TODAY’S DEALS: Howard Hughes Corp. Acquires $117.5M Interest in Woodlands Community

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Howard Hughes Corp. acquires $117.5 million interest in Woodlands master-planned community; Phillips Development and Realty closes a $3.7 million refinance on a 129-unit community; and M West Holdings acquires a 43-unit apartment property in California.

The Woodlands Waterway, coutesy of Photolitherland at en.wikipedia.

Houston—The Howard Hughes Corporations has acquired Morgan Stanley Real Estate Investing’s interest in The Woodlands master-planned community. The transaction equates to 57.5 percent of Morgan Stanley’s legal interest, which equals 47.5 percent economic interest in The Woodlands. The $117.5 million price consisted of $20 million in cash payable at closing and a $97.5 million non-interest bearing promissory that is due on December 1.

“The strategic acquisition provides Howards Hughes with a world-class master-planned community developer and operator, a brand widely recognized throughout the U.S., and very attractive residential and commercial assets,” says David Weinreb, chief executive officer at The Howard Hughes Corporation. “By owning all of The Woodlands, we can unleash and integrate the management expertise and intellection property of The Woodlands across our full MPC portfolio.”

The Woodlands is a 28,000-acre community with 97,000 residents and 1,700 employers. The property generated $120.3 million in revenue for 2010. The Woodlands has approximately $573 million of total assets, $332 million of third-party assets and $57 million in cash as of March 31. There is still approximately 1,372 acres of unsold residential land.

The terms give The Howard Hughes Corporation partial ownership of Millennium Water Way Apartments (393 units), Forest View Apartments (256 units) and Timbermill Apartments (216 units). The majority of wholly owned interest was in office and retail properties.

Phillips Development and Realty lands $3.7M financing for Charlotte community

Selwyn Apartments

Charlotte, N.C.—Phillips Development and Realty has refinanced 3400 Selwyn Apartments, a 129-unit community located in Charlotte, N.C., with a $3.7 million nonrecourse loan provided by Deutsche Bank.

3400 Selwyn is PDR’s oldest managed property. The community was built in 1972 and is located between Myer’s Park and South Park. The new funding will allow for interior and exterior renovations of the property, which is currently 95 percent occupied.

The refinancing is part of PDR’s 2011 plan to redirect resources into projects through a venture under Phillips-Picerne properties. Current projects include the development of a 292-unit Magnolia Park Apartments in Tampa, Fla.; a 344-unit Research Park Apartments in Durham, N.C; and the 388-unit Kemah Apartments in Kemah, Texas.

M West Holdings acquires 43-unit apartment property in California

Sherman Oaks, Calif.–M West Holdings completed the acquisition of “The Fulton,” a 64,000 square-foot, 43-unit upscale apartment building located at 4629 Fulton Avenue in Sherman Oaks, Calif.

The Fulton is located in the heart of one of the most desirable submarkets in the San Fernando Valley, just blocks from the affluent trade corridor of Ventura Boulevard. The shopping amenities of Ventura Boulevard offer residents a diverse roster of nationally and regionally branded tenants in the heart of Sherman Oaks. The property is surrounded by more than 100 restaurants and shopping amenities, top schools, and a local business hub.

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