MIAMI—Elco Landmark Residential is on a multifamily spending spree. In a joint venture with Timbercreek Asset Management, the real estate investment firm has snapped up four multifamily properties for $95.4 million. Colonial Properties Trust sold the multifamily assets, which are located in North Carolina, Virginia and Texas and span 1,380 units. The portfolio is 95% occupied.
“The portfolio meets our investment strategy of acquiring underperforming assets that possess significant unrealized cash flow potential located in high-growth Southeast markets,” Joe Lubeck, CEO of Elco Landmark Residential, tells GlobeSt.com. “By implementing our proven renovation and repositioning program, we will be able to provide better service and quality for residents and achieve NOI growth by increasing rents and reducing expenses.”
The four properties include Colonial Village at Highland Hills, a 250-unit property built in 1987 and located in Chapel Hill, NC; Heatherwood Apartment Homes, a 476-unit property completed in 1980 and located in Charlotte, NC; Colonial Village at Canyon Hills, a 229-unit property built in 1995 and located in Austin, TX; and Autumn Hill Apartments, a 425-unit property built in 1980 and located in Charlottesville, VA.
Elco plans to rebrand each property and implement a 10-month renovation and repositioning program to improve each property’s physical structure and aesthetics. Planned upgrades include new signage, remodeled clubhouses and model units, dog park additions, café additions, Wi-Fi and business center additions, new interior lighting packages, new cabinet doors and hardware, new vinyl flooring in kitchens and baths, and new appliances and carpeting.
The portfolio purchase comes shortly after Elco acquired four multifamily properties from Equity Residential for approximately $100 million in December. In August, Elco completed a $536.5 million recapitalization transaction with Apartment Trust of America that consisted of the contribution of a portfolio of 21 apartment communities, valued at $485 million and containing approximately 6,100 apartment units. As part of taht transaction, Apartment Trust of America changed its name to Landmark Apartment Trust of America, where Elco Landmark’s Joseph Lubeck currently serves as executive chairman.