SANTA ANA, CA-Grubb & Ellis Apartment REIT has signedagreement to acquire nine multifamily properties totaling 2,676units in three states from Oakton, VA-based MR Holdings LLC, aswell as all of the assets of Mission Residential Management LLC,for $182 million. The Grubb & Ellis REIT also is negotiatingwith the tenant-in-common owners of six additional multifamilyproperties totaling 1,510 apartment units in North Carolina andTexas to acquire those properties for $99.5 million.

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The complexes that Grubb & Ellis Apartment REIT has agreedto buy are in North Carolina, Tennessee and Texas. One of theproperties is owned by a limited partnership for which an affiliateof MR Holdings serves as general partner. The other eight are ownedby Delaware statutory trusts for which affiliates of MR Holdingsserve as trustee.

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Total consideration for the acquisition of the nine propertiestotals $176.9 million comprised of cash, debt and limitedpartnership interests in Grubb & Ellis Apartment REIT'soperating partnership. The other $5.5 million of the $182 millionis for the assets of Mission Residential, including work force inplace and the assignment and assumption of the property managementagreements for all of the Mission Residential properties. MissionResidential Management is the property manager of 41 multifamilycommunities, including the nine under contract for purchase,totaling approximately 12,000 apartment units in Georgia, Texas,North Carolina, Tennessee, Utah and Florida.

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According to Stanley "Jay" Olander Jr., chairman and chiefexecutive officer of Grubb & Ellis Apartment REIT, the REIT"will enjoy greater economies of scale" as owner of the properties,while the acquisition of the Mission Residential propertymanagement business "will provide immediate fee income to Grubb& Ellis Apartment REIT." He adds that the acquisition "providesa platform for the self-management of our entire portfolio" andadds nearly 300 experienced professionals to the REIT's employeebase.

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Additionally, Grubb & Ellis Apartment REIT will seek theconsent of the respective tenant-in-common owners of sixmultifamily communities totaling 1,510 apartment units in NorthCarolina and Texas to acquire these properties. Total considerationfor these proposed acquisitions would be $99.5 million, includinglimited partnership interests in the REIT's operating partnershipand assumed debt.

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The Grubb & Ellis Apartment REIT portfolio is currentlycomposed of 14 multifamily properties totaling 3,747 apartmentunits valued at approximately $358 million, based on purchaseprice. If the Santa Ana-based company closes on the nine propertiesand also negotiates the acquisition of the six others, itsportfolio will total 29 multifamily properties totaling 7,933apartment units valued at approximately $661.4 million, based onpurchase price.

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FBR Capital Markets & Co. served as financial advisor to MRHoldings in connection with the transactions, while Wells FargoSecurities/Eastdil Secured served as financial adviser to Grubb& Ellis Apartment REIT.

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