PHOENIX-Hendricks-Berkadia, headquartered here, has been tapped by a court-appointed receiver to market a group of 31 apartment properties across nine states, GlobeSt.com has learned exclusively. The properties, which will be sold in three portfolios, are coming to market via a court-ordered disposition because of a civil lawsuit filed by the SEC against the ownership, Management Solutions Inc.
The availability of the apartment properties, which total 5,704 units, represent “something of an anomaly and a unique opportunity in the current investment market,” says Brent Long, Hendricks-Berkadia’s president. “This court-mandated sale is driving a large number of top-quality, operationally sound properties onto the market, where investment demand far exceeds supply. It will be exciting to market such a large number of high-end properties, as these assets will draw attention from a significant number of investors, who have been waiting and looking for such an opportunity.” Although the assets will be marketed unpriced, their combined values could approach $500 million.
The SEC brought a civil lawsuit in December 2011 against MSI, court documents show. After the SEC brought suit, Judge Bruce Jenkins of US District Court in Utah ordered the defendants’ assets and records frozen, and appointed John A. Beckstead of law firm Holland & Hart LLP as receiver.
Hendricks-Berkadia says Beckstead selected the firm to market the 31 properties on the basis of its specialization in apartment investments, national scope and integrated capital markets platform due to its affiliation with parent company Berkadia. Occupancy across the three portfolios averages 90%, and many of the properties were built in 1999 or later.
The first portfolio will comprise nine properties and more than 2,150 units located in Texas and Louisiana. Investment advisors from Hendricks-Berkadia’s Austin, Dallas-Fort Worth, Houston, San Antonio and Baton Rouge offices will market the assets in their respective local markets. The properties in this portfolio range in size from 120 to 470 units, with all properties built between 1997 and 2009.
Mark Rohr, a regional partner from Hendricks-Berkadia’s Detroit office, will head up the Midwest effort to market the eight Ohio apartment properties. The portfolio is comprised of 2,150 apartment units located within the Columbus, OH metro area.
The third portfolio includes 14 apartment properties totaling 1,400 units across Texas, Tennessee, Idaho, Iowa, Kansas, Colorado and Oklahoma. This group of properties may also be sold in smaller segments.
The marketing process will be a team effort led by George Deuillet III, partner and SVP based in Hendricks-Berkadia’s Austin, TX office. Deuillet will head up a team of 10 investment sales advisors from Hendricks-Berkadia. On the capital markets side, Ernie Katai, SVP of Berkadia, is leading a team of six mortgage bankers.