Birmingham, Ala.—Colonial Properties Trust has entered into an agreement providing for the potential sale of up to 5,659 apartment homes with an aggregate purchase price of nearly $338 million. While the buyer has not been formally disclosed, Globes, an Israeli business daily, reports that the portfolio is being purchased by Elco Landmark Residential, a subsidiary of Elco Holdings Ltd., an Israeli-based investment company.
The portfolio includes 18 apartment communities located in Georgia, North Carolina, Texas and Virginia. The average age of a property in the grouping is 25 years. Colonial predicts that the transaction will have a sales cap rate of approximately 6 percent.
Colonial can cancel the sale at any time provided the trust pays the potential buyer a $250,000 reimbursement for due diligence costs. As of March 31, Colonial owns 35,188 apartment units.
Krupp & Company sells Bay Area apartment for $25.2M
San Jose, Calif.—Krupp & Company has closed the off-market sale of Cinnabar Condominiums, a 144-unit apartment community located in San Jose, Calif., for $25.2 million. The seller, All Bay Investments, contacted Krupp & Company in 2010 to reposition debt on the asset. The Krupp team compared the performance of the property with different loan programs, and All Bay Investments ultimately decided to take offers.
The community was purchased by Pacific Urban Residential, a subsidiary of Marcus & Millichap. The transaction closed escrow on June 30.
Cignature closes $7.1M sale in Manhattan
New York—Cignature Realty Associates represented both the buyer, Springhouse Partners, and the seller, Bridgebar LLC, in the $7.1 million transaction of a five-story, walk-up apartment located at 500 Fort Washington Ave. at the corner of West 183rd Street in Manhattan’s Washington Heights neighborhood.
The 44,295 square-foot property has 56 apartments and one commercial unit occupied by a medical practice. The transaction closed after the property was on the market for just 10 days.
“The Heights has become a hot market for apartment property owners and investors in recent years,” says Adam Verner, president of Springhouse Partners. “Its appeal is based on the steady migration of New Yorkers seeking affordable rents, easy commutes to work and a neighborhood with excellent retail and restaurant options.”