TODAY’S DEALS: Colonial Properties Trust Acquires 312-Unit Asset
Colonial Properties Trust completes a 312-unit acquisition in Dallas; Stoneleigh buys a 228-unit community outside San Antonio; and GFI Realty Services brokers the sale of a154-unit asset in Brooklyn, N.Y.
Dallas—Colonial Propertird Trust has acquired Colonial Grande at Hebron (formerly Waterford Place), a 312-unit Class A community located in Dallas, for $34.1 million. The transaction was funded with $23.9 million in proceeds from the sale of Colonial Center Town Park 400, an office asset located in Orlando, Fla., and borrowings on Colonial’s unsecured credit facility.
Colonial Grand at Hebron was built in 2011 and is currently in lease up with 66 percent occupancy. The 176,000-square-foot office building was built in 2008. It was 24 percent occupied at the time of sale.
“The continued execution of our multifamily focused growth strategy has helped us unlock the capital from an underperforming office asset in exchange for a new multifamily asset at an attractive value,” says Thomas Lowder, chairman and chief executive officer of Colonial Property Trust.
Stoneleigh Companies completes Texas acquisition
Schertz, Texas—Stoneleigh Companies LLC has acquired Waterford Ridge, a 228-unit community located in Schertz, Texas, a San Antonio suburb. The property represents the fourth multifamily acquisition made by Stoneleigh in the past two years. The purchase was financed through a loan issued by KeyCorp Real Estate Capital Markets Inc. on behalf of Freddie Mac’s CME program.
“Our investment model is to buy existing apartment properties in great locations with internal equity while using advantageous debt structures,” says Rick Cavenaugh, president of Stoneleigh. “With debt rates at all-time lows and the strength of the San Antonio market firmly established, we are excited about adding Waterford Ridge to our portfolio.”
Brooklyn apartments sell for $22.1M
Brooklyn, N.Y.—GFI Realty Services Inc. has brokered the sale of 3101 and 3115 Avenue I, two six-story elevator buildings in Brooklyn with a combined 154 rent stabilized units, for $22.1 million. GFI’s Yanni Simantov represented the seller, Elias Mallouck Realty, and Josh Orlander, also from GFI, represented the buyer, The Parkoff Organization.
“The property represented a great opportunity to acquire a large number of units together in buildings that don’t have any violations,” says Simantov. “The buildings have been owned by the same family for about 80 years and are in impeccable condition.”
The complex was built in 1935 and is located next to Brooklyn College and the Flatbush Avenue retail corridor. The asset was on the market for 10 days before GFI sealed the $22.1 million price tag.