TODAY’S DEALS: Post Sells Atlanta Apartment Property, Refinances Two More, and Other Transactions
By Scott Baltic, Contributing Editor, Commercial Property News and Anuradha Kher, Online News EditorAtlanta–It’s only Wednesday and already it’s been a big week for upscale multifamily developer Post Properties of Atlanta. The REIT has sold its 250-unit Post Oglethorpe apartment community in Atlanta’s Brookhaven area for $38.5 million and has refinanced two apartment complexes held…
By Scott Baltic, Contributing Editor, Commercial Property News and Anuradha Kher, Online News EditorAtlanta–It’s only Wednesday and already it’s been a big week for upscale multifamily developer Post Properties of Atlanta. The REIT has sold its 250-unit Post Oglethorpe apartment community in Atlanta’s Brookhaven area for $38.5 million and has refinanced two apartment complexes held in joint ventures. In addition, two of the big three credit rating agencies recently had some news for the company.In June, citing difficult market conditions, Post had announced that it was ending its five-month effort to be acquired, having received some inquiries but no definitive proposals. One of the options for enhancing the shareholder value that the company described at the time was asset sales.The garden-style Post Oglethorpe community was built in 1994 and consists of units averaging about 1,150 sq. ft. Post anticipates reporting a gain of about $23 million on the sale, according to a prepared statement. The buyer was not disclosed. The refinance involves two five-year, fixed-rate, interest-only mortgage loans with Fannie Mae, for the Post Biltmore community in Atlanta and the Post Massachusetts Avenue community in Washington, D.C., each of which is held in an unconsolidated joint venture in which Post holds a 35 percent interest. The Post Biltmore mortgage loan has a principal amount of about $29.3 million and a rate of 5.83 percent, and the Post Massachusetts Avenue mortgage loan has a principal amount of about $50.5 million and a rate of 5.82 percent.Finally, Post also announced that Moody’s Investors Service and Standard & Poor’s last week had affirmed its senior unsecured credit ratings of Baa3 and BBB, respectively. Moody’s also revised the rating outlook to stable from developing for Post Properties Inc. and Post Apartment Homes L.P., and S&P removed the company from Credit Watch while changing its outlook to negative. These rating affirmations and outlook changes followed Post’s announcement regarding its unsuccessful attempt to be acquired.Collwood Pines Apartments Sold for $25.56MSan Diego–Sterling Collwood LP recently purchased the 163-unit Collwood Pines Apartments (pictured) from Collwood Pines Apartments LP for $25,565,000.Located in the San Diego State University area at 4929-4949 Collwood Blvd., the property features studios, one- and two-bedroom units with each apartment featuring a private balcony or patio, dishwasher, large closet and breakfast bar. The project consists of six three-story buildings totaling approximately 116,400 sq. ft. It also includes a swimming pool, hot tub, fitness center, sauna, garages and covered carports.The buyer intends to redevelop the project into a new, state-of-the-art 260-unit rental community for the college area. HFF Secures $8.8M in Financing for 328-Unit Multifamily CommunityAmarillo, Texas–The Houston office of HFF (Holliday Fenoglio Fowler L.P.) has secured an $8.8 million financing for Foxfire Apartments, a 328-unit multifamily community in Amarillo, Texas.HFF placed the two-year, adjustable-rate loan with Wrightwood Capital and loan proceeds are being used to acquire and renovate the property. Foxfire Apartments is located at 4101 West 45th Ave., less than one mile west of Interstate 27 in southwest Amarillo. The property was completed in two phases and has 41 two-story residential buildings totaling 290,264 sq. ft. Community amenities include two swimming pools, sun deck, playground, clubhouse and covered parking.