CHICAGO-Waterton Residential has acquired $109.5 million of debtsecured by four apartment complexes in North Carolina andCalifornia and, after previously buying $179.2 million in debtsecured by multifamily assets earlier this year, plans to buy $150million more in debt and/or properties by the end of 2010. The mostrecent debt acquisitions include mortgages secured by the Exchangeat Brier Creek, a 274-unit property in Raleigh, NC; and threeproperties in California: the 139-unit Skyline Terrace Apartmentsin Burlingame, the 628-unit Waterstone Corona Pointe in Corona andthe 296-unit Copper Canyon Apartments in Riverside.

All four properties were acquired as part of WatertonResidential Property Fund X, a $222 million discretionarymultifamily investment fund. Max Peek, Waterton Residential's VP ofacquisitions, notes that the company's multifamily debt portfoliohas grown dramatically over the past 18 months with mortgageinterests secured by over 34,382 units with aggregate loan balancesexceeding $2.29 billion. "Waterton has been one of the leadingbuyers of distressed debt secured by multifamily properties in 2010because of our discretionary capital and ability to close complextransactions in a timely manner," Peek said.

The Exchange at Brier Creek was originally developed by Flahertyand Collins Development. Waterton negotiated a workout with theexisting borrower, transferring the title to a new Waterton entity.CW Capital assisted Waterton in placing a new Freddie Mac CapitalMarkets Execution loan at closing. The property, a class A complex,was completed in 2008 and features a mix of studio, one- andtwo-bedroom units ranging from 667 square feet to 1,525 squarefeet.