PIKESVILLE, MD-KBS Legacy Partners Apartment REIT, based in Newport Beach, CA, has acquired an apartment building here for a reported $64.7 million. The property, The Residence at Waterstone, is a 370,591-square foot, 255-unit complex 13 miles northwest of downtown Baltimore.
The non-traded REIT is sponsored by KBS Capital Advisors LLC and Legacy Partners Residential Realty LLC. This transaction marks its third equity-asset acquisition. Other properties the REIT owns include a 504-unit garden-style apartment complex in Irving, TX and a 196-unit complex outside of Chicago. KBS did not return a call in time for publication.
The complex was originally designed as a condo project. The new owners cite the condo finishes and design as one reason why turnover is so low—an average 35% compared to the 50% to 60% industry average. At the time of the sale, at the beginning of April, the property was 96% leased.
The 29-building complex is located on Green Tree and Reisterstown Rd. It was built in 2002 and is situated on a 25.2-acre site.
Non-traded REITs are a growing investment category, and as more investors flock to these vehicles their purchasing power—and acquisition activity—will clearly increase. Blue Vault Partners, a research firm based in Cumming, GA, recently reported that non-traded REITs introduced 11 new offerings and reached an estimated $84 billion in assets last year. They raised an estimated $8.2 billion in new capital from investors in 2011, just slightly below the $8.3 billion raised in 2010.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
