Northland is the majority owner of the new entity, with a 77.5%controlling interest. Tarragon will hold the balance. The companieslast worked together in December when Northland Investment bought alarge portfolio in Florida from Tarragon.

According to Steven P. Rosenthal, Northland's CEO, the idea tocombine the firms' multifamily assets made sense. "Our businessesoverlap in several markets, including Connecticut and Florida," heexplains. "We came up with the idea that combining our multifamilyassets would create a bigger and stronger platform that couldaccess capital more easily and continue to grow into a much largerentity. The portfolio's concentration in our core markets is prettystriking." He points out that the JV is staring out as one of theTop 50 multifamily owners in the country. "That position allows usto access capital and acquire assets that we would not have beenable to prior to the deal," he adds.

Northland Properties currently has 83 communities in a dozenstates, with concentrations in Florida, Connecticut, Massachusetts,North Carolina, Texas, Tennessee and Arizona. Rosenthal says the JVintends to grow aggressively, acquiring market-rate rental productin key growth markets such as Charlotte and Raleigh, NC and Austin,TX as well as markets in which they already have a presence. Theentity will also pursue value-add opportunities.