Sugar Land, Texas—Behringer Harvard has expanded its Texas portfolio with the acquisition of Parkside Apartments, a 240-unit community located in the affluent and fast-growing city of Sugar Land, which is located approximately 40 miles southwest of downtown Houston. The asset was acquired for the portfolio of Behringer Harvard Opportunity REIT II Inc. through a joint venture with affiliates of Houston-based Arcadian Real Estate Group.
“We are pleased to acquire this well-leased community in a supply-constrained submarket on an attractive basis below replacement cost,” says Michael O’Hanlon, chief executive officer of Behringer Harvard’s opportunity platform. “Texas is an attractive market for institutional investors, and Houston benefits from a strong economy and favorable demographics. We expect Parkside Apartments to provide attractive cash flow and strong upside potential. Our value-added improvement program should further enhance the appeal of this popular community while lifting rents.”
The joint-venture partners are planning a renovation program for the 1998-built community that will include improvements for common-area amenities, such as the clubhouse and pool, and upgrades to unit finishes. Arcadian Real Estate Group will provide construction management services for the two-year renovation project. The group will also provide property management services.
AEW completes $32.8M apartment acquisition
Durham, N.C.—AEW Capital Management is the new owner of Artisan at Brightleaf, a 328-unit apartment community located in Durham, N.C. The global real estate investment manager acquired the asset from a joint venture between Greystar and Prudential, the two parties that developed the Class A asset in 2012. ARA represented Greystar in the transaction. The all-cash purchase carried a $43.8 million price tag.
“The asset was marketed on a pre-stabilized basis with a 75 percent occupancy rate,” says ARA’s Sean Wood, lead broker on the transaction. “But given the combination of strong fundamentals in the Raleigh/Durham MSA (one of the fastest growing MSAs in the country), the asset’s compelling location, and Class A+ features and finishes, the occupancy rate had increased to 91 percent by the closing date.”
Meridian Capital negotiates financing for properties in New York
New York—Meridian Capital Group LLC announced the following transactions:
- Meridian negotiated a new mortgage in the amount of $5.5 million on two multifamily buildings totaling 91 units located on East 21st Street in Brooklyn. The loan features a rate of 2.85 percent and a 10-year term. Alan Friedman and Daniel Blumenthal negotiated this transaction.
- Meridian negotiated a new mortgage in the amount of $7.5 million on a 92-unit, seven-story multifamily building located on Reservoir Oval East in the Bronx. The loan features a rate of 3.13 percent and a seven year term. Sam Shifer negotiated this transaction.
- A new mortgage of $2.7 million was placed by Meridian on an 18-unit, four-story multifamily building located on Brighton Fourth Street in Brooklyn. The loan features a rate of 3.00 percent and a 15-year term. Isaac Filler and Sam Shifer negotiated this transaction.
- Meridian negotiated a new mortgage in the amount of $2.4 million on two multifamily buildings totaling 16 units located on Humboldt Street in Brooklyn. The loan features a rate of 2.95 percent and a 10-year term. Isaac Filler and Sam Shifer negotiated this transaction.