LAFAYETTE, LA-A private partnership from Yonkers is continuing its local buying spree, acquiring the 304-unit Peppertree Apartments for $18.62 million. The 25-year-old complex has sold at a 7.1% cap rate.

Matt Heininger, vice president with Apartment Realty Advisors' Austin, TX office, says JTS Realty Services LLC of Baton Rouge and the buyer's previous business dealings, specifically the 369-unit Gates at Citiplace in Baton Rouge, helped to shore up the win for 1000 Robley Dr. Heininger, who represented JTS in the transaction, tells GlobeSt.com that Peppertree had been under contract earlier in the year to a different buyer, but it fell out during the escrow period.

The 98%-leased Peppertree Apartments is the buyer's third asset in the city. Earlier this year, a pair of off-market transactions netted the 208-unit Audubon Lake at 1019 Kaliste Saloom Rd., about two miles northeast of Peppertree Apartments, and the 180-unit Chateau Des Lions at 6000 Johnston St., which is less than a mile to the west of Peppertree.

"For the buyer, having the multiple properties obviously gives them sufficient operating efficiencies," Heininger says. "This buyer is very optimistic about the Louisiana multifamily market."

The new owners plan to make some improvements to the class B asset, but Heininger says a major renovation for the complex isn't in the cards. "The nice thing about this property for all the buyers who looked at it was the interior amenities package," he points out. "There were crown moldings and recessed lighting throughout as well as built-in washers and dryers. The only thing the owner needs to do is update."

Situated on 10 acres, Peppertree Apartments has one- and two-bedroom units, measuring from 598 sf to 1,010 sf. The monthly rent is $670 to $945.