The JV's purchase of the 34-building complex at 3950 N. StoryRd. is being packaged as a three- to five-year hold, according toKristin Panehal, senior vice president of Newport Beach, CA-basedBuchanan Street. She tells that the JV secured afive-year loan from Freddie Mac through Deutsche Bank to take thedeed from an affiliate of Fairfield Residential LLC in SanDiego.

Panehal says she'd been evaluating deals in the Charleston,SC-based Greystar's pipeline since January. "This was the first onethat had enough value-add component," she explains. "It was thefirst deal that really fit what we were looking for." With the dealdone, the JV is sizing up a property in Colorado.

Panehal says Greystar has bids in hand to select contracts forthe exterior upgrades, which are projected to take six to ninemonths to complete. Interiors will be retooled as units turn. Thethree-story buildings, developed in 1983 on a 10.6-acre tract, hasone-, two- and three-bedroom units averaging 845 sf. In-place rentsaverage $720 per month, with concession burn-off adding promise ofadditional upside after the extensive renovation is done.

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