Norman, Okla.—Vesper Holdings has completed the purchase of The Cottages of Norman, a 644-bed student housing community serving the University of Oklahoma. The Cottages are one of the newest assets to hit the school’s off-campus housing market. Vesper snapped up the property in an off-market transaction, and expects to generate cash yields of approximately 10 percent per year.
“Our acquisition of The Cottages of Norman is part of a strategy to purchase well-located Class A student properties with superior risk-adjusted returns,” says Isaac Sitt, co-founder and principal of Vesper Holdings. “Since we were able to acquire this asset at a discount, we are in a position to invest necessary capital and offer this market-leading property at competitive rental rates.”
Vesper is planning to invest approximately $500,000 in capital expenditures into the property to improve curb appeal, upgrade amenities and add a private shuttle service to campus. The current amenity package at The Cottages includes a swimming pool, fitness center, business center, entertainment room with a gaming center, a community lounge, tanning beds, sand volley ball courts, a bocce ball court, and free Wi-Fi access.
Wisconsin Asset Trades for $29.5M
Waukesha, Wisc.—Marcus & Millichap Real Estate Investment Services has brokered the sale of River’s Edge, a 340-unit luxury community in Waukesha, Wisc. The firm represented both the seller, a Waukesha-based developer, and the buyer, an affiliate of Mandel Group Inc., in the $29.5 million transaction. Grandbridge Real Estate Capital originated and closed a first mortgage loan of more that $20 million for the acquisition.
“The property is a signature award-winning multifamily asset located in Waukesha County, the most sought-after county in Wisconsin,” says Matthew Whiteside, a vice president of investments at Marcus & Millichap’s Milwaukee office. “Occupancy in the submarket is 98 percent and during the past six months, the average occupancy at River’s Edge has been 99.4 percent.”
The 310,679-square-foot property was constructed in phases in 1993, 1995, and 2007. There are 11 floor plans with monthly rents ranging between $610 to $1,195. Community amenities include a fitness center, community rooms and underground parking.
Transwestern arranges sale of distressed 1,038-unit portfolio by lender
Houston—Transwestern’s Houston headquarters today announced that its multifamily services group has completed the sale of the Cranbrook Portfolio, a 1,038-unit portfolio including the Polo Club Apartments, Monticello Apartments and Timbers Apartments. Ed Cummins and Clint Duncan of Transwestern represented the seller in the transaction.
Located on Ella Boulevard in Houston, the three properties span across 33 acres and were 87.7 percent occupied at the time of sale. The largest of the complexes is the Polo Club Apartments with 520 units, followed by Timbers Apartments with 274 units and Monticello Apartments with 244 units.
The transaction was a distressed asset sale on behalf of the lender, and the portfolio was purchased for an undisclosed amount by a private investor from California.
“We received 17 offers, and the purchaser was chosen based on their extensive affordable housing experience,” Cummins said. “The sale represents a turning point for affordable housing properties in Houston. Improving operations and the increased availability of debt are making these assets a very attractive investment.”