DOWNINGTOWN, PA-GMH Associates has acquired Meadowlake Apartments, a 376-unit rental property at 500 Meadowlake Dr. According to the Newtown Square-based company's website, it paid $36 million, or $95,745 a unit. The seller is unidentified. The buyer plans to invest $3 million in upgrades that include construction of a clubhouse and new roofing, vinyl siding, landscaping, lighting and signage.

The price per unit is significantly higher than the overall median selling price for multifamily properties throughout the Greater Philadelphia MSA. Data from the area office of Marcus & Millichap projects a median of $58,500 a unit for mid-year 2006.

Meadowlake was constructed in 1975 and is currently 97% occupied. It consists of 23 two-story buildings on 43 acres. There are 228 one-bedroom, 112 two-bedroom and 36 three-bedroom units. Each has a patio or balcony and wood-burning fireplace. According to a published listing, rental rates range from $830 a month for a one-bedroom to $1,155 a month for a three-bedroom unit. Gary M. Holloway Jr., president of Newtown Square-based GMH Capital Partners, an affiliate of GMH Associates, says the improvement plan "will position this property as one of the premiere apartment communities in its market." A call to GMH Capital was not returned by deadline.

GMH Capital Partners owns, develops and manages income-producing properties, and class B multifamily assets are a focus of its acquisitions. It is a private company, independent of GMH Communities Trust, which is a publicly traded REIT, also based in Newtown Square, which focuses on student and military housing and is headed by Gary Holloway Sr, chairman, president and CEO. As previously reported, the REIT is currently conducting a "tone at the top" investigation and the CEO is exploring the potential of acquiring the company.