BATON ROUGE, LA-Mount Auburn Capital Group has entered Louisiana generally and Baton Rouge specifically with its buy of the class A Tuscany Villas. The Las Angeles investor paid $30.2 million to local seller New Hope Investors, and in return obtained a five-year-old, 274-unit multifamily property with an occupancy of 96%.
Located at 10732 S. Mall Dr., Tuscany Villas was widely marketed by Gregg Cordaro of Hendricks-Berkadia’s local office. According to Daniel Hsu with Mount Auburn Capital, the buyer wanted a quick close, and his company was in the position to provide it. “We were able to close in less than 30 days,” Hsu tells GlobeSt.com. KeyBank provided the financing.
Hsu says Mount Auburn Capital is looking for yield for its investors, but that wasn’t the only attraction of Tuscany Villas. “We liked the marco view and demographic trends in the southeast,” Hsu acknowledges. “I was pleasantly surprised to see how strong the local market was, both from an unemployment standpoint and median household income.” The location was also appealing, situated near downtown Baton Rouge and the campus of Louisiana State University. Bluestone Property Management, an affiliate of Mount Auburn Capital, will handle property management and leasing for the asset.
Hsu says Mount Auburn Capital is on the lookout for more – the sweet spot is class A deals no older than the late 1980s, in areas with strong fundamentals. The firm is planning to soon close two additional deals in Texas, and currently owns assets in Indiana, Nevada, Oklahoma and Tennessee.