$145M Wins Equity Portfolio

Davenport tells GlobeSt.com that this is the largest acquisition thus far for the locally based investment firm, which previously has acquired $13 million in commercial property and a $28-million multifamily portfolio. He says his firm is shopping for more properties, both multifamily and retail. Real Estate Partners has earmarked $300 million to acquire apartments throughout the US this year, and expects to spend approximately $50 million to $100 million for retail properties in California, Davenport says. The company's investors include high net worth individuals and institutions like Wachovia Securities, which provided $32 million in mezzanine equity toward the purchase of the Equity Residential portfolio. Wachovia Bank (formerly Lend Lease) arranged the debt for the acquisition, which was a $98-million Freddie Mac loan.

Davenport says Real Estate Partners sees upside in the Equity portfolio, which is about 87% occupied, through a combination of modest renovations and more aggressive management to boost occupancy. Real Estate Partners has recently hired one of the industry's top multifamily executives, Greg Garmon, formerly SVP of the Pacific Division of Denver-based AIMCO, the apartment REIT. Garmon's new title is executive management services director at REP.

Real Estate Partners bought the Equity Residential portfolio via RepFund Apartments II LLC. Tom Thompson, EVP of Coldwell Banker Commercial in Newport Beach, represented the buyer, with the seller represented by Brian McAuliffe of CB Richard Ellis in Bannockburn, IL. The Equity Residential portfolio acquired by REP includes four complexes in Greensboro, NC: the 500-unit Madison at Adams Farm; the 320-unit Bridford Lake apartments; the 297-unit Deerwood Meadows and the 256-unit Cardinal apartments. The other four properties are the 312-unit Park West End and the 294-unit Hickory Creek complex, both in Richmond, VA; the 212-unit Champion Club in Glen Allen, VA; and the 208-unit Chatham Wood apartments in High Point, NC.

Besides the Equity Residential properties, Real Estate Partners' holdings include the $13 million worth of commercial property in Henderson, NV, plus $28 million worth of apartments in Louisiana, Phoenix and San Antonio.

Real Estate Partners Inc. also owns and operates Orange Coast Commercial Inc., which does business as Coldwell Banker Commercial REP.