TODAY’S DEALS: Greystar Acquires $460M Portfolio

Greystar acquires 4,371 units from Inland; IPA completes a bulk condo sale in Yonkers, N.Y.; and Beech Street Capital provides $36.5 million for an Alabama apartment asset.

Charleston, S.C.—Greystar Real Estate Partners has completed its purchase of a $460 million portfolio of assets from Inland American Real Estate Trust. The portfolio consists of 14 institutional apartment communities totaling 4,371 units located in Houston (six properties, 1,882 units); Oklahoma City (4 properties, 1,325 units); San Antonio (2 properties, 536 units); Dallas (1 property, 372 units); and Louisville (1 property, 256 units).

“We are excited with the opportunity as the portfolio of stable, income producing properties fits well within our investment strategy of acquiring assets with strong existing cash flow at values below replacement cost and in markets experiencing significant employment and population growth,” says Wes Fuller, Greystar’s executive director of investments. “We believe the assets are positioned to perform well driven by extensive renovation and operational enhancements planned by our team.”

IPA arranges $26.5M bulk condo sale

Monarch at Ridge HillYonkers, N.Y.—Institutional Property Advisors has arranged the bulk sale of the remaining 90 units in Tower I at Monarch at Ridge Hill, a 163-unit luxury condominium community located in Westchester County. The $26.5 million sales price equates to $294,712 per unit. The asset is part of the Ridge Hill mixed-use development that includes shopping, dining and entertainment options in a walkable neighborhood.

IPA senior vice president investments Victor Nolletti, IPA senior vice president investments Steve Witten, and Jacob Levy, a Marcus & Millichap first vice president investments, advised the seller, Horizon at Ridge Hill. Nolletti, Witten and Levy also advised the buyer, UOB Eagle Rock Multifamily Property Fund. J.D. Parker, first vice president in Marcus & Millichap’s Manhattan office, was the firm’s broker of record.

Monarch at Ridge Hill was built in 2007. The mid-rise steel asset features high-quality luxury interiors. It is within walking distance of a Whole Foods.

Beech Street provides $36.5M for Alabama apartments

Birmingham, Ala.—Beech Street Capital has provided $36.5 million in FHA 223(f) loans to refinance The Oaks at Lakeshore and The Oaks of St. Clair, two multifamily properties located in Birmingham, Ala. This was the borrower’s fifth transaction with Beech Street. The fixed-rate loans have a 35-year term with 35 years of amortization.

The two assets were developed in 2001 and 2002. Proceeds from the loans will let the borrower retire existing debt, complete all critical and non-critical repairs, cover closing costs, and recoup equity investment.

“Both transactions illustrate Beech Street’s ability to apply our expertise in the FHA space for our client’s benefit,” says Chad Hagwood, executive vice president of loan originations in Beech Street’s Birmingham office. “For Oaks at Lakeshore, Beech Street was able to negotiate an increase in mortgage proceeds while the transaction was in review at HUD, and although occupancy at Oaks at St. Clair fluctuated while the deal was in process, Beech Street was able to secure the loan proceeds requested by the borrower.”

The Oaks at Lakeshore consists of 266 units and is situated on over 19 acres of land. It is comprised of 11 residential buildings of three and four stories, as well as a clubhouse building. The clubhouse/leasing office building contains a kitchenette, fitness center, theater room, cyber café, visitor restrooms and adjacent in-ground swimming pool. Additional amenities include a picnic area, dog park, car center, playground and tennis court.

The Oaks at St. Clair consists of 192 units and is located east of Birmingham, in the bedroom community of Moody, Ala. The property is well situated to retail and employment transportation access. It consists of eight residential buildings, five garage buildings containing 30 garage bays, a leasing office/clubhouse, fitness center, laundry facility, a mail center kiosk, a maintenance building with car wash bay/car care center, a swimming pool and gated entrance.


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