TODAY’S DEALS: Vesper Holdings Acquires 506-Bed Michigan Student Housing

Vesper Holdings acquires a 506-bed student-housing community close to the University of Michigan; Phoenix-Orbach JV acquires a $46.5 million portfolio; and Kennedy Wilson closes a $63.8 million refinancing for its Japanese subsidiary.

Woodland Mews

Ann Arbor, Mich.—Vesper Holdings has acquired the 233-unit, 506-bed Woodland Mews Apartments & Townhomes in Ann Arbor, Mich. The community is in close proximity to the University of Michigan’s main campus. The asset was purchased for a price well below replacement cost in an off-market transaction. Vesper expects the property to generation net cash yields exceeding 14 percent per annum.

“Our acquisition of Woodland Mews is part of a strategy to invest in well-located student housing assets with stable, growing flows in high barrier-to-entry university markets,” says Isaac Sitt, co-founded and principal of Vesper Holdings. “Since we were able to acquire this asset in off-market transaction at a substantial 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 over $1 million in capital expenditures into the property, improving the properties exterior and technology offerings. Community amenities include a swimming pool, hot tub, fitness center, and 24 acres of parkland with trails and a lake. The asset is currently 100 percent occupied.

Phoenix, Orbach acquire a 472-unit portfolio in New Jersey

Neptune, N.J.—Phoenix Realty Group and The Orbach Group have purchased three properties in New Jersey totaling 472 units. The properties, which are located in Neptune, South River and Long Branch, were purchased from AIG for $46.5 million. The transaction comprised a portion of AIG’s larger transaction that involved three addition properties that were sold to Vantage Properties and Angelo, Gordon & Company.

The New Jersey portfolio consists of Jumping Brook Apartments in Neptune (308 units in 28 buildings), Leonardine Gardens in South River (140 units in eight buildings) and the fully occupied Marine Gardens on the oceanfront in Long Branch (24 units in two buildings).

“These value-added assets are a perfect match for our targeted real estate investment funds that in the past two years have acquired nearly 1,500 rental units in New Jersey valued at more than $130 million,” says Edward Ratinoff, PRG managing director.

“These properties are of great intrinsic value, which is our first priority in deciding upon and acquisition,” says Orbach. “Geographically, they complement our exisiting portfolio of 4,000 units across New Jersey, New York and Pennsylvania. We know from our past experience that PRG and Orbach work well together in these types of ventures, and our tenants and both firms will benefit from the transaction.”

Kennedy Wilson closes $63.8M refinancing for Its Japanese portfolio

Beverly Hills, Calif.—Kennedy Wilson’s Japanese subsidiary has refinanced part of its multifamily portfolio in the amount of $63.8 million at an interest rate of 1.7 percent, fixed for five years. Mitsubishi Tokyo UFJ Bank provided the financing.

“We are pleased with the strong relationships that we have with all three of Japan’s megabanks, including Mitsubishi Tokyo UFJ, SMBC and Mizuho,” says Mary Ricks, executive vice chair of Kennedy Wilson. “Our ability to secure these rates from the country’s top banks is a testament to the quality of our assets and stable cash flow.”

Kennedy Wilson has been an active player in Japanese real estate since 1992. In 2002 the firm became one of the first U.S. real estate firms to go public in Japan.

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