BPG, which will manage the properties through its Madison Apartment Group, closed on the first group of eight B-minus and C-plus assets, with 1,030 units, in September, paying the seller $28.63 million for the properties. The new owners plan to spend a total of $4 million to upgrade and reposition the entire portfolio, according to Steve Pogarsky, vice president of acquisitions for Madison Apartment Group.
"With this second closing, we can start our upgrading program full steam on all properties," Pogarsky tells GlobeSt.com, adding the approximate time frame for renovations, name changes and re-introduction to the market is about six months. He adds the portfolio's occupancy, which was in the mid- to high 80% range during the first closing phase, has increased to slightly more than 90%.
The second batch of properties, all located in Houston, are the Braeshill Apartments at 5900 N. Braeswood Blvd.; Englewood Place Apartments at 4503 S. Kirkwood Rd.; Englewood Place Townhomes at 11855 Dashwood Dr.; Fairmeadow Place Apartments at 7899 W. Airport Blvd.; Lockfield Bend Apartments at 4200 Lockfield St.; Rose Garden Apartments at 11700 Bissonett St. and Rosewood Place at 5505 Pine St.
Pogarsky says BPG is continuing to seek value-add acquisition opportunities nationwide in primary and secondary markets--portfolios or single assets.
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