LEXINGTON, KY-A 384-unit apartment complex here has changed hands for $30.1 million, or 78,385 per unit. MLP Investment LLC, a St. Louis-based multifamily developer and manager, sold a 97% interest in the Bridle Creek Apartments to the Geneva Exchange LLC, a three-year-old affiliate of the Minneapolis-based Geneva Organization that acquires Midwestern assets and then offers them to its pool of high-net-worth investors, the vast majority of which are looking to complete a 1031 exchange.
MLP developed Bridle Creek in 2002. It will retain a 3% equity interest and serve as the property manager. Garrett Farmer, Geneva's vice president of acquisitions, tells GlobeSt.com that Geneva will hold onto another 5% to 10% of the asset and sell the rest to its investor pool in the next 60 days.
Located at 3800 Nicholasville Rd., Bridle Creek consists of 12 apartment buildings and a clubhouse with pool on about 18.5 acres. The unit mix is 124 one-bedroom units, 36 three-bedroom units and the rest are two-bedroom units. The average square footage is 996 sf and the price range is $0.74 to $0.84 per sf. Occupancy is around 95%, according to Farmer.
MLP has been in business since 1990 and has constructed 6,470 units in 29 apartment and mixed-use developments. Bridle Creek is the second apartment project Geneva Exchange has acquired from MLP since it approached the company 12 months ago to create an ongoing relationship, says Farmer, who expects to acquire more properties from MLP in 2006.
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