TODAY’S DEALS: Milestone Buys in Denver and Atlanta

Milestone buys two properties for a combined $78 million; Bell Partners buys an apartment community in the Baltimore-D.C. metro area; and Sabra Health Care REIT purchases a seniors housing campus in Indiana.

Denver & Atlanta—Toronto-based Milestone Apartments REIT has entered into an agreement to acquire a 384-unit property in Denver and a 316-unit asset in Atlanta. Terms call for Milestone to acquire Legacy Heights in the Denver submarket of Westminster for $50.3 million, and to grab Harbor Creek in the Atlanta submarket of Canton for $28 million. Both properties have capitalization rates in the mid 6 percent range.

“Legacy Heights and Harbor Creek are high-quality properties with high occupancy rates that fit well with our established portfolio of garden-style, multifamily apartment communities located in growing metropolitan markets throughout the southeast and southwest United States,” says Robert Landin, CEO of Milestone Apartments REIT. “The submarkets of Westminster in Denver and Canton in Atlanta have attractive employment and demographic trends, and both Legacy Heights and Harbor Creek are well situated in these respective communities to attract our target mid-market renters.”

Legacy Heights was built in 1998 and is 96 percent occupied. Harbor Creek was built in two phases in 2003 and 2007, and is currently 98 percent occupied. Both deals were funded via previously announced equity bought deal financing and the refinancing of a $228.6 million debt facility.

Bell Partners acquires apartment community in Baltimore-D.C. metro area

Greensboro, N.C.—Bell Partners Inc. announced today that, on behalf of its investors, it has acquired Reflections Apartments, a 184-unit garden-style community in Columbia, Md. The transaction closed this week. The property will be renamed Bell Columbia and will be managed by Bell Partners.

Bell Columbia is located within one of the top employment and retail corridors in the Baltimore-Washington region, and in the fifth wealthiest county in the country. The property was built in 1986 and has a long history of institutional ownership. Its units were fully renovated in 2011, and the property is currently 96 percent occupied.

There are a total of six floor plans in the community, including one-bedrooms, two-bedrooms and two types of townhouse-style plans. The average unit size is 1,021 square feet. Community amenities include a pool with sundeck, fitness center, clubhouse with WiFi lounge and nature trails. Individual units offer a variety of features including new 42’-inch maple wood cabinets, white-on-white appliances, faux-granite countertops, track lighting, four-panel doors, ceramic-tile tubs and full-size washer/dryers. Additionally, a total of 354 parking spaces are part of the asset, including 34 carports.

Nickolay Bochilo, senior vice president of Investments, says, “The acquisition of Bell Columbia represents a continuation of our investment strategy, which is to acquire high-quality properties in areas that are protected from new supply, have appealing long-term fundamentals, and where our team can add value by leveraging operating and renovation capabilities.”

To date in 2014, Bell has completed more than $230 million in apartment transactions, including the purchase of Bell Columbia.

Sabra acquires Indiana seniors housing campus

Fort Wayne, Ind.—Sabra Health Care REIT Inc. has acquired a seniors housing campus in Fort Wayne, Ind., for $23.8 million. The asset has 140 units (24 independent living units, 76 assisted living units, and 40 memory care units) and is currently 100 percent occupied.

The 2011-built asset is 100 percent occupied, and is encumbered by a HUD-insured mortgage with an outstanding principal balance of $14.1 million and an annual interest rate of 4.48 percent.

At closing, $1.1 million of the purchase price was used to repay an interim loan made by Sabra to affiliates of the Leo Brown Group, the operator of Park Place. Concurrent with the purchase, Sabra entered a triple-net master lease with affiliates of Leo Brown Group. The lease has an initial term of 15 years with two renewal options.

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