TODAY’S DEALS: Elco Landmark Apartment Trust Acquires Six Assets

Elco Landmark Apartment Trust completes a series of acquisitions in Texas and North Carolina; and Johnson Capital arranges $18.64 million in joint venture equity financing for two new construction projects.

Amelia Ridge, located in Cary, N.C.

Texas & North Carolina—Elco Landmark Apartment Trust Holdings (doing business as Elco Landmark Residential) has announced a series of transactions. Combined, the firm has added six properties (four in Texas, two in North Carolina) to its portfolio.

On Wednesday the company announced that it had partnered with DeBartolo Development and LEM Capital to acquire four garden-style assets located in San Antonio and Austin for approximately $44 million. Collectively, the Texas portfolio consists of 771 units that are 95 percent occupied. Elco plans to implement a renovation and repositioning program on the assets.

“The acquisition of these assets is another example of our unique ability to source attractive investment opportunities in high-growth metropolitan markets located across the South,” says Joseph Lubeck, CEO of Landmark Residential. “We look forward to leveraging our redevelopment and repositioning expertise to improve the quality of each asset, creating an enhanced living environment for tenants while allowing us to capture unrealized cash flow potential.”

Today, Elco announced that it has acquired two assets in Cary, N.C., through a private partnership with Timbercreek Asset Management. The combined purchase price was $56 million. Together, the two garden-style assets contain 788 units that are 95 percent leased. Elco is also planning an upgrade program at these assets.

“We continue to build our presence in North Carolina with the addition of these two quality assets,” says Lubeck. “Strategically located in proximity to downtown Raleigh and the Research Triangle Park, the area is supported by solid fundamentals. We plan to leverage the favorable market dynamics to our advantage as we complete our planned renovations.”

Properties acquired in these transactions are detailed below:

  • Landmark at Atrium Commons, formerly known as Huebner Country, located at 8727 Huebner Road in San Antonio. The property was constructed in 1983 and contains 256 units.
  • Landmark at Stratton Park, formerly known as Hampton North, located at 12324 Starcrest Drive in San Antonio. The property was constructed in 1985 and contains 127 units.
  • Landmark at Amelia Ridge, formerly known as The Gables of Round Rock, located at 1500 Lawnmont Drive in Round Rock, Texas, an Austin submarket. The property was constructed in 1985 and contains 188 units.
  • Landmark at Auburn Manor, formerly known as Vista Ridge, located at 1200 South Mays Street in Round Rock, Texas. The property was constructed in 1984 and contains 200 units.
  • Landmark at Eagle Landing, formerly known as Hidden Oaks, located at 1000 Northwoods Village Drive in Cary, N.C. The 1986- and 1988-built asset features 444 units.
  • Landmark at Watercrest, formerly known as Woodbridge, located at 100 Appledown Drive in Cary, N.C. The 1992- and 1995-built asset features 344 units.

Johnson Capital arranges $18.64M in JV equity for new construction

San Antonio—Johnson Capital announces that Ron Davis, senior vice president in the firm’s Dallas office has arranged $18.64 million in joint venture equity financing for the construction of two new student housing developments located in San Antonio and Akron, Ohio. The developer is The NRP Group LLC (NRP), which recently commenced construction on the two projects with scheduled completion prior to the fall 2014 semester.

The San Antonio complex is called The Luxx. It will contain 212 units with 668 beds and cost $32 million to build. The 15.12-acre site is just east of the main University of Texas, San Antonio campus on the north side of UTSA Boulevard.

In Akron, NRP is building The Depot, a $37 million project that will contain 192 units containing 624 beds. The 3.3-acre site is located on the southwest boundary of the main University of Akron campus and is on the shuttle system.

Commenting on this transaction, Davis says, “These two transactions speak to our ability to bring together a top-five national multifamily developer with a private equity group to facilitate the development of top-tier assets. It is an example of the type of opportunities where we can add value for our development and capital clients.”

The equity capital was provided by a corporate investor that is looking to grow its portfolio.

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