TODAY'S DEALS: Waterton Acquires Class A Dallas Portfolio

Waterton Residential continues its national acquisition spree with three upscale Dallas communities; HFF closes the $90 million sale of a high-rise in Chicago; and Beech Street provides a $9.4 million loan to acquire rent stabilized apartments.

Vue Fitzhugh

Dallas—Waterton Residential has continued its national acquisition spree with the purchase of 592 upscale units in Dallas. The three-property portfolio was originally developed by Inland American Communities and includes: Vue Fitzhugh, Vue Greenville and Vue Live Oak. The three institutional-quality properties total 503,775 square feet of leasable space.

“Waterton is excited to add such a high-quality group of assets to our growing portfolio,” says Matt Masinter, senior vice president of acquisitions at Waterton. “The Vue portfolio offers the unique combination of post-2000 vintage construction with value-added potential and a strong infill Dallas location.”

—Vue Fitzhugh is comprised of 226 units situated on a 3.6-acre plot in Dallas’ Knox-Henderson entertainment district. Amenities feature a resident lounge, fitness center, Internet café, swimming pool, outdoor fireplace, barbecue grilling area, parking garage and controlled access entry.

—Vue Greenville is a 2006-built property comprised of 128 units situated on 3.7 acres in the Greenville entertainment district in Dallas. Amenities include a fitness center, swimming pool, outdoor lounge, barbecue area, parking garage and controlled access gate.

—Vue Live Oak is a 2003-built property comprised of 238 units situated in four separate three-story buildings that are arranged on 3.6 acres near the Dallas CBD and Deep Ellum neighborhood. Amenities include a resident lounge, fitness center, swimming pool, barbecue area, parking garage and controlled access.

The portfolio was acquired as part of Waterton Residential Property Venture XI, a $500 million discretionary multifamily investment fund that was recently used to pick up a 288-unit asset in Austin and a 394-unit community in Kissimmee, Fla.

HFF closes $90M sale of Chicago high-rise

77 West Huron

Chicago—HFF (Holliday Fenoglio Fowler LP) has closed the sale of 77 West Huron, a 304-unit, 25-story luxury high-rise in Chicago’s River North neighborhood. HFF marketed the property on behalf of the seller, Archstone. The asset was picked up by L&B Realty Advisors for $90 million, free and clear of existing debt.

77 West Huron is located within walking distance of “The Magnificent Mile” and CTA train and bus service. The tower features one-, two- and three-bedroom units that range in size from 536 to 2,862 square feet. There is an amenity space on the 25th floor that features an indoor heated pool, sauna, exercise room, locker rooms and sundeck with lounge and grill.

The HFF investment sales team representing Archstone was led by executive managing director Matthew Lawton and managing directors Marty O’Connell and Sean Fogarty.

Beech Street provides $9.4M loan to acquire rent-stabilized apartments

Staten Island, N.Y.—Beech Street Capital LLC announced it has provided a $9.4 million Freddie Mac CME loan for the acquisition of Trantor Place Apartments, a 178- unit, rent-stabilized property located in Staten Island, N.Y.

The transaction was originated by Meridian Capital Group LLC and was financed by Beech Street Capital as part of its correspondent relationship with Meridian.

Key to the transaction was the borrower’s plan to invest over $700,000 in capital improvements to the asset after purchase. The improvements, planned over the next two years, will further enhance the rent-stabilized property, which contributes to quality housing in the New York market. “Given the importance of maximizing proceeds, we chose to engage Freddie Mac, who structured the deal to include the borrower’s cap ex budget along with closing costs,” comments Mike Edelman, senior vice president of Beech Street Capital. “Freddie offered us 85 percent of the cost to purchase, which included the $700,000 in capital enhancement funds that were escrowed at closing.”

Barry Lefkowitz, the Meridian mortgage finance advisor on the transaction, was pleased. “Although the financial markets remain volatile, Beech continues to beat the competition in rate, structure and service,” states Lefkowitz.

Built in 1964-1966, the garden-style apartment complex is comprised of 16 three-story buildings situated on 5.7 acres. The fixed-rate loan has a term of 10 years with two years interest-only.

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