Galleria. Patton Jones, a principal at ARA, represented the seller, an undisclosed Fortune 500 bank. An undisclosed private investor based out of Austin picked up the asset.
“Avanti Hills was sought after by institutional and private wealthy investors seeking a core investment opportunity,” says Jones. “Investors were drawn to the outstanding demographics, good schools, and walkable retail/entertainment of the Hill Country Galleria.”
Built in two phases in 2008, Avanti Hills is comprised of one- and two-bedroom units. Amenities include two resort-style swimming pools, remote controlled limited entry gates and a fitness center.
KBS REIT closes on first 2013 buy
Eden Prarie, Minn.—KBS Legacy Partners Apartment REIT has closed on its first acquisition of 2013 with the purchase of Watertower Apartments. The 228-unit mixed-use community is located in Eden Prairie, Minn., 16 miles southwest of downtown Minneapolis. The non-traded real estate investment trust is sponsored by KBS Capital Advisors LLC and Foster City, Calif.-based Legacy Partners Residential Realty LLC KBS Legacy Partners Apartment REIT currently owns a total of 1,980 apartment units in Minnesota, Texas, North and South Carolina, Illinois and Maryland.
Watertower Apartments was 94 percent occupied at the time of the acquisition and offers 228,775 square feet of mixed-use space in two adjacent structures. The three-story building features 28 residential units and 10,065 square feet of ground-floor retail space, while the four-story building features 200 apartment units above a two-level underground parking garage.
NorthMarq obtains $21.7M acquisition financing from life insurance company
Tustin, Calif.—Dennis Williams, SVP/managing director of NorthMarq’s San Francisco Regional office, and Robert Hervey, EVP/senior managing director of NorthMarq’s Los Angeles Regional office, cooperated to arrange acquisition financing of $21.7 million for Tustin Cottages, a 93-unit market-rate multifamily property located at 1361 El Camino Real in Tustin, Calif.
Financing was based on a 10-year term and a 30-year amortization schedule. NorthMarq arranged this financing for the borrower, The Matteson Companies, through its relationship with a correspondent life insurance company lender.
“We negotiated a split funding loan to finance the acquisition of the subject property,” said Williams. The lender provided a market-leading rate and was able to accommodate a quick closing with a smooth execution.”
