TODAY'S DEALS: Pivotal Group Acquires 21 Communities in Texas

Pivotal Group Inc. completes a joint venture acquisition of 21 communities in Texas; NewGate Capital introduces a new fund aimed at the redevelopment of mixed-use projects in Central Florida; and ARA announces the sale of a 350-unit Class-A apartment community in Raleigh, N.C.

Midland, Odessa & Longview, Texas—Pivotal Group Inc. has completed the joint venture acquisition of 21 apartment communities located in Midland, Odessa and Longview, Texas with an institutional investor. The portfolio totals over 3,200 units. The properties were sold by TRA Midland Properties LLC in an off-market transaction. The purchase price was not disclosed.

“It is our intent to position these properties as the premier workforce and lifestyle communities in their respective markets,” says Francis Najafi, founder of Pivotal Group. “We have an excellent team of professionals helping us with the portfolio; asset management will be provided by an affiliate of Pivotal with property management services provided by Orion Residential Management.”

Grubb and Ellis represented the seller in the transaction. Arrangement for assumption of the existing Fannie Mae debt was made by Arbor Commercial Mortgage.

NewGate introduces fund for Central Florida redevelopment projects

Daytona Beach, Fla.—Central Florida private equity firm NewGate Capital Partners and its venture capital partner, White Challis Redevelopment, have launched NewGate White Challis Urban Redevelopment Fund.

The fund with enable the redevelopment of underutilized historic properties in central and southeast Florida. The line will target mixed-use projects, the renovation of vacant buildings for residential or mixed-uses and the construction of urban townhomes in downtown neighborhoods.

“Public-private development is a catalyst for economic stimulus for our region,” says Larry Walker, founding partner at NewGate Capital Partners. “This fund provides immediacy for redevelopment of affordable and livable housing. Our goal is to revitalize existing mixed-use downtowns to create jobs and community enhancement.”

The NewGate While Challis Urban Redevelopment Fund has shovel ready projects lined up and ready to initiate. The group anticipates construction could begin as early as spring 2012.

ARA’s Carolinas team executes $45M sale of Class-A asset to Colonial Properties

Raleigh, N.C.—Atlanta-headquartered ARA announced the sale of Highlands at Brier Creek , a 350-unit Class-A apartment community located in the affluent Brier Creek planned residential community, in Raleigh, N.C.

ARA Charlotte, N.C.-based brokers Blake Okland, Dean Smith and Sean Wood represented Boca Raton, Fla.-based The Altman Companies, one of the nation’s premier luxury apartment developers and managers.

The community was acquired by Birmingham, Ala.-based Colonial Properties Trust for $45 million or $128,571 per unit. The REIT, which owns and/or manages 34,369 apartment units and 13.3 million square feet of commercial space, has renamed the property Colonial Grand at Brier Falls.

According to ARA’s Okland, “The Raleigh/Durham apartment market is one of the top target markets for investment in the U.S. With nearly 7,500 units absorbed over the past two years in the face of the slowest delivery pipeline since before the bust, the market has reached a 10-year high in occupancy for stabilized product.. Properties built between 2006 and 2010 have fared the best of any stabilized age group with 7.2 percent annualized same-store rent growth over the last 6 months and 5-7 percent annual growth projected for the next two years. The transaction represents an attractive going in yield and an opportunity to participate in one of Raleigh’s strongest growth markets. The property was well received by the market and new ownership is sure to benefit from the exciting growth prospect expected from the entire MSA.”

The community was built in 2008 and was 94 percent occupied at the time of acquisition. The community is located in Raleigh’s premier Brier Creek master planned community and features spacious floor plans, upgraded kitchen appliances, designer cabinetry and countertops, a cabana with grilling area and a cascading waterfall surrounding the pool.

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