Plano, Texas—Aragon Holdings has acquired two Class A communities in Plano, a Dallas suburb located about 20 miles north of the city’s CBD. The properties, which total 416 units, were purchased with cash from the firm’s private equity fund, Aragon Multi-Family Cash Flow Fund II, and financing was provided by Freddie Mac. The acquisitions were Reserve at Pebble Beach, with 208 units, and Somerset at Spring Creek, also with 208 units. The combined transaction cost was $50 million.
“It was with our first acquisitions in Texas that we built our model of acquiring properties in areas with strong job markets and robust demand for multi-family housing,” says Larry Clark, president of Aragon Holdings, noting that the firm now has 11 properties in the Lone Star State. “We continue to identify attractive acquisition opportunities that will enable us to provide attractive, stable returns for investors participating in our private equity funds.”
Centerline facilitates a Delaware acquisition
Wilmington, Del.—Centerline Capital Group has provided a $4.4 million loan to enable the acquisition of Trolley Square Apartments, a 64-unit community located in Wilmington, Del. The transaction was a Fannie Mae DUS loan that will finance the $5.8 million acquisition of the property. The borrower is Trolley Square Investors LLC. The property consists of three brick walk-up buildings that were developed in 1927, 1938 and 1950.
“The borrower was unable to secure a short-term commercial lease which necessitated the need to re-structure the loan with a 15-year term to improve the overall proceeds of the loan,” says Bryan Cullen, director at Centerline Capital Group. “Centerline was able to get a waiver that offered a year of interest only and a final interest rate that was locked in at 4.63 percent. We were very pleased to come through for this borrower with a loan facility that best served their current needs.”
GFI sells East Harlem apartment building
New York—GFI Realty Services Inc. announced the $1.26 million sale of 330 East 117th Street, a four story walk up located in the East Harlem section of Manhattan. The property consists of five apartments and one office, which translates to $210,000 per unit and 10 times the rent roll. This early 1900s apartment building totals approximately 5,200 square feet. Kobi Zamir, an associate of GFI Realty Services Inc., represented the seller, a local investor. Kobi Zamir and Roni Abudi, the managing partner of GFI Realty Services Inc., together represented the buyer, also a local investor.
“The property was rebuilt eight years ago and is in great condition,” says Zamir. “The property will only require a few additional upgrades.”
“The buyer jumped at the opportunity to purchase a fully renovated property in a great location,” says Abudi.
This multifamily apartment building is located in close proximity to the East River Plaza, the busy East 116th Street corridor, as well as major subway lines, which are only a short walk away.