$270-millionpurchase

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Lawrence R. Gottesdiener, Northland's chairman, tellsGlobeSt.com that, in turn, "We'll selectively liquidate some of ourolder B-quality buildings including holdings in Corpus Christi,Dallas and Tyler." One of those holdings, the 324-unit StanfordCourt at 18175 Midway Rd. in Dallas, has just hit the market.

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Austin again has turned into a core market for Northland, whichnow owns 4,500 units in the city. "We re-entered in 2005 and thinkthe area is well-positioned for the long-term," Gottesdiener says."It's the state capital, is an information capital and has theuniversity." Austin particularly fits one of Northland Investments'main strategies, which is investment in informationtechnology-growth markets.

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Gottesdiener says Northland's strategy is to take advantage ofcurrent market conditions and cap rates so it can build a portfolioof class A-minus properties and strengthen its position in coremarkets. Many assets in Chicago-based Equity's 2,985-unit portfolioare 10 years old so renovations have been ordered. Gottesdienersays upgrades will be made to select complexes, mainly in thesouthwest submarket. The interior renovations are slated toimmediately begin and take 18 months to complete.

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Gottesdiener says Northland had 1,500 units in hand in Austinwhen Chicago-based Equity Residential brought its portfolio tomarket. He says the decision was made to jump into the chase afterthe portfolio was re-priced due to a couple escrow fallouts.

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"We really like the city. It's projected to be a job growthleader and with its core institutions, provides a good investmentunderpinning," Gottesdiener points out. "We would definitely add ifthe right opportunity came along."

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