Sales Price of Park Meadows Said to be $56M

Doug Andrews, a broker with Grubb & Ellis, tells GlobeSt.com if the purchase price is correct, AMLI made a great purchase.

In January 2000, the property would have fetched north of $120,000 per unit, Andrews says. He notes AMLI is a company that makes contrarian purchases and does well with them in markets such as Atlanta and Houston, which also recently suffered from over-building of class-A properties.

Allan J. Sweet, president of AMLI, declined to release the sales price of the property, renamed as AMLI at Park Meadows. AMLI bought it in a joint venture with the Mercantile-Safe Deposit and Trust Company as trustee for the AFL-CIO Building Investment Trust.

The community was acquired in a joint venture which is structured so that cash flow and sales proceeds will be shared 25% to AMLI Residential and 75% to the AFL-CIO Building Investment Trust until certain benchmarks are achieved. At that point, AMLI will receive an increased portion of the residual interest.

Freddie Mac, through GMAC Commercial Mortgage Corp., a member of Freddie Mac's Program Plus(R) lender network, provided a 50% permanent loan for this acquisition. The interest rate on the loan is 6.25% and provides for interest-only payments for a loan term of seven years.

The community is set on approximately 33 acres located a half-mile southwest of the intersection of I- 25 and E-470. Built last year, AMLI at Park Meadows contains 532,996 rentable sf in 32 two- and three-story buildings, with 248 (48%) one-bedroom, 228 (44%) two-bedroom and 42 (8%) three-bedroom apartment homes. The average size of the apartment homes is 1,029 sf.

The community offers numerous amenities including a resort-style swimming pool with heated spa, a state-of-the-art fitness center with moving climbing wall, and indoor gymnasium, a putting green, media center with theatre seating and a resident business center.