DALLAS—Encore Multi-Family LLC has sold itsDenver apartment community, which it developed in 2012, andrecapitalized seven others throughout the Southwest. The combinedvalue of the sale and recap was $175 million, including the$40.8-million sale of Encore Highpointe Park in the Denver suburbof Thornton, CO to Asher Investments.

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A spokeswoman for Encore Multi-Family, a division ofDallas-based Encore Enterprises, tells GlobeSt.comthat the recap entailed the acquisition of the seven apartmentcomplexes by a partnership comprised of Encore and a major pensionfund advisor which prefers not to be identified. The loans wereassumed by the new partnership and all were financed under theHUD 221(d)(4) program.

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The properties in the combined sale and recap total 1,612 units,including the 221-unit Encore Highpointe. The other sevenproperties are in the Texas communities of Burleson, Temple,Texarkana and Corpus Christi; Tulsa, OK and Thibodaux, LA.

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“The recapitalization and sale provides a stronger financialfoundation for the company going forward and is an important partof Encore's business strategy,” says BharatSangani, chairman of Encore Enterprises and its founder in1999. “The additional liquidity obtained will enable the company tocontinue working towards its operational and financial goals andtowards enhancing long-term value.”

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.