TODAY’S DEALS: Security Properties Acquires 78-Unit Mixed-Use Apartment
Security Properties acquires a 78-unit apartment building for $15 million; Essex Property Trust issues $150 million of senior unsecured notes; and ARA brokers sale of Texas asset.
Tacoma, Wash.—Security Properties Inc. has acquired a recently constructed 78-unit, Class A, mixed-use community in Tacoma, Wash. The building, called Chelsea Heights, was purchased for $15 million in an off-market REO deal with a Seattle area bank.
“Our longstanding expertise as a multifamily leader, strong balance sheet and trusted industry relationships have allowed us to source and secure key acquisitions in the marketplace such as the Chelsea Heights Apartments,” says David Dufenhorst, chief investment officer of Security Properties. “We continue to aggressively pursue strategic opportunities to buy quality multifamily buildings in desirable locations.”
Chelsea Heights was completed in 2010. It is located on the corner of 6th Street and J Street in downtown Tacoma. The building features underground parking and 19,000 square feet of street-level commercial space. Just blocks from two hospitals and Wright Park, the property has easy access to employment centers and recreation. Chelsea Heights represents the company’s most recent Tacoma market deal since purchasing the 241-unit Rainier Point Apartments in December 2007.
Essex Property Trust completes $150M private placement unsecured bond offering
Palo Alta, Calif.—Essex Property Trust Inc. has completed a debut issuance of $150 million of senior unsecured notes. The private placement carries a 5-year term with a maturity date of March 31, 2016. Proceeds will be used to repay a portion of the company’s outstanding indebtedness under its $275 million unsecured line of credit, and for general corporate purposes.
“We are pleased with the results of our debut unsecured bond transaction,” says Michael J. Schall, president and chief executive officer of Essex Property Trust. “Not only is this transaction a testament to Essex’s strong credit profile, but it also provides an important new financing alternative that can help lower our overall cost of capital.”
Essex Property Trust is a fully integrated real estate investment trust that currently has ownership interests in 147 apartment communities, with two additional properties in development.
ARA brokers sale of Killeen, Texas, asset to national investment group
Killeen, Texas– ARA arranged the sale of the Arbors of Killeen Apartments in Killeen, Texas. On behalf of ARA’s Secondary Markets team based in Austin, Texas, Kelly Witherspoon and Jeff Patterson represented the seller, an Arlington, Texas-based private investor.
Place Properties, an Atlanta, Georgia-based national investment group, focusing on off-campus student housing and luxury off-post housing near major military installations, purchased the property for an undisclosed price.
“Arbors of Killeen is a well-located community off of Highway 190, the area’s main thoroughfare, near all the major employers and retailers,” says Kelly Witherspoon. “The property’s excellent location and the continued growth of the Central Texas area, including Fort Hood, Texas A&M–Central Texas, among others, were all important factors related to the purchase of the community by the buyer.”
“The Arbors of Killeen was well maintained by the seller, and the buyer intends to bring the community to a different level with several upgrades planned for the community,” adds Witherspoon. “They have had success doing this in the past, and the Arbors will help complement the Class ‘A’ community they already own closer to the base.”
“We believe in the Central Texas region and its long-term fundamentals moving forward,” states Jeff Patterson. “The area will continue to benefit from the troops and respective family members in Killeen, as well as other businesses opening or expanding their footprints, helping to diversify the market and add jobs at the same time.”
Arbors of Killeen is located at 2801 O. W. Curry Drive in Killeen, Texas. Built in 1996, the 160-unit property offers one, two and three bedroom floor plans averaging 768 square feet. Property amenities include beautifully landscaped and wooded grounds with pool and fountain, 24-hour fitness room, 24-hour laundry care center, community center with Internet Café, playground, picnic areas, and a limited access gate system. Unit amenities include washer/dryer connections, fully equipped kitchen, ceiling fans, walk-in closets, built-in desk and shelving, vaulted ceilings, covered patio, private locking storage, and covered parking.
