"Our plans are to buy 1,500 to 2,000 units in the Southeast inthe next few years," Parker Pinkalla, analyst with Fowler, tellsGlobeSt.com. Greg Ward, vice president of acquisitions for theregion, will lead the effort for those future transactions as hedid this one, he says.

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A fixed-rate loan of $28.7 million was arranged for the ConiferCrossing property through Freddie Mac by Tucker Knight, managingdirector of Holliday Fenoglio Fowler LP Houston. HFF managingdirector Jason Nettles and associate director Megan Thompson fromthe Atlanta office represented the seller in the transaction.

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Fowler is planning $6.3 million, or $15,000 per unit, inexterior and interior improvements for the class B property thatwill raise its status to B plus or A minus, says Pinkalla. Newcabinets, floors, paint and countertops will be installed withinthe units, along with an upgrade of the amenities which include aclubhouse, pool, fitness center, playground, sand volleyball court,racquetball court and tennis courts. Post rehab, Fowler plans toraise rents from 74 cents per sf to about 80 cents per sf. Theproperty, which is currently 98% occupied, has one to three bedroomunits that average 1,233 sf each.

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"Right now the effective rents at the property are belowmarket," says Pinkalla. "We're trying to reposition the product inthe market at about a 10 to 15% discount to what the newerproperties [in the area] are charging."

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