TODAY’S DEALS: Onex, New York Life Insurance Sell 1,056-Unit Portfolio

Wellington Apartments

Iowa, Illinois & Indiana—A partnership between Onex Real Estate Partners and New York Life Insurance Asset Management has sold a 1,056-unit portfolio in the Midwest for $58 million. IPA and Marcus & Millichap brokers closed the deal. Fireside Financial was the buyer. The properties include:

• Wellington Apartments (420 units) — West Des Moines, Iowa. Built in 1991, amenities include a pool with sundeck, fitness center, covered garages and a clubhouse.
• Seven Oaks Apartments (312 units) — Peoria, Ill. Built in 1976 on 18 acres, the asset features units that average 827 square feet in size. Amenities include two pools, a sun deck, a clubhouse and a fitness center.
• Wildwood Village Apartments (324 units) — Indianapolis, Ind. Asset was built in 1980 on 20 acres six miles northwest of downtown Indianapolis. Amenities include a pool with sundeck, a water feature and carports.

Seven Oaks Apartments

“Each asset in the OREP Midwest Portfolio is unique, but as a whole, the portfolio provides scale in markets where true cash-on-cash yields are achievable,” says Alex Blagojevich, senior vice president investments at Marcus & Millichap. “While cap rates in major markets across the country remain low, these three assets offer opportunities for yield. Each property can deliver an immediate cash-on-cash return and all three possess upside potential via operational stabilization and income maximization.”

IPA’s Peter Von Der Ahe and Scott Edelstein, along with Marcus & Millichap vice presidents investments Alex Blagojevich and David Gaines, represented the seller, a partnership between Onex Real Estate Partners and New York Life Insurance Asset Management. Von Der Ahe, Edelstein, Blagojevich, Gaines and associates Greg Gonzalez and Wes Sheets represented the buyer.

Wellington Apartments was built in 1991.

Kalikow, EYC Cos. JV sells North Carolina asset for $14.3M

Ashbury Square

Mebane, N.C.—A joint venture between The Kalikow Group and EYC Companies has sold Ashbury Square, a 192-unit apartment community located in Mebane, N.C. A Chicago-based investor purchased the asset for $14.3 million. Jim Scofield of Apartment REP was the seller’s broker, and a Monty Ridenhour represented the buyer. The joint venture bought the site back in 2005, and delivered the community in 2007.

“We were pleased to work with our joint venture partners in developing the Asbury Square apartments and taking the community to near full occupancy,” says Ed Kalikow, CEO of The Kalikow Group. “This is undoubtedly a thriving area and an emerging market, with a wide variety of new retail development to support this centrally-located, Class A multifamily property. There remains plenty of opportunity to attract and retain solid tenants in this 96 percent leased community, and the buyer has acquired a valuable asset.”

The 17-acre community also includes 41 detached garages, a clubhouse, swimming pool, playground, gym and laundry facility. Mebane is convenient to both the Research Triangle and the Piedmont Triad regions, and located between the cities of Raleigh and Greensboro, N.C.

EverBank funds $2M loan for acquisition of six-apartment property

Chicago—EverBank Commercial Real Estate recently funded a five year, $2 million loan used for the acquisition of a mixed use retail/multifamily transaction in the Lincoln Park neighborhood of Chicago. The property is 10,325 ft2 and the loan-to-value ratio was 67 percent.

The property is 100 percent occupied mixed-use consisting of six recently constructed condominium quality apartments, a climate-controlled parking garage and one commercial space (home to a chiropractor). Each three-bedroom/two-bath apartment has luxury, high-end finishes and appliances. The European kitchens include a laundry closet, custom wood cabinets and Wolf and Sub-Zero appliances.