closed on the $32million note

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Apartment Realty Advisor principal David Mitchell, who ismarketing Metropole Apartments, says Lynd Residential acquired anasset that wasn't stabilized, but the company is working onlease-up. Metropole, at 3616 Richmond Ave. has an occupancy in thelow 80s, up from 75% in December 2009. He tells GlobeSt.com thatthe property should be fully stabilized by April. The call foroffers on Metropole Apartments is set for March 25.

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Upon stabilization, the complex will still offer a lot ofupside. For one thing, Mitchell points out, there's been no newsupply coming onto the market, and none anticipated during the nextthree or four years.

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"If we start getting jobs back, and with no new supply coming online, we could see rents in 2011 or 2012 really starting to takeoff," Mitchell explains. The current asking rents on Metropoleunits are around $1.50 per square foot, with the average sizerunning around 966 square feet.

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Mitchell says the ideal buyers pretty much run the gamut frompension fund advisors, to private and public REITs, to privateinvestors. Furthermore, upon stabilization, financing will beavailable from Freddie Mac and Fannie Mae. "We've had severalmortgage bankers saying they'd love to do a high-end deal likethis," Mitchell comments.

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Metropole's story begins in 2005, when Cambridge Developmentacquired a vacant office building with plans to convert it intoliving space. Cambridge Development finished its work in 2007,creating a luxury high-rise multifamily complex right around thetime fundamentals began to weaken. Cambridge Development broughtthe asset to market in late winter 2008. Metropole was undercontract several times but never made it out of escrow.

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Lynd Residential and McCombs Enterprises acquired the note inearly December 2009 and foreclosed on the property immediatelythereafter. Mitchell says the partners don't have to sell; thatthey could hang on to the asset and own and operate it for awhile."More than anything, they made a great, great buy," Mitchellcomments. "Now they want to turn this around and make a quickprofit."

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