Tempe, Ariz.—Pierce Education Properties has entered into a joint investment with clients of Switzerland-based Partners Group to purchase Block 1949, a 640-bed, off-campus housing community serving Arizona State University. The property was bought for $52 million, with CMBS debt financing of $38.5 million provided by Deutsche Bank Securities Inc., and secured by Holliday Fenoglio Fowler LP.
Pierce Property Management, a division of Pierce Education Properties, will manage the gated 225-unit student property, which is located 1.5 miles from campus. Developed in 2010, the community consists of studios, two-, three- and four-bedroom units; all are fully furnished and have faux hardwood floors, granite counter tops, stainless steel appliances and wall mounted 42” flat screen TVs.
“Block 1949 is the highest quality student housing project we have seen anywhere in terms of amenities and interior unit appointments,” says Fred Pierce, Pierce Education Properties president and chief executive officer. “We are very excited to be invested at Arizona State University which is the largest and among the fastest growing universities in the country.”
Property amenities include a resort style pool, fully equipped gym, computer lounge with study rooms, sand volley ball courts, internet café with coffee bar, a game room, dog walk, and putting green.
Tikijian sells Midwest property on behalf of Aimco
Indianapolis–Tikijian Associates participated in the sale of Fisherman’s Village Apartments, a 328-unit community located on Indianapolis’ west side.
Tikijian represented the owner, Apartment Investment & Management Company (AIMCO), in the transaction. The property was marketed without an asking price. In 2008 AIMCO implemented a plan to exit many Midwest markets, including Indianapolis. Fisherman’s Village was Aimco’s last conventional property in the city and its sale marks the 13th in which Tikijian Associates has represented AIMCO in the last three years. The sale closed on Feb. 28, 2011.
Fisherman’s Village was purchased by White Eagle Property Group, a private investor based in New York. The acquisition was White Eagle’s third in central Indiana, following its 2008 purchase of Greenfield Village Apartments in Greenfield and its purchase from Aimco in November 2010 of Pebble Point, a 220-unit apartment community next door to Fisherman’s Village. Red Capital assisted the buyer in procuring a new Fannie Mae mortgage to complete the acquisition. Indianapolis-based Barrett & Stokely will manage the community.
Fisherman’s Village has a history of strong performance, with occupancy averaging near 95 percent for the past four years. Aimco completed a significant exterior rehab of the property in 2007, and the buyer plans additional capital investment in the next six months, including improvements to signage, parking areas, common halls and community amenities.
HFF secures $39.3M acquisition financing for eight-property portfolio
San Francisco—Holliday Fenoglio Fowler has secured $39.9 million in financing for an eight-property, 346-unit multi-housing portfolio in San Francisco. HFF worked on behalf of Veritas Investments, a privately held multifamily real estate development and investment management company, to arrange the five-year, fixed-rate financing through Capital Source, with the proceeds used to acquire the portfolio.
The portfolio averages 94 percent occupancy and is located within the Nob Hill, Alamo Square, Upper Market and Civic Center submarkets. HFF structured separate loans for each asset in order to provide the borrower with the most flexibility.