DALLAS—Encore Multi-Family LLC has sold its Denver apartment community, which it developed in 2012, and recapitalized seven others throughout the Southwest. The combined value of the sale and recap was $175 million, including the $40.8-million sale of Encore Highpointe Park in the Denver suburb of Thornton, CO to Asher Investments.
A spokeswoman for Encore Multi-Family, a division of Dallas-based Encore Enterprises, tells GlobeSt.com that the recap entailed the acquisition of the seven apartment complexes by a partnership comprised of Encore and a major pension fund advisor which prefers not to be identified. The loans were assumed by the new partnership and all were financed under the HUD 221(d)(4) program.
The properties in the combined sale and recap total 1,612 units, including the 221-unit Encore Highpointe. The other seven properties are in the Texas communities of Burleson, Temple, Texarkana and Corpus Christi; Tulsa, OK and Thibodaux, LA.
“The recapitalization and sale provides a stronger financial foundation for the company going forward and is an important part of Encore’s business strategy,” says Bharat Sangani, chairman of Encore Enterprises and its founder in 1999. “The additional liquidity obtained will enable the company to continue working towards its operational and financial goals and towards enhancing long-term value.”