Goldstar Takes Condo Flats for $13M

CHARLOTTESVILLE, VA-The Goldstar Group has acquired 265 units in a 364-unit rental condominium flats-and-townhome project here called Barracks West. It acquired the complex out of receivership for $13.3 million, or $50,000 per unit, in an off-market short sale. The property was placed in receivership by Suntrust Bank late last year after the previous owner defaulted on a $22-million loan. Goldstar plans to invest $4.5 million in capital improvements and position the units as rentals.

Goldstar funded the acquisition via its affiliate Metropolis Capital Finance, which sourced the debt capital for the transaction. The acquisition included approximately $15 million of senior and mezzanine debt with the balance of the capital stack funded with equity.