Transwestern Fund Buys 1,000 Multifamily Units

Although the complex's seller and purchase price were not disclosed, a high eight-figure price was paid for Cedarbrook Hill. In addition, Ceebraid-Signal and Transwestern announced they will spend more than $10 million upgrading the three-tower property next to Cedarbrook Golf Course and Country Club. That includes new common areas and a new clubhouse, says Transwestern managing director and CEO Stephen R. Quazzo. The apartment complex already includes a hair salon, barber shop, doctors' offices, dry cleaning facilities, shoe repair, grocery store and bank branch.

The $426-million Aslan Realty Partners, LP has now invested about 85% of its funds, but plans are in the works to launch a second Aslan fund at the end of June, Quazzo says. The fund has invested heavily in office buildings as well as the multifamily and industrial sectors.

The purchase was in the works since the first quarter, Quazzo says. "It had been broadly marketed, and there were a number of players who had interest. But a couple of the top bids couldn't close," Quazzo tells GlobeSt.com. "The seller eventually said, 'Let's go with someone who can close'."

Transwestern obtained financing from insurance, mutual fund and annuity company SunAmerica at "a real attractive rate," Quazzo says.

Transwestern's purchase price was at a 9% overall capitalization rate, Quazzo says.

The 30-year-old property was attractive to Transwestern because of the steady history of high occupancy, the financing that was available and the value-added opportunity, Quazzo says. Also, the suburban Philadelphia multifamily market was attractive because of the high barriers to entry, Quazzo adds, evidenced by a low number of building permits and tight supply. In addition, the property's location is in eastern Montgomery County, one of the most affluent areas of the Philadelphia market, Quazzo notes.