Marsh, Md.—Home Properties Inc. has purchased The Apartments at Cambridge Court, a 544-unit community located in White Marsh, Md., for $90.4 million. The purchase, which was made in cash, equates to approximately $166,000 per unit.
“This acquisition in the Mid-Atlantic region is immediately accretive to earnings, as we other acquisitions completed this year, and offers revenue-generating interior improvement opportunities, which will contribute to future value,” says Edward Pettinella, president and chief executive officer of Home Properties.
Cambridge Court was 90.8 percent occupied at closing, which occurred on August 23, 2011. The property is now 92.2 percent occupied. The community was built in 1999 and 2002 and consists of 18 three-story garden-style buildings and two four-story mid-rise buildings. The unit mix consists of 218 one-bedroom, 272 two-bedroom and 54 three-bedroom apartments. Community amenities include a swimming pool, clubhouse, fitness center, community garden, playground and dog park.
Home Properties plans to spend approximately $2.6 million in unit upgrades upon turnover during the first three years of ownership. The company expects a 5.4 percent first year cap rate on the property.
Charles Dunn sells 25-unit L.A. property for $5.5M
Sherman Oaks, Calif.—Charles Dunn Company has completed the $5.54 million sale of The Kester House, a 29-unit, 1984-built property located at 5421 Kester Ave. in Sherman Oaks, Calif. The sales price represents $187,931 per unit. The closing cap rate was 5.4 percent.
Paul Kenworthy, senior managing director with Charles Dunn, represented the buyer, Los Angeles-based Lever Apartments LP. The seller, a private investor from Los Angeles, represented itself.
“This well-maintained, well-located property offered the buyer the opportunity to add value by bringing the rents up to market rates,” says Kenworthy. “The local investor plans to keep the property long-term, as it offers promising year-over-year returns and value appreciation.”
The unit mix consists of 16 one-bedroom, 12 two-bedroom and one three-bedroom apartments. Community amenities at the two-strory controlled access property include fireplaces, patios/balconies, central air and heating, a central courtyard with Jacuzzi and barbecue area, and gated on-grade parking.
Alliant Capital funds 15-year refi loan
Torrance, Calif.–Alliant Capital LLC, a leading debt and equity financier and Fannie Mae DUS and FHA lender, announced the $4 million refinance of a 71-unit garden style multifamily property located in Torrance, Calif.
The Fannie Mae DUS Small Loan refinance was closed on September 1, 2011 with a 4.57 percent interest rate and a 15-year fixed rate term with 15-year amortization.
“No other lenders other than other GSEs offer this product in the multifamily lending world at this rate,” says Don Frankman, national director of Small Loan Origination in Orange, Calif.