TODAY’S DEALS: JTL Real Estate Partners Buys 1,397-Unit Portfolio

JTL Real Estate Partners buys a four-state portfolio; Behringer Harvard completes the sale of a 560-unit community in Florida; and ARA closes a 224-unit sale in Houston.

JTL Real Estate Partners Buys 1,397-Unit Portfolio

Estancia at Vista Ridge

Texas, Kansas and Tennessee—JTL Real Estate Partners, a Kansas City-based development and management company, has completed its purchase of a 1,397-unit apartment portfolio from Georgia-based Flournoy Development Co. in a deal brokered by ARA. The portfolio was comprised of The Vineyards, a 396-unit asset in Katy, Texas; Sandstone Creek, a 364-unit asset in Overland Park, Kan.; Stoneridge Farms, a 364-unit asset in Nashville, Tenn.; and Estancia at Vista Ridge, a 300-unit asset in Lake Lewisville, Texas.

Stoneridge Farms at the Hunt Club

“The sale of the portfolio was a win-win for the buyer and seller,” says ARA’s Brian O’Boyle. “The seller is an award-winning developer and manager of multifamily commercial properties throughout the United States and the buyer is an established owner/operator who recognized the outstanding locations and their significant upside potential.”

All four properties were built in the early 2000s and were free of deferred maintenance.

Behringer Harvard Sells a Florida Community

Parrot’s Landing

North Lauderdale, Fla.—Behringer Harvard has completed its sale of Parrot’s Landing, a 560-unit multifamily community located in North Lauderdale, Fla. The buyer was a Toronto-based real estate investment company. Terms of the sale were not disclosed.

“Parrot’s Landing is an excellent example of our investment strategy at work, from acquisition to disposition,” says Michael O’Hanlon, chief executive officer of Behringer Harvard Opportunity REIT II Inc. “We acquired it at a compelling basis and have been pleased with its performance in terms of sustained occupancy and net operating income, which exceeded expectations.”

The community comprises 24 three-story residential buildings constructed in two phases, three swimming pools, a fitness center, car-care center, and a lighted tennis court. The asset is located within 12 miles of major employment centers including downtown Fort Lauderdale.

Behringer Harvard purchased the property in the fall of 2010 in a joint venture with Grand Peaks Property Management for $42 million.

ARA announces sale of Class B asset on a stabilized cap rate

Houston—ARA announces the sale of Silver Leaf, a 224-unit, Class B apartment community located in Houston.

ARA Houston-based Principal David Wylie, along with Vice Presidents, Zach Springer, Russell Jones and Matt Saunders represented Philadelphia-based Resource Real Estate, a national firm specializing in opportunistic and value-add investing in, and financing of, commercial real estate assets with a particular emphasis on multifamily properties, in the sale.  Besyata Investment Group, a real estate investment company based in Brooklyn, N.Y., and an existing client of ARA, was selected as the buyer.

According to David Wylie, “Silver Leaf represents one of the first few ‘full circle’ success stories in Houston. The seller purchased the distressed note on Silver Leaf, invested a great deal of capital and time in renovating and stabilizing the asset, and the new buyer purchased Silver Leaf on a stabilized cap rate. For the past few years, most of the buyers of this vintage asset have wanted to buy the opportunity with upside, and not the stabilized asset with a cap rate. We are starting to see a trend of success stories on full-circle stabilized Class B deals. The key to our success on this particular deal was a relationship with the right buyer which was only possible because of the size and the quality of our team and their relationships.” Besyata was an existing client of ARA, they own eight other assets in Houston, and they plan to operate the asset on a long-term basis.

Constructed in 1977 and refurbished in 2001, Silver Leaf is located in the Sharpstown/Westwood submarket in Houston, and a mile from two of Houston’s largest employment centers, The Galleria/Uptown Park and the Westchase District. The property was 95 percent occupied at the time of the sale.

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