TODAY'S DEALS: Morgan Properties Buys 192-Unit Community Near Philadelphia
Morgan Properties buys a community for $31.4 million; Holliday Fenoglio Fowler secures financing for a student housing asset; and Lee & Associates transacts a $7.8 million sale.
King of Prussia, Penn.—Morgan Properties has completed the joint venture acquisition of Abrams Run Apartments, a 192-unit property located in King of Prussia, Penn. The transaction price was $31.4 million.
“The purchase of Abrams Run Apartments is a natural fit with our current portfolio of over 8,500 apartment homes in suburban Philadelphia,” says Mitchell Morgan, founder, president and chief executive officer of Morgan Properties. “With this acquisition, Morgan Properties enhances its reputation as the best solution for residents who wish to live in a great community in the heart of Montgomery County.”
The property was built in 1996 and consists of 48 one-bedroom units and 144 two-bedroom units situated in garden-style buildings. Amenities at the Class A property include a fitness center, tennis and basketball courts, community courtyards, and in-unit washers and dryers.
HFF secures financing for 253-unit student housing asset
Indianapolis, Ind.—Holliday Fenoglio Fowler has secured financing for 1201 Indiana Townhouses & Apartments, a 253-unit, 667-bed Class A student-oriented community located near Indiana University-Purdue University Indianapolis. The services firm worked on behalf of a joint venture between Trinitas Ventures and Harrison Street Real Estate Capital in landing permanent financing that replaces the borrower’s original construction bank loan.
The property was completed in 2011. Community amenities include a pool with sundeck, a clubhouse, fitness center, tanning beds, security, and shuttle service to and from the university.
Lee & Associates transacts $7.8M sale of rent-controlled property
Winnetka, Calif.—Jeff McGuire, a principal with Lee & Associates-LA North/Ventura Inc., represented the buyer and seller in the sale of Wood Creek Apartments for $7.8 million. The 71-unit property, at 20311 Sherman Way in Winnetka, Calif., sold at $161 per square foot, and a GRM (gross rent multiplier) of 9.26.
“The per-square foot price and GRM achieved are very high for a rent-controlled property in this market,” says McGuire. “But we believe that the current, below-market rents and the value add opportunity this asset affords warranted the purchase price.”
The building, which was 100 percent occupied at the time of the sale, includes a mix of 9 bachelor/1 bath, 45 1-bedroom/1 bath, 12 2-bedroom/1 bath, and 5 2-bedroom/2 bath units. The property sits on a signalized corner and includes 142 parking spaces with secured access.
The buyer 4400 Troup Hwy, LP acquired the property in a 1031 Exchange. The seller was IFT Properties LLC. This is the third time that McGuire has transacted the sale of the building.
